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The Turkish government is working to advance a resolution process that could remake domestic politics and enhance its foreign policy clout. A 28-year conflict with the autonomy-seeking Kurdistan Worker’s Party (PKK) has cost over 40,000 lives, has held back economic growth and hampered Turkey’s bid for EU membership. Recent peace talks with the leader of the PKK, Abdullah Öcalan, led to a ceasefire agreement and militants have since begun to pull back from Turkey. Given its ability to bridge the divide between Europe and the Middle East, Turkey has become something of a role model for political transformation in countries such as Tunisia and Egypt. Still, issues including Cyprus and the Kurdish question remain key stumbling blocks for its EU bid, which is also hampered by continuing opposition from some European states. Prime Minister Recep Tayyip Erdoğan is poised to continue the EU bid, but considers it to be non-vital and “not the end of the world” if it is not accepted. Irrespective of the accession process, Turkey is making its own way ahead, enjoying sustained economic growth and increasing clout within the region and internationally. This chapter contains interviews with Zafer Çağlayan, Minister of Economy; M Rifat Hisarcılıoğlu, President, Union of Chambers and Commodity Exchanges of Turkey (TOBB); and Hüseyın Diriöz, Ambassador and Assistant Secretary-General for Defence and Policy and Planning, NATO.
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Lodged between the Malaysian states of Sabah and Sarawak, Brunei Darussalam is located on the north-west coast of Borneo, in the South China Sea. The Sultanate has a young population, with around 54% of Bruneians under the age of 30. The country also has one of the highest per capita GDPs in the region, hitting just over $48,000. This ranks Brunei Darussalam second only to Singapore within the 10-nation ASEAN bloc. The main language is Malay, although English is widely spoken and is the principle language of business. Much of the nation’s revenue comes from oil and natural gas, but other resources include timber and aquaculture. Free health care and education are testaments to the government’s dedication to the populace’s wellbeing. However, to sustain this success, the government has realised the need to increase value-added, downstream services within the oil and gas industry while developing industries outside the energy sector. This chapter contains interviews with His Majesty Sultan Haji Hassanal Bolkiah, Sultan and Yang Di-Pertuan of Brunei Darussalam; HRH Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade; Pehin Dato Lim Jock Seng, Second Minister of Foreign Affairs and Trade; and Kim Sung-Hwan, Korean Minister of Foreign Affairs ad Trade, as well as a viewpoint from Lee Hsien Loong, Prime Minister of Singapore.
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As the single largest economy in the Middle East and North Africa, and home to an estimated 16.1% of the world’s proven oil reserves, Saudi Arabia is a key player in the region and around the world. This chapter provides an outline of the economy, population and demographics, climate, history, religion, and system of government, as well as information about the Kingdom’s energy resources. This chapter includes viewpoints with Prince Khalid al Faisal bin Abdulaziz Al Saud, Governor, Makkah Province; and David Cameron, UK Prime Minister. It also includes interviews with Shaukat Aziz, former Prime Minister of Pakistan; and Abdullah Al Sheikh, Speaker of the Majlis-Ash-Shura.
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Largely spared the unrest that spread through the region as part of the Arab Spring, Morocco’s stability was in part thanks to subtle shifts in power brought about through constitutional changes in 2011 that further empowered parliament and devolved some responsibilities to regional authorities. A member of several regional and international bodies, Morocco has strong relations with a range of partners, especially the US and the EU, which is its largest trading partner. This chapter includes a viewpoint from His Majesty King Mohammed VI, and interviews with Abdel-Ilah Benkiran, Head of Government; and Alistair Burt, UK Minister for the Middle East and North Africa.
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Over the past 40 years, Abu Dhabi has grown into a major economic power in the Middle East. A series of ambitious long-term development policies have transformed the emirate, turning it into a regional economic, political and cultural heavyweight. The country profile includes information about Abu Dhabi’s geography, climate, population and political system. This chapter features an interview with Sheikh Hazza bin Zayed Al Nahyan, National Security Advisor and Vice-Chairman, Abu Dhabi Executive Council; and an interview with Kim Sung-hwan, Minister of Foreign Affairs and Trade in the Republic of Korea. There are also viewpoints with David Cameron, the UK Prime Minister; and Janet Napolitano, US Secretary of Homeland Security.
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While the modern state of Indonesia only came into being after the Second World War, the islands’ history dates back much earlier: evidence of humanoid activity from 1.5m-1.6m years ago has been found on Java. Following the arrival of the Portuguese in the 16th century, the islands experienced European colonial rule until the Second World War. The country was occupied by the Japanese during the war, with the Dutch recognising an independent Indonesia afterwards, in late 1949. Indonesia was one of the five founding members of ASEAN in 1967. Indonesia is the world’s 16th-largest economy, the third-most-populous democracy, the largest archipelagic state and home to the largest Muslim population. Indonesia’s natural resources include petroleum, gas, tin, nickel, timber, copper, coal, gold and silver. As ASEAN moves towards the launch of the Economic Community in 2015, tariffs have been gradually lowered, with impressive results. This chapter contains interviews with President Susilo Bambang Yudhoyono and Sukwoo Hong, Korean Minister of Knowledge Economy, and viewpoints from Lord Green of Hurstpierpoint, UK Minister of State for Trade and Investment; Ed Fast, Canadian Minister of International Trade; and Robert Hormats, US Under-Secretary of State for Economic Growth, Energy and the Environment
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This chapter includes information about Dubai’s history, geography, climate, demographics, government and political organisation. It also includes interviews with Kim Sung-hwan, Minister of Foreign Affairs and Trade in the Republic of Korea; Mohamed Alabbar, Chairman, Emaar; and a viewpoint with David Cameron, the UK Prime Minister.
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With a population of 2.8m inhabiting its wind-swept, grassy steppes and vast expanses of desert, Mongolia is the world’s most sparsely populated country. Its primary religion is Buddhism, though it is estimated that 40% of the population does not practise religion. Ninety per cent of the population speaks Mongolian, most using the Khalkha Mongol dialect, which shares lineage with Turkic, Japanese and Korean languages. Nomadic tradition, particularly the herding of livestock, remains one of the biggest influences on the national culture. In 1990, Mongolia abandoned a single-party communist dictatorship and adopted a mixed presidential-parliamentary system. The nation continues to emerge as a key centre for mining investment, with a wide variety of important mineral reserves, and also offers potential in a variety of other sectors, including telecoms and IT, agriculture, transportation and logistics. This chapter includes interviews with President Ts. Elbegdorj, Prime Minister N. Altankhuyag, U.S. Secretary of State Hillary Clinton, Australian Minister for Foreign Affairs Bob Carr and Russian Federation Ambassador Victor V. Samoilenko.
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Split between Peninsular Malaysia and the island of Borneo, Malaysia has a diverse population of 29m, mainly ethnic Malays, Chinese and Indians. Bahasa Malayu is the official national language, but Indian and Chinese languages are spoken by their respective native communities, and English is widely used even beyond the business community. Malaysia, which gained real independence in 1957, is a federated constitutional monarchy that delegates considerable autonomy to states, with special status for Sabah and Sarawak in Borneo. The current head of government is Prime Minister Najib Razak of the Barisan Nasional coalition, which has ruled since the country’s founding, although opposition party Pakatan Rakyat looks competitive in upcoming elections. This chapter contains interviews with Mohamed Mahathir, former Prime Minister of Malaysia; William Hague, UK Foreign Secretary; Sebastian Pinera, President of Chile; Alessandro Golombiewski Teixeira, Deputy Minister of Development, Industry, and Foreign Trade of Brazil; and Surin Pitsuwan, Secretary-General of ASEAN.
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Algeria is the largest African country by geographical size, as well as the largest country in the Mediterranean region. Although 85% of the country is desert, Algeria is topographically diverse, in particular in the north, which consists of the Tell Atlas, the High Plateaux and the Saharan Atlas. Roughly 91% of the population lives in less than 13% of the country’s territory, mostly in the north along the Mediterranean. The population was an estimated 35.6m in 2010, with over 68% under 35 years of age. Arabic is the official language, although many Algerians are fluent in French as well. Hydrocarbons are the mainstay of the economy, representing 97-98% of exports, 60% of government revenue and upwards of 30% of GDP This chapter contains a viewpoint with President Abdelaziz Bouteflika; and interviews with Lady Olga Maitland, Chair, Algeria Britain Business Council; Mourad Medelci, Minister of Foreign Affairs; Daniel Kawczynski, British MP and Former Member, International Development Select Committee; and Shigeo Matsutomi, Director-General, Middle Eastern and African Affairs Bureau, Japanese Ministry of Foreign Affairs.
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Nigeria is the 14th-largest African country and possesses a rich and varied landscape, biodiversity and climate. While it is known for its oil and natural gas, Nigeria also has substantial reserves of coal, iron ore, zinc, tin, limestone, lead and niobium. The capital, Abuja, is located in the geographic centre and has a registered population of an estimated 1.6m. Nigeria has a varied assortment of ethnic groups, with the largest three – the Yoruba, Igbo and Hausa-Fulani – accounting for a collective 68% of the total population. The country holds significant political power in the region and on the international stage. This chapter contains interviews with President Goodluck Ebele Jonathan; Stephen Green, UK Minister of State for Trade and Investment; and Jim O’Neill, Chairman, Goldman Sachs Asset Management. It also includes a viewpoint with Ron Kirk, US Trade Representative.
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This chapter includes information about Qatar’s history, geography, language, culture and population. It also provides an overview of the country’s natural resources and education system.
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Gabon has long been lauded on the global stage for its relative stability in a region that has, at many times over the past several decades, experienced significant political unrest. A member of both global and regional political and economic organisations, Gabon’s global engagement is closely linked to France, given its status as a former French colony. The country has a multi-party political system with the executive branch composed of a president, who serves as head of state and a prime minister, who is head of government. Legislative power rests with the 120-seat bicameral parliament. The government has more recently turned its view to economic reforms that will promote sustainable growth. This section also provides a quick overview of the country, its history, geography, population, religion, natural resources, climate and languages. This chapter contains interviews with President Ali Bongo Ondimba, Prime Minister Raymond Ndong Sima; and Jim O’Neill, Chairman, Goldman Sachs Asset Management.
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This section provides an overview of Egypt’s geography, history, government, foreign relations, population and language, as well as a discussion of the most recent elections and some of the more prominent socioeconomic issues. The chapter includes a viewpoint from President Mohamed Morsy, along with interviews from William Hague, UK Secretary of State for Foreign and Commonwealth Affairs; and Nabil Elaraby, Secretary-General, League of Arab States.
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This chapter takes a look at Ghana’s history, trade relations and its impact on the regional and global stage. This chapter contains interviews with Mahatir Mohammad, former Prime Minister of Malaysia; Stephen O’Brien, UK Under-Secretary of State for International Development; and viewpoints from President President John Dramani Mahama and Fernando Pimentel, Brazilian Minister of Development, Industry and Foreign Trade.
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This chapter features interviews with His Majesty Bhumibol Adulyadej, King of Thailand; Yingluck Shinawatra, Prime Minister of Thailand; Surin Pitsuwan, Secretary-General, ASEAN; Lyonpo Khandu Wangchuk, Minister for Economic Affairs, Kingdom of Bhutan; William Hague, UK Secretary of State for Foreign and Commonwealth Affairs; and Tony Blair, former Prime Minister of the UK.
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This chapter provides information about RAK’s geography, economy, population, natural resources and political system. It also includes an overview of the large-scale development programmes that have been put in place in RAK over the past 10 years – projects that have aided the emirate’s reputation as an up-and-coming player in the Middle East and further afield. The industrial sector, which today accounts for a majority of the emirate’s export revenues, is the result of a great deal of long-term planning by the state. Furthermore, RAK has a number of competitive advantages for industrial development, including a prime location on the Strait of Hormuz and a substantial amount of undeveloped, affordable land. To secure economic growth, RAK is focusing on expanding water supply, as well as its number of power plants. Looking ahead, RAK’s reputation as an up-and coming regional leader in higher education could also be a major advantage in the wake of the Arab Spring; the emirate can expect to see increased interest from investors seeking calm markets. This chapter includes an interview with Sheikh Saud bin Saqr Al Qasimi, the ruler of Ras Al Khaimah, and Sheikh Mohammed bin Saud Al Qasimi, the crown prince.
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Includes information about Jordan’s geography, climate, population and demographics. The chapter also provides an overview of the kingdom’s natural resources, politics and government.
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The Philippines, an archipelago of 7107 islands in the western Pacific Ocean, has a complex history of human habitation and imperial conquest. Three centuries of Spanish occupation left their impression on the country’s food, language, and religion, with the population now over 90% Roman Catholic. US influence dominated in the 20th century, thanks to several decades of US control, and English and Tagalog are now co-equal national languages. The volcanic origins of the Philippines’ islands is responsible for the country’s vast deposits of nickel, cobalt, silver, gold, salt, and copper, exports of which are important contributors to economic growth.
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This section includes information about Kuwait’s history, geography, culture, religion, population, education sector, language, natural resources and climate.
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Includes information about Indonesia’s geography, history, economy, government, foreign relations, population, language and culture.
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Containing key information about the Country, this chapter will introduce you to OBGs coverage of South Africa and give you an overview of the region.
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Buy digital copy of this chapter - £22Sharjah stands out as a prime destination for manufacturing, culture and education. Its economy is nearly 96% non-oil based, and the emirate hosts six specialised free zones, offering flexible investment options and advanced infrastructure. In 2022 Sharjah's population reached 1.8m, with a focus on a young, urban demographic. The emirate's commitment to economic diversification is evident through initiatives supporting small businesses and investment in tourism. Recognised internationally for its culture, Sharjah aims to become a top regional family tourism destination, Sharjah is expanding its infrastructure, including Sharjah International Airport, while progressing towards a sustainable and diversified economy, harmonising economic resilience with cultural richness. This chapter contains interviews with Sheikha Bodour bint Sultan Al Qasimi, Chairperson, Sharjah Investment and Development Authority (Shurooq), Ahmed Al Qaseer, CEO, Sharjah Investment and Development Authority (Shurooq), Mohamed Al Musharrakh, CEO, Invest in Sharjah. This chapter contains interviews with Sheikha Bodour bint Sultan Al Qasimi, Chairperson, Sharjah Investment and Development Authority and Chair, Sharjah Entreprensurship Centre; Ahmed Al Qaseer, CEO, Sharjah Investment and Development Authority; and Mohamed Al Musharrakh, CEO, Invest in Sharjah.
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Buy digital copy of this chapter - £22Situated between Iraq and Saudi Arabia at the north-western corner of the Gulf, Kuwait operates as a constitutional monarch, and is a founding member of both the GCC and the Organisation of the Petroleum Exporting Countries. Despite its modest land size, the country holds the world’s sixth-largest crude oil reserves, which have served as a robust foundation for sustained economic development and prosperity. With one of the most dynamic political systems in the region, the hope is that the executive and legislative branches of government can work together to advance the policy changes and strategies needed to fulfil the ambitions of the long-term development plan, New Kuwait 2035. This chapter contains a viewpoint from the Emir, Sheikh Mishal Al Ahmad Al Jaber Al Sabah.
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Buy digital copy of this chapter - £22Abu Dhabi, the largest emirate in the UAE, boasts 200 islands and 700 km of coastline. It is a vital player in the UAE’s economic and political landscape, with around 96% of the country’s oil reserves. To propel diversification, the Abu Dhabi Economic Vision 2030 is focused on key sectors such as finance, ICT, agri-tech, tourism and manufacturing. The Abu Dhabi Plan, meanwhile, which was initiated in 2016, aims to create a thriving private sector and enhance business opportunities. Despite headwinds stemming from the Covid-19 pandemic, Abu Dhabi is making strides toward a diversified, globally integrated economy. Priorities include knowledge-based sectors like tourism, manufacturing, logistics, health care, education, financial services and ICT. Private sector investment and foreign direct investment are key drivers in this regard. By 2030 non-hydrocarbons sectors are targeted to contribute 64% of GDP, with oil and gas to account for 36%. This chapter contains interviews with Sheikh Mansoor bin Zayed Al-Nahyan, Vice-President of the UAE, Deputy Prime Minister and Minister of the Presidential Court; and Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO, UAE Independent Climate Change Accelerators.
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Situated at the crossroads of Europe, Asia and Africa, Saudi Arabia boasts deep historical and cultural roots predating the modern Kingdom's establishment in 1932. Since its initial oil discovery in 1938, Saudi Arabia has become the world's leading oil producer and the sole Arab member of the G20. Underpinned by substantial oil revenue – exemplified by a $161bn profit for national oil company, Aramco, in 2022 – the Kingdom is actively financing giga-projects and strategic investments, bolstering sectors such as tourism, manufacturing and mining. Vision 2030, a comprehensive socio-economic development blueprint, is driving this transformation, aiming to diversify the economy and modernise society. Amid the global energy transition and geopolitical uncertainties, Saudi Arabia remains steadfast in its commitment to prioritise non-oil sectors, enabling sustained growth.
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Located on the Mediterranean coast of North Africa and bordering Egypt, Sudan, Chad, Niger, Algeria and Tunisia, Libya has a rich history dating back to the Phoenician era. Though there has been an end to violent conflict following the 2011 overthrow of Muammar Gaddafi, political stalemate continues and the government is currently divided between Tripoli and Tobruk Nevertheless, in the last couple of years, the country has made substantial strides towards recovery in the private sector and the wider economy, although challenges remain. Despite global economic challenges and supply chain constraints, Libya’s shipping and manufacturing industries have the potential to play a significant role in diversifying the economy and creating new business opportunities.
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The strategic location of the island country of Bahrain, combined with its business-friendly ecosystem and diversified economy, has seen it emerge in recent decades as an attractive destination for foreign investment. The kingdom’s economic resilience during the disruption that came with the Covid-19 pandemic, aided by stable governance and a commitment to economic reform, has positioned the country as a competitive player in the GCC and broader Middle East. The country’s guiding plan, Bahrain Economic Vision 2030, aims to enhance private sector growth and promote government investment in infrastructure, affordable housing, human resource development and digital transformation. The kingdom maintains a developed industrial sector and hosts the world’s largest single-site aluminium smelter outside of China, Aluminium Bahrain, with downstream firms creating products for export. This chapter contains an interview with Shaikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister.
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Djibouti, a republic located on the Horn of Africa, is characterised by a young, urbanised and rapidly growing population, which presents opportunities for economic development. Political stability is another key strength, providing a favourable environment for domestic and foreign investment. With its advantageous location between Africa, Asia and the Middle East, Djibouti serves as a crucial centre for international trade and logistics. Its strategic positioning along major shipping routes and well-developed port infrastructure make it an attractive destination for businesses seeking connectivity and access to regional markets. With strategic planning and continued investment in key sectors, Djibouti has the potential to further harness its advantages and drive sustainable economic growth, while boosting the social well-being of its population. This chapter contains interviews with President Ismaïl Omar Guelleh; Workneh Gebeyehu, Executive Secretary, Intergovernmental Authority on Development; and Ngozi Okonjo-Iweala, Director-General, World Trade Organisation.
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If its population reaches 377m by 2050 as is projected, Nigeria is poised to become the world’s third-most populous country, with a diverse and complex social architecture comprising more than 250 ethnic groups and a plethora of faiths. The peaceful handover of power at both the executive and legislative level following elections in March 2023 buttressed Nigeria’s status as a symbol of political stability in the region. The new government faces several pressing issues, ranging from an Islamist insurgency in the north and secessionist agitation in the south-east, to an underperforming oil sector in the south-south, in addition to sluggish economic growth and a depreciating currency. This chapter contains interviews with Ngozi Okonjo-Iweala, Director-General, World Trade Organisation; Antonio Pedro, Acting Executive Secretary, UN Economic Commission for Africa; and Omar Alieu Touray, President, ECOWAS Commission.
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Situated at the confluence of the Gulf and Arabian Sea, Oman occupies a strategically important location for trade and logistics. Although it is not on the Gulf, Oman possesses significant oil and natural gas reserves like its GCC neighbours. Since assuming leadership in January 2020, Sultan Haitham bin Tarik Al Said has renewed the country’s diversification efforts to reduce its reliance on the energy sector. Its long-term economic development is guided by Oman Vision 2040, the goals of which include establishing a diversified economy, creating sustainable cities, and facilitating privatisation and Omanisation. The sultanate’s 10th five-year plan (FYP), which covers 2021-25, is the first FYP launched under Vision 2040. The plan continues the country’s drive towards greater social development, fiscal sustainability, economic diversification and the optimal utilisation of its available natural resources. This chapter contains a viewpoint from Sultan Haitham bin Tarik Al Said; and an interview with Khamis bin Saif Al Jabri, Chairman, Oman Vision 2040 Implementation and Follow-up Unit.
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Kuwait has rebounded strongly from the disruption of the Covid-19 pandemic, and public finances have been bolstered by elevated oil prices in 2021-22. With one of the most dynamic political systems in the region, the hope is that the executive and legislative branches of Kuwait’s government can work together to advance the policy changes and strategies needed to fulfil the ambitions of the country’s long-term development plan, New Kuwait 2035. Recently, Kuwait has been pursuing a programme of economic diversification to jump-start expansion of the private sector via infrastructure projects and the privatisation of government assets. Among the many priorities of New Kuwait 2035 are goals to expand the role of the private sector, incentivise public-private partnerships, upgrade existing infrastructure, and generate a support mechanism for small and medium-sized enterprises. This chapter contains a viewpoint from Crown Prince Sheikh Mishal Al Ahmad Al Jaber Al Sabah.
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As the world’s largest oil producer and the only Arab country in the G20, Saudi Arabia is a key geopolitical player on the global stage. Officially established in September 1932, the Kingdom has begun to invest its considerable financial resources into a series of large-scale economic development, diversification and modernisation initiatives in recent years. Saudi Arabia has attracted international attention for the momentum of its socio-economic transformation taking place under the auspices of the Vision 2030 development plan, and the scale of giga-projects being developed across the country in support of emerging economic sectors such as tourism, entertainment and green technologies.
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Côte d’Ivoire has a range of natural resources and varied landscapes inhabited by a wide variety of peoples speaking different indigenous languages and practising distinct faiths. Despite the country’s complex political climate, Côte d’Ivoire has come a long way in recovering from a period of civil conflict that ended in 2011. Following a contested presidential election in 2020, the National Assembly elections of 2021 took place in relative calm, a pattern that will hopefully be repeated for the local elections of 2023 and the presidential election scheduled for 2025. Ahead of these ballots, the government has prioritised its ambitious reform agenda and worked to address the main roots of conflict in the country. This chapter contains a viewpoint from President Alassane Dramane Ouattara and interviews with Kandia Camara, Minister of State and Minister of Foreign Affairs, African Integration and Diaspora; and Franck Riester, Former Minister Delegate for Foreign Trade and Economic Attractiveness of France.
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Bahrain has long taken a liberal approach to international trade and investment policy, which it conducts largely in line with its partners in the GCC, especially neighbouring Saudi Arabia. Historically, its closest foreign relations outside the region have been with the US and the UK. Initially built around the defence industry, these ties have expanded over the years to areas such as electrical machinery and agricultural goods. After a challenging couple of years as a result of the Covid-19 pandemic, several recent developments could open up new avenues of trade for the kingdom, along with the expansion of existing partnerships.
This chapter contains a viewpoint from Sheikh Khaled bin Abdullah Al Khalifa, Deputy Prime Minister and Minister of Infrastructure; Chairman, Mumtalakat.
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Egypt was seen as a global centre of knowledge, science, and development throughout antiquity. Today, it stands in an economically advantageous location, straddling the Mediterranean and the Red seas, and at the confluence of Europe, Africa and Asia. The Suez Canal, completed in 1869, is one of the world’s busiest shipping lanes. Moreover, Egypt’s population is large and rapidly expanding, at a rate around 2.5% a year. It is seen as one of the country’s greatest economic assets if it can be harnessed by effective public policy. Moreover, the country is also characterised by a bottom-heavy population pyramid. The large youth cohort helps to limit the overall burden on the health care system, as evidenced by the relatively successful navigation of the Covid-19 pandemic. This chapter contains a viewpoint with President Abdel Fattah El Sisi of Egypt.
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Since gaining independence in 1971 Qatar has developed into an economic, political and cultural powerhouse in the Middle East. With a relatively small population and substantial revenue generated from having the third-largest proven natural gas reserves globally, Qatar has one of the world’s highest GDP per capita, at nearly $62,000 at current prices and $103,000 in purchasing power parity in 2022, according to IMF estimates. The country is recognised in the international arena for many reasons, such as its extensive portfolio of investment abroad and substantial infrastructure projects at home, the latter of which led to the population growing by an estimated 50% between 2010 and 2020 due to an influx of foreign workers.
This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar.
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With its tropical climate and overall low elevation due to the Volta Basin covering almost half of the country’s land area, Ghana has vast cocoa and gold resources. Its population is diverse, with a total of 75 ethnicities dispersed around the country due to increasing levels of human mobility. Ghana has witnessed robust urbanisation in recent years, with 58% of the population living in cities. It has overcome historical challenges to create a stable political and economic environment. For instance, its capital, Accra, hosts the African Continental Free Trade Area Secretariat and seeks to become one of Africa’s largest centres for financial services.
This chapter contains interviews with Nana Akufo-Addo, President of Ghana; and Siri Walt, Head of Sub-Saharan Division, Federal Department of Foreign Affairs of Switzerland.
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Nigeria is the 14th-largest country in Africa by land mass and is culturally diverse, with a population of more than 200m spanning over 250 ethnic groups. It is rich in natural resources, with some of the largest proven oil reserves in Africa, and has a strong agriculture sector, with major exports including rubber, cocoa, peanuts and palm oil. The country gained independence in 1960 and declared itself a federal republic in 1963. The presidential election in 1999 ushered in a period of relative stability and marked a return to civilian rule, providing strong foundations to support a post-pandemic rebound.
This chapter contains interviews with President Muhammadu Buhari; and Helen Grant, Member of Parliament and UK Trade Envoy to Nigeria.
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Sharjah is the UAE’s third-largest emirate, accounting for just over 3% of the country’s territory, and has long played an important cultural and economic role in the region. Home to six free zones, two amphitheatres, around 30 museums and various annual festivals that attract visitors from around the world, the emirate has a wide offering when it comes to manufacturing, commerce and culture. The discovery of oil in Sharjah resulted in an economic boom, but even at its early stages the emirate’s leadership understood the importance of developing a non-oil economy. In the intervening decades Sharjah has implemented a number of initiatives aimed at developing the economy and encouraging investment inflows.
This chapter contains a viewpoint with Sheikh Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the UAE’s Supreme Council; and interviews with Marwan bin Jassim Al Sarkal, Executive Chairman, Sharjah Investment and Development Authority; and Mohamed Al Musharakh, CEO, Invest in Sharjah.
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The Republic of the Philippines reaches from Taiwan in the north to Indonesia in the south. It is the fourth-largest country in South-east Asia after Indonesia, Myanmar and Thailand. Bordered by the South China Sea – also known locally as the West Philippine Sea – in the west and the Sulu and Celebes seas in the south, the Philippines is home to some 175 ethnolinguistic groups across thousands of islands. In January 2020 the Philippines reported the first Covid-19 case outside of China. Authorities enforced one of the world’s longest, most stringent lockdowns in response, starting in mid-March – with a range of restrictions still effective at the end of the year. A wide-ranging stimulus package was passed in March, followed by a second in September, to help mitigate the economic impact of the crisis and aid the health response. This chapter contains an interview with President Rodrigo Roa Duterte.
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Papua New Guinea is a vast archipelago, of which the main island – shared with Indonesia – forms the largest tropical island on Earth. Known for its unique flora and fauna, the country is famous for its environmental variety. However, with more than 850 languages spoken within its borders, it is also considered one of the most culturally diverse nations in the world. Enjoying heterogeneous landscapes and cultures, PNG is seen as a frontier market in economic terms. Hydrocarbons and mining are the cornerstones of production, thus there is significant scope for the development of nearly all other sectors. Agriculture and tourism are seen as prime engines for diversification, offering the potential to generate foreign exchange and employment. This chapter contains a viewpoint from Prime Minister James Marape.
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One of the world’s oldest civilisations, Egypt has long been central to the development of the MENA region and has built an extensive international trade network, benefitting from its location at the crossroads of Europe, Africa and Asia. As the world’s 14th-most populous country and the most populous nation in the Arab world, Egypt also benefits from a large, rapidly expanding population. These underlying fundamentals should help the country to continue on a path to long-term growth, despite the disruption caused by the global Covid-19 pandemic. This chapter contains a viewpoint from President Abdel Fattah El Sisi.
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Having declared its independence from the UK in 1971 as part of the federation of the UAE, the emirate of Abu Dhabi has significantly raised its political and economic profile in the intervening years, both regionally and internationally. While the emirate is home to the world’s sixth-largest proven oil reserves, financial buffers have helped it diversify and yield steady non-oil revenue. Centred on the Abu Dhabi Economic Vision 2030, an economic development strategy launched in 2008 to reduce dependence on oil and gas and foster a knowledge-based economy, the emirate has made important strides towards securing its growth plans amid global and regional risk. This chapter contains viewpoints from Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; Narendra Modi, Prime Minister of India; and an interview with Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, CEO, Alliances for Global Sustainability.
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While the Republic of Indonesia is just over seven decades old in its current form, the South-east Asian nation of more than 17,000 islands has a much longer history. The name Indonesia was first used in 1850 by British anthropologist James Richardson Logan in reference to the extensive group of islands that was known at the time as the Indian or Malay Archipelago. Archaeological analysis indicates that the ancestors of modern humans lived on the archipelago as far back as 1.9m years ago, while evidence of modern humans goes back 40,000 years. By 2000 BCE the islands were inhabited by a diverse group known as the Austronesians. These people exhibited impressive maritime skills and took full advantage of the archipelago’s location, engaging in extensive inter-island trading. This chapter contains a viewpoint from President Joko Widodo, better known as President Jokowi.
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Côte d’Ivoire is one of Africa’s most rapidly expanding economies, with significant oil, gas and mineral reserves; a major agriculture sector; and a growing, youthful population driving the country forward. Spread across a wide range of ecosystems, from tropical rainforests to dry savannah, the former French colony is a mosaic of ethnicities, languages and religions. The presidential elections in October 2020 will be a key test of how far this diverse country has come towards peace and reconciliation since the political instability from 2010 to 2011. Meanwhile, economic inclusion continues to be a priority. Prior to the Covid-19 pandemic the country’s growth trajectory was expected to continue, but due to the fallout from the lockdowns and other social-distancing measures this figure is expected to slow significantly. This chapter contains a viewpoint with President Alassane Dramane Ouattara; interviews with Mukhisa Kituyi, Secretary-General, UN Conference on Trade and Development; and Sean Cairncross, CEO, Millennium Challenge Corporation.
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Home to an estimated 15% of the world’s proven oil reserves and as the largest economy in MENA, Saudi Arabia is a key player not only in the region, but on a global scale. Over the last few years, Saudi Arabia has attracted international attention for the momentum of its socio-economic transformation taking place under the auspices of the Vision 2030 development blueprint. In November 2020 Riyadh is set to host the 15th annual G20 Leaders’ Summit, bringing together the heads of some of the world’s largest economies. This chapter contains a viewpoint from Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, as well as interviews with Prince Badr bin Abdullah bin Mohammed bin Farhan Al Saud, Minister of Culture, and Prince Faisal bin Salman bin Abdulaziz Al Saud, Governor of Medina.
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Prior to 2010 Qatar was primarily known for its vast gas reserves; however, the country’s global profile received a major boost in 2010 when it won the bid to host the 2022 FIFA World Cup in November and December of that year. Backed by sustained levels of economic growth, Qatar is channelling its resources into transitioning to a knowledge-based economy. The country has been working to translate recent economic growth into greater activity and sustainability throughout the private sector. As such, it has been investing in strategic sectors such as agriculture, services, and research and development to further diversify its economy and attract greater foreign direct investment. This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar.
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Morocco is often described as the gateway to Africa, an apt description given its proximity to Europe and its geographic location at the north-eastern tip of the continent. Morocco's economy has traditionally been dominated by agriculture, which is one of the most strategically important sectors. Despite its significant economic weight, the agriculture sector's performance is highly dependent on rainfall and weather conditions. Meanwhile, other sectors have been increasing in importance, such as the industrial and mining sectors. At home, Morocco has identified the reduction of social inequality as a key priority, setting in motion a series of reforms and transferring critical development funds to less-developed regions. Abroad, Morocco’s foreign policy objectives focus on spearheading intra-African cooperation and positioning itself at the centre of Europe-Africa relations. Gains were made on all these fronts in 2019, supported by growing GDP that reached $118.5bn in 2018. This chapter contains a viewpoint with King Mohammed VI; interviews with Gerd Müller, Minister for Economic Cooperation and Development of Germany; and Li Yong, Director-General, UN Industrial Development Organisation.
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The twin-island nation of Trinidad and Tobago is located in the southern end of the Caribbean, just off the coast of Venezuela. Its rich and varied heritage lends itself to a vibrant society and cuisine derived from an array of ethnicities and religions. Developmentally, the World Bank categorises T&T as a high-income country, and it has the fourth-highest GDP per capita in the Americas in terms of purchasing power parity after the US, Canada and the Bahamas. T&T is the largest producer of oil and gas in the Caribbean; however, like many hydrocarbon-producing nations worldwide, the slump in global energy prices beginning in 2014 negatively affected broader growth. Nevertheless, the situation has provided renewed political momentum towards greater economic diversification as a means of ensuring sustained development. This chapter contains a viewpoint from Keith Rowley, Prime Minister of Trinidad and Tobago; and an interview with Tijjani Muhammad-Bande, President, UN General Assembly.
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In December 2020 Ghanaians will go to the polls to elect a president and members of the National Assembly. The incumbent leader of the ruling New Patriotic Party, President Nana Akufo-Addo, is seeking re-election. He will take on former President John Dramani Mahama, who was elected as the candidate for the main opposition party, the National Democratic Congress. The event will be the seventh peaceful general election since the return to full democracy in 1996. As a presidential and unitary republic with a unicameral legislature and independent judiciary, Ghana also recognises the importance of its regions, each of which have their own assemblies and local government units. This chapter also contains viewpoints from President Nana Akufo-Addo; and Mia Amor Mottley, Prime Minister of Barbados. In addition, this section includes interviews from Vice-President Mahamudu; and K Y Amoako, President, African Centre for Economic Transformation.
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Located in the south-eastern quarter of the Arabian Peninsula, Oman is the only member of the GCC situated outside of the Gulf. To leverage its strategic location, Oman has invested in infrastructure with the goal of becoming a global logistics centre. Given that the country is less hydrocarbons-rich than its GCC neighbours, diversification efforts are a driving force behind economic growth. The sultanate’s long-term development strategy, Oman Vision 2020, is coming to a close, and in January 2019 the Vision 2040 conference set the stage for a new plan. Vision 2040 will continue to emphasise diversification, privatisation and Omanisation, with the goal to increase tourism, modernise agriculture, and foster technology and research and development.
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In 1932 Bahrain pioneered oil production in the Middle East, and in doing so established the region’s initial framework for the petroleum industry. The new resource enabled Bahrain to modernise its economy by moving beyond traditional industries such as pearl diving and fishing. Today, the country’s national plan, Bahrain Economic Vision 2030, aims to enhance private sector growth as well as continue government investment in infrastructure, affordable housing, human resource development and digital transformation. The kingdom maintains a developed industrial sector and hosts the world’s largest single-site aluminium smelter. This chapter contains a viewpoint from King Hamad bin Isa Al Khalifa.
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In what is considered to be the last frontier market in South-east Asia, the pace of business-friendly reforms is quickening, with a view to becoming a preferred investment destination in a region that is experiencing the effects of a global repositioning in trade and manufacturing. Following decades of military rule that maintained a socialist and centrally planned economic model that cut off access to the world’s financial markets and main trading routes, the country’s ongoing transition towards a market economy and electoral democracy has caught the attention of investors worldwide. Investors have been drawn by the size of its internal market, competitive wages, abundant natural resources, fertile land and strategic geographic location between the world’s most populous countries, China and India. This chapter contains an interview with Nick O’Donohoe, CEO, CDC Group.
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Covering a total area of 83,600 sq km, the UAE borders Saudi Arabia to the west and south, and Oman to the east. Its coastline stretches from the south-eastern shore of the Gulf, nearly reaching the Strait of Hormuz in the north. By area, Dubai is the second largest of the emirates after Abu Dhabi, covering a total of around 4110 sq km. A series of land-reclamation projects beginning in the early 1990s increased the emirate’s geographic area by 200 sq km and also contributed to an expansion of its coastline. This chapter contains interviews with Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai; and Najeeb Mohammed Al-Ali, Executive Director, Expo 2020 Dubai Bureau.
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Kuwait is a constitutional sovereign state situated in the north-western corner of the Gulf, bordered by Iraq and Saudi Arabia. Despite challenges in the region, Kuwait has largely maintained a neutral stance, which has benefitted its multilateral trade, investment and political bonds with its neighbours and the wider global community. By continuing with efforts to diversify the economy and reduce its dependence on oil revenues, Kuwait is adding momentum to several large infrastructure development projects, and encouraging greater levels of private sector participation and investment. Ongoing and future projects are set to further integrate Kuwait into the global economy and raise its overall competitiveness. This chapter contains a viewpoint with Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah.
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Strategically located between the Americas, Europe and Asia, Mexico is one of Latin America’s largest economies, second only to Brazil. Aided by its proximity to the US market, the county has established itself as an important manufacturing and export powerhouse, due in part to extensive oil, gas and mineral reserves; public and private universities; a young population; and a booming tourism industry. Winning the 2018 presidential elections on a populist, anti-corruption ticket, the priorities of the administration of President Andrés Manuel López Obrador are focused on reducing violence, as well as stemming the flow of Central American migrants and asylum seekers on their way to the US. The bright spot on the horizon remains the country’s tourism sector, which attracts millions of global travellers per year. This chapter contains interviews with Justin Trudeau, Prime Minister of Canada and; Ángel Gurría, Secretary-General, OECD.
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Papua New Guinea is a vast archipelago, of which the main island – shared with Indonesia – forms the largest tropical island on Earth. Known for its unique flora and fauna, the country is famous for its environmental variety. However, with more than 850 languages spoken within its borders, it is also considered one of the most culturally diverse nations in the world. While it enjoys heterogeneous landscapes and cultures, PNG is seen as a frontier market in economic terms. Hydrocarbons and mining are the cornerstones of production, thus there is significant scope for the development of nearly all other sectors. Agriculture and tourism are seen as prime engines for diversification, offering the potential to generate much-needed foreign exchange and employment. This chapter also contains interviews with Prime Minister James Marape; and Powes Parkop, Governor of the National Capital District.
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Long viewed as an open economy with a unique geographic position at the centre of the Mediterranean, Tunisia has faced macroeconomic challenges since the 2011 revolution. The country has successfully navigated the difficulties of the post-revolutionary period by capably establishing robust democratic institutions. Furthermore, while issues of corruption and security remain a problem the current administration has displayed determination to address these challenges. The upcoming parliamentary and presidential elections – which are scheduled for late 2019 – are likely to shed new light on the current balance of power. Nevertheless, to ensure stability over the longer term more consistent efforts at economic reform, infrastructure upgrade and the provision of public services is needed. If Tunisia succeeds in ensuring sustainable development it may yet become not only a leader of the democratic process in the region, but also of prosperity as well. This chapter contains interviews with Ferid Belhaj, Vice-President for Middle East and North Africa, World Bank; and Chileshe Kapwepwe, Secretary-General, COMESA.
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Spanning more than 300,000 sq km, the Republic of the Philippines reaches from Taiwan in the north to Indonesia in the south. The Philippines is the fourth-largest country in South-east Asia in territorial size and is home to some 175 ethnolinguistic groups across over 7000 islands. In terms of population, it has the 13th-largest population in the world and the seventh largest in Asia. According to the UN, the population reached 107.4m in the first quarter of 2019. Income inequality and uneven growth are problems that need addressing if the country is to escape the middle-income trap, with poverty incidence among Filipinos in the first quarter of 2018 estimated at 21%. This chapter also contains interviews with President Rodrigo Roa Duterte; and Teodoro L Locsin, Secretary, Department of Foreign Affairs.
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The end of the formal conflict between FARC and the government has boosted the country’s image abroad, allowing the tourism industry to fulfil its potential in areas that were previously out of bounds. Medellín, once known as the home of drug cartels, is now a focal point for innovation in Latin America. As such, it is set to become a regional leader in creative industries, an incentive reinforced by President Iván Duque and his Orange Economy Agenda. The government aims to promote Colombia as a regional and global target market and to double its contribution to GDP from 3.5% to 7% between 2012 and 2022. Meanwhile, the long-term Fourth Generation road infrastructure project is making considerable progress in its ambition to reduce journey times between major cities and industrial centres. This chapter contains interviews with Iván Duque, President; Ángel Gurría, Secretary-General, OECD; and Justin Trudeau, Prime Minister of Canada.
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Peru is a major producer and exporter of copper and gold, as well as a prolific exporter of liquefied natural gas, seafood and agricultural products. In addition, it is a popular tourist destination, with 4.5m tourists visiting annually, bringing in annual revenue of $5bn. On the whole, 2018 was considered a recovery year for the economy, with investment in mining increasing by 25% over the previous year. President Martín Cornejo Vizcarra also took office in 2018, which has calmed the political environment. The outlook for 2019 is positive, with more large-scale investment in infrastructure and mining ahead. As Lima prepares to host the Pan-American Games in July, there is optimism that it will restore Peru’s image of economic prosperity with an investor-friendly framework and political stability. This chapter contains a viewpoint with Martín Vizcarra Cornejo, President of Peru; and an interview with Néstor Popolizio, Minister of Foreign Affairs.
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Egypt gained independence in 1922 with the end of the British protectorate, but it has operated as a presidential republic since the 1952 revolution. President Abdel Fattah El Sisi is the current leader and has served since June 2014, while the current prime minister and head of government in office since June 2018 is Mostafa Madbouly. The country’s economy has struggled since the 2011 revolution and although economic growth has improved since, many challenges remain. A number of significant steps are being taken to improve economic order and stability in the country, such as to improve public finances, reduce the size of the state and to make the investment environment more attractive. Moreover, Egypt has recently oriented its focus towards increasing its investments across Africa and to boost trade with its African partners. The country has relied heavily on the US for aid and support in the past but is now build¬ing a broader network of international partnerships, including with Russia and China, both of which have entered African markets aggressively during the past decade and have continued to strengthen ties with Egypt through investments in several mega-projects. This chapter contains an interview with Abdel Fattah El Sisi, President of Egypt; a viewpoint from Christine Lagarde, Managing Director, IMF; and an interview with Jeffrey Donaldson, UK Trade Envoy to Egypt.
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While the Republic of Indonesia is just over seven decades old in its current form, the South-east Asian nation of more than 17,000 islands has a much longer history. The name Indonesia was first used in 1850 by British anthropologist James Richardson Logan in reference to the extensive group of islands that was known at the time as the Indian or Malay Archipelago. Archaeological analysis indicates that the ancestors of modern humans lived on the archipelago as far back as 1.9m years ago, while evidence of modern humans goes back 40,000 years. By 2000 BCE the islands were inhabited by a diverse group known as the Austronesians. These people exhibited impressive maritime skills and took full advantage of the archipelago’s location, engaging in extensive inter-island trading. This chapter contains an interview with President Joko Widodo, and a viewpoint from Narendra Modi, Prime Minister of India.
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Saudi Arabia is the largest country in the Middle East and the 13th-largest nation in the world, with an area of approximately 2.15m sq km, covering 80% of the Arabian Peninsula. Home to an estimated 15% of the world’s proven oil reserves and the single-largest economy in MENA, Saudi Arabia is a key player both regionally and globally. Established in September 1932, in recent years the Kingdom has poured its considerable financial resources into a series of large-scale economic development, diversification and modernisation initiatives. Saudi Arabia has attracted international attention for the momentum of its socio-economic transformation, taking place under the auspices of the Vision 2030 development blueprint. This chapter contains a viewpoint from Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud and an interview with Prince Khalid bin Faisal Al Saud, Governor, Makkah Province.
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Since gaining independence in 1971 Qatar has quickly risen to prominence both regionally and internationally to become an economic, political and cultural powerhouse in the Middle East. With a relatively small local population and substantial revenues generated from having the third-largest proven natural gas reserves globally, Qatar boasts one of the world’s highest GDP per capita, according to IMF estimates. Prior to 2010 the country was primarily known for its large gas reserves; however, Qatar’s global profile received a major boost when it won the bid to host the 2022 FIFA World Cup. Now, the country is recognised in the international arena for many reasons, including its push for domestic infrastructure projects. This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar; and an interview with Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior.
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Sri Lanka has long served as an important strategic destination in the Indian Ocean, catering to merchants and travellers from South-east Asia, India, the Middle East and East Africa. While much of the country’s recent history has been tainted by a decades-long civil war, post-conflict euphoria brought with it a sense of renewal and optimism. A coalition administration elected in 2015 pledged its commitment to inclusive governance and economic reform, a rebalancing of foreign policy, and reconciliation with its ethnic minorities. However, the coalition has diverged on several key policy issues, leading to delays in the legislative agenda and culminating in a constitutional crisis that saw the prime minister removed from office by the president in October 2018, only to be reinstated two months later following a ruling by the country’s highest court. This chapter contains interviews with President Maithripala Sirisena; and Ganeshan Wignaraja, Executive Director, Lakshman Kadirgamar Institute; and a viewpoint from Prime Minister Ranil Wickremesinghe.
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Having declared its independence from Britain in 1971 as part of the federation of the UAE, the emirate of Abu Dhabi has significantly raised its economic and political profile in the intervening years, both regionally and internationally. While the emirate is home to the world’s sixth-largest proven oil reserves, financial buffers have helped it diversify and yield steady non-oil revenues. This has largely taken the form of expanding domestic industries, from aviation to renewable energy, enabling the emirate to weather a prolonged period of reduced oil prices and fiscal austerity that have put pressure on growth. This chapter contains interviews with Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and Mugheer Khamis Al Khaili, Chairman, Department of Community Development; and a viewpoint from Emmanuel Macron, President of France.
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Covering a total area of 83,600 sq km, the UAE borders Saudi Arabia to the west and south and Oman to the east. The country’s coastline stretches 1318 km from the south-eastern shore of the Gulf, nearly reaching the Strait of Hor¬muz in the north. Most of the country is situated along the Gulf. By area, Dubai is the second largest of the emir¬ates behind Abu Dhabi, covering around 4110 sq km in total. A series of land reclamation projects beginning in the early 1990s increased the emirate’s geographical area by 200 sq km and also contrib¬uted to an expansion of its coastline. This chapter contains a viewpoint from Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai; President, Financial Audit Authority; and Chairman, Dubai International Financial Centre.
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Morocco is the 25th-largest country in Africa and has a geographic area of 446,550 sq km. The country’s political capital is Rabat, but the largest city by far, as well as the business and economic capital, is Casablanca, located 85 km from Rabat. The current king, Mohammed VI, came to power in 1999. The country has seen substantial socio-economic changes during the current king’s reign, including many notable improvements in socio-economic indicators, though challenges remain. GDP per capita, in constant prices and purchasing power parity terms, has risen by more than two-thirds over the period. The king has called for improvements in education and training provision, as well as greater efforts to secure jobs for young Moroccans. These calls have been reflected in recent policy changes, among them an increase in education spending in the 2019 budget, and plans to overhaul the professional and vocational training system. This chapter contains a viewpoint with King Mohamed VI; interviews with Akinwumi Adesina, President, African Development Bank; Simon McDonald, Permanent Under-Secretary, Foreign and Commonwealth Office of the UK; and Mohcine Jazouli, Minister Delegate for African Cooperation, Ministry of Foreign Affairs.
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In 1957 Ghana became the first African country to achieve independence from a European colonial power, and today it is one of the continent’s most vibrant democracies. The 2016 elections saw Nana Akufo-Addo, now president, speak to voter dissatisfaction with the economy, which at the time was suffering from the protracted downturn in global prices of its chief commodity exports. The election was thus fought on an issue affecting all Ghanaians, rather than on sectarian grounds, while the exemplary behaviour of both presidential candidates and their supporters in the transfer of power also indicated the growing strength of democratic governance in the country. With a GDP of GHS256.6bn ($55.4bn) at the end of 2018, Ghana is also a contender to become the year’s fastest-growing economy worldwide. As it tries to move away from traditional resource dependency, the country now faces the challenge of ensuring the widest benefit from that expansion, particularly given its growing and increasingly urbanised population. This chapter contains viewpoints with Nana Akufo-Addo, President of Ghana; Mahamudu Bawumia, Vice-president of Ghana; Angela Merkel, Chancellor of Germany; and an interview with Rona Fairhead, Minister for Trade and Export Promotion, UK Department for International Trade.
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The country’s national plan, Bahrain Economic Vision 2030, aims to enhance private sector growth and continue government investment in infrastructure, affordable housing and human resources. The kingdom maintains a developed industrial sector and hosts the world’s largest single-site aluminium smelter, Aluminium Bahrain (Alba), with downstream businesses creating products for export. Other industries in Bahrain include downstream oil and gas products, as well as a growing food industry, serving both the Saudi market and the global economy. This chapter contains a viewpoint from King Hamad bin Isa Al Khalifa.
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Once one of Africa’s economic powerhouses, Côte d’Ivoire fell on hard times in the 1980s and entered a period of political instability and civil war at the end of the 1990s. The coun¬try has largely been at peace since 2011, enjoying some of the highest economic growth rates globally, especially during the period 2012-16. Still by far the world’s most important cocoa producer, the former French colony is linguistically, ethnically and religiously diverse, and well on its way to reclaiming its status as a dynamic driving force of the West African regional economy. This chapter contains a viewpoint with President Alassane Dramane Ouattara; an interview with Vera Songwe, Under-Secretary-General and Executive Secretary, UN Economic Commission for Africa; and a viewpoint: Marie-Claude Bibeau, Minister of International Development of Canada.
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Considered to be the last frontier market in South-east Asia, Myanmar remains focused on creating the required conditions to attract and facilitate foreign investment, in turn spurring economic development. Following decades of military rule that maintained a socialist and centrally planned economic model, cutting off access to the world’s financial markets and main trading routes, Myanmar’s ongoing transition towards a market economy and electoral democracy has caught the attention of investors worldwide. The gradual removal of economic sanctions, by both European governments and the US, contributed to putting Myanmar on the map, gaining a reputation as an increasingly attractive investment destination in the early 2010s. Investors have been drawn by the size of its market, abundant natural resources, fertile land and strategic geographic location between the world’s most populous countries, China and India. This chapter contains viewpoints from State Counsellor Daw Aung San Suu and President U Win Myint.
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Located in the south-eastern quarter of the Arabian Peninsula, Oman is the only member of the GCC situated outside of the Gulf. Leveraging its strategic location, Oman has invested in infrastructure with the goal of becoming a global logistics centre. Diversification efforts are a driving force behind economic growth while infrastructure and transport works are boosting connectivity. The sultanate’s long-term development strategy, Oman Vision 2020, emphasises diversification, privatisation and Omanisation. As the final leg of Oman Vision 2020, the sultanate’s ninth five-year plan continues to drive the country towards social development, the economic diversification of many production sectors and the optimal utilisation of available natural resources. This chapter contains viewpoints from Sultan Qaboos bin Said Al Said and Christine Lagarde, Managing Director, IMF.
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Since achieving independence in 1962, Algeria has pursued an activist foreign policy, pushing interests of developing countries through the Non-Aligned Movement, as well as in groups like the G-77. Algeria holds close trading links with its Mediterranean neighbours to the north, and is an important source of EU natural gas imports, particularly to France, Spain and Italy. The country has greatly increased its diplomatic and economic relations with China, which has become an important source of official development finance and discounted lending. Moreover, the state continues to play a dominant role in the Algerian economy, depending on oil and gas exports for some 60% of public revenue and 96% of exports. The sharp decline in global oil prices since 2014 resulted in several challenging years for the Algerian economy. This chapter contains interviews with President Abdelaziz Bouteflika; Ferid Belhaj, Vice-President for MENA, World Bank; and a viewpoint with Xi Jinping, President of the People’s Republic of China.
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The most populous country in Africa with abundant natural resources, Nigeria is the continent’s largest economy by GDP. Combining oil and gas wealth with the entrepreneurial efforts of its predominantly young population, Nigeria has developed a business-friendly environment over two decades of civilian rule and in the nearly 60 years since independence. These achievements are all the more impressive given the stresses and strains imposed on this vast country by regional, religious and political tensions. Yet the challenges of economic inclusivity and ensuring wider equality remain, as around half of Nigerians continue to live below the income poverty line. The incoming administration will face some major security and corruption challenges for a republic that is multi-faceted and complex, but also multi-ethnic, multi-religious and multicultural. This chapter contains a viewpoint with President Muhammadu Buhari; and interviews with Patricia Scotland, Secretary-General, Commonwealth; and Ray Washburne, President and CEO, Overseas Private Investment Corporation.
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As a member of both the Organisation of the Petroleum Exporting Countries and the GCC, Kuwait has numerous strategic ties. Additionally, the country is arguably the most politically dynamic in the Gulf, which has afforded it strong foundations to help tackle recent issues regarding parliamentary elections and accountability. By continuing with economic diversification efforts and reducing dependence on oil revenue, Kuwait is also adding momentum to several large infrastructure projects. The tabled projects are set to further integrate Kuwait into the global economy.
This chapter contains a viewpoint from Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah.
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An important entryway to the Horn of Africa, Djibouti’s strategic location at the confluence of the Red Sea and the Indian Ocean, combined with its historic links to Europe, the Arabian Peninsula, East Africa and Asia, make it a unique crossroads for international culture and trade. Having long enjoyed relative security and stability – avoiding many of the conflicts that have beset its neighbours – the country has gained a valuable reputation as a safe haven. Today, it stands as a key focus for world and regional powers alike, making it a natural investment destination and a growing centre of global trade. This chapter contains interviews with President Ismaïl Omar Guelleh; Justin Yifu Lin, Director, Institute of New Structural Economics, Peking University; and Ali Guelleh Aboubaker, Minister of Investment; and viewpoints with Tibor Nagy, Assistant Secretary, Bureau of African Affairs, US Department of State; and with Christine Lagarde, Managing Director, IMF.
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As a market-based economy with a supportive domestic policy environment, Kenya has been dubbed the commercial “gateway” to East Africa. With Mombasa acting as a trade platform with one of the busiest ports in the region, and the capital Nairobi the country’s political and financial centre, the country has quickly recovered in the aftermath of the 2007 financial crisis and has been able to sustain strong annual growth levels of over 5%. Following the electoral victory of President Uhuru Kenyatta in 2017, the Big Four agenda, a list of priority initiatives and projects for his second term of government running until 2022, was announced. Those programmes are organised around four pillars: food and nutritional security; affordable housing; manufacturing; and universal health care. This chapter contains interviews with President Uhuru Kenyatta; Monica Juma, Cabinet Secretary, Ministry of Foreign Affairs and International Trade; Libérat Mfumukeko, Secretary-General, EAC; and Liam Fox, UK Secretary of State for International Trade.
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Trinidad and Tobago possesses robust institutions, with a stable democratic system and strong regional and international ties. Nevertheless, the country has faced a series of corruption cases, and a number of initiatives have been launched to combat this issue. T&T faces further challenges related to unemployment, particularly among the young, along with law and order, though figures remain below that of neighbouring states. Furthermore, recent economic and political instability in Venezuela has led to a rise in the number of refugees in the country. This chapter contains an interview with President Paula-Mae Weekes; and a viewpoint by Luis Alberto Moreno, President, Inter-American Development Bank.
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Although external forces contributed to challenging economic conditions in recent times, PNG should benefit from the stability brought about by Prime Minister Peter O’Neill’s 2017 election victory, which solidifies the public agenda and provides more investor certainty. Hosting international events such as APEC 2018 should positively influence international perceptions and highlight opportunities available in the country, while planned investments in the extractive industries are positioned to boost the wider economy. This chapter contains an interview with Prime Minister Peter O’Neill.
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Today, despite being one of the largest economies in Latin America, Argentina has suffered serious economic crises over the past two decades, which have stymied its growth, constricted foreign direct investment into its productive sectors and limited the country’s ability to harness its vast natural resources. The country’s economy is driven by the oil and gas industry, boasting significant onshore, offshore and shale oil and gas reserves, alongside its agricultural and livestock industries. On the regional and global stage Argentina has a high profile, where it currently chairs the G20 and is an observer member of the Pacific Alliance, while aspiring towards OECD membership. However, with the government having been granted a $50bn bailout from the IMF in June 2018, the spectre of economic crisis and indebtedness looks to have reappeared, just at a time when investors appeared to be showing renewed interest in the country following the election victory of pro-business President Mauricio Macri in October 2015. This chapter contains interviews with President Mauricio Macri; Jorge Faurie, Minister of Foreign Affairs and Worship; Steven Ciobo, Minister for Trade, Tourism and Investment, Australia; and a viewpoint with Luis Alberto Moreno, President, Inter-American Bank of Development.
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With an average growth rate of 5.9% over the past decade, Peru’s economy has consistently outperformed most regional neighbours. Politically, the country has recently emerged from a period of instability and security concerns to rank among the top investment destinations in the developing world. That said, corruption continues to be a concern, particularly in the wake of several recent scandals that shook the country’s traditional political establishment. Aggravating this problem, a divided Congress has failed to reach any bipartisan agreement to push through much-needed anti-corruption reforms. However, the emergence of Martín Vizcarra, who assumed the presidency after Pedro Pablo Kuczynski’s resignation in March 2018, offers new hope to investors and Peruvians alike. Although it is still too early to assess his leadership, President Vizcarra has already shown promising signs that his administration will make concerted efforts to combat corruption, rebuild business confidence, encourage investment and increase economic growth. This chapter contains interviews with President Martín Vizcarra Cornejo; Sebastián Piñera Echenique, President of Chile; Liam Fox, UK Secretary of State for International Trade; and Juan Manuel Santos, Former President of Colombia; and Former President Pro Tempore, Pacific Alliance.
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Following the death of His Majesty King Bhumibol Adulyadej in October 2016, a major chapter in the history of the kingdom closed and another opened, with His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun now on the throne. Meanwhile, the government of the National Council for Peace and Order (NCPO), led by Prime Minister Prayut Chan-o-cha, continues to rule following its removal of the civilian government in May 2014. The year ahead is shaping up to be one of transition, with the Thai electorate and international partners eager for the delayed elections to take place. The NCPO has promised stability and economic progress, something many citizens hope for as they await the opportunity to vote. This chapter contains a viewpoint from Prime Minister Prayut Chan-o-cha; and interviews with Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam; and Shamshad Akhtar, Former Under-Secretary-General, UN; and Executive Secretary, UN Economic and Social Commission for Asia and the Pacific.
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The Mexico-US bilateral relationship has been strained as a result of President Donald Trump’s administration and aggressive discourse, including the demand that Mexico pay for a border wall, an insistence on renegotiating the North American Free Trade Agreement and the deployment of US troops to the border. Nevertheless, the recent volatility of its ongoing relationship with the US has sounded a warning bell for Mexico, encouraging it to diversify its trade links and seek out new markets, and to that end, the recent Comprehensive and Progressive Agreement for Trans-Pacific Partnership could serve it well. This chapter contains interviews with Angela Merkel, Chancellor of Germany; Sebastián Piñera Echenique, President of Chile; and Liam Fox, UK Secretary of State for International Trade.
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Elections in June 2016 saw President Rodrigo Duterte assume his six-year term as the 16th president of the Republic of the Philippines. President Duterte won the May 2016 elections by a wide margin to become the first president from Mindanao, the country’s southernmost and second-largest island, ushering in a period of widespread change through the executive and legislative branches of government for the 106.5m-strong country. The administration of former President Benigno Aquino III had implemented changes that saw the Philippines become the fastest-growing economy in Asia as of the end of 2016, eclipsing even China. Sovereign credit rating upgrades, a continuous campaign to promote transparency and robust economic performance elevated the Philippines to a diplomatic, political and economic stature it had not enjoyed for decades. This chapter contains interviews with President Rodrigo Roa Duterte; and Jin Liqun, President, Asian Infrastructure Investment Bank.
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Located on the east coast of Africa and south of the equator, Tanzania was home to some of the world’s first human settlements, with fossils dating back as far as 3.6m years. Today, the country comprises mainland Tanganyika and the archipelago of Zanzibar. Dodoma is its official capital, although Dar es Salaam, the largest city and port, has long been the nation’s commercial and administrative centre. Overall, Tanzania’s experience as an independent African nation has been a positive one on the world stage. In its shift from a socialist experiment under Julius Nyerere to a market economy under his successors, the country has fared relatively well in maintaining political stability and economic growth. However, there is work and further collaboration needed to support the continued development of the country’s democratic credentials and foster broad-based socio-economic development. This chapter contains a viewpoint with President John Pombe Joseph Magufuli; and interviews with Libérat Mfumekeko, Secretary-General, EAC; and Stergomena Lawrence Tax, Executive Secretary, South African Development Community.
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Accounting for just over 3% of the territory of the UAE, Sharjah is the third-largest emirate, and has long played an important cultural and economic role in the region. Home to a number of principal commercial, educational and cultural institutions, Sharjah is also unique as an emirate in that it is adjacent to both the Gulf and the Gulf of Oman, on which it owns three exclaves: Kalba, Dibba Al Hisn and Khorfakkan. The latter is surrounded by the emirate of Fujairah and possesses a major east coast port in the form of the Khorfakkan Container Terminal – the only natural deepwater port in the region and one of the UAE’s major container ports. This chapter contains an interview with Sheikh Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the UAE’s Supreme Council; and interviews with Sheikha Bodour bint Sultan Al Qasimi, Chairperson, Sharjah Investment and Development Authority (Shurooq); Pinarayi Vijayan, Chief Minister of Kerala, India; and Kairat Abdrakhmanov, Minister of Foreign Affairs of the Republic of Kazakhstan.
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Sri Lanka’s economy looks promising for the coming years, as major changes in the business environment are taking place in the short to medium term, such as free trade agreements with Singapore and China, the regaining of the EU Generalised System of Preferences Plus, development of human capital and further liberalisation of the economy. These, together with the involvement of the government, are supporting the objective of transitioning to a middle-income, knowledge-based economy. The country is continuing to use exports as a driver of economic growth, with a call for a focus on business process outsourcing and ICT-related services given their performance in 2017. This chapter contains an interview with President Maithripala Sirisena and a viewpoint from Prime Minister Ranil Wickremesinghe.
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Tunisia has a small, principally homogeneous population, emerging from a diverse background of civilisations, which makes the modern population a mix of Arab, Ottoman and Berber, to name but a handful. In 1956, the country gained independence from France and established a constitution modelled on the French system. In 2011, during the Jasmine Revolution, President Zine El Abidine Ben Ali, who ruled from 1987, was ousted. Following the Tunisian revolution, the country has been transitioning into a democracy and adopted a new constitution in January 2014. This chapter contains a viewpoint with President Beji Caid Essebsi; and an interview with Akinwumi Adesina, President, African Development Bank.
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The Hashemite Kingdom of Jordan is widely seen as a pillar of stability in a region that has been disrupted by conflict in recent years. Despite challenging surroundings, Jordan has managed to maintain efficient political workings and positive economic growth. As a country with scarce natural resources but a highly educated population, the kingdom aims to become a regional leader in sectors with significant growth potential, such as renewable energy, ICT, manufacturing and tourism. Jordan 2025, an economic and social framework plan, and the Jordan Economic Growth Plan 2018-22 focus on these key drivers for commercial growth and social development, as the country works to revitalise the national economy and emerge as a powerhouse in the MENA region. This chapter contains a viewpoint from Crown Prince Hussein; and interviews with Prime Minister Hani Al Mulki; and Imad Fakhoury, Minister of Planning and International Cooperation.
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Considered to be the last frontier market in South-east Asia, Myanmar remains focused on creating the right set of conditions to attract and facilitate foreign investment to spur economic development. Following decades of military rule that maintained a socialist and centrally planned economic model, cutting off access to the world’s financial markets and main trading routes, the country’s ongoing transition towards market economics and electoral democracy has caught the attention of investors worldwide. This chapter contains a viewpoint from Daw Aung San Suu Kyi, State Counsellor of Myanmar; an interview with Serge Pun, Chairman, Serge Pun & Associates; and a viewpoint from Xi Jinping, President of China.
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For much of its history Bahrain was the name for the eastern coast of Arabia. Bahrain means “two seas” in Arabic, and although it is unclear which two seas the name refers to, it has recently come to identify the 33 natural islands of the Awal archipelago. The first notable inhabitants of the region were the Dilmun civilisation, approximately 6000 years ago, but throughout history its geographically strategic location has attracted the attention of numerous empires, including the Persians, Sumerians, Assyrians, Babylonians, Arabs, Portuguese and British. In 1932 Bahrain pioneered oil production in the Middle East, and in so doing established the region’s initial framework for the petroleum industry. The new resource enabled Bahrain to modernise its economy by moving beyond traditional industries such as pearl diving and fishing. At an early stage the kingdom sought to diversify its economy, and established itself as a leading regional financial centre in the 1970s and 1980s.
This chapter contains a viewpoint from King Hamad bin Isa Al Khalifa.
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Côte d’Ivoire has long been regarded as one of West Africa’s richest and most diverse countries due to its linguistic, ethnic and religious diversity. While agriculture remains a key driver of economic progress, there is an abundance of other natural resources, including crude oil – with proven reserves of around 100m barrels – natural gas and diamonds. As a member of UEMOA, the African Union and ECOWAS, Côte d’Ivoire is an active player in regional politics, having also developed particularly strong ties with Morocco in recent years.
This chapter contains viewpoints from President Alasanne Ouattara and Kofi Annan, Chairman, African Progress Panel; and an interview with Marcel de Souza, President, ECOWAS Commission.
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With a population of nearly 100m, Egypt is the third most populous country in Africa and has long been a key influencer in the Arab world, particularly in terms of its cultural output and political thought. In comparison to the years before 2011, Egypt’s post-revolutionary period has been defined by political upheaval and dynamism. The country has adopted a new constitution, moved to a unicameral legislature, and has had two presidents, with Abdel Fattah El Sisi serving in the role since 2014. In early January 2018 the national election commission announced that the next presidential election would be held from March 26 to March 28. If no candidate receives 50% of the vote, a runoff will be held from April 24 to April 26.
This chapter contains interviews with President Abdel Fattah El Sisi; and Akinwuni Adesina, President, African Development Bank.
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One of the most developed countries in Africa, Morocco is a melting pot of indigenous Berber, African, Arab and European influences. Due to its strategic location and proximity to Europe, the kingdom has been able to accommodate its cultural diversity in a stable and politically inclusive system. The kingdom possesses North Africa’s only constitutional monarchy and has fortified its position as an international trade centre by increasingly liberalising its economy and attracting foreign investment. If the country can sustain its balancing act of working to provide domestic freedoms and opportunity while maintaining security, it is likely to remain a leading regional power. Morocco has not only deepened its economic and security ties with the EU, but also with the Gulf states and China. Most recently, the kingdom re-joined the African Union after a 30-year hiatus.
This chapter contains a viewpoint from His Majesty King Mohammed VI; and interviews with Saad Eddine El Othmani, Head of Government; and Marcel de Souza, President, ECOWAS Commission.
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Located in the south-eastern quarter of the Arabian Peninsula, Oman is the only member of the GCC situated outside of the Gulf. Leveraging its strategic location, Oman has invested in infrastructure with the goal of becoming a global logistics centre. While the country is less hydrocarbons-rich than its GCC neighbours, diversification efforts are nonetheless a driving force. The sultanate’s long-term development strategy, Oman Vision 2020, emphasises diversification, privatisation and Omanisation. Logistics, tourism, mining, manufacturing and fisheries have all been identified as potential future economic drivers, and will be the focus of development under the next plan, Vision 2040. This chapter contains viewpoints from Sultan Qaboos bin Said Al Said; and Xi Jinping, President, People’s Republic of China.
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Despite persistently low international commodities prices, Dubai saw steady GDP growth of 3.2% in 2017 and is expected to reach 3.5% in 2018, with an increased drive towards consolidating its position as a knowledge-based economy. The issuance of the Dubai Open Data Law and the creation of Smart Dubai are among the flagship initiatives driving this transformation, alongside the portfolio of diversification-oriented projects at the federal level. Not only did 2017 witness the launch of new initiatives, it also saw the advancement of ongoing projects. Dubai recently achieved its first goal on the path towards becoming the global capital of Islamic finance, overtaking the world’s leading financial centres in the listing of sukuk (Islamic bonds) on its exchanges, with sukuk listings in the emirate totalling $52.5bn as of September 2017. The emirate’s aviation sector also continued to expand in 2017, with Dubai International Airport consolidating its position as the world’s third-busiest airport for international passenger traffic.
This chapter contains a viewpoint from Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai; an interview with Abdulla Mohammed Al Basti, Secretary-General, Executive Council of Dubai; and a viewpoint from Theresa May, Prime Minister of the UK.
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Long one of the continent’s success stories, Ghana is the birthplace of pan-Africanism and was one of the biggest advocates for independence during the colonial period. It has since developed one of the region’s largest and most advanced markets, and has become a diplomatic and economic force in West Africa. The country benefits from a wealth of natural resources, including cocoa, gold and – more recently – oil and gas. While economic growth has slowed in the last several years on the back of external pressures and low commodity prices, Ghana’s upstream resources give it a strong foundation from which to bounce back as conditions improve. It has a population of just over 28m and is the 33rd-largest country in Africa. Life expectancy, school enrolment and GDP growth are all above the sub-Saharan average.
This chapter contains a viewpoint from President Nana Akufo-Addo; and interviews with Vice-President Mahamudu Bawumia, Chairman, Economic Management Team; and Marcel de Souza, President, ECOWAS Commission.
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Home to an estimated 15.7% of the world’s proven oil reserves and the single largest economy in MENA, Saudi Arabia is a key player not only in the region, but also globally. Since its establishment in September 1932, the Kingdom has poured its considerable resources into a series of large-scale economic development, diversification and modernisation initiatives. In the last few years, Saudi Arabia has also attracted global attention for the momentum of its socio-economic transformation taking place under the auspices of the Vision 2030 development blueprint.
This chapter contains a viewpoint from Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud; and interviews with Prince Saud bin Nayef Al Saud, Governor, Eastern Province.
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Algeria is a major producer of hydrocarbons, which are crucial contributors to the economy. It has the third-largest proven oil reserves on the continent, though it is facing substantial fiscal challenges due to the sharp fall in the international price of oil in 2014 and 2015. In contrast to many other countries in the region, Algeria has maintained its political stability, while its international profile is in the midst of gradual shift as it seeks to reduce industrial imports from traditional trading partners.
This chapter contains interviews with President Abdelaziz Bouteflika; Dmitry Medvedev, Prime Minister of Russia; Angelino Alfano, Minister of Foreign Affairs of Italy; and Lord Richard Risby of Haverhill, Special Envoy of the UK Prime Minister in Algeria.
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Since gaining independence in 1971 Qatar has quickly risen to prominence both regionally and internationally to become an economic, political and cultural powerhouse in the Middle East. With a relatively small local population and substantial revenues generated from having the third-largest proven natural gas reserves globally, Qatar has one of the world’s highest GDPs per capita: at current prices it stood at $64,400 in 2017. Prior to 2010 the country was mostly known internationally for its vast gas reserves and for being the home of the media network Al Jazeera. However, this changed when Qatar won the contest to host the 2022 FIFA World Cup in December of that year. Now, it has become well known in the international arena for many reasons, from its extensive international investments and ample spending on substantial infrastructure projects, to the diplomatic rift with the GCC, which began in June 2017.
This chapter contains a viewpoint from Sheikh Tamim bin Hamad Al Thani, Emir of Qatar; and an interview with Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior.
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In a fast-changing political landscape, 2018 will be a key year for President Joko Widodo to take advantage of his high popularity ratings, majority in Parliament and consolidated Cabinet to accelerate the implementation of his administration’s strategic goals, which include infrastructure development, reducing bureaucracy and increasing transparency. In terms of greater regional involvement, the country remains ASEAN’s largest member and an increasingly influential one. In recent years Indonesia has continued strengthening its diplomatic relations with neighbouring countries, while also boosting long-term cooperation with Japan, China and South Korea.
This chapter contains an interview with President Joko Widodo; and viewpoints from Xi Jinping, President of China; and Mark Rutte, Prime Minister of the Netherlands.
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Nigeria is the 14th-largest country in Africa, and with a population of 189m people and home to more than 250 ethnic groups, the country is rightly famed for its cultural diversity. A successful presidential election in 1999 ushered in a period of relative stability, with nearly 18 years of democratic polls. This greatly improved political situation has brought economic dividends, particularly between 2003 and 2014, when GDP growth averaged more than 8%. Still, the steady growth and increasingly robust democracy have not resolved all of the country’s problems: the recent fall in oil prices has led to a recession, while a terrorist insurgency by Boko Haram has destabilised some of the northern states. However, Nigeria is known for its resiliency and shows little sign of letting these troubles slow its ascendancy.
This chapter contains interviews with President Muhammadu Buhari; and Brigitte Zypries, Minister for Economic Affairs and Energy of Germany.
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With an election in 2017, the year has proven be a challenging one in Papua New Guinea. The economic downturn following the completion of the PNG liquefied natural gas project has resulted in criticism of the current government, amid accusations of mismanagement. Despite this, Prime Minister Peter O’Neill secured a fourth term, winning 78% of the votes cast in his district. Boosting social and economic infrastructure, improving inclusiveness across the country and combating corruption – both real and perceived – are key challenges for political decision-makers. Yet, despite these difficulties, PNG possesses enormous natural resources, which future leaders must manage in order to boost growth and spur development.
This chapter contains an interview with Prime Minister Peter O’Neill.
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Kuwait is a member of both the Organisation of the Petroleum Exporting Countries and the GCC. Additionally, it is considered by many to be the most politically dynamic country in the Gulf, which has afforded it strong foundations to help tackle recent issues concerning parliamentary elections and accountability; it has also played a key mediating role in the 2017 diplomatic crisis between Qatar on one side and Saudi Arabia, the UAE and Bahrain on the other. By continuing with economic diversification efforts and reducing dependence on oil revenues, Kuwait is also adding momentum to several large infrastructure projects. The tabled projects are set to further integrate the country into the global economy.
This chapter contains a viewpoint from Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah and an interview with Prime Minister Sheikh Jaber Al Mubarak Al Hamad Al Sabah.
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Buy digital copy of this chapter - £18On October 13, 2016 His Majesty King Bhumibol Adulyadej passed away at the age of 88. He was the world’s longest-serving head of state and the longest-serving monarch in Thailand’s history. His passing was mourned by many. His Majesty had been monarch since 1946, and had presided over his country during a period of enormous change. In late 2016 King Maha Vajiralongkorn said, “No matter what problems we may face in our country, we believe that if we work together, we can overcome and alleviate any situation.” He now sits on the throne at this time of great change, with the need for reform and reconciliation at the forefront.
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Despite a challenging environment, Trinidad and Tobago will be looking forward to a number of positive developments in 2017. These include the passage of key procurement legislation, a new revenue authority, improvements to education and health care delivery systems and strengthened ties with key partners, all of which will contribute to lifting the country’s political and economic profile. Over the medium term, prudent financial management, a well-educated workforce and stable democratic political system bode well for economic recovery, but to establish the foundation for long-term sustainable growth, the country must pursue diversification in earnest, while current efforts to diversify the economy should set the foundation for long-term sustainable growth.
This chapter contains a viewpoint from Prime Minister Keith Rowley; and an interview with David Granger, President of the Cooperative Republic of Guyana.
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While 2016 marked an important turning point for Colombia, the pace at which the economy accelerates and living standards improve over the coming years will be dictated to a large extent by the government’s success in implementing the peace agreement, swiftly establishing the rule of law across the entire territory and executing its ambitious infrastructure programme. When he leaves office in August 2018, President Juan Manuel Santos is likely to leave to his successor a positive legacy, having secured the FARC peace agreement and significantly reduced poverty on his watch. This chapter contains interviews with President Juan Manuel Santos; Mauricio Macri, President of Argentina; and María Ángela Holguín, Minister of Foreign Affairs; as well as a viewpoint with Luis Alberto Moreno, President, Inter-American Development Bank.
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Once known as a country scarred by economic and social upheaval, Peru has now experienced nearly two decades of economic growth alongside the continued establishment of democratic principles – increasingly so since the turn of the millennium. Buoyed by high commodity prices, the mineral-rich country grew at an average annual rate of 6.2% in the decade to 2014, cementing its status as one of the fastest growing economies in Latin America. Rapid growth also enabled Peru to make significant strides in improving social indicators, particularly in reducing poverty rates. However, the end of the commodity cycle saw GDP growth slow to a decade-low of 2.4% in 2014, as global commodity prices fell and Chinese demand for Peruvian minerals eased, sending Peru into uncertain uncharted waters.
This chapter contains interviews with President Pedro Pablo Kuczynski Godard; Ricardo Luna Mendoza, Minister of Foreign Affairs; Steven Ciobo, MP and Minister for Trade, Tourism and Investment, Australia; Mauricio Macri, President of Argentina; and Walker San Miguel, Secretary-General, Andean Community.
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With substantial financial buffers and hydrocarbons reserves that are among the world’s largest, Abu Dhabi has increased its political and economic influence in recent years, both regionally and globally. From renewable energy to health care and aviation, a rapidly diversifying economy means that the emirate is well placed to weather the prolonged period of reduced oil prices that continues to impact growth. Plans for future development are mapped out in Abu Dhabi Economic Vision 2030. A comprehensive economic policy document, Vision 2030 aims to reduce dependence on oil and gas, thereby securing a more sustainable, knowledge-based economy for the emirate. Successive five-year plans within the framework of Vision 2030 aim to ensure the achievement of the plan’s goals.
This chapter contains viewpoints from Sheikh Hazza bin Zayed Al Nahyan, Vice-Chairman of the Abu Dhabi Executive Council; and Theresa May, Prime Minister of the UK; and an interview with Abdul Latif Al Zayani, Secretary-General, GCC.
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Sri Lanka has emerged from its long internal conflict, but with the post-war euphoria behind it, a number of structural challenges remain that will determine the country’s trajectory as it pushes forward. The state’s involvement in large parts of the economy could present stumbling blocks to a number of liberalising economic reforms that Sri Lanka is likely to need if it is to increase its competitiveness in international markets. While there has been a wait-and-see approach within Sri Lanka’s private sector, the long-term impact is expected to be positive. The reinstatement of GSP+ benefits should also see state-owned enterprises release more power to the private sector to reap all potential benefits, expand revenue streams and repay creditors more quickly.
This chapter contains interviews with President Maithripala Sirisena; and Prime Minister Ranil Wickremesinghe.
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The Philippines began witnessing sustained economic growth and increased efforts to curb corruption during the six-year term of former President Benigno Aquino III, who ended his presidency in mid-2016. Long-time Davao City mayor, Rodrigo Duterte, won the 2016 election, which was characterised by a historic 82% turnout rate, and took office on June 30, 2016. His government aims to push forward major infrastructure investments to improve internal and external connectivity. Macroeconomic fundamentals have continued to improve, as has transparency, and the country’s biodiversity, natural resources and young demographics have been increasingly recognised as assets.
This chapter contains interviews with President Rodrigo Duterte; and Le Luong Minh, Secretary-General, ASEAN.
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Home of the ancient city of Carthage, present-day Tunisia has a long and distinguished history. Its location at the centre of North Africa, close to vital shipping routes in the Mediterranean, ensured it became a hub for control over the region for successive ruling elites, including the Berbers, Phoenicians, Romans, and Arab and Ottoman dynasties. In the late 19th century Tunisia became a French protectorate, a status it maintained until colonial rule ended in 1956, and the country achieved full independence. The post-independence republican period was dominated first by Habib Bourgiba, who ruled as president for three decades (1956-87), advancing secular ideals, in particular the emancipation of women. Bourgiba’s successor, Zine El Abidine Ben Ali, assumed power in 1987, and established an authoritarian rule that would stay in place until a wave of anti-government protests forced him into exile in January 2011. The start of Tunisia’s Jasmine Revolution had a widespread impact, igniting the region-wide movement now known as the Arab Spring. Though at times rocky, Tunisia’s road to democracy has been generally deemed a success, and the country is often hailed as a beacon of hope in a turbulent region.
This chapter contains a viewpoint from President Béji Caïd Essebsi; and an interview with Akinwumi Adesina, President, African Development Bank.
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With approximately 44.2m inhabitants and an annual growth rate of 2.6%, Kenya is the seventh-most populated country in Africa. Demographically, it is also very young, with the average age around 18 years and more than 50% of the population under 25. The country’s politics have changed markedly since the introduction of a new constitution in 2010, devolving a significant amount of power to counties, strengthening political accountability and improving the delivery of public services at the local level. There are challenges, however, and while Kenya’s fast-growing population is seen as a boon by many, the economy has struggled to create enough well-paying jobs to keep up with this growth. Poverty and inequality remain persistent, and recent security concerns have lowered tourism numbers, putting a considerable dent in foreign currency reserves. Yet while these issues are serious, the country has managed to avoid much of the turmoil that has hit other major African economies over the past two years, such as recessions, rising debt and slowdowns in growth. While uncertainty over the outcome of the general elections scheduled for August 2017 may temporarily dampen business confidence, the country has made significant progress and the outlook appears relatively positive.
This chapter contains interviews with President Uhuru Kenyatta; Shinzo Abe, Prime Minister of Japan; and Brigitte Zypries, Federal Minister of Economic Affairs and Energy of Germany.
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But in only two decades, Argentina has returned as a new focus of investors and companies around the world. The newly elected government of President Mauricio Macri is working to recover the interest of American and European companies, which have announced levels of investment that were unthinkable a few years ago. Domestically, the country is drafting a series of reforms that will help improve macroeconomic fundamentals and ensure healthy levels of consumption, setting the stage for Argentina to again become a southern superpower.
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Stretching across the heart of South-east Asia, the Socialist Republic of Vietnam has risen to become one of the region’s greatest success stories, after witnessing a remarkable post-war economic recovery. The nation’s vast coastline, rolling highlands, dense jungle and abundance of natural resources have helped to bolster its rapid industrial development, while ongoing economic liberalisation and government initiatives to privatise or restructure a number of state-owned enterprises have had a major impact on foreign direct investment.
This chapter contains a viewpoint from Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam; an interview with Pham Binh Minh, Deputy Prime Minister and Minister of Foreign Affairs; and a viewpoint from Former US President Barack Obama.
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At a time when a number of major Latin American economies, including Brazil and Venezuela, are heading toward recession, Mexico’s economy stands out in the region for its resilience. Projections for 2017 are couched in more uncertainty than is usual, however, in light of the lack of clarity over and the potential impact of policy changes in the US during the first year in office for US President Donald Trump. In forecasts released after the November 2016 US election, the World Bank projected Mexican GDP growth easing to 1.8% in 2017, while the IMF has forecast 1.7%.
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Egypt is the third-most-populous country in Africa and the 15th worldwide, according to World Bank figures. As of 2017 the number of residents was estimated to have reached 92m. Arabic is the official language and the only one widely understood across the entire country. Over the last 15 years, Egypt has been undergoing a transformation into a market-oriented economy. The country currently maintains a lower-middle-income status. While there is substantial potential to push the country towards middle-income status, GDP growth rates were stalled – first by the global economic crisis and then by political instability. Nevertheless, the economy grew at a rate of nearly 4% in FY 2014/15 and FY 2015/16. Egypt is a presidential republic. The current president is Abdel Fattah El Sisi, who was elected to his first four-year term in May 2014, following the removal of the previous administration of Mohamed Morsi.
This chapter contains interviews with President Abdel Fattah El Sisi; and Akinwumi Adesina, President, African Development Bank.
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With just over 3% of the territory of the UAE, Sharjah is one of the federation’s smaller emirates, yet it continues to punch above its weight in the realms of commerce and culture. Having long played an important cultural and economic role in the region, it is now home to three free zones, 16 museums and a number of annual festivals that draw visitors from around the world. The discovery of oil in Sharjah’s offshore Mubarak field in 1972 resulted in an economic boom, but even at that early stage the emirate’s leadership understood the importance of establishing a non-oil economy. The Sharjah Chamber of Commerce and Industry, created that year to broaden the range of economic activity taking place in the emirate, over subsequent decades oversaw development of a range of industries, including petrochemicals, textiles and leather, basic non-metals, foodstuffs and wood products.
This chapter contains a viewpoint from Sheikh Sultan bin Mohamed Al Qasimi, ruler of Sharjah and member of the UAE’s Supreme Council; and interviews with Sheikha Bodour bint Sultan Al Qasimi, Chairperson, Sharjah Investment and Development Authority; and Abdul Latif Al Zayani, Secretary-General, GCC.
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Ethnically, linguistically and religiously diverse, Côte d’Ivoire is a West African nation with a rich culture. Once one of the continent’s leading economic powerhouses, the country was afflicted by civil war for much of the past 10 years. However, peace has largely prevailed since April 2011, and the nation is now looking to reclaim its former glory. The country benefits from a wide range of commodities that have helped underwrite its growth. Agriculture is a key economic sector, with cocoa being the most important crop and Côte d’Ivoire the largest producer globally. The country is also a minor net exporter of crude oil with proven reserves of around 100m barrels, the 64th-largest in the world. This chapter contains a viewpoint from President Alassane Dramane Ouattara and interviews with Marcel de Souza, President, Commission of ECOWAS; Pankaj Patel, President, Federation of Indian Chambers of Commerce & Industry; Carlos Lopes, Professor, University of Cape Town, and Visiting Fellow, Oxford Martin School.
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The kingdom of Bahrain has been ruled as a constitutional monarchy since 2002 under the leadership of Sheikh Hamad bin Isa Al Khalifa. The country pioneered the Middle East’s oil production in 1932, thus establishing the region’s initial framework for the petroleum industry. The energy sector remains a pillar of the kingdom’s economy, accounting for the bulk of government revenues but a shrinking proportion of GDP thanks to early efforts to diversify its economy at an early stage. Consequently, the country established itself as a leading regional financial centre in the 1970s and 1980s, with its highly regarded regulatory system encouraging various regional banks looking to move their capital out of Lebanon during that country’s civil war to set up base in Bahrain.
This chapter contains an interview with Abdul Latif Al Zayani, Secretary-General, GCC; and a viewpoint from Theresa May, Prime Minster of the UK.
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Located in the south-eastern quarter of the Arabian Peninsula, Oman is the only member of the GCC situated outside of the Gulf itself. Leveraging its strategic location, it has invested in infrastructure with the goal of becoming a global logistics centre. While less hydrocarbons-rich than its GCC neighbours, the sultanate’s diversification efforts are a driving force behind its economic growth. Its long-term development strategy, Oman Vision 2020, emphasises industrialisation, privatisation and Omanisation. Logistics, tourism, mining, fisheries and industrial manufacturing have all been identified as potential future economic drivers, and will be the focus of development under Vision 2040. This chapter contains a viewpoint from Sultan Qaboos bin Said Al Said; and an interview with Abdul Latif Al Zayani, Secretary-General of the GCC.
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Undergoing profound and rapid change, Myanmar is today emerging as one of Asia’s most sought-after investment destinations. Its opening to the global economy has come after decades of military rule, during which a long period of isolation and internal conflict was followed by an era of gradual disengagement from politics by the army. This retreat took a decisive step forward in November 2015, when the country held the first openly contested elections in its modern history. The new administration now faces the daunting task of meeting the expectations of a diverse and dynamic people, conscious of their long and distinguished histories as well as their current opportunities.
This chapter contains viewpoints from Daw Aung San Suu Kyi, State Counsellor; President U Htin Kyaw; and Former US President Barak Obama, as well as interviews with Lim Hng Kiang, Singapore Minister for Trade and Industry; and Mark Garnier, Parliamentary Undersecretary, UK Department for International Trade.
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Algeria is Africa’s largest country. Its population – which is currently just under 40m – is rising at an annual rate of 1.9%. Like many other countries in North Africa, the population is young, with two-thirds under the age of 30. Hydrocarbons have long been the economy’s primary driver. The country is the world’s sixth-largest gas exporter, and has the 10th-largest natural gas reserves. However, as a result of the recent drop in hydrocarbons prices, GDP growth softened to 3.9% in 2015, while the fiscal deficit doubled in the same year. The government made moves to trim spending in 2016, but ring-fenced a number of capital projects to ensure productive investments continue. Algeria has maintained an impressive degree of stability, with the government focusing on helping to stave off further unrest in the region and working to strengthen the country’s baseline economic indicators. This chapter contains interviews with President Abdelaziz Bouteflika; Greg Hands, UK Minister of State for International Trade; and Akinwumi Adesina, President, African Development Bank.
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Boasting one of the region’s largest and most advanced markets, Ghana has long been a diplomatic and economic heavyweight in West Africa. The post-colonial era saw consolidation of the country’s economy and remarkable increases in the standard of living for many Ghanaians. While an abundance of natural resources has, for the most part, underwritten these improvements, recent efforts to spur development in other sectors have met with some success. Diversification has come into sharper focus recently, as reduced global commodity prices have put a dent in export revenues. In 2015 the government negotiated a three-year extended credit facility with the IMF and is now in the process of implementing the reforms required under the deal, laying the groundwork for future sustained growth.
This chapter contains a viewpoint from President Nana Akufo-Addo; and interviews with Adam Afriyie, UK Trade Envoy to Ghana; Akinwumi Adesina, President, African Development Bank; and Marcel de Souza, President, ECOWAS Commission.
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The Hashemite Kingdom of Jordan is located in the heart of the Middle East, in a region that is often termed the Levant. Its neighbouring countries include Iraq to the east, Saudi Arabia to the south, Israel and Palestine to the west and Syria to the north. In all, Jordan covers 89,342 sq km of land and shares 1635 km of land border with Israel, Palestine, Iraq, Saudi Arabia and Syria. In the south, Jordan has access to the Red Sea via the Gulf of Aqaba.
This chapter contains a viewpoint from King Abdullah II; and interviews with Prime Minister Hani Al Mulki; and Imad Fakhoury, Minister of Planning and International Cooperation.
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Gabon covers an area of 267,667 sq km, with 10,000 sq km of narrow coastline stretching across 885 km of the Gulf of Guinea. Gabon’s vast forested areas are home to more than 3000 species of vegetation and at least 190 species of mammals. The population comprises 40 separate ethnic groups, the majority of which speak Bantu languages, which are classified into 10 linguistic groups. According to the latest available official data, as of 2013 Gabon’s population totalled just 1.8m, compared to 22.3m in Cameroon and 4.6m in the Republic of the Congo. Like many oil-dependent nations, Gabon’s economy has felt the impact of depressed global oil prices in recent years, with the World Bank reporting that real GDP fell from $18.18bn in 2014 to $14.34bn in 2015. As a result, the government, which in 2009 launched its guiding economic strategy, Emerging Gabon Strategic Plan, has hastened its efforts to expand the scope of economic activity, with several major new agricultural projects due to come on-stream in the near future.
This chapter includes interviews with President Ali Bongo Ondimba; Akinwumi Adesina, President, African Development Bank; Lim Hng Kiang, Singapore Minister for Trade and Industry; and Pierre Moussa, President, CEMAC Commission.
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Home to an estimated 15.7% of the world’s proven oil reserves and the single largest economy in the MENA region, Saudi Arabia is a key player not only in the region but also globally. Since the establishment of Saudi Arabia in September 1932, the Kingdom has poured its considerable resources into a series of large-scale economic development, diversification and modernisation initiatives. 2016 witnessed the unveiling of Vision 2030 which calls for major overhaul of the national economy and designed to pave the way for the reorientation of the Kingdom’s economy away from hydrocarbons powered, state-spurred growth, to a more diversified, private-sector led economic model.
This chapter contains viewpoints from Deputy Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Chairman of the Council of Economic and Development Affairs; and Xi Jinping, President of the People’s Republic of China; and interviews with Prince Khalid bin Faisal Al Saud, Governor, Makkah Region; and Prince Faisal bin Bandar, Governor, Riyadh Region and Chairman of the High Commission for the Development of Arriyadh.
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With China and India seeing unprecedented growth over the past decade, global trade has increasingly pivoted towards Asia, putting ASEAN in a favourable position to capitalise on new regional opportunities. Official integration of the ASEAN Economic Community (AEC) is set to have a dramatic impact on future trade growth, both within ASEAN and beyond. Indonesia’s population and economy are the largest in the AEC, creating opportunities as regional integration unfolds. Investment is expected to rise as foreign companies seek to access the domestic consumer base, while export revenues could benefit from easier access to new markets.
This chapter contains a viewpoint from President Joko Widodo; and interviews with Vice-President Yusuf Kalla; and John Key, Prime Minister of New Zealand.
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At the north-west corner of Africa, just 15 km from Europe across the Strait of Gibraltar, Morocco has a strategically important location and for centuries has been a blend of cultures. It is North Africa’s only monarchy and has one of the region’s most stable and most inclusive political systems. The country’s long tradition as an international trading centre continues, with a relatively open economy that has drawn in foreign investment and become one of Europe’s major trading partners in Africa. Diplomatically, Morocco’s pragmatic approach has won it a range of allies and partnerships, from its strong commercial and security ties with the EU to a burgeoning relationship with China and the Gulf countries.
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While in 2015 the world’s emerging countries and fastest-growing economies suffered due to low commodity prices and currency depreciations, Dubai still enjoyed steady GDP growth at around 4% and an increased drive towards consolidating its position as a knowledge-based economy. With a well-diversified model and a set of transformation-oriented projects worth some Dh300bn ($81.7m) in the pipeline, 2015 was worth its designation as the “year of innovation”. The issuing of the Dubai Open Data Law and the creation of Dubai Smart City were among the flagship initiatives driving this transformation.
This chapter contains interviews with Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council; Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President, Dubai Women Establishment; Sheikh Ahmed bin Saeed Al Maktoum, Chairman, Dubai Airports; President, Dubai Civil Aviation Authority; and Chairman and CEO, Emirates Group; Reem Al Hashimy, UAE Minister of State for International Cooperation; and Director-General, Expo 2020 Dubai; and viewpoints from Xi Jinping, President of China and former UK Prime Minister David Cameron.
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A member of both the Organisation of the Petroleum Exporting Countries and the GCC, Kuwait is arguably the most politically dynamic in the Gulf, which has afforded it strong foundations to help tackle recent issues concerning parliamentary elections and accountability. By continuing with economic diversification efforts and reducing dependence on oil revenues, it is also adding increased momentum to several large infrastructure projects, which will help further integrate Kuwait into the global economy. This chapter contains a viewpoint from Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah, on the importance of addressing regional security within the GCC; and interviews with Marzouq Ali Al Ghanim, Speaker, Kuwait National Assembly; Abdul Latif Al Zayani, Secretary-General, GCC; and Tobias Ellwood, MP and Minister for the Middle East and North Africa, UK Foreign and Commonwealth Office.
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Nigeria is the third-biggest country in West Africa by area and 32nd largest in the world. With 853 km of coastline adjoining the Gulf of Guinea, it is well connected to international trade routes and acts as an important conduit of goods for its landlocked neighbours to the north. Nigeria is also blessed with an abundance of resources. In the last 18 months, significant political progress has been made in Nigeria. The ballot box has taken centre stage as the country carried out a peaceful handover of power at both the executive and legislative level. The incoming government has a number of pressing issues to tackle ranging from an Islamist insurgency in the north to a bruised oil industry in the south, alongside a slowing economy and depreciating currency.
This chapter contains viewpoints from President Muhammadu Buhari; and Christine Lagarde, Managing Director, IMF; as well as an interview with Lim Hng Kiang, Singapore Minister for Trade and Industry.
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Culturally one of the world’s most diverse countries, Papua New Guinea is widely considered to be one the last frontiers for tourism and business opportunities – the island of New Guinea hosts 6-8% of the world’s species, one-sixth of known languages and rivals Borneo, the Amazon and the Congo in terms of biodiversity. The country is an important exporter of natural resources (gold, copper, oil and natural gas) as well as agricultural products, with its cash crops including coffee, oil palm, cocoa, coconut and to a lesser extent tea and rubber. PNG also became a major exporter of natural gas in 2014, significantly increasing the size and strength of its economy, and the $19bn PNG Liquefied Natural Gas project was completed ahead of schedule and within budget.
This chapter contains an interview with Prime Minister Peter O’Neill.
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Sharjah is the UAE’s third-largest emirate with a population of almost 800,000 and a GDP of roughly $24bn. Government focus on education programmes and the development of a diversified economic base has helped support Sharjah’s robust growth in recent years while its relatively small oil and gas reserves mean the emirate has been less affected than many by the oil price-induced turbulence witnessed over the past two years.
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Since gaining independence in 1971, Qatar has quickly risen to prominence both regionally and internationally to become an economic, political and cultural powerhouse in the Middle East. With a relatively small local population and substantial revenues generated from natural gas, Qatar has the world’s highest GDP per capita, averaging approximately $100,000. Prior to 2010, the country was mostly known internationally as the home of the media network Al Jazeera, yet this changed when Qatar won the contest to host the 2022 FIFA World Cup in December 2010. As the first and only Arab nation ever to host the event, Qatar has witnessed considerable press coverage since. Whether focusing on its extensive international investments, ample spending at home on substantial infrastructure projects, labour migration issues or the state’s involvement in foreign and regional affairs, Qatar has made a name for itself in the international arena.
This chapter contains a viewpoint from Sheikh Tamim bin Hamad Al Thani, Emir of Qatar; and interviews with Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior; Sheikha Hind bint Hamad Al Thani, Vice-Chairperson and CEO, Qatar Foundation; and Sheikh Joaan bin Hamad Al Thani, President, Qatar Olympic Committee.
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Trinidad and Tobago stands out in the Caribbean and the Americas as a comparatively wealthy, hydrocarbons-based economy with rich and diverse cultural traditions and a robust democratic system. The twin-island country has a population of 1.35m people and a per capita GDP that places the country among the wealthiest in the Americas, behind the US and Canada, and ahead of most Caribbean and Latin American countries. T&T’s abundant oil and gas reserves have driven this prosperity, and have underpinned its strong economic growth rate. While excessive reliance on the oil and gas sector is problematic at times of low international hydrocarbons prices, the country has managed to achieve a degree of diversification into other sectors such as financial services, tourism and manufacturing.
This chapter contains interviews with Prime Minister Keith Rowley and Hanna Tetteh, Minister of Foreign Affairs and Regional Integration, Republic of Ghana.
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While both 2015 and 2016 have held numerous important changes for Brunei Darussalam, the nation has long maintained its unique balance of tradition and modernity. Classified as a unitary Islamic monarchy, the Sultanate has maintained a stable form of government since its independence in 1984. Historically, the oil and gas industry has dominated the Bruneian economy and has allowed the Sultanate to accumulate its considerable wealth. However, the nation is making earnest efforts to diversify its economy in order to ensure future economic stability and sustainability. This chapter contains an interview with Le Luong Minh, Secretary-General, ASEAN.
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Having undergone rapid development over the last half-century, Malaysia’s economy has progressed from relying on agricultural and primary commodities to being more broad-based and export-driven. Benefitting from long-term political stability, sound economic management and pragmatic leadership, the country possesses sound infrastructure, established health care and education systems, and an increasingly advanced and diversified economy. Its diversity may be one of its greatest assets: with a population that is both multi-ethnic and multilingual, it is well placed to succeed in an increasingly integrated global economy. This chapter contains a viewpoint from Prime Minister Najib Razak, and an interview with Former Prime Minister Mahathir Mohamad.
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Sri Lanka, the “Wonder of Asia”, formerly known as Ceylon, has long served as an important strategic destination in the Indian Ocean, catering to merchants and travellers from South-east Asia, India, the Middle East and East Africa. While much of the country’s recent history has been tainted by a decades-long civil war, post-conflict euphoria has brought a sense of renewal and optimism to the island nation. A new administration, elected in 2015, has pledged its commitment to inclusive governance and economic reform, as well as rebalancing its foreign policy and reconciling with the country’s ethnic minorities.
This chapter contains an interview with President Maithripala Sirisena, a viewpoint from Prime Minister Ranil Wickremesinghe, and interviews with Hugo Swire, Minister of State, British Foreign and Commonweath Office; and Arjun Bahadur Thapa, Secretary General, South Asian Association for Regional Cooperation.
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Located off the mainland on a number of islands, the city of Abu Dhabi is both the capital of the emirate and of the UAE. Under the constitution of 1971 the UAE operates as a federation of seven emirates and each of its constituent emirates has a high level of political and economic autonomy. Abu Dhabi’s ruler customarily serves as president of the UAE, while the ruler of Dubai serves as the country’s prime minister and vice-president. Of the emirate’s total population of 2.66m, Abu Dhabi City was home to the majority, with around 1.63m, or 62%, in 2014. Al Gharbia, Abu Dhabi’s Western Region, covers 71% of the emirate’s total land area and possesses 90% of its hydrocarbons reserves, which in turn account for around 90% of the UAE’s total reserves. Meanwhile, the emirate’s eastern region, Al Ain, was home to 704,100 people as of 2014, of which around 473,000 live in Al Ain City, the emirate’s second-largest city. This chapter contains an interview with Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and viewpoints from UK Prime Minister David Cameron and Chinese President Xi Jinping.
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The land now known as Tunisia has a rich and distinguished history. It has been ruled over by Berbers, Phoenicians, Romans and Arab dynasties. Modern Tunisia, and the country’s name itself, came into being when the region was a French protectorate in the late nineteenth century. Tunisia gained full independence in 1956. Two presidents, Habib Bourgiba and Zine El Abidine Ben Ali, dominated much of the post-independence republican period. However, following protests, which began in December 2010, Ben Ali fled into exile in January 2011, marking a new era for Tunisian politics. Following this period of protest, which helped ignite the Arab Spring, the country has held two sets of successful elections. The parliament also voted overwhelmingly in favour of a new constitution in 2014. Emerging relatively strongly from the Arab Spring, Tunisia is respected diplomatically and remains a key player in a volatile neighbourhood. With more than 1000 km of Mediterranean coastline, the country has a strong tradition of commerce and openness to the wider region. This chapter contains a viewpoint from President Béji Caïd Essebsi; and interviews with Habib Essid, Head of Government; Tobias Ellwood, MP and Minister for the Middle East and North Africa, UK Foreign and Commonwealth Office; Suma Chakrabarti, President, the European Bank for Reconstruction and Development (EBRD)
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Thailand is the 20th most populous nation in the world, with a 2015 estimate of 67,959,000 inhabitants, making it the third most populous in ASEAN, after Indonesia and Vietnam. Following a period of economic decline in 2013 and 2014, estimated growth in 2015 was back at around 2.5%, with the Thai private sector driving the economy forward despite challenging conditions. Thailand is currently ruled by the National Council for Peace and Order (NCPO), whose stated goals are to restore stability and to enact reforms. In February 2016 the council thus announced that it was in the process of drafting a new constitution, with elections scheduled for 2017. This chapter contains viewpoints from His Majesty Bhumbiol Adulyadej, King of Thailand; and Prime Minister Prayuth Chan-ocha.
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The Philippines’ abundant biodiversity, natural resources and youthful demographics are all assets that have garnered recognition from investors in recent years. Sustained economic growth and the Philippines’ newly attained investment grade status notwithstanding, the maintenance of peace in the Mindanao region and persistent poverty levels remain key areas to address as the country continues its successful integration into the ASEAN Economic Community. Tackling ongoing challenges are important priorities for the current administration of Benigno Aquino III, which aims to leave a legacy of good governance beyond its last year in 2016. This chapter contains a viewpoint from President Benigno Aquino III; and interviews with Le Luong Minh, Secretary-General, ASEAN; and Roselan Johar Mohamed, Chairman, the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area Business Council.
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In 2014 Djibouti’s economy achieved a growth rate of nearly 6%, according to estimates from the African Development Bank. While unemployment remains a challenge, this growth figure, coupled with a young and expanding population, points to the strong potential of the country. Ports, logistics and associated services remain the dominant economic activity, accounting for more than 90% of GDP, though Djibouti also has some natural advantages. In terms of metals and minerals, the country is home gold, granite, limestone and marble deposits. Djibouti is also looking to leverage its significant geothermal resources to satisfy domestic energy demand. According to World Bank estimates, the country’s population reached 876,200 in 2014 – the majority of which, more than 500,000 people, live in the capital, Djibouti City. Djibouti is also a young country, with more than half of the population under the age of 25. The two official languages are French and Arabic; however, with the ethnic composition of the country consisting mostly of Somalis (60%) and Afars (35%), these groups’ languages are also widely spoken. Djibouti is a relatively young country in political terms. It achieved independence less than 40 years ago and has had just two presidents in that time. Djibouti’s comparative stability in an otherwise volatile region has allowed the country to develop relatively quickly. This chapter contains interviews with President Ismaïl Omar Guelleh; and Carlos Lopes, Executive Secretary, UN Economic Commission for Africa; and viewpoints from John Kerry, US Secretary of State; and Mahamoud Ali Youssouf, Minister of Foreign Affairs.
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As peace talks between the government of Juan Manuel Santos Calderón and the leaders of the FARC continue in an effort to end 51 years of armed conflict, Colombia’s political climate could now be on the verge of significant change. Both sides agreed in September 2015 to set a deadline by which a final peace accord must be signed – March 23, 2016. If achieved, a peace accord could bolster economic growth by up to 1.9 percentage points, according to the National Planning Department. As the government edges ever closer to signing a peace deal, it is becoming clear that a post-conflict Colombia will include both challenges and opportunities. Job creation and the establishment of infrastructure and state services, such as schools and hospitals, in former guerrilla strongholds will be key to reducing the wide gap between rural and urban areas.
This chapter includes interviews with President Juan Manuel Santos Calderón; María Ángela Holguín, Minister of Foreign Affairs; and José Ángel Gurría, Secretary-General, OECD.
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The kingdom of Bahrain has been ruled as a constitutional monarchy since 2002 under the leadership of Sheikh Hamad bin Isa Al Khalifa. The country pioneered the Middle East’s oil production in 1932, thus establishing the region’s initial framework for the petroleum industry. The energy sector remains a pillar of the kingdom’s economy, accounting for the bulk of government revenues but a shrinking proportion of GDP thanks to early efforts to diversify the economy away from hydrocarbons. This led to the kingdom’s establishment as a chief financial centre in the region, with the country home to a thriving sharia-compliant segment and financial services representing the second-largest contributor to the country’s GDP. Elsewhere transport links across the kingdom are being upgraded, with major expansion works at Bahrain International Airport expected to boost the country’s status as a centre for trans-shipment and logistics as well as further fuel the country’s growing tourism industry.
This chapter contains an interview with Li Yong, Director-General, UN Industrial Development Organisation (UNIDO).
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Myanmar is currently passing through a crucial period of political reform, against the background of rapid economic growth and international openness. The successful November 2015 parliamentary elections capped a landmark year for the country. Myanmar has undergone changes that only a few years ago might have seemed unlikely, if not impossible. These events took place just over a decade since the government began moving on its “Roadmap to Democracy,” and three years after the country’s most famous former dissident, Daw Aung San Suu Kyi, took her seat in Parliament. Much of the current political debate concerns amendments to the constitution. At the same time, ethnic and religious conflicts will continue to present a challenge to any government in Naypyidaw. Yet Myanmar has advantages, including a commitment to reform among its large and youthful population. It is also home to significant natural resources, as well as a great deal of international good will. This chapter contains a viewpoint from Daw Aung San Suu Kyi, Chairperson, National League for Democracy; and an interview with Goh Chok Tong, Emeritus Senior Minister, Singapore.
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Buoyed by high commodity prices and market-friendly policies, Peru has been one of the best-performing and most stable economies in Latin America over the past decade. Rapid economic growth has, in turn, spurred an emerging middle class and notable social gains, with the poverty rate falling by more than half from 2004 to 2014. Today the challenge facing Peru, as well as other commodity-driven economies in Latin America, is how to diversify its economy, ensure inclusive economic growth and sustain years of poverty reduction amid falling demand for commodities. Since coming to power in mid-2011, President Ollanta Humala has tried to maintain a balance between the expectations of the middle class, business leaders, foreign investors and the demands of local communities in Peru’s mineral-rich areas, with varying degrees of success. As the country heads to the national election in April 2016, economic recovery and anti-mining protests are likely to remain top issues in the country’s political agenda. This chapter contains a viewpoint from President Ollanta Moisés Humala Tasso, and interviews with Ana Maria Sanchez Vargas, Minister of Foreign Affairs; and Jorge Familiar, Vice-President for Latin America and the Caribbean, World Bank.
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Oman, located on the south-eastern end of the Arabian Peninsula, is the only member of the GCC located outside the gulf. Leveraging its strategic location on the Strait of Hormuz, the government is ramping up infrastructure investment in line with the sultanate’s goal of establishing itself as a global logistics centre. Oman Vision 2020, the country’s long-term development plan, emphasizes the expansion of industry, greater private-sector participation in the economy and the further boosting of Omanisation rates across all sectors. Oman, with a population of 4.3m in 2015, has long been regarded as a bastion of peace and stability in the region, with the raft of economic, political and social reforms initiated by Sultan Qaboos since his accession in 1970 being instrumental in transforming the country into the modern state it is today. This chapter contains a viewpoint from Sultan Qaboos bin Said Al Said; and an interview with Shahin Mustafayev, Azerbaijani Minister of Economy and Industry.
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Lying astride trade routes linking West, East, North and South, Egypt has long been at the heart of regional and global commerce. For the past century and a half, the Suez Canal has been a major conduit for international trade, including oil. Building on decades of leadership in the Arab world, Egypt is undergoing major governmental transformation in the aftermath of the 2011 revolution. Presidential and parliamentary elections in recent years have served to stabilise the country politically, reforming the constitution and the responsibilities and scope of Egypt’s leading institutions. While 2015 was characterised by greater political stability and growth, Egypt still faces challenges. Creating jobs and building homes for its growing population and improving living standards for the poorest are among the most pressing, and closely linked to stability in the long term.
This chapter includes interviews with President Abdel Fattah El Sisi; Carlo Calenda, Deputy Minister of Economic Development of Italy; and Ambassador David Thorne, Senior Advisor to the US Secretary of State. It also includes a viewpoint from Manuel Valls, Prime Minister of France.
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Kenya has undergone a significant political and governance transformation over the last five years. New measures to encourage a more stable and democratic system have been ushered in, changing the way Kenyans are governed and how the different layers of administration interact. These structural alterations are good news for the country, although there are still challenges as it looks to maintain its growth and stability moving forward. As the country reaches the middle of President Uhuru Kenyatta’s first term, his administration faces a number of hurdles. Building faith in the political system, improving the security situation and dealing with corruption will occupy much of its time. These are difficult, long-standing issues, but the country is beginning to face them. If they can be overcome, Kenya will be well placed to ensure sustained economic growth and stability.
This chapter contains interviews with President Uhuru Kenyatta, Commander-in-Chief of the Kenya Defence Forces; and Richard Sezibera, Secretary General, East African Community; and a viewpoint from Barack Obama, President of the US.
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Occupying a strategic position in North Africa, with its major population centres abutting the Mediterranean and its hinterland stretching deep into the desert, Algeria is home to 39.5m people, making it the 34th-most-populous country in the world. The population is predominantly Arab-Berber, with less than 1% identifying as European. Approximately 15% of Algerians self-identify as Berber. The country profits from a rich and varied natural resource base, extracting oil, gas, phosphates, uranium, iron ore, zinc and lead. It is the 19th largest producer of crude oil globally, with an average production rate of 1.42m barrels per day in 2014. Algeria’s foreign policy has long been characterised by an independent streak, which has allowed the country to broaden its diplomatic ties to strengthen and deepen trade ties. This chapter contains a viewpoint from President Abdelaziz Bouteflika; and interviews with Tobias Ellwood MP, UK Parliamentary Under Secretary of State for Middle East and North Africa; and Ségolène Royal, French Minister of Ecology, Sustainable Development and Energy.
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According to the Department of Statistics Jordan’s population, swelled largely by refugees arriving from Syria, reached 6.68m at the end of 2014, with Syrian refugees constituting 20.8% of the total. Jordan, however, continues to be a bulwark of stability in the region. This is largely down to the ongoing process of political reform which has been in motion since King Abdullah II ascended to the throne. Moreover, the kingdom has forged strong partnerships with Western countries over the past few decades, particularly the US. Jordan’s multitude of free trade agreements (FTAs) has created a vehicle for both domestic economic development and greater integration with the global economy, and in 2000 King Abdullah II implemented a series of policies intended to accelerate economic reform that facilitated the kingdom joining the World Trade Organisation in that year.
This chapter contains viewpoints from King Abdullah II and Joe Biden, Vice-President of the United States; and an interview with Abdullah Ensour, Prime Minister of Jordan.
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South Africa has long served as the “gateway to Africa”, and while recent years have seen other economies in the regional make up ground, it remains one of the most accessible, dynamic and well-regulated entry points to the continent’s roughly 1bn consumers. The country boasts a wide range of climates and landscapes, from arid semi-desert in Karoo to jagged Alpine landscapes in Ukhahlamba Drakensberg and rich farmland in the Western Cape. South Africa is ringed by water, with more than 2500 km of coastline, and covers 1.22m sq km of land on the southern tip of the African continent, making it the 25th-largest country in the world. According to Statistics South Africa, the country’s official statistical bureau, the country’s population as of July 2015 was 54.96m.
This chapter contains interviews with President Jacob Zuma; and Alexey Ulyukaev, Minister of Economic Development, Russian Federation.
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One of the principal attractions of Ghana as an investment destination is its status as one of the most well-governed and stable states in the region. It has been more than two decades since the multiparty system was re-established by a new constitution, and during this time there has been a consolidation of democratic principles, the establishment of greater trust in the nation’s independent judiciary and the development of a vibrant parliament that has proven itself an effective forum for legislative activity.
This chapter includes a viewpoint from President John Dramani Mahama, and interviews with Cecilia Malmström, EU Trade Commissioner, and Alan Yarrow, Lord Mayor of the City of London.
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RAK is ruled by Sheikh Saud bin Saqr Al Qasimi, who has ruled since the passing of his father, Sheikh Saqr, in 2010. The emirate’s population has grown significantly over recent years, rising from 267,000 in 2009 to 413,000 in 2010. Despite its relatively small geographic size, the emirate nevertheless boasts a varied landscape and considerable natural resources. Indeed it is home to the largest rock quarry in the Gulf, while the high-quality deposits of limestone and clay found in the emirate underpin RAK’s thriving cement and ceramics industries. Meanwhile the various industrial free zones remain core pillars of the emirate’s growth, with attractive incentives in place for foreign companies continuing to attract international players.
This chapter contains an interview with Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and ruler of Ras Al Khaimah; and a viewpoint from Tony Abbott, former Prime Minister of Australia.
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Since coming to power in December 2012, the government of President Enrique Peña Nieto has overseen the introduction of a series of sweeping reforms aimed at boosting the country’s economic competitiveness and attracting investment. Under the reform agenda, the energy sector was opened to private investment, while asymmetric laws were introduced in the telecommunications sector to increase competition. Meanwhile, the education sector saw the establishment of compulsory teacher evaluations and a fiscal reform led to the widening of the tax base. Despite the speed with which the reforms were passed, the momentum has slowed slightly as the government feels the effects of lower hydrocarbons revenues.
This chapter contains interviews with President Enrique Peña Nieto; Angel Gurría, Secretary General, Organisation for Economic Cooperation and Development (OECD); and Andrew Robb, Australian Minister for Trade and Investment.
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As a major oil producer and key member of OPEC and the GCC, Kuwait faces a long-term challenge in the recent fall in oil prices, which have added new impetus to its drive for economic diversification. An expanding private sector and ongoing government support for a range of infrastructure projects should, however, ensure continued growth moving forward as new developments are set in motion to serve the country’s young and dynamic population, which is growing by an average of 3.1% a year and of which 57% are under the age of 25. Hydrocarbons revenues have enabled a high standard of living in Kuwait, which has a universal and comprehensive welfare system. Regionally, meanwhile, Kuwait has been benefitting from strengthening ties between the GCC and Asia, and trade between the two regions is poised for further growth over the next few years.
This chapter contains a viewpoint from Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah and interviews with Shahin Mustafayev, Azerbaijani Minister of Economy and Industry; José Antonio Meade Kuribreña, Mexican Secretary of Foreign Affairs; and Mohammad Al Zuhair, Executive Chairman, the National Fund for Small and Medium Enterprise Development.
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2015 has been a momentous year for the Kingdom of Saudi Arabia. The accession of King Salman bin Abdulaziz Al Saud in April, which saw a reordering of the country’s line of succession and brought a reshuffle of the main cabinet positions, indicates a leadership with its sights firmly set on the future. In 2014 the Kingdom had a population of 30.77m, up 2.59% on the previous year. Hydrocarbons continue to provide the bulk of state revenues, with the country home to 15.7% of global reserves. Even so, the economy has undergone major diversification efforts in recent years, and non-oil sector growth now outstrips oil sector growth. Further afield, the Kingdom has been benefitting from an increase in ties between the GCC and Asia, and investment opportunities across Africa are on the rise.
This chapter contains a viewpoint from King Salman bin Abdulaziz Al Saud, Custodian of the two Holy Mosques; and interviews with Prince Faisal bin Bandar bin Abdulaziz Al Saud, Governor, Riyadh Region, and Chairman, Arriyadh Development Authority (ADA); and Abdalla Salem El-Badri, Secretary-General, OPEC.
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Situated on the western tip of North Africa, Morocco – also known by its ancient name Al Maghreb, meaning “the West” in Arabic – contains a mix of indigenous Berber, Arab, African and European influences. Most of its 33m people live near the northern plains and cities along the Atlantic coast and speak Arabic, French or one of the varieties of Berber. As the region’s only monarchy, the kingdom has fashioned its rich cultural heritage into a tolerant state, whose pragmatic and inclusive approach to social and economic development has allowed it to sidestep the instability that has shaken some of its neighbours in recent years. A spate of modest political and governmental reforms, alongside a rapidly improving business environment, has allowed the country to expand its influence both in the Mediterranean basin and more broadly on the African continent.
This chapter contains viewpoints from His Majesty King Mohammed VI and Joe Biden, US Vice-President; and interviews with Abdel-Ilah Benkiran, Head of Government; and Jack Lang, former French Minister of Culture and President of the Arab World Institute.
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Culturally one of the world’s most diverse countries, Papua New Guinea is widely considered to be among the last frontiers for tourism and business opportunities. The island of New Guinea shelters 6-8% of global species, hosts one-sixth of known languages, and rivals Borneo, the Amazon and the Congo in terms of biodiversity. The country is also an important exporter of natural resources (gold, copper and oil) and agricultural products. Cash crops include coffee, oil palm, cocoa, coconut and, to a lesser extent, tea and rubber. PNG has steep mountains, tropical rainforests and hidden valleys, and the political, social and economic terrain currently faced by the country is similarly demanding in its nature.
This chapter contains an interview with Prime Minister Peter O’Neill.
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Situated on Africa’s Gulf of Guinea, Gabon is part of a select grouping of upper-middle-income countries in sub-Saharan Africa. Timber, oil and mineral reserves form the backbone of the economy. The political system is stable and the country plays a leading role in the region through its membership in the CEMAC economic bloc. Gabon has strong ties with Europe, and especially France, for historical reasons, but it has strived in recent years to broaden its economic and diplomatic partners, and several emerging powers from elsewhere in Asia and Africa are playing a bigger role in investment flows. Exogenous pressures, including a drop in commodity prices, especially oil, have presented short-term challenges and prompted budgetary revisions.
This chapter also includes interviews with President Ali Bongo Ondimba and Prime Minister Daniel Ona Ondo, as well as viewpoints from US Vice-President Joe Biden and Pierre Moussa, President, CEMAC Commission.
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Discovered by the Spanish at the end of the 15th century, Trinidad was seized by the British 300 years later, while the smaller island of Tobago was fought over by the Spanish, British, French and Dutch. With uninterrupted democratic rule since independence in 1962, T&T is today characterised by strong democratic traditions, an ethnically diverse population, and a vibrant local cultural and sporting life. Comparatively wealthy and economically diverse with active finance, manufacturing and transport sectors, T&T is also the largest Caribbean oil producer and the world’s sixth-largest exporter of LNG. While Tobago is a haven for tourists, with a laid-back atmosphere, Trinidad is famous for mixing business – particularly in the oil and gas sector – with pleasure, most famously in the form of the annual carnival. This chapter contains interviews with Kamla Persad-Bissessar, Prime Minister; Irwin LaRocque, Secretary-General, CARICOM; and Cecilia Álvarez-Correa, Colombian Minister of Trade, Industry and Tourism.
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Though one of Latin America’s fastest growing economies, Panama’s political situation stands in contrast to its economic performance. The past decade has seen sustained economic growth, while institutional development struggled to keep pace. Though more than two decades of peaceful democratic transfers of power have facilitated economic development, Panama is now faced with the challenge of maintaining steady growth while overcoming a number of hurdles, in particular marked social inequality and a lagging education system. The government of Juan Carlos Varela has placed particular emphasis on social programmes and the fight against corruption, a move expected to lead the country to improved governance and less social inequality. Though it is too soon to judge the overall effectiveness of the current administration’s efforts to create a more transparent government, by and large the encouraging trajectory of the Central American republic looks set to continue in the future.
This chapter features interviews with Isabel de Saint Malo de Alvarado, Vice-President and Minister of Foreign Affairs; Victoria Marina Velásquez de Avilés, Secretary General, Central American Integration System (SICA); Gina Montiel, Manager, Central America, Mexico, Panama, and the Dominican Republic, Inter-American Development Bank.
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With the July 2014 election of a new president, Joko Widodo, a new mood of confidence and optimism is palpable in Indonesia, the world’s third-largest democracy and most populous Muslim-majority nation. Hopes are high that a new dynamism in Jakarta will see many long-standing challenges addressed. At the same time, the country’s economic expansion is continuing apace, with a large, young population that is eager to take Indonesia to the next level of development.
This chapter features interviews with President Joko Widodo and Vice-President Muhammad Jusuf Kalla; and a viewpoint from Shinzo Abe, Prime Minister of Japan.
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Many have hailed Turkey’s growth over the past decade, and for good reason. The country averaged expansion of 5.4% between 2003 and 2013, one of the highest rates in the world. This was accompanied by drops in unemployment and poverty, as well as gains in school enrolment, home ownership and life expectancy. Since 2013, however, there has been a sharpening of disagreement over the direction of Turkey’s development and the role of its leaders and institutions, and the political discourse in early 2015 was dominated by the run-up to parliamentary elections in June.
This chapter contains a viewpoint from President Recep Tayyip Erdoğan.
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Located between economic heavyweights China and Russia, Mongolia’s traditional balancing act between its giant neighbours has come under increasing pressure in recent months, while winning and maintaining international investor confidence continues to be a multi-faceted and essential task. Expectations of rapid and sustainable growth among the country’s citizens now exist within the framework of a more uncertain global economic climate in which mineral exports in particular – a staple of the country’s balance of payments – have proven volatile. In facing a challenging environment, however, Mongolia can draw on a number of significant strengths, both from its past and present. Not only are the country’s economic fundamentals impressive, but it also has a pedigree of resilience, which, together with a more recent history of democratic governance, vibrant public debate and openness to world markets, stands it in good stead.
This chapter contains interviews with President Ts. Elbegdorj; and Prime Minister Ch. Saikhanbileg.
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Nigeria is Africa’s most populous country, the continent’s largest oil producer and a top destination for foreign investment. As of April 2014, Nigeria is now the continent’s largest economy as well, as a result of an overdue revision of its GDP. The revision added a whopping 89% to GDP, while also revealing the true diversity of the economy, with thriving industries such as agriculture, telecoms and technology, music and film, retail and trade, and services. However, as the economy continues to grow and diversify away from its reliance on hydrocarbons sector – which accounts for more than two-thirds of government revenues – the country’s complexities have become more pressing. Nigeria is in the midst of its third and longest attempt at sustained democratic rule, with the latest landmark coming with the 2015 presidential election, which saw the country’s first peaceful handover of power in more than three decades. The March poll, which involved a new biometric identity system, saw Muhammadu Buhari, a candidate from the All Progressives Congress (APC), an umbrella opposition party formed in 2013 by a coalition of smaller parties, eke out a narrow victory over Goodluck Jonathan, the incumbent and candidate for the governing People’s Democratic Party (PDP).
This chapter contains interviews with Kadré Désiré Ouédraogo, President, ECOWAS Commission; James Duddridge, Parliamentary Undersecretary of State, British Foreign & Commonwealth Office; and Georg Wilfried Schmidt, Regional Director for Sub-Saharan Africa and the Sahel, German Federal Foreign Office
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Home to an estimated 15.9% of the world’s proven oil reserves, Saudi Arabia is the single largest economy in the Middle East and North Africa. According to the Ministry of Finance, GDP grew by 9.3% to $746bn in 2013. While oil income is expected to continue to account for the majority of government revenues for the foreseeable future, the non-oil sector has expanded significantly in recent decades. Saudi Arabia is a major player in the region and a close ally to many of the world’s leading powers. This chapter contains interviews with Prince Turki bin Abdullah bin Abdulaziz Al Saud, Governor, Riyadh Region; Prince Saud bin Nayef bin Abdulaziz Al Saud, Governor, Eastern Province; Abdul Latif Al Zayani, Secretary-General, GCC; and a viewpoint from Enda Kenny, Prime Minister of Ireland.
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Qatar’s rapid economic growth over the past decade has thrust the country of 2.22m onto the world stage, and it is now one of the world’s richest on a per capita level. While Qatar’s huge natural gas resources represent the driving force behind its fast-growing economy, the country’s long-term development plan, Qatar National Vision 2030, envisions a diversification away from hydrocarbons in the future. Leading the way in this regard is the construction sector as the government pushes ahead with its vast infrastructure investment programme in the run up to the 2022 FIFA World Cup.
This chapter contains a viewpoint from Sheikh Tamim bin Hamad Al Thani, Emir of Qatar; and interviews with Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior; Khalid bin Mohammed Al Attiyah, Minister of Foreign Affairs; and Sheikha Hind bint Hamad Al Thani, Vice-Chairperson, Qatar Foundation; and Vice-Chairperson, Supreme Education Council.
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Sarawak is one of the three regions comprising East Malaysia, with neighbouring state Sabah to its north-east and the federal territory of Labuan situated off the north coast of Borneo. The state remains unique both within Malaysia and within the global context due to its mix of rugged mountains and thick jungle alongside numerous cosmopolitan cities and centres of commerce. With the inception of the Sarawak Corridor of Renewable Energy, a growth area running across much of central Sarawak, the state was able to successfully harness its naturally abundant source of energy in hydropower and spur investment in heavy industry. The plentiful availability of the power needed to feed such heavy industry has helped to shape Sarawak into an investment destination in its own right, as the state increasingly attracts foreign investment from the world over.
This chapter contains interviews with Adenan Satem, Chief Minister of Sarawak; and Mohamad Morshidi bin Abdul Ghani, Sarawak State Secretary.
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Home to an estimated 15.9% of the world’s proven oil reserves, Saudi Arabia is the single largest economy in the Middle East and North Africa. According to the Ministry of Finance, GDP grew by 9.3% to $746bn in 2013. While oil income is expected to continue to account for the majority of government revenues for the foreseeable future, the non-oil sector has expanded significantly in recent decades. Saudi Arabia is a major player in the region and a close ally to many of the world’s leading powers.
This chapter contains interviews with Prince Turki bin Abdullah bin Abdulaziz Al Saud, Governor, Riyadh Region; Prince Saud bin Nayef bin Abdulaziz Al Saud, Governor, Eastern Province; Abdul Latif Al Zayani, Secretary-General, GCC; and a viewpoint from Enda Kenny, Prime Minister of Ireland.
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A history marked by successive waves of human migration has shaped a multicultural present, with the Philippines being home to multiple ethnicities and dialects. The country’s abundant biodiversity, natural resources and youthful demographics are all assets that have garnered recognition from investors in recent years. With presidential, congressional and local elections all scheduled for next year, 2015 looks set to be a time of political debate in the Philippines. Sustained economic growth and the Philippines’ newly attained investment-grade status notwithstanding, the maintenance of peace in the Mindanao region and persistent poverty levels remain key areas to address as the country prepares for its successful integration into the ASEAN Economic Community in 2015.
This chapter contains an interview with President Benigno Aquino III; and viewpoints from Barack Obama, US President; and Nicholas Hulot, Special Envoy of the French President for the Protection of the Planet.
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Abu Dhabi City hosts the UAE government, with the ruler of Abu Dhabi customarily serving as the president, while the ruler of Dubai serves as the country’s prime minister and vice-president. In mid-2013 Abu Dhabi’s population stood at an estimated 2.45m, with Emiratis making up 20.2% of the population and expatriates accounting for the remaining 79.8%. The economy has witnessed rapid expansion over the last 15 years with GDP seeing a five-fold increase since 2001 to reach an estimated $260bn in 2013 at current prices. While oil and gas remain the chief source of government revenues, diversification into other key sectors such as manufacturing, tourism, aerospace, defence and finance is reducing the emirate’s dependence on hydrocarbons. Trade relations between the GCC region and Asia continue to deepen, with trade volumes between China and the GCC, for example, topping the $100bn mark for the first time in 2011 and surpassing $150bn in 2012.
This chapter contains an interview from Sheikha Fatima bint Mubarak, Chairwoman, General Women’s Union, and Supreme President, Family Development Foundation; Lim Hng Kiang, Singapore Minister for Trade and Industry; and Yoon Sang-Jick, Korean Minister of Trade, Industry and Energy.
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Possessing rich cultural diversity, Côte d’Ivoire is located on the coast of West Africa. As the world’s largest producer of cocoa, a regional electricity exporter and a developed financial centre, the country’s prosperity in the post-independence era allowed it to establish itself as an influential commercial and diplomatic player. Civil unrest disrupted its development over the past decade, most recently following the last round of presidential elections in 2010, but following a resolution to the crisis in 2011 the country has seen a rebound in economic activity, with a flood of new public and private capital flowing in. While there is plenty of scope for improvement, Côte d’Ivoire is well on the way to re-establishing itself as a major growth market.
This chapter contains a viewpoint from President Alassane Dramane Ouattara; and interviews with Kadré Désiré Ouédraogo, President, Commission of the Economic Community of West African States; Beyon Luc-Adolphe Tiao, Former Prime Minister of Burkina Faso; and Nicole Bricq, Former French Minister of Foreign Trade.
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Continued recovery from the effects of the 2008 global financial crisis has set Dubai on a robust growth path moving forward. Dubai’s population stood at 2.27m as of mid-2014, and as of the end of 2012, Emiratis made up around 11% of the population, while expatriates accounted for the remaining 89%. The emirate is pushing ahead with efforts to develop sharia-compliant industries in the region, with plans for support services, start-up incubators and halal clusters supporting a positive mid-term growth forecast. In 2014 Dubai reinforced its reputation for ground-breaking initiatives with the launch of Dubai Smart City, a plan designed to make it a leading, global smart city. Elsewhere, strengthening GCC-Asia relations are expected to result in the expansion of trade links between the two regions.
This chapter contains a viewpoint from Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; and interviews with Abdul Latif Al Zayani, Secretary-General, GCC; and Ahmed bin Saeed Al Maktoum, Chairman, Dubai Expo 2020 Preparatory Higher Committee.
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The kingdom of Bahrain hosts a diverse and multicultural population, which in 2011 totalled around 1.2m people, of which 585,000 were Bahraini and 610,000 expatriates. Finance and energy remain key drivers of GDP growth in Bahrain. Energy still accounts for the majority of government revenues, but is shrinking as a proportion of GDP as Bahrain pushes ahead with economic diversification plans in line with Bahrain’s Economic Vision 2030. The island’s location enables it to serve as a key trans- Gulf transportation hub, while expansion plans at Bahrain International Airport will boost the kingdom’s status as a centre for trans-shipment and logistics. Expansion plans will also fan tourism growth, an increasingly important sector with Manama being designated the capital of Arab tourism in 2013 and showpiece events like the Bahrain Formula 1 Grand Prix driving sector growth.
This chapter contains a viewpoint from King Hamad bin Isa Al Khalifa; and an interview with Lim Hng Kiang, Singapore Minister for Trade and Industry.
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The second-most-populous country in South-east Asia, and the 24th biggest in the world, Myanmar has a total of 135 different officially recognised ethnic groups. Approximately 70% of the population lives in rural areas, and urbanisation is increasing at a rate of around 2.9% per year. The chairing of the ASEAN summit in 2014 is a testament to how far “the Golden Land” has come in a relatively short time. However, significant hurdles remain; political, ethnic and religious tensions hinder national objectives that overstretch its outdated infrastructure and understaffed public sector. These bottlenecks, which stem from decades of economic sanctions, are now being addressed by an ambitious government, which, under the leadership of President U Thein Sein, has taken critical steps that have reintegrated Myanmar back into the international community.
This chapter contains interviews with President U Thein Sein and Lim Hng Kiang, Minister of Trade and Industry for Singapore, as well as viewpoints from Daw Aung San Suu Kyi, Chairperson, National League for Democracy; and US President Barack Obama.
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The year 2015 marks the 45th anniversary of the accession of His Majesty Sultan Qaboos bin Said al Said and the establishment of the Sultanate of Oman. While less hydrocarbons rich than its GCC neighbours, an increased focus on diversification is driving economic growth in the sultanate. In its eighth five-year plan (2011-15), the government has increased spending on key infrastructure projects, which is enhancing Oman’s status as a logistics hub in the region. Expansion and development of the three major ports at Salalah, Duqm and Sohar are ongoing, and major upgrades to the international airports in Muscat and Salalah are also under way. In addition to this, the planned National Railway Network is set to cover 2244 km and will connect the sultanate’s three port cities with other GCC countries, while, further afield, trade agreements with emerging Asian economies look set to boost opportunities for Omani companies. This chapter contains a viewpoint from Sultan Qaboos bin Said al Said; and interviews with Lim Hng Kiang, Singapore Minister for Trade and Industry; and Roberto Azevêdo, Director-General, World Trade Organisation (WTO).
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Over the past four decades Peru’s political and social forces have been seeking a magic formula: an optimum combination of good governance, strong economic growth and poverty alleviation. Despite the occasional swings of the policy pendulum, the past decade has seen real signs of progress. In the post-Fujimori period a succession of presidents have maintained broadly market-friendly economic policies, benefitted from the commodities boom and achieved consistently strong growth rates, although they have struggled to satisfy rising social expectations. Partly due to its sometimes volatile history, social structure, and economic and cultural traditions, Peru has uneven living standards and some enduring pockets of poverty and social exclusion. With economic growth slowing in 2014, Peru’s fragmented political parties will be seeking to realign themselves ahead of the upcoming 2016 national elections.
This chapter includes interviews with President Ollanta Moisés Humala Tasso; Enrique García Rodríguez, Executive President, CAF development bank of Latin America; Gonzalo Gutiérrez Reinel, Minister of Foreign Affairs; and Jaime Reusche, Sovereign Risk Analyst for Latin America, Moody’s.
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An active trading nation, Vietnam is poised to play an important role in ASEAN’s regional integration story. In particular, the country has established itself as a powerhouse in agriculture and textiles. New sectors to be developed in the future include mining, minerals processing and electronics. The main risks facing the country include a rapid increase in debt, inflation and currency volatility. Since the 1997 Asian financial crisis, however, Vietnam's political leaders have exercised prudence in macroeconomic policy, with a focus on the health of the banking sector and balanced fiscal policy. Foreign investor involvement has increased access to long-term foreign capital in much needed areas such as infrastructure and transport.
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Algeria has notable geographic, demographic and cultural diversity. Its territory reaches from the Mediterranean Coast to the depths of the Sahara Desert, and its population includes a blend of Arab and Berber linguistic and cultural traditions. In recent years, Algeria has maintained an impressive degree of stability, with the government focusing on helping stave off further unrest in the region and working to strengthen the country’s baseline economic indicators. Economic development has been driven by oil and gas, which today still accounts for 30% of GDP, 60% of budget revenue and 97% of export receipts. In the last five years, the government has reoriented its focus to diversify the economy and take advantage of the full range of the country’s natural and human resources, and to ensure that growth is more inclusive.
This chapter includes viewpoints from President Abdelaziz Bouteflika; Prime Minister Abdelmalek Sellal; and Jean-Marc Ayrault, Former Prime Minister of France. It also includes interviews with Ramtane Lamamra, Minister of Foreign Affairs; and Fiona Woolf, Alderman and Former Lord Mayor of London.
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Despite being overtaken by Nigeria as the largest economy on the continent, South Africa is still number one in terms of income, with a GDP per capita of $6618 in 2013. The economy has been expanding at a substantially faster rate under democratic rule: between 1980 and 1994 average annual real GDP growth rates stood at 1.4%, whereas between 1998 and 2012 the figure was at 3.2%. South Africa is a constitutional democracy. Since 1994 there have been five general elections, all of which have been won by the ANC. In the most recent election, which took place in May 2014, the ANC won more than 62% of the vote, and Jacob Zuma, the party’s leader and the incumbent president, was re-elected.
This chapter contains interviews with President Jacob Zuma; Gao Hucheng, Chinese Minister of Commerce; and Angel Gurría, Secretary-General, OECD.
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At the meeting point of Asia, Africa and Europe, Egypt is African, Middle Eastern and Mediterranean. Its fertile Nile Valley and Delta cultivated one of the world’s first great civilisations, and its geographical location has seen great empires come and go, many of them making Cairo a capital. The population of nearly 87.5m is young, with around half of all Egyptians under the age of 25 and one-third under 15. The growth rate is approximately 1.5% annually, meaning another million-plus Egyptians are born every year. Egypt has a well-balanced economy by regional standards, diversified across manufacturing, extraction activity (which includes the mining, oil and gas sectors), agriculture, construction, tourism and the various segments of the rapidly emerging services sector. While the country runs a trade deficit, its export activity has continued to grow over recent years. Egypt’s biggest trading partner is the EU, which accounted for 32.6% of its exports in 2012/13.
This chapter contains interviews with President Abdel Fattah El Sisi and Robert Walter MP, Chair, UK All-Party Parliamentary Group on Egypt, as well as a viewpoint from Wang Yi, Minister of Foreign Affairs of China.
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Brunei Darussalam has become an important player in regional politics, as well as a major international energy provider and a significant force in the world of global finance, via its sovereign wealth fund. Its people live in a nation that has sought to preserve traditional culture and appreciation of the environment, which is among the most bio-diverse on the planet. The move towards sharia law may attract some criticism in the months ahead and the Sultanate’s handling of legal issues will be an important test. Ahead of the implementation of the ASEAN Economic Community in 2015, the country’s approach to trade will also stand it in good stead as the region’s nations move towards increased economic integration.
This chapter contains interviews with His Majesty Haji Hassanal Bolkiah, Sultan and Yang Di-Pertuan of Brunei Darussalam; HRH Al-Muhtadee Billah, Crown Prince of Brunei Darussalam; and HRH Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade; and a viewpoint from Datin Seri Paduka Hayati Salleh, Attorney General.
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Kenya has a population of approximately 44m, with a growth rate of 2.11% in 2014, and more than one-third of the populace – 42.9% – is classified as under 14 years of age. While services are the largest GDP contributor, accounting for over 50% of economic activity, the country also has an extremely developed agricultural sector. Although it has been through its fair share of ups and downs, including outbreaks of violent unrest and high levels of poverty and unemployment, Kenya has enjoyed a spell of encouraging developments in recent years, including the discovery of new reserves of oil and water, and the passage of a new constitution. Devolution represents the most significant reform to Kenya’s political institutions since independence in 1963, although it has been a constant construct of national political dialogue over the past half-century.
This chapter contains interviews with President Uhuru Kenyatta; Richard Sezibera, Secretary-General, East African Community (EAC); Nicholas Westcott, Managing Director for Africa, European External Action Service; and Mark Simmonds, Former Parliamentary Undersecretary of State for Foreign & Commonwealth Affairs, British Foreign & Commonwealth Office; as well as a viewpoint from Gao Hucheng, Chinese Minister of Commerce.
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By dint of its history, Ghana has long had strong social, political and economic ties to both the US and UK, and to a lesser extent other Western European countries. Ghana is also an active member within the UN and has routinely served on UN peacekeeping missions. Closer to home Ghana is beginning to strengthen ties with its larger neighbour, Nigeria. The US and UK have long been among Ghana’s chief trading partners, accounting for sizeable amounts of both exports and imports in prior decades. The two nations also consistently rank among the top investors in the country.
This chapter contains a viewpoint from President John Dramani Mahama; and interviews with Kadré Désiré Ouédraogo, President, Commission of the Economic Community of West Africa States (ECOWAS); Penny Pritzker, US Secretary of Commerce; and Georg Wilfried Schmidt, Regional Director for Sub-Saharan Africa and the Sahel, German Federal Foreign Office.
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The past several years have seen significant changes in Jordan, with the population reaching 6.64m in 2014, swelled in part by refugees from neighbouring Syria and Iraq. Jordan, however, remains stable as it moves ahead with home grown and sustainable political reforms that look to establish lasting building blocks for democracy. In September 2014 King Abdullah II of Jordan re-iterated his commitment to “a gradual deepening of parliamentary government” under the umbrella of a constitutional monarchy. Jordan continues to enjoy strong ties with the GCC countries, the US and the EU. Eight free trade agreements gives it access to over 350m customers in the region and more than 1bn customers worldwide.
This chapter contains a viewpoint from Abdullah Ensour, Prime Minister of Jordan and an interview with Crispin Blunt, MP and Chairman of the All-Party Parliamentary Jordan Group.
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Gabon is located on the Gulf of Guinea, surrounded by low- and lower-middle income neighbours. However, the country’s sizable oil resources and limited population have positioned it as one of six upper-middle income countries in sub-Saharan Africa.
Gabon has the second-largest economy in the sub-region. GDP at purchasing power parity reached $29.38bn in 2012, behind Cameroon ($55.35bn), but ahead of oil-rich Equatorial Guinea ($27.6bn). Oil production, however, has declined steadily from a peak of 370,000 barrels per day (bpd) in 1997 to roughly 245,000 bpd as existing fields mature. Under the Emerging Gabon (Plan Stratégique Gabon Emergent, PSGE) development strategy, adopted in 2009, the government aims to reduce its reliance on hydrocarbons and establish a diversified economy by 2025. Gabon’s position as one of the most politically stable countries in Central Africa provides it with a solid base for economic growth. Like many sub-Saharan countries, Gabon still faces challenges related to transparency and efficient governance but successive presidential transitions have been relatively smooth.
This chapter contains interviews with President Ali Bongo Ondimba; Prime Minister Daniel Ona Ondo; and Gao Hucheng, Chinese Minister of Commerce.
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Mongolia is home to a vast desert in the south, large freshwater lakes in the north-west and dry, grassy plains throughout most of the rest of its territory. Although its borders stretch 8220 km, its only neighbours are the superpowers Russia and China, a fact that has shaped much of Mongolia’s political and economic history. The country has a vast wealth of mineral resources – over 6000 deposits of roughly 80 different minerals in total, worth an estimated $1.3trn, including coal, copper, gold, silver and iron ore. With a string of successful elections now under its belt, Mongolia’s democracy is more than two decades old. Debate can still be sharp, though, with issues such as the distribution of natural resources – particularly regarding the country’s vast mineral wealth – still in progress. This chapter contains interviews with President Ts. Elbegdorj; and Prime Minister N. Altankhuyag.
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Inheritors of an ancient land and a complex culture, today’s Thais once again face difficult social and political challenges. Yet, despite the confrontation that has resulted from these tensions during much of late 2013 and early 2014, the country continues to grow and develop, with much of it unaffected by the turmoil that has been focused primarily on certain high-profile districts of Bangkok. Thailand’s 2007 constitution established a system of parliamentary democracy, with the prime minister as the head of the executive branch, who then appoints and leads the cabinet. An early general election held in February 2014 was declared invalid by the Constitutional Court in late March 2014. At the time, the country was headed by a caretaker government led by Prime Minister Yingluck Shinawatra. Over the past several years, the country has prepared for the ASEAN Economic Community (AEC), due to take effect from 2015. In 2013 it had already met 86% of the targeted AEC measures – higher than the ASEAN average of 80%. This chapter contains a viewpoint from His Majesty Bhumibol Adulyadej, King of Thailand, and an interview with Le Luong Minh, Secretary General of ASEAN.
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With a population of approximately 247m made up of more than 300 different ethnic groups, Indonesia is the third-largest democracy in the world while also being the world’s most populous Muslim nation. The country has a total land mass of 1,904,569 sq km, spread over an archipelago of around 17,508 islands, some 6,000 of which are inhabited. Jakarta is the country’s most populated city, with more than 10.18m inhabitants living within an area of 740 sq km. A total of 15 parties are expected to contest the 2014 elections, vying for the votes of around 175m potential voters, 67m of whom will be voting for the first time. With the year ahead set to see the much-anticipated election of a new president and new national and regional legislatures, 2014 will likely be a time of great political activity in Indonesia. This chapter contains viewpoints from President Susilo Bambang Yudhoyono; and Xi Jinping, President of China; and an interview with Yasuo Fukuda, former Prime Minister of Japan.
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2013 saw the transition of power from the former Emir, Sheikh Hamad bin Khalifa Al Thani, to Sheikh Tamim bin Hamad Al Thani, his fourth son and second son with Sheikha Moza bint Nasser, a move unprecedented elsewhere in the Gulf but not unexpected in Qatar. Qatari investments straddle the globe, and the world’s top financial, construction, energy, retail and real estate businesses are vying for a spot in this rapidly evolving marketplace. The country has set major goals along the path towards development, including making Qatar a leading sports capital, constructing a new city at Lusail and creating a knowledge-based economy, among others. This chapter contains a viewpoint from Sheikh Tamim bin Hamad Al Thani, Emir of Qatar; and interviews from Khalid bin Mohammad Al Attiyah, Minister of Foreign Affairs; and Abdul Latif bin Rashed Al Zayani, Secretary-General, GCC.
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The UAE celebrated the 42nd anniversary of its establishment in 2013. Over this relatively short period of time, the country’s capital, Abu Dhabi City, has developed rapidly to become a thriving metropolis. Although the emirate’s economy remains largely based around the exploitation of its considerable hydrocarbons resources, it has also made admirable progress diversifying into new sectors, such as manufacturing, tourism, aerospace, defence, finance and logistics, among others. In addition to its economic investments, Abu Dhabi has also made major contributions to social welfare – education and health – as well as infrastructure, which have been identified as the bedrock for future growth. This chapter contains interviews with Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs; and Khalifa Mohammed Al Kindi, Chairman, Invest AD; along with a viewpoint from Boris Johnson, Mayor of London.
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Panama’s geostrategic location has historically granted it an influence on a regional and global level that often surpasses its small stature. Since the turn of the millennium it has been diversifying its contribution to regional and global business through the expansion of its status as an international finance, transportation and business centre. Today, with the Panamanian government spending on a multitude of infrastructure-related projects of all sizes – most notably the expansion of the canal – driving the nation’s pace-setting economic expansion, it appears to be a historic moment for the country. Yet, several obstacles hamper Panama’s seemingly clear path to development, including a struggling education system, the existence of stark inequalities in rural areas and a political system that belies its economic prowess. This chapter features interviews with President Ricardo Alberto Martinelli Berrocal; Ed Fast, Canadian Minister of International Trade; and Enrique García Rodríguez, Executive President, Development Bank of Latin America.
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Wedged between the world’s two most populous countries, India and China, Myanmar has a young and growing population of more than 60m people and a total of 135 ethnicities. Burmese is Myanmar’s official language, but studies suggest there are as many as 100 different languages spoken within the country. The end of the military junta and the rule of Senior General Thn Shwe brought about the easing of sanctions by the EU and the US, as well as the release of Myanmar’s most prominent human rights activist, Daw Aung Saan Suu Kyi, chairperson of the National League for Democracy, along with many other political prisoners. As a result, the country is gaining increasing international credibility but still has obstacles to overcome. With Myanmar taking its place as chair of ASEAN in 2014, a remarkable period of progress in its foreign relations is being acknowledged. A raft of new economic developments and agreements, such as tourism and transport projects, should help bolster Myanmar’s international standing. This chapter contains an interview with President U Thein Sein and viewpoints from Barack Obama, US President; Daw Aung San Suu Kyi, Chairperson, National League for Democracy; and Xi Jinping, President of China.
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Dubai’s resilience in the years following the global economic downturn has helped to re-build confidence amongst the global business community. As of mid-2013 the emirate had a population of 2.16m, nearly 45% of whom were 29 years old or younger, and efforts continue to ensure that the young population is adequately trained and educated to take part in the jobs becoming available. Dubai has set itself the target of reaching 20m visitors per year by 2020, and the emirate received a major boost towards achieving this goal when its bid to host World Expo 2020 was accepted in November 2013. With the population forecast to grow to 3m by 2020 and 25m attendees expected for Expo 2020, the emirate is focusing on boosting transport options and the hospitality sector. Indeed, the successful bid for the 2020 World Expo and the strength of the GCC market as a whole makes the outlook for Dubai very positive. This chapter contains interviews with: Sheikha Lubna bint Khalid bin Sultan Al Qasimi, Minister of International Cooperation and Development; Sindoso Ngwenya, Secretary-General, Common Market for Eastern & Southern Africa; and a viewpoint from Boris Johnson, Mayor of London.
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An ancient maritime power, Oman is open to the world while at the same time preserving a strong sense of tradition and culture. Its numerous land borders and extensive coastline have given leaders a knack for negotiation and pragmatism in foreign policy. The government is making efforts are to respond to the increasing need for employment caused by a rapidly growing population, many which are directed at diversifying the economy and reducing dependence on petroleum resources. This chapter contains viewpoints from Sultan Qaboos bin Said Al Said; Recep Tayyip Erdoğan, Turkish Prime Minister; and Boris Johnson, Mayor of London
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Once known as a country blighted by economic and social upheaval, Peru has now experienced more than two decades of progress. Political and economic reforms implemented in the 1990s and reinforced in the 2000s have resulted in stability and a generally liberalised economy. The fourth-most-populous country in Latin America, Peru enjoys a rich heritage shaped by both Amerindian and Hispanic cultures. Peru is a member of the Pacific Alliance, the Andean Community and the Asia-Pacific Economic Cooperation, and recently signed a number of important FTAs with the US, China and the EU. With ongoing modernisation and a relatively democratic and pluralist political system, reducing corruption, social inequality and inefficient government bureaucracy are high on the political agenda.
This chapter contains interviews with President Ollanta Humala; Lord Green, Minister of State for the UK Trade and Investment; and José Manuel García-Margallo, Spanish Foreign Minister.
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With a complex history marked by successive waves of migration and periods of colonisation and occupation, the Philippines is home to a host of ethnicities and languages across its roughly 1000 inhabited islands. It is the 12th-most populous country in the world, with a population expected to reach 99.43m by 2014, according to the IMF. The Philippines has plentiful natural resources. An estimated 30% of its total land area is believed to contain metallic mineral deposits, including nickel, cobalt, silver, gold, salt, and copper, largely as a result of its volcanic history. Typhoon Haiyan, which struck the central Philippines in early November 2013, caused extensive damage and left 5000 people dead and 4.2m displaced. The challenges thus remain significant, although the country is now experiencing a renewed optimism and greater stability than it has seen for many years. This chapter contains interviews with President Benigno Aquino III; Le Luong Minh, Secretary-General, ASEAN; Hugo Swire MP, UK Minister of State for the Foreign Office; and Bui Quang Vinh, Vietnamese Minister of Planning and Investment.
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One of Africa’s most culturally and ethnically diverse as well as resource-rich countries, Nigeria’s very existence is in many ways an impressive accomplishment, testament to the ability of both its citizens and institutions to find ways – often unconventional – to balance the need for local empowerment and diversity with broader national unity. Political cohesion has not come without a price, and the country has long faced a variety of complex economic and security challenges at both local and federal levels. Nigeria has a dynamic multiparty political system, with 25 registered political parties of varying ideological stripes, however, the People’s Democratic Party has held the presidency and dominated the legislature since the first elections in 1999. The country is currently engaged in several important conflict resolution efforts, some of which have seen promising turns. This chapter contains interviews with President Goodluck Ebele Jonathan; Shri Salman Khurshid, Minister of External Affairs for India; Luiz Inácio Lula da Silva, Former President of Brazil and Honorary President, Lula Institute; and Mo Ibrahim, Founder and Chair, Ibrahim Foundation.
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Covering 2.4m sq km, Algeria is the largest country in Africa, and borders the Mediterranean Sea in the north; Tunisia and Libya in the east; Niger and Mali in the south; and Mauritania, Western Sahara and Morocco in the west. Rich in oil and gas resources, which have supported relative stability in recent years, the country is also Africa’s fourth-largest economy. Algeria has strong trade ties with Europe and North America and is increasingly building links with its Maghreb neighbours as regional integration grows. This chapter contains a viewpoint with President Abdelaziz Bouteflika, and interviews with Mourad Medelci, President, Constitutional Council and Former Minister of Foreign Affairs; Lord Risby, UK Trade Envoy to Algeria; Anne Ruth Herkes, German State Secretary, Federal Ministry of Economics and Technology; and Martin Schulz, President, European Parliament.
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Home to one of the oldest civilisations in the world, Egypt remains the most populous and one of the most influential countries in the Arab world. Over the past two years, a state of transition has become a more or less permanent feature of Egypt’s political scene. Popular protests starting on January 25, 2011 represented Egyptians from a wide spectrum of backgrounds and originated in calls for increased economic equality and transparency. The country’s first free and fair democratic elections in November 2011 resulted in a win for the Freedom and Justice Party in Egypt’s lower house of the bicameral parliament. However, protests against Mohammed Morsi’s presidency gathered momentum in mid-2013, resulting in the military acting to remove Morsi from office and suspend parliamentary proceedings. Despite the political events of recent years, the country remains a key player in the region.
This chapter contains interviews with Osama Saleh, Minister of Investment, and Chairman, General Authority for Investment and Free Zones; and Zafer Çağlayan, Turkish Minister of Economy.
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The fourth-largest emirate of the UAE, Ras Al Khaimah may be small, but its geography is varied and it boasts significant resources that have enabled it to complement the hydrocarbons wealth of its neighbours. Home to the largest rock quarry in the Gulf, RAK has built strong cement and ceramics industries, while its 64 km of coastline holds potential for tourism, a sector that the government is working to grow. Developments across all modes of transport are expected to further boost opportunities for investment, aided by the emirate’s free trade zones and business-friendly policies. This chapter contains interviews with Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, and Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah.
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Located on the equator, Gabon is at the heart of the world’s second-largest rainforest. The country has an abundance of natural resources and is the fourth-largest oil producer in sub-Saharan Africa, at around 250,000 barrels per day. Gabon is also Africa’s second-largest manganese producer and contains significant iron ore deposits along with uranium, gold, rare earth minerals and diamonds. Relative stability has allowed Gabon to underwrite significant socioeconomic development. The continued and steady improvements in the nation’s political participation mechanisms, coupled with the increased enlargement of economic opportunities, will help to secure the gains made in previous years. This chapter contains interviews with President Ali Bongo Ondimba; Prime Minister Raymond Ndong Sima; Pierre Moussa, President, CEMAC Commission; and Mo Ibrahim, Founder and Chair, Mo Ibrahim Foundation.
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Estimated to possess some 6% of the world’s proven oil reserves, Kuwait’s oil and gas industry promises to play a critical role in the economy for years to come. The nation is not however resting on this alone, and it is now pursuing a programme of economic diversification that is set to re-energise the private sector. The Kuwait Development Plan is a $107bn, 20-year programme aimed at achieving this goal and is well under way, with new transport networks, upgraded infrastructure, increased oil production and improved services all coming under the remit of its work. This chapter contains viewpoints from Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah; and David Cameron, UK Prime Minister. It also includes an interview with Péter Szijjártó, Hungarian State Secretary for Foreign Affairs and External Economic Relations.
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Often referred to as the Rainbow Nation, South Africa has a heterogeneous population that reflects its rich and sometimes turbulent history. Recent times have seen the country score a number of high-profile successes, such as inclusion in the BRICS bloc, as a result of strong economic performance. South Africa benefits from strong ties with a number of major global powers, among which its single largest trading partner is China. The country remains an active leader in the African Union and the UN, where it was a non-permanent member of the UN Security Council until January 2013. This chapter contains interviews with President Jacob Zuma; Anand Sharma, Indian Minister of Commerce and Industry; Mo Ibrahim, Founder and Chair, Mo Ibrahim Foundation; and Zafer Çağlayan, Turkish Minister of Economy.
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Home to many important biblical and pilgrimage sites, the past several years have seen significant changes in Jordan, with protests, constitutional reforms and most recently, elections held in early 2013 all reshaping the country’s political landscape. With a Parliament made up of Chamber of Deputies and Senate, the development of political parties is high on the agenda, with King Abdullah initiating a processes aimed at bring around constitutional reform. Jordan retains its close ties with the US, the EU and GCC neighbours. This chapter contains interviews with Abdullah Ensour, Prime Minister of Jordan; and Baroness Morris of Bolton, Head of UK Trade Envoy to Jordan, Kuwait and Palestine.
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Building on a centuries-old geostrategic advantage, Bahrain continues to increase its prominence within the region. Energy has given way to a well-regulated finance sector as a leading driver of GDP and wider economic growth. The government is investing heavily in several sectors, especially education and transport, as part of efforts to achieve the goals of its Economic Vision 2030. The GCC has been seen increasingly as a catalyst for coalition and mutually beneficial development amongst its member states, and trade and movement of goods between the states continues to rise. This chapter contains an interview with Hala Mohammed Al Ansari, Secretary-General, Supreme Council for Women; and a viewpoint from David Cameron, UK Prime Minister.
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Buy digital copy of this chapter - £18Turkey has had an impressive decade of expansion that saw GDP rise from $196bn in 2001 to $787bn in 2012, or about $10,400 per capita. Since 2001, real growth has averaged more than 5% per year, an extraordinary rate for a middle-income country that imports most of its raw materials. A young and mobile population provides a natural tailwind to growth, while a high level of diversification in terms of products and markets has helped the Turkish economy bounce back strongly from recent global and regional crises. Despite a decline in growth in 2012, Turkey’s performance was regarded as impressive, given that much of emerging Europe fell into recession. However, it needs to be wary of falling into the “middle-income trap”, although there is no good evidence that countries in its income bracket are especially prone to severe slowdowns. Turkey’s open economic model might miss some short-term gains by eschewing such tactics as export subsidies and import restrictions, but that restraint has also made it into one of the more competitive emerging markets, demonstrated by its high average growth rates and relatively high incomes. This chapter contains interviews with Nicole Bricq, French Minister for Foreign Trade; Ahmet Aksu, President, Turkish Privatisation Administration; Ali Sabancı, Chairman, Pegasus Airlines; and Mark Lewis, Senior Resident Representative in Turkey, IMF.
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Buy digital copy of this chapter - £18Buoyed by hydrocarbon revenues, Brunei Darussalam’s economy has continued to grow, enabling a new push to greater diversification and creating job opportunities for locals. The government maintains strong fiscal and current account surpluses and is showing an appetite to direct this toward future growth and diversification. Indeed, with oil and gas making up more than two-thirds of the economy, the government is well aware of the dangers of overdependence on these commodities. As such, the plans are in place to diversify the economy, particularly in downstream industries, and bolster a private sector capable of generating jobs for Bruneians. Moving downstream into value-added segments and creating new industries and local SMEs should help balance the future economy. This chapter contains interviews with Cham Prasidh, Cambodian Senior Minister and Minister of Commerce; Dato Ali Apong, Deputy Minister, Prime Minister’s Office, and Chairman of Brunei Economic Board; and John Baird, Canadian Minister of Foreign Affairs.
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Buy digital copy of this chapter - £18The Moroccan economy experienced several setbacks in 2012 due to a combination of unfavourable global economic trends, a volatile exchange rate and a drought that caused a drop in revenues from its primary sector, agriculture. However, the government is committed to addressing the most pressing concerns for the economy, having laid out development plans for the agriculture and tourism sectors. A strategy to expand emerging industries and exports is also placing emphasis on public-private partnerships, which will likely be key to growth in the coming years. Additional reforms are being implemented to address unemployment, attract foreign investment and create a better business environment. This chapter includes interviews with Nizar Baraka, Minister of Economy and Finance; Chakib Benmoussa, President, Economic, Social and Environmental Council; and Ahmed Fassi-Fihri, Investment Promotion Manager, Moroccan Investment Development Agency.
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Buy digital copy of this chapter - £18Saudi Arabia continues to post strong economic growth on the back of its thriving petroleum sector anchored by a steady political and financial base. One of the largest exporters of oil worldwide, the country has also had some of the highest economic growth rates. Real GDP growth was forecast at 6.8% for 2012, following 8.5% expansion in 2011 and 4.8% in 2010. However, a new wave of strong state expenditures has spread revenues across a wide array of economic subsectors. As a result, the government has been able to accelerate its long-term strategic goal of economic diversification away from oil as well as address key social issues like education, employment and the availability of affordable housing. Looking ahead, the state’s continued investments in both infrastructure and social services should continue to fuel domestic growth, particularly in the private sector. This chapter includes interviews with Zafer Çağlayan, Turkey’s Minister of Economy; Karel De Gucht, EU Trade Commissioner; and Muhammad Al Jasser, Minister of Economy and Planning.
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Buy digital copy of this chapter - £18Thanks in large part to high oil prices and an increase in its hydrocarbons production, Abu Dhabi continued its economic recovery in 2011 and 2012. Hydrocarbons remain at the centre of the emirate’s economy, accounting for nearly half of its GDP and almost 90% of government revenues in 2010. However, the emirate has been channelling its substantial oil earnings into other sectors so as to reduce its reliance on hydrocarbons in the long term. Indeed, the non-oil sector has exhibited fair growth in recent years as a result of this strategy, rising by 5.4% in 2010 and 7% in 2011, reaching Dh334.3bn ($91.1bn) in the latter year. Another feature of Abu Dhabi’s changing economic landscape is the continued efforts to promote private sector employment. The government is looking into a range of measures to create jobs in the private sector, including encouraging a culture of investment and entrepreneurship among young people, and the promotion of small and medium-sized enterprises. This chapter includes interviews with Nasser Alsowaidi, Chairman, Department of Economic Development (DED); Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi (SCAD); and Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding.
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Buy digital copy of this chapter - £18Indonesia’s place as the largest economy in ASEAN presents a strong value proposition for investors. Already achieving one of the world’s most consistent economic growth rates of above 6% since 2007, with only a minor dip to 4.6% in 2009, Indonesia has continued to impress global investors as more export-oriented economies have wavered. The BKPM has forecast that Indonesia will attract $40bn in total direct investment during 2013, having become the fourth-most-popular destination for FDI in 2012. This chapter contains interviews with M Hatta Rajasa, Coordinating Minister for Economic Affairs; M Chatib Basri, Chairman, Indonesia Investment Coordinating Board; Gita Wirjawan, Minister of Trade; Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry; Prijono Sugiarto, President Director, Astra International; and Edwin Soeryadjaya, Chairman and Co-founder, Saratoga Capital.
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Buy digital copy of this chapter - £18After weathering the effects of the global financial crisis, Dubai is swinging back toward a more guarded optimism as it regains its status among regional and international economies. In 2012 GDP was expected to reach $386bn, and the IMF estimates that GDP will continue growing, reaching $450bn in 2017. However, Dubai’s economy is currently operating at about 15% of capacity, implying that economic gains can be made by increasing efficiency and productivity. While the emirate still faces challenges relating to its exposure to regional and global volatility, efforts to strengthen the regulatory framework and improve oversight of GREs should help it to better withstand future turmoil in the global economy. This chapter includes interviews with Ahmad bin Byat, CEO, Dubai Holding; Abdulaziz Al Ghurair, Chairman, Al Ghurair Group; Hamad Buamim, Director-General, Dubai Chamber of Commerce and Industry; and Anand Sharma, Indian Minister of Commerce & Industry.
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This section provides a quick overview of the country, its history, geography, population, religion, natural resources, climate and languages.
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Buy digital copy of this chapter - £18The main event for Mongolia’s economy in 2013 will be the opening of the Oyu Tolgoi copper and gold mine, which many see as a make-or-break moment. Coal, presently the country’s most important commodity, declined in price by some 15% in 2012, with volumes slipping by around 22%. In 2012 the current account deficit reached 16.7%, excluding mining-related imports, according to the IMF, compared to 11.3% in 2011 and 5.7% in 2012, with volumes slipping by around 22%. Exports fell from $4.7bn in 2011 to some $4.4bn in 2012. However, Mongolia seems set to see a commodity boom in 2013, with one high-profile mine starting production, and another planning to ramp up coal extraction. Yet mining is not the only sector with greater economic potential. A number of other areas also seem ripe for development, including tourism, agribusiness and renewable energy. This chapter includes interviews with Ch. Ulaan, Minister of Finance; P. Batsaikhan, Chairman and President of the Shunkhlai Group; and Jim Dwyer, Executive Director of the Business Council of Mongolia.
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Buy digital copy of this chapter - £18While hydrocarbons accounted for 38.8% of the sultanate’s GDP in 2011, non-oil activities have grown by 55% from 2007 to 2011, from OR9.2bn ($24bn) to OR14.3bn ($37.7bn). Of these, the services sector has consistently been the largest category recently, hovering between a 30% and 40% share of overall GDP, with industry making up some 15-20%. However, despite the growth of non-oil activity, 2012 saw the petroleum sector’s contribution to national income grow by 25.7%, as a result of higher oil prices and stronger export volumes. This combination of healthy oil revenues and boosted non-oil sector performance has helped to offset rising expenditures and support the private sector, with particular emphasis on job creation. In the years leading up to 2015, the government aims to create between 200,000 and 275,000 new jobs. This chapter includes an interview with Ali bin Masoud Al Sunaidi, Minister of Commerce & Industry.
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Buy digital copy of this chapter - £18Malaysia continued to post reasonably strong growth in 2012 despite its high exposure to trade amidst a soft global economic climate. The Economic Transformation Programme (ETP) championed by Prime Minister Najib Razak is taking hold, bringing increased expenditures on infrastructure and a growth in private sector investment. The ETP’s goal is to help Malaysia escape the “middle-income trap” and become an economy driven by advanced manufacturing, technology and financial services. Challenges to this project include a low level of talent and skills, rising cost of living and worrying increases in the national debt. This chapter includes interviews with Nor Mohamed Yakcop, Minister in the Prime Minister’s Department, Economic Planning Unit; Lord Powell, Chairman, Asia Task Force (ATF); and Jim O’Neill, Chairman, Goldman Sachs Asset Management.
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Buy digital copy of this chapter - £18Oil and gas production continues to dominate the Algerian economy, accounting for almost all of exports, close to half of government revenue and over a third of GDP. Hydrocarbons accounted for 34.7% of GDP in 2010, up on 2009 rates, but still lower than the figures of between 43% and 45% seen in the three preceding years. The decline is primarily attributed to a fall in oil prices. To diversify the economy away from a reliance on hydrocarbons revenues, one of the government’s aims is to boost industry’s share of GDP to 10% by 2014. The government also plans to spend €228.7bn on public works between 2010 and 2014 on both new and existing projects. However, limited administrative capacity means it is doubtful whether the government will be able to meet the investment commitments on schedule. This chapter contains interviews with Khedidja Belhadi, President and Founder, Association of Algerian Managers & Entrepreneurs (AME); Jim O’Neill, Chairman, Goldman Sachs Asset Management; and Réda Hamiani, President, Forum des Chefs d’Entreprises.
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Buy digital copy of this chapter - £18As one of the fastest-growing economies in the world, according to the Federal Ministry of Finance (FMF), Nigeria is certainly appealing to foreign investors. Growth has averaged 6.7% since 2006 and has been relatively uninterrupted by the global financial crisis. An emerging middle class is beginning to fuel growth in domestic consumption. Income per capita has increased almost four-fold since 2001, from $357 to $1541 in 2011. Foreign investment surged in 2011, with the country attracting $8.7bn in FDI, up from $6.1bn in 2010. Investment broadened beyond the oil and gas sector, with deals in industry, agro-processing, retail and telecommunications. To achieve its vision of becoming a top 20-economy with a GDP of $900bn by 2020, the country must sustain annual growth rates of around 13.5%. This chapter contains interviews with Ngozi Okonjo-Iweala, Coordinating Minister for the Economy and Minister of Finance; Frank Nweke Jr, Director-General, Nigerian Economic Summit Group; and Mustafa Bello, Executive Secretary and CEO, Nigerian Investment Promotion Commission (NIPC). It also includes a viewpoint from Elizabeth Littlefield, President and CEO, Overseas Private Investment Corporation (OPIC).
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Buy digital copy of this chapter - £18Political stability is ushering in a promising era of economic and human development, enabling the government to develop initiatives and diplomatic activities to shape a more knowledgeable and prosperous Qatar. In foreign policy, the Arab Spring has presented the state with the opportunity to implement its overseas goals, with the Emir emphasising long-term stability brought about by continuous reforms. While domestic challenges remain – including the need to boost private sector employment among nationals – the government is taking steps to provide incentives for workers to pursue these jobs. This chapter includes a viewpoint with Sheikh Hamad bin Khalifa Al Thani, Emir of Qatar. It also features interviews with Sheikh Hamad bin Jassem bin Jabr Al Thani, PM and Minister of Foreign Affairs; and Teo Chee Hean, Deputy Prime Minister of Singapore.
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Buy digital copy of this chapter - £18Gabon’s status as the sixth-largest crude oil producer in sub-Saharan Africa has helped the country achieve the second-highest per capita GDP in the region. While the country’s resource-dependent economy took a hit when global demand dropped during the financial crisis of 2008-09, recovery has been strong and growth has remained robust. The government has in recent years put a greater focus on economic diversification to decrease the economy’s dependence on oil revenues, which represented 19.3% of GDP in 2011. These efforts include increasing value-added activities in other areas of the economy, including rubber processing and cocoa, coffee and palm oil production. As part of the Emerging Gabon strategy, the government is also seeking to create a more open economic environment for investors with the creation of special economic zones, which will offer significant incentives. This chapter contains interviews with Magloire Ngambia, Minister of Investment Promotion; Henri-Claude Oyima, Director and Chairman, BGFIBank; Shanta Devarajan, Chief Economist for Africa, World Bank; and Nina Abouna, Director-General, APIEX.
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Buy digital copy of this chapter - £18Egypt is the second-largest economy in the Arab World, with a GDP in excess of $229bn and a domestic market of 85m people. However, its performance over the past year has been turbulent, thanks to the significant political transformation the country has undergone. The complicated process has had broad macroeconomic consequences for Egypt, reducing capital inflows by roughly 75% in 2011 and slowing GDP growth to less than one-third of what was originally forecast for the 2010/11 fiscal year. During the same period, the government deficit grew to 9.8% and foreign reserves declined, even as spending pressure increased. However, the long-term fundamentals of the country’s diversified economy remain strong and some segments posted remarkably robust figures. This chapter features interviews with Osama Saleh, Minister of Investment; Gamal Moharam, President, American Chamber of Commerce in Egypt; John Rice, Vice-Chairman, General Electric; Hassan Malek, Chairman, Egyptian Business Development Association; Mohamed El Erian, CEO, Pacific Investment Management Company; and Hisham El Khazindar, Managing Director and Co-founder, Citadel Capital.
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Buy digital copy of this chapter - £18In just the past few years, Ghana’s economy has undergone major transformations and has been shaped by a number of encouraging trends, including a rising per capita income, increased capital spending, higher commodities prices and an improved government fiscus. The economy grew by 14.4% in real terms in 2011, the highest rate of growth recorded worldwide that year. Much of this was due to the start of oil production, though non-oil growth remained strong, at 8%. The IMF has forecast growth in 2012 to occur at a rate of 8.8%. Ghana was the third-largest recipient of foreign direct investment in Africa in 2011, receiving $3.2bn. This chapter contains interviews with Kwabena Duffuor, Minister of Finance and Economic Planning; George Aboagye, CEO, Ghana Investment Promotion Centre; Jim O’Neill, Chairman, Goldman Sachs Asset Management; and Kofi Amoah, Owner, PVI Holdings, and Board Member, SIC Insurance Company.
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Buy digital copy of this chapter - £18Thailand’s plans to climb the ladder toward becoming a high-economy country were put on hold by disastrous floods in late 2011. Real GDP contracted 9% and losses were estimated at $44.7bn, but recovery, particularly for the hard-hit industrial estates, has been relatively swift. The focus is now on mitigating Thailand’s dependence on low-cost manufacturing exports for growth, which is risky given the uncertain world economy. Policymakers are hoping that new investment incentives will help it move up the manufacturing value chain, although economists fear that a new minimum wage might drive manufacturers away before this transformation can take place. This section includes interviews with Kittiratt Na-Ranong, Deputy Prime Minister and Minister of Finance; Boonsong Teriyapirom, Minister of Commerce; Atchaka Sibunruang, Secretary-General, Thailand Board of Investment (BOI); Minoru Furusawa, President, Japanese Chamber of Commerce (JCC), Bangkok; and Joe Hinrichs, President of Asia Pacific and Africa Region, Ford Motor Company.
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Buy digital copy of this chapter - £18Ras Al Khaimah stands out in the Gulf as one of the region’s most diversified economies. Investment spread across manufacturing, tourism, retail, high-tech industries and construction has been underpinned by improvements in infrastructure and connectivity. Quarrying, mining and manufacturing accounted for some 30% of GDP, followed by financial services, at 14.4%. In particular, the metal sector has seen rapid expansion in recent years, with several companies setting up factories in RAK’s industrial zones to process various metals. At the same time, tourism and related sectors such as real estate and retail are expected to grow, with plans to expand RAK International Airport in the pipeline. These include new arrivals and departures lounges, cargo facilities, parking and office space. New efforts are also being made to develop long-term growth drivers within the emirate. Several local research institutions have been set up in recent years, and over the long term this will facilitate the growth of high-tech industries by improving the pool of local engineering talent. This chapter includes an interview with Jim Stewart, the CEO of RAK Investment and Development Office.
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Buy digital copy of this chapter - £18The kingdom faced a number of major political and economic challenges in 2011, including high unemployment, rising inflation and a $2bn budget deficit. Furthermore, like many other countries in the Middle East, Jordan is currently in the midst of a series of potentially transformative political reforms brought about by the Arab Spring protests in early 2011. Unlike many of its neighbours, however, Jordan has remained relatively stable, both politically and socially. Moreover, Jordan’s strategic regional importance is becoming increasingly evident. The Gulf economies stand to benefit substantially from Jordan’s close trade and political relationships with leading Western economies. The kingdom’s free trade agreement with the US, for example, could potentially be used as a conduit to boost Gulf exports to the lucrative American market. This chapter includes a viewpoint with King Abdullah II; Nouri Al Maliki, the Prime Minister of Iraq; and John Kerry, US Senator and Chairman of the Senate Foreign Relations Committee.
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The Country Profile contains a brief introduction to contemporary Turkey, with information about the geography, language, culture and history.
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This section outlines South Africa’s history, culture, geography and economy.
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This chapter includes information about Bahrain’s history, economy, government, financial services sector (including Islamic financial services), population, climate, natural resources, language and culture. It also includes a viewpoint with King Hamad bin Isa Al Khalifa, and Abdul Latif bin Rashed Al Zayani, Secretary-General of the GCC. This section also includes an interview with Princess Sabeeka bint Ibrahim Al Khalifa, President, Supreme Council for Women.
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Buy digital copy of this chapter - £18The Philippines, which was once a diverse mix of sultanates and rajahdoms, was politically unified by the Spanish conquest of the 16th century. Spain ruled until a Filipino rebellion in 1898 ousted them with the support of the US, which subsequently asserted control. The Philippines gained independence after WWII, but dictator Fernando Marcos soon took over, ruling until 1986. Electoral democracy returned after that, but it has been marked by corruption and instability. The new government of Benigno Aquino III – heir to one of the Philippines’ most storied political families – has promised to clean up politics and cut bureaucratic inefficiency. This section features interviews with President Benigno Aquino III; Florencio Abad, Secretary, Department of Budget and Management; and Surin Pitsuwan, Secretary-General, ASEAN. William Hague, UK Secretary of State for Foreign and Commonwealth Affairs, provides a viewpoint on UK-ASEAN relations in the 21st century.
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Buy digital copy of this chapter - £18Kuwait is widely regarded as a leader of Arab democracy within the Gulf region and a forerunner of political reform in a conservative neighbourhood. Recent years have seen a great deal of progress: in 2005 a law was passed giving women the right to vote and run in elections for the national assembly. Political participation is high, with the 2009 elections seeing a voter turnout of around 60%. Important political, social and economic issues remain unresolved, however. Kuwait is still divided on the issue of gender segregation in universities, for example. Relations with northern neighbour Iran have been far from straightforward, and opposition groups have hampered a new National Development Plan. This chapter includes interviews with Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah; Italian Foreign Minister Giulio Terzi di Sant’Agata; and Lim Hng Kiang, Minister of Trade and Industry for Singapore.
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Buy digital copy of this chapter - £18Since declaring independence from the Netherlands in 1945, Indonesia has become one of the world’s fastest developing and most economically promising nations. Its assumption of the presidency of ASEAN in 2011 testified both to the increasing interconnectedness of the region as well to the evolution of an Indonesian political system just over a decade removed from authoritarianism. Indonesia’s new democracy committed to addressing the legacy of centralised, authoritarian rule in part through decentralisation, which gave more autonomy to local administrative units. Problems of corruption and bureaucracy still remain, as in any developing country, but the record of post-Suharto politic stability has been a boon to economic development. This chapter contains interviews with President Susilo Bambang Yudhoyono; Abdullah Gül, President of Turkey; Marty Natalegawa, Minister of Foreign Affairs; Surin Pitsuwan, Secretary-General, ASEAN; and viewpoints from Hillary Clinton, US Secretary of State; and William Hague, UK Secretary of State for Foreign and Commonwealth Affairs.
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Buy digital copy of this chapter - £18A detailed analysis of the South African economy will feature in The Report: South Africa 2012.
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2015 has been a momentous year for the Kingdom of Saudi Arabia. The accession of King Salman bin Abdulaziz Al Saud in April, which saw a reordering of the country’s line of succession and brought a reshuffle of the main cabinet positions, indicates a leadership with its sights firmly set on the future. In 2014 the Kingdom had a population of 30.77m, up 2.59% on the previous year. Hydrocarbons continue to provide the bulk of state revenues, with the country home to 15.7% of global reserves. Even so, the economy has undergone major diversification efforts in recent years, and non-oil sector growth now outstrips oil sector growth. Further afield, the Kingdom has been benefitting from an increase in ties between the GCC and Asia, and investment opportunities across Africa are on the rise. This chapter contains a viewpoint from King Salman bin Abdulaziz Al Saud, Custodian of the two Holy Mosques; and interviews with Prince Faisal bin Bandar bin Abdulaziz Al Saud, Governor, Riyadh Region, and Chairman, Arriyadh Development Authority (ADA); and Abdalla Salem El-Badri, Secretary-General, OPEC.
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Buy digital copy of this chapter - £22Sharjah is experiencing robust economic growth after rebounding from the impacts of the Covid-19 pandemic. The emirate’s unique geostrategic location and strength in technology, health care, education and tourism make it well positioned for further development. Additionally, Sharjah has thriving manufacturing, construction and real estate sectors supported by free zones and industrial parks. Sharjah's economy is largely non-oil, constituting around 96% of its GDP, and focuses on sectors like manufacturing, services and finance. The government is strategically investing in sustainable development, as seen in projects like Sharjah Sustainable City, showcasing a commitment to environmental goals. The emirate's 2023 budget emphasises economic, social and infrastructure development while strengthening financial sustainability. This chapter contains interviews with Hamad Ali Abdullah Al Mahmoud, Chairman, Sharjah Economic Development Department; Waleed Al Sayegh, CEO, Sharjah Asset Management; and Sheikh Mohammed bin Saqr Al Qasimi, Chairman, Labour Standards Development Authority.
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Buy digital copy of this chapter - £22Kuwait’s GDP has undergone significant expansion in recent years, with the spike in global oil prices enabling the country to maintain a trade surplus amid domestic political changes, international geopolitical tensions and economic uncertainties. Guided by medium- and long-term development plans, the country is in the process of diversifying its economy as it shifts its focus from resource-based to knowledge-based industries. Increased privatisation is central to that drive, with government entities dominating economic activities and high public expenditure historically returning budget deficits. The development of the ecosystem for small and medium-sized enterprises is intended to provide a stable foundation from which a more versatile business community can grow.
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Buy digital copy of this chapter - £22Abu Dhabi contributes around 60% of the UAE’s GDP, with the country holding the world’s fifth-largest proven oil reserves, primarily located in Abu Dhabi. The emirate prioritises diversifying its economy and empowering the private sector. Timely fiscal interventions and robust sovereign assets have helped to cushion the Covid-19 pandemic’s impact, while forward-thinking policies and an attractive business environment are positioning Abu Dhabi for post-pandemic growth. Its focus on diversification and foreign investment in knowledge-based industries seeks to chart a course to a resilient economic future. The vision of a sustainable, diversified and open economy outlined in the Abu Dhabi Economic Vision 2030 is guiding the emirate’s policies. This ambitious roadmap centres around reducing reliance on oil and gas, increasing the role of knowledge-based industries and fostering a dynamic private sector, with Abu Dhabi’s determination to achieve these goals underscoring its commitment to long-term economic sustainability. This chapter contains interviews with Ahmed Jasim Al Zaabi, Chairman, Abu Dhabi Department of Economic Development, and Chairman, Abu Dhabi Global Market; Ahmed Khalifa AlQubaisi, CEO, Abu Dhabi Chamber; and Ahmed Al Naqbi, CEO, Emirates Development Bank.
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Buy digital copy of this chapter - £22Saudi Arabia, started 2023 with its most rapid economic expansion in over a decade, outpacing the growth of its G20 peers despite global economic challenges. The Kingdom benefitted from higher energy prices amid Russia’s invasion of Ukraine, elevating oil sector activity by 15.4% during the year. This boost led to a fiscal surplus, offering flexibility for diversification efforts and non-oil sector growth. Saudi Arabia continues to be a vibrant destination for business, attracting both major corporations collaborating with government entities and smaller firms benefitting from private sector expansion. While dynamics of the global energy market still influence Saudi Arabia's economy, non-oil sectors play an increasingly pivotal role in driving overall growth. With Vision 2030 guiding the way, the country is balancing tradition with innovation – presenting opportunities for companies of all sizes. This chapter contains interviews with Mohannad Basodan, CEO, National Center for Privatization & PPP; Meshaal bin Omairh, Group CEO, Abdullah Al Othaim Investment; and Fahad Al Jubeir, Mayor, Eastern Province Municipality.
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The city and district of Misrata, Libya’s third-largest urban centre, is situated on the Mediterranean coast roughly 200km east of Tripoli and 800km west of Benghazi. As the single largest port of entry for goods arriving into the country, Misrata is viewed as the trade capital of Libya as well as the country’s business capital, particularly in terms of commodities trading between other cities in the Mediterranean. The engine of Misrata’s economic activity is the seaport in the Misurata Free Zone, which both manages and oversees its operations. Established in 1978, the port is Libya’s largest, handling some 385,000 containers in 2019 alone. The diverse nature of the goods travelling through its facilities – foodstuffs, livestock, and industrial and petrochemical products, among others – is expected to be an important component in Misrata’s economic diversification. This chapter contains interviews with Mahmoud Al Sougatri, Mayor of Misrata; Hussein Mohamed Altaher Issa, CEO, Aletah Group; and Fathi Amin Al Turki, Chairman, Misrata Chamber of Commerce.
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Buy digital copy of this chapter - £22Bahrain’s economy rebounded from the impact of the Covid-19 pandemic and more recently successfully avoided the worst of global inflationary pressure, largely due to the fact that its currency, the dinar, is pegged to the US dollar. Bahrain’s recovery was also aided by forward-thinking policy formulation. While the country faced economic headwinds following the global drop in oil prices in 2014, a $10bn financial aid initiative from Kuwait, Saudi Arabia and the UAE in 2018 helped stabilise the economy and enabled the government to embark on a major fiscal reform programme. In light of economic challenges related to the pandemic, volatility in energy markets and the fallout from Russia’s invasion of Ukraine, deadlines for macroeconomic targets such as eliminating the fiscal deficit have been postponed. This has allowed key public and private operators to reset to new realities and refocus on achieving the goals of Bahrain Economic Vision 2030. This chapter contains interviews with Khalid Humaidan, Chief Executive, Bahrain Economic Development Board; Maha Mofeez, Chief Executive, The Labour Fund (Tamkeen) and Hala Al Ansari, Secretary-General, Supreme Council for Women.
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Buy digital copy of this chapter - £22Djibouti is experiencing a rapid and sustained expansion of GDP. Public investment has led to the establishment of new transport links, enhancing connectivity and facilitating trade. Furthermore, the country has long-term development plans in place to diversify its economy beyond traditional sectors such as transport and logistics. This strategic approach aims to create a more balanced and sustainable economic base. Additionally, Djibouti is poised to benefit from the accelerated uptake of ICT, which is expected to drive economic growth. The rise in digital infrastructure and the adoption of ICT solutions can enhance efficiency, promote innovation and create new business opportunities. This chapter contains interviews with Slim Feriani, CEO, Sovereign Wealth Fund of Djibouti; and Ilyas Moussa Dawaleh, Minister of Economy and Finance.
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Buy digital copy of this chapter - £22Nigeria has the potential to reduce its reliance on energy exports and promote growth in other sectors of the economy. The prominence of the non-oil private sector is expected to increase, offering opportunities for job creation and export diversification. Eliminating differences in the foreign exchange rate and improving security conditions are expected to benefit Nigerian businesses. However, in order to improve the government's fiscal position and free up resources to reduce poverty, it has been suggested that the country reduce subsidies, increase energy revenue and limit debt growth. The implementation of key initiatives – such as the recent removal of fuel subsidies and the use of pension funds to close the deficit in infrastructure funding – is likely to help ease inflation rates and improve economic conditions. This chapter contains interviews with Kalim Shah, Senior Country Manager, Nigeria, Liberia and Sierra Leone, International Finance Corporation; Hajja Wakil, Acting Executive Secretary and CEO, Nigerian Investment Promotion Commission; and Uche Orji, Former Managing Director and CEO, Nigeria Sovereign Investment Authority.
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Buy digital copy of this chapter - £22Due to the hydrocarbons-focused nature of its economy, the sultanate was not immune to the global economic shocks of the past decade. The government is therefore pursuing broad economic diversification, with specific sectors strategically targeted for development. While this is a familiar narrative across the GCC, motivated in large part by the global transition to clean energy, the need for diversification in Oman is perhaps more pressing due to the limited lifespan of its oil and gas supply – the former is estimated to last until 2030, and the latter up to 10 years longer based on current rates of extraction. The government has rolled out a number of new laws in order to create a more accommodating legislative environment for local and international investors, while current economic development plans seek to harness the country’s strategically advantageous location on the Gulf and proximity to key regional consumer markets. This chapter contains interviews with Abdulsalam bin Mohammed Al Murshidi, President, Oman Investment Authority; Qais Al Yousef, Minister of Commerce, Industry and Investment Promotion; and Faisal bin Abdullah Al Rawas, Chairman, Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £22Kuwait’s economy has long been underpinned by the production and export of crude oil. Although the rise in oil prices in 2021-22 boosted government revenue and macroeconomic stability, the Covid-19 pandemic – which preceded the commodity price boom – also underscored the risks of overreliance on an industry subject to fluctuating global demand. This has created fresh impetus for economic diversification, with the government hoping that robust public finances, as well as a new Cabinet and elected legislature, will drive policy changes and infrastructure projects, in turn unlocking investment and private sector growth. Although many of the projects and objectives of the Kuwait National Development Plan 2015-20, which focused on infrastructure, have yet to be fulfilled, significant investment and ongoing efforts to meet these goals highlight progress.
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Buy digital copy of this chapter - £22With increasing oil and gas prices and an expanding non-oil sector, Saudi Arabia has been logging record trade surpluses in recent years, while securing government revenue for future investment. Saudi Arabia is expected to be among the fastest-growing economies in the G20 in 2022 – and the Kingdom was on track to fulfil that forecast by the middle of the year. Indeed, in the first three months of 2022 GDP expanded by 9.9% year-on-year, and 2.6% quarter-on-quarter. Saudi Arabia has therefore successfully bounced back from the global downturn accompanying the Covid-19 pandemic. It has also left behind the period of slower growth that the Kingdom witnessed prior to the health crisis, following the 2014 downturn in global oil prices.
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Thanks in large part to renewed political stability, Côte d’Ivoire’s sustained high growth in the last decade ranks it among the best-performing countries in sub-Saharan Africa. The post-2012 period has been marked by ambitious public and private investment programmes, giving the economy substantial resilience. Reflecting global trends, growth was adversely affected by the Covid-19 pandemic; however, the country proved to be one of the most resilient in the region. In 2021 the World Bank and the IMF praised Côte d’Ivoire’s economic performance and pandemic resilience. The institutions noted remarkable pre-pandemic growth and a 7% rebound in GDP in 2021. Recovery efforts are expected to be sustained in 2022, with GDP growth forecast at 6%. This chapter contains a viewpoint from Solange Amichia, Managing Director, Investment Promotion Agency of Côte d’Ivoire.
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Buy digital copy of this chapter - £22A wave of labour and regulatory reform is under way in Bahrain, as is an ambitious programme that aims to attract $30bn in investment in the tourism, transport, health, education, construction and real estate sectors. Meanwhile, the Fiscal Balance Programme launched in late 2018 has been updated – taking into account the Covid-19 pandemic’s impact – with a new target of balancing the budget by 2024. This chapter contains interviews with Zayed bin Rashid Al Zayani, Minister of Industry and Commerce; and Mohamed bin Thamer Al Kaabi, Minister of Transportation and Telecommunications.
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Buy digital copy of this chapter - £22Egypt’s robust fundamentals – supported by a diversified economy, sustained levels of consumer spending and a large workforce – has created a dynamic business climate and helped further develop the economy. This has enabled the country to avoid some of the more severe repercussions of the Covid-19 pandemic faced by neighbouring nations. According to IMF forecasts, GDP is expected to expand from $402.8bn in 2022 to $584.9bn in 2026. While Egypt’s oil and gas sector has been a significant recipient of investment – attracting $74bn between FY 2014/15 and FY 2019/20 – the economy is diversified, with opportunities across multiple sectors. Industry was the largest contributor to the economy in FY 2020/2021, followed by retail, agriculture and real estate. This chapter contains a viewpoint with Mohamed Maait, the minister of finance.
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As with other countries around the world, Qatar’s economy was affected by the Covid-19 pandemic and its wide-ranging effects in global markets, including disruptions to supply chains, a downturn in foreign and domestic travel, and a drop in international oil prices. Despite these pressures, the country was able to emerge from the crisis in a position to leverage the global recovery to support its diversification drive. The General Secretariat for Development Planning is charged with monitoring the implementation of Qatar National Vision 2030, and the country is rounding out its second National Development Strategy for 2018-22 this year. While uncertainties remain over the trajectory of the global and domestic recovery, as well as about the longer-term trend of oil and gas prices, a number of factors indicate that Qatar is on course for a strong performance in 2022 and beyond.
This chapter contains interviews with Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; and Ahmad Al Sayed, Minister of State and Chairman, Qatar Free Zones Authority.
Economy
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In the years preceding the pandemic, Ghana recorded robust GDP growth, which jumped from 2.1% in 2015 to a high of 8.1% in 2017 at constant 2013 prices. Responsibility for the economy ultimately belongs to the government, and the country’s economic health in the coming years depends greatly on its ability to implement further fiscal consolidation. While Ghana weathered the Covid-19 pandemic better than many of its regional and income-level peers, this did not come without a cost. For instance, labour earnings fell during 2020-21 as many businesses closed. However, recent developments, such as campaigns to secure more foreign direct investment, bode well for the longer-term economic growth of Ghana.
This chapter contains interviews with Yofi Grant, CEO, Ghana Investment Promotion Centre; Humphrey Ayim-Darke, President, Association of Ghana Industries; and Michael Oquaye Jr, CEO, Ghana Free Zones Authority.
Economy
Buy digital copy of this chapter - £22Nigeria faced new economic headwinds in 2020. While the country’s growth has traditionally been stymied by issues such as electricity shortages, bureaucracy and a lack of transparency, the pandemic added a new set of challenges. GDP contracted by 1.9% in 2020, reversing a three-year period of consistent – albeit moderate – expansion. Youth unemployment, a long-standing challenge for Nigeria, was also exacerbated by the Covid-19 crisis. Nonetheless, the Nigerian economy remains diversified, with the non-oil sector accounting for 90.8% of real GDP in the first quarter of 2021. Moreover, concerted efforts have laid the groundwork for a post-pandemic economic rebound, and the IMF projects that GDP growth will recover and expand through to 2025. This chapter contains interviews with Yewande Sadiku, Executive Secretary and Nigerian Investment Promotion Commission; and Jumoke Oduwole, Special Business Adviser to the President.
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While the global economic slowdown in 2020 triggered by the Covid-19 pandemic put downward pressure on GDP growth in Sharjah, there is cautious hope for a rebound in 2021 and beyond, driven by social and economic development spending programmes, as well as a rapid Covid-19 vaccine rollout. Government spending has risen steadily, funding ambitious development goals in the emirate and the wider UAE, while the authorities have simultaneously implemented initiatives to mitigate the health and economic impacts of the pandemic. Roadshows and forums hosted by Invest in Sharjah are a central pillar of the government’s investment promotion strategy, with a historical focus on India, Russia, China, the GCC, the US, and European nations such as Italy and France.
This chapter contains interviews with Sultan Abdullah bin Hadda Al Suwaidi, Chairman, Sharjah Economic Development Department; Badr Jafar, CEO, Crescent Enterprises; and Salem Yousef Al Qaseer, Chairman, Labour Standards Development Authority.
Economy
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The Philippines is one of the fastest-growing economies of the past decade, averaging 6.4% growth per year over 2010-19. Indeed, an expanding and youthful population, combined with reforms and an ambitious infrastructure programme, have made it an enticing investment destination. Nevertheless, as is often the case in emerging markets, challenges regarding inequality – particularly the distribution of wealth and services – remain barriers to growth. The Covid-19 pandemic tested the country’s resilience in 2020, impacting major sectors. The Philippine government launched a four-pillar socio-economic strategy to mitigate the impact of the pandemic and aid the national recovery effort. The framework aims to provide emergency support for vulnerable groups and individuals; expand medical resources to fight Covid-19 and ensure the safety of health workers; implement fiscal and monetary initiatives to keep the economy afloat; and launch an economic recovery plan to create jobs and sustain growth. This chapter contains interviews with Carlos Dominguez, Secretary of Finance; and Shinichi Kitaoka, President, Japan International Cooperation Agency.
Trade & Investment
Buy digital copy of this chapter - £18In recent years Papua New Guinea’s trade and investment environment has been characterised by government policies aimed at generating wider fiscal and social benefits from the country’s resource wealth, while simultaneously growing exports and decreasing imports as it develops a broader economic base. Around 86% of exports from PNG are generated by the extractive industries, principally liquefied natural gas and gold. The government is keen to nurture the development of other high-potential segments such as agri-business – particularly given that around 85% of the population is dependent upon agriculture for their livelihoods. Following uncertainty created by the US-China trade war, the global trade and investment environment has been further clouded by the Covid-19 crisis in 2020. Nevertheless, PNG remains a country with rich potential, thanks to its untapped natural resources and strategic proximity to the high-growth markets of Asia. This chapter contains interviews with Scott Roger, Mission Chief for Papua New Guinea, IMF; and Clarence Hoot, Managing Director, Investment Promotion Agency.
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Following a currency crisis in 2016, Egypt implemented a series of reforms, the results of which are apparent across key macroeconomic indicators. GDP growth rose from 5.3% in FY 2017/18 to 5.6% in FY 2018/19, and unemployment fell to 7.5%. Although Egypt faces the challenges of 2020 from a relatively robust position, lockdown measures and market turbulence have significantly impacted the economy. In April 2020 the Ministry of Finance downgraded its growth forecast for FY 2020/21 from 4.5% to 3.5%, before reducing this further to 2% in May 2020. Nevertheless, this makes Egypt the only Arab economy expected to experience positive GDP growth in 2020 and one of the few countries worldwide not set to enter recession. While the full impact of the pandemic remains to be seen, the country has moved to mitigate the worst effects by boosting government investment, and supporting small businesses and strategic industries that were adversely affected by the crisis. This chapter contains interviews with Mohamed Maait, Minister of Finance; and Ahmed Abd El Wahab, Executive Director, General Authority for Investment and Free Zones.
Economy
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Lower oil prices and a rigorous process of fiscal reform have led to a challenging economic backdrop for Abu Dhabi’s residents and businesses in recent years. Although concerns that the Covid-19 pandemic of 2020 would lead to a global downturn in the year ahead loomed large as of mid-2020, a shift to a more expansionary fiscal stance has helped establish a more promising foundation for growth moving forwards. Moreover, while government funding remains central to economic expansion, a major overhaul of the investment framework at both the national and emirate level aims to harness the power of private capital in Abu Dhabi’s future development. This chapter contains interviews with Ahmed Ali Al Sayegh, UAE Minister of State, and Chairman, Abu Dhabi Global Market; and Mohammed Ali Al Shorafa Al Hammadi, Chairman, Abu Dhabi Department of Economic Development.
Trade & Investment
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Indonesia entered 2020 trying to navigate global economic headwinds, including the pressure of uncertainty surrounding the outcome of the Covid-19 pandemic; however, the second-term election victory of President Joko Widodo, better known as President Jokowi, in 2019 and his coalition’s control of the national legislature has put the government in a solid position to enact much-needed reforms. With the country long dependent on natural resources, the administration seeks to streamline investment processes to attract foreign direct investment in downstream processing, thereby raising the value of exports and providing a domestic alternative to imports. Meanwhile, Indonesia is also pursuing – and in some cases has already secured – a raft of bilateral and multi-stakeholder trade agreements. This chapter contains interviews with Luhut Pandjaitan, Coordinating Minister for Maritime Affairs and Investment; Chan Chun Sing, Minister for Trade and Industry of Singapore; and Bahlil Lahadalia, Chairman, Indonesia Investment Coordinating Board.
Economy
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Following the achievements of the past few years, Côte d’Ivoire is in a good position to continue along its path of strong economic growth once the global economy has recovered from the effects of the Covid-19 pandemic. Moves made to diversify the economy away from a reliance on raw exports are already paying dividends, as are improvements made to the investment environment in sectors with untapped potential, such as mining. However, further strengthening the business climate will be necessary to encourage expansion led by the private sector. While the current strategy of investing into poverty reduction highlights the government’s recognition of the need for more equitable growth, poverty rates are still high. Initiatives such as the Social Government Programme 2019-20, which aims to reduce poverty by raising formal employment and boosting productivity across nascent sectors such as manufacturing, will be key to the nation’s development. This chapter contains interviews with Emmanuel Esmel Essis, Director-General, Investment Promotion Agency of Côte d’Ivoire; Jean-Marie Ackah, President, General Confederation of Businesses of Côte d’Ivoire; and President, Federation of West African Employers’ Organisation; and Eric Kacou, CEO, Entrepreneurial Solutions Partners.
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Buy digital copy of this chapter - £18Four years after the launch of Saudi Arabia’s comprehensive development strategy, Vision 2030, the Kingdom’s non-oil economy is starting to see the benefits of sustained reform. Any decrease in revenue caused by lower oil prices is a significant challenge and presents a downside risk for the economy. Actions taken by the government to mitigate the effects of both the depressed oil price scenario and Covid-19 in the first half of 2020 are substantial. These will support non-oil growth and ensure a social safety net for citizens in the short term, while in the longer term the Kingdom’s increasingly diverse economy is expected to benefit from the implementation of Vision 2030 objectives. This chapter contains interviews with Fahd Al Rasheed, President, Royal Commission for Riyadh City (RCRC); Anas Alfaris, President, King Abdulaziz City for Science and Technology (KACST); and Saad bin Othman Al Kasabi, Governor, Saudi Standards, Metrology and Quality Organisation (SASO).
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The Qatari government has created a clear roadmap with Qatar National Vision 2030, which focuses on economic diversification and growth with a retention of the country’s key cultural values at its heart. Although much of the focus in recent times has been on infrastructure preparations for the 2022 FIFA World Cup, it is the period following the tournament, when new liquefied natural gas and petrochemicals cargo starts to be shipped, that will have a more significant lasting impact on Qatar’s broader development. This chapter contains interviews with Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.
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Supported by a favourable geographic location between Africa and Europe, vast array of natural resources and improved business environment, Morocco’s economy has made important strides over the past decade. Investment in export-oriented manufacturing industries is gradually allowing the country to diversify its economic output. In hand with this, years of investment in infrastructure have strengthened transport and logistics links across the country, facilitating domestic and international trade. However, Morocco continues to face a number of economic challenges. Annual growth rates remain intrinsically linked to agricultural production. In addition, persistent unemployment rates, have prevented large segments of the population from joining the middle class, and subsequently spurred the emigration of qualified graduates and professionals abroad. Aiming to avoid economic stagnation and facing growing demand for more inclusive growth, the authorities have focused on leveraging the positive results achieved through past policies for a renovated growth model. This chapter contains interviews with Mohamed Benchaâboun, Minister of Economy and Finance; and Hicham Boudraa, Acting Managing Director, Moroccan Investment and Export Development Agency.
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Trinidad and Tobago, the largest producer of oil and gas in the Caribbean, posted a GDP of $22.6bn in 2019, with growth remaining relatively flat. Though non-oil sectors have not fully shouldered the fall in oil prices, there has been modest growth in certain segments such as distribution and finance. One standout sector has been non-oil-related manufacturing exports, which amounted to $897.7m between January and June 2019, representing a 22% year-on-year rise. While there is a need to diversify the economy away from its dependence on hydrocarbons, a number of new oil and gas discoveries in late 2019 appear set to support a short-term recovery in the energy sector and help finance overall economic expansion. This chapter contains interviews with Philip Knaggs, Chairman, InvesTT; and Aldwyn Wayne, CEO, WiPay.
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Ghana’s economy is one of the fastest growing in Africa, and its recently established oil and gas industry has made it a target for foreign investment. However, while prospects for continued expansion are good, the state faces a stubborn fiscal deficit and the longer-term challenge of reducing the nation’s reliance on a small number of exports. Fiscal and economic reform, therefore, remain top of the agenda in the election year of 2020. Ghana is Africa’s biggest producer of gold and second-biggest producer of cocoa. Since the 2007 discovery of significant oil reserves, hydrocarbons exports have been added to the roster. A reliance on export commodities, however, means that the economy has in the past been vulnerable to crop failures and falling prices. This chapter also contains an interview with Yofi Grant, CEO, Ghana Investment Promotion Centre; and Yaw Adu Gyamfi, President, Association of Ghana Industries.
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Benefitting from its robust financial services, industrial and manufacturing sectors, Bahrain’s economy is one of the most mature and diverse in the GCC. Although the kingdom has suffered in the wake of sustained low and volatile international oil prices, its economy is set to benefit from a host of supportive policies, projects and fiscal reprogramming over the near and long term. A $10bn allocation from GCC peers will provide much-needed liquidity and stability to the country’s finances, while also increasing capital expenditure capacity in 2020. The kingdom’s liberal, diverse and incentivised business environment should continue to attract new investment, even as subsidy reforms weigh on investor sentiment and cloud the near-term outlook. This chapter contains an interview with Khalid Humaidan, Chief Executive, Bahrain Economic Development Board.
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Given its natural assets, strategic location and appealing geography, Oman has the resources for significant economic expansion. Although the sultanate remains dependent on oil and gas, efforts to diversify the economy are already bearing fruit. While the private sector has benefitted from the many investments committed in the days of higher oil prices, since the global drop in energy prices in 2014 the government has had to contend with a series of budget deficits and rising debt. However, debt levels remain manageable, and the government has implemented a series of fiscal reforms to get the budget back on a sustainable path.
This chapter contains interviews with Qais Mohammed Al Yousef, Chairman, Oman Chamber of Commerce and Industry; Yahya Said Al Jabri, Chairman, Duqm Special Economic Zone Authority; Azzan Al Busaidi, CEO, Public Authority for Investment Promotion and Export Development; and Abdullah Al Salmi, Executive President, Capital Market Authority.
Economy
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Myanmar is now one of the fastest-growing economies in Asia Pacific, with a key geostrategic location, abundant natural resources and a youthful population underpinning its progress. It is also a country that has achieved much in a relatively short period of time, after only setting out on the path of liberalisation and democratisation in 2011-12. Since then GDP, personal incomes, international trade and standards of living have improved significantly. Cities such as Yangon and Mandalay have experienced booms in real estate and construction, while the national grid has expanded, and transport and logistics networks have widened and deepened. The wholesale and retail sector is becoming a major driving force of the economy, and the financial and manufacturing sectors are undergoing liberalisation and diversification. This chapter contains interviews with U Soe Win, Minister of Planning, Finance and Industry; Daw Cherry Trivedi, CEO, Myanmar Institute of Directors; and Melvyn Pun, CEO, Yoma Strategic Holdings.
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Dubai has traversed some challenging economic territory over recent years. Political tensions in the region, the 2007-08 global financial crisis and a prolonged decline in oil prices from late 2014 are together exerting downwards pressure on the emirate’s economic expansion. However, stable oil prices and the economic stimulus of Expo 2020 have eased this strain in 2019, and business sentiment has improved accordingly. With the long-anticipated Expo 2020 set to take place beginning on October 20 of that year, attention is already turning to the question of how the emirate will sustain its current economic momentum over the medium term. This chapter contains interviews with Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry; and Sami Al Qamzi, Director-General, Department of Economic Development.
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Various developments point to healthy economic performance in the near term for Kuwait. Chief among them are the upgrade of the country’s stock exchange, which has been approved for addition to the MSCI Emerging Markets Index; the continuing roll-out of a large infrastructure programme; and the transition into higher value-added downstream production within the country’s leading hydrocarbons industry. Meanwhile, prudent macroeconomic policies – including building one of the world’s largest sovereign wealth funds – have helped Kuwait weather the recent protracted downturn in oil and gas prices. Foreign investment has been welcomed as Kuwait capitalises on its strong regional and international connections to mobilise global interest.
This chapter contains an interview with Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development.
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Analysts are expecting 2019 to be the fourth successive year of economic deceleration, with the IMF forecasting growth will fall to 1.6% in 2019 before accelerating modestly to 2-3% over the medium term. Some risks to growth include the continued slowdown of the US economy, to which Mexico’s fortunes are closely tied, and the rising uncertainty generated by global trade tensions. However, given the government’s commitment to maintain a conservative fiscal and monetary policy, and to keep private sector debt levels low, in addition to the substantial financial support provided by the IMF and central bank reserves, a full-blown financial or economic crisis is unlikely. This chapter contains interviews with Graciela Márquez Colín, Minister of Economy; and Eduardo Sojo Garza-Aldape, Director-General, National Laboratory of Public Policy at the Centre for Research and Teaching in Economics.
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Buy digital copy of this chapter - £18Papua New Guinea’s international profile received a boost when it chaired the APEC forum in 2018, an event that culminated in the APEC Leaders’ Summit in Port Moresby in November of that year. During the meeting, leaders from some of the world’s largest economies congregated in the capital to discuss a host of regional issues. While the business climate is hampered by regulatory obstacles and a shortage of land for development, the high-profile geopolitical event gave the island nation a chance to showcase its maturing economy and areas of untapped potential to more than 20,000 visitors from 21 APEC member states throughout the course of the year. This chapter also contains interviews with Stefano Mocci, Country Manager for Papua New Guinea, World Bank; Stephanie Fahey, Chief Executive, Austrade; Moustapha Magumu, Principal Coordinator for the Pacific Region, European Commission; and Clarence Hoot, Managing Director, Investment Promotion Authority.
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While Tunisia remains a country with a number of strong assets on which to base future development, challenges of the last few years have slowed policymakers’ drive to adequately plan and execute necessary reforms to make the economy more competitive. However, several measures implemented by the government in 2018 and 2019 are helping to clear a path for Tunisian entrepreneurs, which is hoped to help reduce informality. Still, to successfully implement a new growth dynamic over the medium term, Tunisia will need to establish a clear consensus about economic reforms. For instance, public sector reform, although unpopular under the current environment, is also still seen as critical to reverse Tunisia’s unfavourable budgetary position. This chapter contains interviews with Zied Ladhari, Minister of Development, Investment and International Cooperation; Abdelbasset Ghanmi, General Manager, Foreign Investment Promotion Agency; and Samir Majoul, President, Tunisian Union of Industry, Trade and Handicrafts.
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With strong economic growth, an expanding population and an increasingly sophisticated internal market, the Philippines is one of Asia Pacific’s brightest investment opportunities. Concerted efforts to reform taxes, improve the ease of doing business and shore up capital markets are under way, while inflation is back under control and a major programme of infrastructure development is accelerating. Meanwhile, structural reforms are continuing and significant shifts are being undertaken in key areas such as fuel subsidies and rice imports. Additionally, more sectors of the economy are being opened up to foreign participation as the country moves towards greater integration with its international partners. All these moves are helping the Philippines move up the value chain, diversify its economy and attract greater foreign direct investment. This chapter also contains interviews with Carlos G Dominguez, Secretary of Finance; and Kevin Tan, CEO, Alliance Global Group.
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Buy digital copy of this chapter - £18Colombia is poised for expansion in 2019 and 2020, despite some internal and external challenges that have not abated since 2018. Growth of the Colombian economy will be determined by which side of the scale advances further in the short term: strong consumer spending and increased investment in the construction sector due to the ongoing Fourth Generation road programme, or a deepening current account deficit and strained labour market due to the influx of Venezuelan refugees. As the country tries to advance its international competitiveness to secure greater investment and job growth, the government must battle inflation, unemployment and a fluctuating peso. Still, if the current National Development Plan is implemented successfully, the Duque administration is likely to leave behind a stronger Colombia with increased opportunities for all. This chapter contains interviews with Alberto Carrasquilla, Minister of Finance and Public Credit; Flavia Santoro Trujillo, President, ProColombia; and Juan José Echavarría Soto, General Manager, Banco de la República.
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Peru has emerged as one of the best performing economies in Latin America. The country possesses strong fundamentals, combining robust growth, a falling fiscal deficit, rising export revenue and a credit rating second only to that of Chile. Nevertheless, challenges remain in terms of ensuring sustainable development. Peru has undoubtedly benefitted from its openness to private enterprise and foreign investment, along with its prudent fiscal policy. Despite issues with corruption, Peru possesses an independent central bank and a well-functioning investment authority. Furthermore, it showed regional leadership in implementing anti-corruption legislation. GDP is expected to grow by 3.7% in 2019 and in 2020, underpinned by infrastructure projects, rising exports and increased investment in mining sector. While the economy is steadily improving, more needs to be done to achieve the country’s development objectives. This chapter contains interviews with Carlos Oliva, Minister of Economy and Finance; and Julio Velarde Flores, President, Banco Central de Reserva del Perú.
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Buy digital copy of this chapter - £18Since the election of President Abdel Fattah El Sisi in 2014, Egypt’s economic policy has been centred on reducing public sector costs and boosting private sector growth. Five years after Egypt began to implement a comprehensive reform of its economy, the nation’s macroeco-nomic indicators are showing sustained improvement. However, while accelerating growth and a narrowing fiscal deficit have vindicated the government’s auster¬ity measures, a high inflation environment continues to place pressure on the budgets of ordinary households. Looking ahead, the IMF estimates that GDP will grow by 5.5% in 2019 and 5.9% in 2020, powered mainly by a recovery in tourism and rising natural gas output. While the macroeconomic outlook is positive, the challenge of maintaining the support of a population that has yet to feel the benefits of economic reform remains. This chapter contains interviews with Sahar Nasr, Minister of Investment and International Cooperation; and Tarek Tawfik, President, American Chamber of Commerce in Egypt.
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Buy digital copy of this chapter - £18Although Indonesia’s export receipts hit a five-year high in 2018, imports surged as the country moved to deliver a massive infrastructure development programme, bringing the trade deficit to an all-time high after three years of surplus. The country remains dependent on raw commodities for much of its export revenues; global commodity price volatility has weighed on the trade balance in recent years, while lower demand for Indonesian exports has further dampened the outlook. Foreign direct investment (FDI) inflows also slumped in 2018 after recording five years of consecutive growth, with global emerging market jitters and Indonesia’s upcoming presidential elections affecting investor sentiment. Recent reforms to prevent capital outflow from China have further weighed on FDI growth, highlighting the importance of fostering stronger trade and investment ties with smaller partners, as well as leveraging economic strength in major multilateral free-trade agreement negotiations. This chapter also contains interviews with Enggartiasto Lukita, Minister of Trade, and Thomas Lembong, Chairman, Indonesia Investment Coordinating Board.
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Buy digital copy of this chapter - £18A welcome improvement was seen in the Kingdom’s economic fortunes in 2018, with GDP growth of 1.2% in the first quarter marking the first expansion of the national economy after five consecutive quarters of contraction. Overall, the economy grew by 2.2% for the year, compared to a contraction of 0.7% in 2017. Firming oil prices have enabled the government to produce two record-breaking budgets for 2018 and 2019, and the private sector is poised to benefit as the projects outlined in the nation’s ambitious development strategy begin to take shape with its help. Saudi Arabia’s long-term goal of securing enough private investment to shift the nation’s primary engine of growth away from state spending, however, remains a work in progress. This chapter contains interviews with Turki Al Hokail, CEO and Board Member, National Centre for Privatisation; Ajlan Abdulaziz Alajlan, Chairman of the Board, Ajlan & Bros, and Chairman, Riyadh Chamber of Commerce and Industry; and Husameddin Al Madani, Director-General, National Centre for Performance and Measurement.
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Buy digital copy of this chapter - £18Qatar’s relatively small population and status as the world’s biggest gas exporter have helped it to become the richest country globally in terms of GDP per capita. In recent years, however, it has faced strong economic headwinds. The oil price decline beginning in the second half of 2014 led to the country’s first budget deficit in 2016, prompting the government to cut costs and reinvigorate its long-standing policy of economic diversification. As oil prices stabilised and hydrocar¬bons revenues began to rise once again, the nation was faced with another challenge: the governments of Saudi Arabia, the UAE, Bahrain and Egypt severed diplo¬matic relations with Qatar in June 2017 and announced an economic blockade of the country. This chapter includes interviews with Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank; and Omar Al Ansari, Secretary-General, Qatar Research, Development and Innovation Council.
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Buy digital copy of this chapter - £18Trade and investment activities in Sri Lanka benefit from the country’s location along busy Indian Ocean trade routes, abundant agricultural and industrial exports, and a young, skilled workforce. Just 19 km separate its southern-most port from a global shipping lane carrying two-thirds of the world’s oil and half of its container shipments. This makes local ports a natural staging post for cargo destined for India and Pakistan, with some 30% of the former’s container traffic currently trans-shipped through Sri Lanka. The country has also been making strides in attracting international stakeholders to develop trade, transport and logistics infrastructure, becoming a major destination for foreign direct investment (FDI) in the process. Higher inflows have benefitted the broader economy; 2018 was the highest year on record for FDI, with $2.3bn worth of investments made. This chapter contains interviews with Parag Khanna, Founder and Managing Partner, FutureMap; Champika Malalgoda, Director-General, Board of Investments; and Thilan Wijesinghe, Chairman, National Agency for Public-Private Partnership.
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Buy digital copy of this chapter - £18Abu Dhabi is the largest of the emirates that comprise the UAE, in terms of both its land mass and economy, and home to the majority of the country’s energy production and reserves. According to Statistics Centre - Abu Dhabi (SCAD), its economy expanded at a rate of 31.7% in 2005 and 32.3% in 2011 in nominal terms. Given the current environment, in which oil prices remain below the $100 mark seen at the beginning of the decade, the emirate has embarked on a strategy focused on economic diversification and more efficient government spending. The drive features an examination of public spending and fiscal management; phased reductions and elimination of subsidies; and the gradual consolidation of duplicative commercial entities controlled by government bodies. This chapter contains interviews with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Al Dhafra Region; Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Investment Company; and Saif Mohamed Al Hajeri, Chairman, Abu Dhabi Department of Economic Development.
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Buy digital copy of this chapter - £18Dubai is the second-largest of the seven emirates that comprise the UAE in terms of economic size, and the main driver of economic diversity in the country. Its tourism, logistics, manufacturing and services sectors provide opportunities for growth beyond oil and gas, the industry upon which many economies in the region are dependent. At the country level hydrocarbons account for 30% of GDP and oil exports for less than 40% of revenues. Economic development programmes for the emirate have been designed to leverage its strategic location between Europe and Asia, and the airline Emirates has played a significant role in bringing foreigners to Dubai, which accounts for two-thirds of tourist arrivals in the country. This chapter contains interviews with Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry; Sami Al Qamzi, Director-General, Department of Economic Development; and Ahmed bin Sulayem, Chairman, Dubai Multi Commodities Centre.
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While 2018 marked a deceleration from the economic growth of 2017, Morocco’s overall picture continues to look stable: the IMF forecast GDP growth of 3.2% for 2018, a substantial figure, and projected growth of 3.2% for 2019. A number of key developments are expected to support economic growth in coming years. A rapidly improving business environment and infrastructural base, the gradual liberalisation of the local currency, and increased investment into export-oriented industries are all set to raise living standards and drive the emergence of a large national middle class. Broader growth is not without its challenges, however, and officials are likely to put more effort into overcoming entrenched socio-economic problems and stubborn unemployment. Still, the medium-term upward trajectory of the nations’ GDP also appears to be holding steady, which will bring added help in tackling such issues. This chapter contains interviews with Mohamed Benchaâboun, Minister of Economy and Finance; Moulay Hafid Elalamy, Minister of Industry, Investment, Trade and Digital Economy; Salaheddine Mezouar, President, General Confederation of Moroccan Enterprises; and Said Ibrahimi, CEO, Casablanca Finance City Authority.
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Buy digital copy of this chapter - £18Ghana is the second-biggest producer of gold on the African continent, and the world’s second-largest cocoa producer. The country is also home to one of the largest discoveries of oil in recent decades, the production of which is providing the government with a useful revenue stream and driving growth in associated sectors. Nevertheless, the country faces considerable economic challenges with the biggest one arising from its 2019 departure from the IMF’s support framework. Developing the economy while staying within the government’s defined limits for fiscal deficits and external debt remain key challenges. The government’s revised tax policies, however, are likely to strengthen revenue streams and reduce the need to cut expenditures to remain within the targeted fiscal deficit limit. Despite the broadly positive outlook, Ghana’s continued dependence on cocoa, gold and oil exports leaves it vulnerable to volatility in international commodity prices. The government’s longer-term plan to develop other areas of the economy, therefore, is crucial to eliminating this downside risk. This chapter contains interviews with Ken Ofori-Atta, Minister for Finance; Yofi Grant, CEO, Ghana Investment Promotion Centre; Seth Twum Akwaboah, CEO, Association of Ghana Industries; and Reeta Roy, CEO and President, Mastercard Foundation.
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Although economic growth has been slowing since 2016, the outlook remains bright, with the IMF forecasting an annual expansion of at least 6.5% through to 2023. However, there are still challenges that need to be overcome. The country remains highly vulnerable to external shocks, especially the fluctuation of commodity prices. Economic expansion has been greatly supported by the state, but the government is expected to curtail public spending in the coming years to narrow its fiscal deficit, as agreed with the IMF. Despite rising investment, private sector con-tributions remain weak, meaning further efforts are needed to improve governance, tackle corruption and cement the rule of law. This chapter contains interviews with Adama Koné, Minister of Economy and Finance; Emmanuel Esmel Essis, Director, Investment Promotion Agency; Jean-Marie Ackah, President, General Confederation of Businesses of Côte d’Ivoire; and a viewpoint with Abdallah Boureima, President, UEMOA Commission.
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Buy digital copy of this chapter - £18Myanmar’s macroeconomic performance improved in 2018 as recovery in the agriculture sector, rising oil and gas prices, and substantial growth in several manufacturing segments helped the country regain positive momentum. Efforts to encourage private sector activity and liberalise the economy have been extensively detailed in a new long-term economic development agenda, and recent legislative reforms should further bolster business engagement. At the same time, the country is facing several notable challenges. The liberalisation of financial services has been slower than anticipated: deficits in the fiscal budget and the external balance of trade remain large and continue to grow, and currency depreciation hampered growth and spurred inflation in 2018. This chapter contains interviews with U Soe Win, Minister of Planning and Finance; U Zaw Min Win, President, Union of Myanmar Federation of Chambers of Commerce and Industry; and Parag Khanna, Founder and Managing Partner, FutureMap.
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Buy digital copy of this chapter - £18Like other GCC states, Oman’s economy is largely driven by oil and gas activity. However, with fewer and more complex hydrocarbons reserves than its neighbours, it is under greater pressure to diversify its economic base. The scale of this challenge was highlighted by recent falling oil prices, which led to the largest fiscal deficit in more than a decade. Nevertheless, a combination of government reforms, increased diversification efforts and a recovery in oil prices means that the sultanate’s economy is showing improvements across most major indicators for 2019. The government is therefore well positioned to continue with its most ambitious reform agenda since the original modernisation phase in the 1970s. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry; Salaam Said Al Shaksy, Member of the State Council and CEO, Alizz Islamic Bank; Ahmed Al Musalmi, Board Member, Special Economic Zone Authority at Duqm, and CEO, Bank Sohar; and Khalifa Al Barwani, CEO, National Centre for Statistics and Information.
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As Africa’s most important gas exporter, Algeria remains highly dependent on the hydrocarbons sector for the majority of government revenues and almost the entirety of its exports. Despite reforms to encourage private sector development, promote diversification and attract foreign direct investment in recent years, the state plays a preponderant role, meaning that expenditure and investments continue to have a significant impact on overall economic performance. The drop in global oil prices since 2014 is at the root of Algeria’s most recent economic challenges, giving rise to large twin deficits in the fiscal and current accounts. The strategy embarked by the authorities in late 2017 has brought some relief to Algeria, though the sustainability of this approach rests on the adoption of necessary corrective measures from 2019 onwards. This chapter contains interviews with Abderrahmane Raouya, Minister of Finance; Richard Lesser, CEO, Boston Consulting Group; and Ali Haddad, President, Algerian Business Leaders’ Forum.
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Nigeria is Africa’s biggest oil exporter and, with a population of 193m, the region’s biggest economy and largest consumer base. While the government is reliant on oil and gas for its revenue, the economy itself is more diversified, with manufacturing, banking and insurance, retail and agriculture all major contributors. However, each of these sectors could grow faster and create more opportunities if structural problems were overcome, among them, the country’s electricity shortage, corruption and bureaucratic bottlenecks. The country’s main economic blueprint is the Economic Recovery and Growth Plan, launched in 2017, which includes up to 60 policy interventions that seek to remove major obstacles to growth. Following the general election in February 2019, the incoming administration will be expected once again to consider major policy questions, notably including the issues of subsidies, oil sector laws and how to boost tax receipts. This chapter contains interviews with Yewande Sadiku, Executive Secretary, Nigerian Investment Promotion Commission; Babatunde Fowler, Executive Chairman, Federal Inland Revenue Service; Babatunde Paul Ruwase, President, Lagos Chamber of Commerce and Industry; and Peter Ashade, CEO, United Capital.
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Buy digital copy of this chapter - £18With 6% of the world’s proven oil reserves and 1% of its natural gas, Kuwait had an estimated GDP per capita of $71,943 in power purchasing parity terms in 2017, which was the eighth-highest value for any country or autonomous region, according to the World Bank. Kuwait has also been a prudent saver of its petrodollars and has the world’s fourth-largest sovereign wealth fund, with the Kuwait Investment Authority managing $592bn in assets in mid-2018, according to the SWF Institute. In 2018 the IMF calculated this financial buffer to be equivalent to 470% of Kuwait’s GDP. Although Kuwait is still exposed to oil price fluctuations for now, development initiatives already under way should ensure a sustainable economic growth path in the long term. This chapter contains an interview with Sheikh Meshaal Jaber Al Sabah, Director-General, Kuwait Direct Investment Promotion Agency.
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Building on consecutive years of robust headline growth, Djibouti has been able to leverage its geographic position to specialise in transport and logistics operations. This has brought integration with global commerce routes and an increase in infrastructure investment. However, to create a more reliable mechanism for poverty reduction and job creation, further improvements to the operating environment are needed. Nevertheless, the country is well placed for continued growth over the coming years, which could be aided by a better interconnection between the domestic business sector and the foreign investments reshaping Djibouti’s transport infrastructure network. This chapter contains interviews with Ilyas Moussa Dawaleh, Minister of Economy and Finance; Mohamed Aramis, Minister of Decentralisation; and Ouloufa Ismail Abdo, Director, Djibouti Office of Industrial and Commercial Property.
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After the costly drought and political uncertainty of 2017, the Kenyan economy appears to have stabilised on an upward trajectory in 2018, with most forecasts seeing a more robust expansion of economic activity. Indeed, Kenya’s diverse economy forms a solid platform from which the government can generate economic growth over the coming years. The resolution of the electoral process, improving business confidence and strong private consumption are likely to support GDP expansion over 2018 and into 2019. However, a structural fiscal deficit and an increasing public debt continue to pose significant challenges. Consequently, a sense of urgency surrounds the process of economic reform by which Kenya hopes to establish itself as a globally competitive, prosperous nation by 2030. This chapter contains interviews with Anne Kirima-Muchoki, Chairperson, Kenya Investment Authority; Carole Kariuki, CEO, Kenya Private Sector Alliance; and Ray W Washburne, President and CEO, Overseas Private Investment Corporation.
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Buy digital copy of this chapter - £18With global energy prices recovering and a new natural gas project now on-line, some predict an end to T&T’s recession in 2018. In May 2018 the Ministry of Finance reported that as energy activity recovers and other sectors begin to grow, tax revenues will likely exceed expectations, and the fiscal deficit was revised down from 3.1% of GDP in 2018 to 2.5%, compared to 8% in 2017. However, while a rebound in the energy sector is welcome, it is other industries that require the majority of government focus if the country is to become sustainably diversified and financially secure for the long haul. This chapter contains interviews with Allyson West, Minister of Finance; Patricia Ghany, President, American Chamber of Commerce of Trinidad and Tobago; and Derek Chin, Chairperson, Movie Towne.
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Buy digital copy of this chapter - £18With macroeconomic growth slumping and domestic demand weakening in the aftermath of a long construction boom, trade and investment in Papua New Guinea have faltered in recent years. However, ongoing geopolitical developments could see the situation change in 2018. China’s footprint in PNG has been growing, particularly in the lead up to the APEC Leaders’ Summit, which will be hosted in PNG for the first time in November 2018. Inter- national responses to rising Chinese competition should benefit PNG, with several of the country’s most important bilateral partners moving to shore up their presence in the country in recent times. Future trade ties are likely be steered by the government’s efforts to leverage the competing geopolitical interests to the country’s advantage. This chapter contains interviews with Clarence Hoot, Acting Managing Director, Investment Promotion Authority; Julie Bishop, Former Minister of Foreign Affairs of Australia; Stephen P Groff, Vice-President, Asian Development Bank; and Alan Bollard, Executive Director, APEC Secretariat.
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Buy digital copy of this chapter - £18Following the inauguration of President Mauricio Macri’s centre-right government in December 2015, the Argentine economy has embarked on a period of structural change propelled by increasingly liberalised policies. Under this leadership, the authorities have been rolling out various reforms to bring the country back onto the global stage, step up international competitiveness and accelerate GDP growth. After the 1.8% contraction in 2016, Argentina’s GDP expanded by 2.9% in 2017. Growth continued to accelerate in the first quarter of 2018 at a rate of 3.6% year-on-year (y-o-y), according to the National Institute of Statistics and Census. This chapter contains interviews with Daniel Funes de Rioja, B20 Chair; Mariano Mayer, Secretary of Entrepreneurship and Small and Medium Enterprises; and Luis Pagani, CEO, Arcor.
See also:
Special Report: Argentina 2018 : Córdoba
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Economy
Buy digital copy of this chapter - £18After a political transition that threatened business confidence and investment projects, Peru’s economic outlook has improved considerably. As one of South America’s top performers due to its structural reforms and fiscal discipline, Peru is seeing an economic rebound due to rising commodity prices and its export-oriented mining sector. The Ministry of Economy and Finance (Ministerio de Economía y Finanzas, MEF) projects that GDP growth will accelerate from 2.5% in 2017 to 3.6% in 2018, bolstered by a 17.5% and 4.5% increase in public and private investment, respectively. The longer-term outlook is yet more optimistic, with forecasts for higher average growth and domestic demand over the 2018-21 period. The MEF forecast greater private investment will support fiscal consolidation efforts from 2019, reactivating the virtuous cycle of investment, employment and consumption. This chapter contains interviews with Luis Alberto Moreno, President, Inter-American Bank of Development; Alberto Ñecco, Executive Director, ProInversión; and Roque Benavides, President, National Convention of Private Business Institutions.
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Macroeconomic recovery in Thailand gained momentum in 2017, with GDP growth hitting a five-year high on the back of a positive performance in exports, tourism and financial services, as well as a moderate uptick in private consumption. Meanwhile, the main index of the Stock Exchange of Thailand hit an all-time high on the first day of trading in 2018, returning to levels not seen since the 1997-98 Asian financial crisis. Under the auspices of new economic development strategies such as Thailand 4.0 and the Eastern Economic Corridor, infrastructure investment should further support expansion in 2018, with public spending on key transport projects set to surge, even as the government seeks private partners to help deliver billions of dollars of planned initiatives. This chapter contains interviews with Kanit Sangsubhan, Secretary-General, Eastern Economic Corridor Office of Thailand; Nishita Shah Federbush, Group Managing Director, GP Group; and Kalin Sarasin, Chairman, The Thai Chamber of Commerce and Board of Trade of Thailand.
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Buy digital copy of this chapter - £18Driven by an ongoing process of economic opening since the 1990s, Mexico has come to establish a solid macroeconomic base. Structural changes have allowed the country to improve trade flows and helped to soften the impact of a gradual slowdown in hydrocarbons production and exports. Equally important have been the profound economic reforms initiated after 2013, with a reshaping of strategic sectors such as energy and telecoms. The energy reform alone is expected to bring in $180bn worth of new investment by 2030, as foreign companies expand their hydrocarbons exploration and development efforts. Although destabilisation of trade flows would have a heavy impact in the short term, the overall outlook for the Mexican economy remains strong. This chapter includes an interview with Juan Pablo Castañón Castañón, President, Consejo Coordinador Empresarial.
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With GDP growth averaging 6.4% between 2010 and 2017, the Philippines is home to one of the top-performing economies in South-east Asia. Buoyed by its robust services sector, the economy has remained strong due to rising investment in manufacturing projects, strong remittance inflows from overseas workers and an infrastructure-spending surge under the government’s Build, Build, Build development programme. Foreign direct investment (FDI) reached an all-time high in 2017 as investors flocked to capitalise on rising domestic demand and optimistic growth projections. FDI is expected to increase once again in 2018, supported by both a young and skilled workforce, and rising government spending, with the long-awaited Tax Reform for Acceleration and Inclusion initiative expected to augment public coffers. This chapter contains interviews with Carlos G Dominguez III, Secretary of Finance; and Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation.
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Tanzania is one of sub-Saharan Africa’s fastest-growing economies, boasting average GDP growth of around 7% per year since 2000. Significant investment in rail, port and road development is likely to drive GDP expansion into the next decade. While the ongoing process of economic reform presents challenges to some sectors, and weak budget execution and policy uncertainty have dampened investment, the overall macroeconomic picture remains favourable. The presence of abundant natural resources, a reform-oriented government and a 53m-strong population that is growing at an annual rate of 3% are just some of the key growth drivers that will help Tanzania remain an interesting prospect for investors. This chapter contains an interview with Godfrey Simbeye, Executive Director, Tanzania Private Sector Foundation.
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Buy digital copy of this chapter - £18The economy of Sharjah is highly diversified by regional standards, with oil and gas contributing less than 6% to GDP, and no individual sector accounting for more than 20%. The emirate has had particular success in developing its industrial and manufacturing sector through a network of free zones and industrial zones that continues to develop and expand, and it is one of the main industrial bases of the UAE. The authorities have also taken a range of measures to boost foreign investment flows, supported by an attractive national business environment and competitive advantages, such as Sharjah’s comparatively low operating costs. This chapter contains interviews with Marwan bin Jassim Al Sarkal, CEO, Sharjah Investment and Development Authority (Shurooq); and Najla Al Midfa, General Manager, Sharjah Entrepreneurship Centre (Sheraa).
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Buy digital copy of this chapter - £18Trade and investment activities in Sri Lanka benefit from the country’s location along busy Indian Ocean trade routes, access to the larger markets of India and Pakistan, abundant agricultural and industrial exports, and a young skilled workforce. Value-added textiles have joined tea, rubber and spices to become a major export earner in recent years, while foreign direct investment (FDI) inflows hit record highs in 2017. Still, both FDI and exports continue to miss government targets, and subdued export growth and rising fuel imports have pushed the trade deficit to new highs. With this in mind, the country is embarking on a bold reform programme that should offer substantial new support mechanisms for trade and investment. This chapter contains interviews with Greg Hands, UK Minister of State for Trade Policy; and Malik Samarawickrama, Minister of Development Strategies and International Trade; and a viewpoint from Stuart Tait, Regional Head of Commercial Banking, Asia Pacific, HSBC.
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Buy digital copy of this chapter - £18The country is working to gradually improve its economic indicators by implementing tough, yet necessary, structural reforms. Although significant strides have been made since 2011, Tunisia continues to face acute macroeconomic imbalances. While reform efforts have suffered from changing administrations in the years following the revolution, in 2018 growth is projected to pick up to 3%, according to the IMF, or 2.8% by government estimates. Both are higher than the trend Tunisia has experienced in the years since the 2011 revolution, which have seen average growth of 2% per annum. This chapter contains interviews with Youssef Chahed, Head of Government; and Samir Majoul, President, Tunisian Union of Industry, Trade and Handicrafts.
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Buy digital copy of this chapter - £18Macroeconomic growth hit a 25-year low in 2016 as ongoing regional volatility continued to constrain trade, exports and investment. The Syrian refugee crisis has exacerbated existing pressures on fiscal stability and social infrastructure, while public debt has been on an upward trend as the government attempts to cover the costs associated with hosting over 500,000 refugees. However, 2016 may have also marked a turning point for the economy, with authorities making significant progress in implementing an IMF-backed reform agenda, which enabled Jordan to reduce its budget deficit from 3.5% of GDP in 2015 to 2.6% in 2017, and reduce or eliminate costly fuel, electricity and tax subsidies. The government is now turning its attention to green and digital expansion as it moves forward on a new mid-term economic development agenda, with the aim of improving the business climate and attracting new investment to support targeted double-digit growth in the manufacturing, electricity, water, transport, ICT and construction sectors. This chapter contains interviews with Omar Malhas, Minister of Finance; Muhannad Shehadeh, Minister of State for Investment Affairs; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18Although it has moderated from earlier double-digit highs, GDP growth remained robust in the early 2010s, accelerating from 5.3% in 2010 to 5.6% in 2011, 7.3% in 2012, 8.4% in 2013 and 8% in 2014. Growth has dropped off slightly since 2015, reaching 7% that year and 6.1% in 2016, according to the IMF. External headwinds, internal conflict and delayed implementation of some key reform policies will undoubtedly continue to weigh on macroeconomic growth, but Myanmar’s economic forecast remains broadly positive. While both trade and fiscal deficits present challenges to Myanmar’s public sector stakeholders, increased private sector participation in economic development promises to help the country mitigate declining natural gas revenues, as both ongoing tax reform and fiscal rationalisation preserve financial and economic stability into 2019. This chapter contains interviews with U Kyaw Win, Minister of Planning and Finance; U Phyo Min Thein, Chief Minister, Regional Government of Yangon; and Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam.
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Buy digital copy of this chapter - £18The kingdom of Bahrain, renowned for its open markets and one of the most vibrant financial industries in the region, has faced economic headwinds in recent years. Lower oil prices have affected the many corporates that have chosen Manama as a base for their regional operations, and a stubborn fiscal deficit has resulted in a record-high level of public debt. The government has responded with a process of financial adjustment that is slowly narrowing the fiscal gap, but its longer-term solution to the economic challenges it faces rests on wider reform initiatives that aim to build on the kingdom’s already relatively diversified economy.
This chapter contains an interview with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board; and Mahmood Al Kooheji, CEO, Mumtalakat.
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Buy digital copy of this chapter - £18Having missed out on much of the developing and emerging markets boom that characterised the global economy during 2000-10 due to its domestic political crisis, a more recent period of out-performance has allowed Côte d’Ivoire to bounce back, making it one of the fastest growing economies in the world with a bright medium-term outlook. Strong investment, particularly in infrastructure, has been an important driver of this. According to the IMF, investment as a share of GDP is expected to increase steadily from the 18.2% achieved in 2015 to 20.1% in 2018, before reaching 21.9% by 2020. This should be bolstered by recent efforts to root out corruption and cement rules of law, which have seen improvements in the judicial system and are helping the country move closer to emerging market status. Achieving the latter is the primary goal of the National Development Plan 2016-20.
This chapter contains interviews with Prime Minister Amadou Gon Coulibaly, Minister of Budget and State Portfolio; Akinwumi Adesina, President, African Development Bank; Emmanuel Essis, Director-General, Investment Promotion Agency of Côte d’Ivoire; and Jean-Marie Ackah, President, General Confederation of Businesses of Côte d’Ivoire.
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Buy digital copy of this chapter - £18In 2017 the World Bank estimated that GDP grew by 3.9% over the year, and forecast it would expand by 4.6% in 2018 – a significant improvement on the 2% average GDP growth rate seen between FY 2010/11 and FY 2013/14. A newly liberalised currency and the recent implementation of a much-anticipated investment framework have also left Egypt well positioned for continued economic expansion in 2018. Despite a gradually improving fiscal scenario, a structural fiscal deficit remains the key economic challenge, and one that nearly all of its reforms aim to address. Raising revenue via taxation is one way the government is attempting to tackle the fiscal deficit, and in the first half of FY 2017/18, tax revenue reached LE249bn ($16.4bn), a year-on-year increase of 66%.
This chapter contains interviews with Sahar Nasr, Minister of Investment and International Cooperation; and Tarik Tawfik, President, American Chamber of Commerce in Egypt.
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Buy digital copy of this chapter - £18Oman’s economy benefits from large oil and gas reserves, including a sizeable new gas field that began production in late 2017. Located between Asia and Africa – and adjacent to major international shipping routes – the sultanate’s geographic location also makes it a natural regional logistics and manufacturing hub. The authorities are seeking to leverage such advantages in order to diversify the economy and reduce its reliance on hydrocarbons production, particularly in light of the fall in the price of oil over the 2014-15 period. The consequent decline in oil revenue negatively affected growth, as well as government accounts and finances. However, the authorities have so far been able to fund the deficit without difficulty through international borrowing. Furthermore, a partial oil price recovery in 2017 and 2018, as well as moves by the government to cut expenditure and boost revenue, are reducing immediate pressure on finances. This chapter contains an interview with Khalifa Al Barwani, CEO, National Centre for Statistics and Information.
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Despite the kingdom’s dependence on agriculture for strong GDP growth, efforts to strengthen other export sectors, coupled with diversification of trading partners, have allowed Morocco to develop a variety of competitive industries and increase their presence in international markets. Traditional segments such as phosphate production remain important, but a range of emerging manufacturing capabilities are helping to promote growth across a broader base of activities. Morocco has seen a recent influx of investment that has been translated into various projects, such as new industrial and infrastructure developments. With an emphasis on diversifying its commercial partners, Morocco’s African strategy has been raising the kingdom´s political and economic profile, and extending its clout across the continent.
This chapter contains interviews with Mohamed Boussaid, Minister of Economy and Finance; and Ahmed Lahlimi Alami, High Commissioner, High Commission for Planning.
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Buy digital copy of this chapter - £18Dubai’s economy is among the most diversified in the region, thanks to factors such as a highly attractive business environment that has brought in large amounts of foreign investment. Despite producing little oil, growth has been affected in recent years by the knock-on effects of the fall in international oil prices and a consequent slowdown in neighbouring hydrocarbons-dependent territories. However, this has benefitted other sectors, such as transport, tourism and other indirectly related activities. A moderate oil price recovery in 2016, plans to step up infrastructure investment ahead of Expo 2020 and further diversification of the economy by boosting manufacturing output mean the emir- ate has one of the most dynamic short- and medium-term growth prospects in the region.
This chapter contains interviews with Hamad Buamim, President and CEO, Dubai Chamber; Abdul Latif Al Zayani, Secretary-General, GCC; Liam Fox, UK Secretary of State for International Trade; and Raja Easa Al Gurg, President, Dubai Business Women Council, and Managing Director, Al Gurg Group.
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Buy digital copy of this chapter - £18As in many West African countries, Ghana’s economy is strongly correlated with global commodities. Oil, gold and cocoa are the three main sources of foreign currency and income; however, price swings over 2015 and 2016 for these three resources, a strengthening US dollar, as well as domestic issues such as fiscal slippage, growing debt and mounting inflation have combined to slow the pace of development, leading to a depreciating currency and a budget shortfall. Despite this, Ghana’s economic prospects for 2018 appear strong. Following a belt-tightening process, the government has both brought down the problematic fiscal deficit and channelled capital spending towards priority projects by capping budget transfers to statutory funds. The government also has plans to industrialise rural regions, improve the business environment, harness the financial sector and improve access to credit for private actors.
This chapter contains interviews with Ken Ofori-Atta, Minister of Finance; R Yofi Grant, CEO, Ghana Investment Promotion Centre; and Akinwumi Adesina, President, African Development Bank.
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Buy digital copy of this chapter - £18As a member of the G20 and the world’s 17th-largest exporter, Saudi Arabia is an economic powerhouse. Classified as a high-income nation by the World Bank, its population of over 30m has established a consumer market in which domestic and global businesses have prospered. The exploitation of its hydrocarbons resources has driven growth for decades, and the nation’s trading status has been augmented by its geographic advantage as a connector of three continents as well as its proximity to the Red Sea – through which 10% of world trade travels. However, this period of low oil prices has presented a number of challenges, not just to Saudi Arabia but to economies across the region. Consequently, economic reform is taking place in many Gulf countries, and the long-standing goal of diversifying revenues away from hydrocarbons is more preeminent than ever.
This chapter contains interviews with Prince Turki bin Saud bin Mohammed Al Saud, President, King Abdulaziz City for Science and Technology; Abdullah Al Sagheir, Acting Governor, General Authority for Small and Medium Enterprises; and Ahmed S Al Rajhi, Chairman, Riyadh Chamber.
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Buy digital copy of this chapter - £18Despite the collapse of oil weighing heavily on the Algerian economy, it is still the largest and most prosperous in the Maghreb. Although it remains relatively closed, with foreign investors barred from taking majority stakes in local firms or projects since 2008, the private sector’s economic contribution has expanded significantly; it grew to 70% of GDP by 2015, and economic output increased four-fold over the same timeframe. While the oil price-induced fiscal difficulties facing Algeria have added pressure to efforts to improve living standards, they have provided a pressing incentive for the country to accelerate efforts to diversify away from hydrocarbons dependency and develop a more dynamic private sector.
This chapter contains interviews with Abderrahmane Raouya, Minister of Finance; Abdelkader Zoukh, Wali of Algiers; Ali Haddad, President, Algerian Business Leaders’ Forum; and Samira Hadj Djilani, President, Réseau Algérien des Femmes d’Affaires.
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Buy digital copy of this chapter - £18Following a challenging 2016, when the price of Brent Crude dipped briefly below $30 per barrel and governments across the GCC were compelled to significantly adjust their fiscal plans, 2017 has brought the region some respite – both to current accounts and the wider economy. Qatar remained better insulated from the effects of oil price volatility than most countries in the Gulf, owing chiefly to the unintended countercyclical effects of its infrastructure investment boom. Nonetheless, a return of oil prices to above $50 per barrel will certainly reduce strain on the economy, which was beginning to experience tightening in liquidity. Stronger energy prices will provide the government with a positive platform for the launch of its new six-year strategic plan, which will aim to further deliver on the economic diversification mandated by Qatar National Vision 2030.
This chapter contains an interview with Sheikh Ahmed bin Jassim bin Mohammed Al Thani, Minister of Economy and Commerce, and Vice-Chairperson, Qatar Investment Authority; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.
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Buy digital copy of this chapter - £18Consistent, robust economic growth, a 255m-strong population and a favourable position as South-east Asia’s largest economy have driven Indonesia to become an increasingly important actor in global trade. The country’s trade with the US and China has recorded double-digit growth in recent years, and it stands as the largest market for intra-ASEAN investment, with middle-class expansion and a steady rise in domestic consumption expected to keep it at the forefront of the ASEAN trade agenda.
This chapter contains interviews with Thomas Lembong, Chairman, Indonesia Investment Coordinating Board; and Shinta Widjaja Kamdani, CEO, Sintesa Group.
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Buy digital copy of this chapter - £18The past few years have been difficult for Africa’s largest economy, with a fall in oil prices from more than $100 per barrel in 2014 to roughly $50 per barrel at the start of 2017 having damaging consequences for Nigeria. The fall in revenues from the country’s largest export-earner led to a slowdown in investment throughout the economy, a ballooning of federal government debt, a rise in non-performing loans in the private sector and high inflation. These factors contributed to the economy contracting 1.5% in 2016, compared to growth of 2.8% in 2015. This marked the country’s first recession in 25 years. The government, which was voted into office in 2015, has made a number of moves to stoke a recovery, with some success. Broader efforts have also been taken to accelerate growth in the coming years, with a focus on import substitution, industrialisation, diversification and export orientation.
This chapter contains interviews with Kemi Adeosun, Minister of Finance; Akinwunmi Ambode, Governor of Lagos State; Laoye Jaiyeola, CEO, Nigerian Economic Summit Group; and Yewande Sadiku, Executive Secretary, Nigerian Investment Promotion Commission.
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Buy digital copy of this chapter - £18The international position of Papua New Guinea has improved in recent years as the country continues to benefit from a number of positive trends. A stabilisation in commodity prices, strong output from the country’s major projects and an end to the El Niño drought have brought major trade indicators back into line. A lack of US dollars and the weak kina have helped as well by boosting exports and lowering imports. PNG’s balance of trade remains at or near a record high, while the current account has been positive for a number of years following a long period in the red. Prospects are good for keeping the totals at the right levels and also seeing possible improvements across the board.
This chapter contains interviews with Clarence Hoot, Acting Managing Director, Investment Promotion Authority and Steven Ciobo, Minister for Trade, Tourism and Investment of Australia; and viewpoints from Gerry Brownlee, Minister of Foreign Affairs of New Zealand and Shamshad Akhtar, Executive Secretary, UN Economic and Social Commission for Asia and the Pacific.
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Buy digital copy of this chapter - £18With billions of dinars worth of short-term spending plans and a new vision for economic transformation over the next two decades, Kuwait offers opportunities for investment across a range of sectors. While the country adopted a save and prosper approach during the oil boom years of 2010-14, the prolonged reduction in oil prices experienced since then has coincided with a renewed appetite for investment and reform that bodes well for private sector players. Funding mechanisms such as public-private partnership agreements, as well as capital projects funded by state-owned enterprises, are set to provide opportunities for international firms with the government actively seeking to attract foreign direct investment and highlighting the ICT, renewable energy and finance as sectors it would like to see developed by using international expertise over the following two decades.
This chapter contains interviews with Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development and Sheikh Meshaal Jaber Al Ahmad Al Sabah, Director General, Kuwait Direct Investment Promotion Authority.
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Following the death of His Majesty King Bhumibol Adulyadej in October 2016, a major chapter in the history and politics of this ancient kingdom closed and another opened.The year ahead looks to be one of transition, as the new king takes over and a new constitution is implemented. Efforts for national reconciliation look set to continue, although to what degree they will include all segments of Thai society remains unclear. The role of the king may also be expanded, while the military seems likely to continue to exercise a powerful presence within any new constitutional framework. The National Council for Peace and Order promises stability, a quality that many Thais may continue to wish for as the nation moves into the period of change ahead. This chapter contains interviews with Prime Minister Prayut Chan-o-cha; and Don Pramudwinai, Minister of Foreign Affairs.
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Buy digital copy of this chapter - £18Despite challenges, including depressed international energy prices, as well as rising debt and fiscal imbalances, the recession in Trinidad and Tobago is likely to bottom out in 2017. The IMF forecasts the economy will grow by 0.3% in 2017 and 3.4% in 2018. The recovery is expected to come via a small rise in energy prices, the inauguration of the Juniper gas field in 2017 and an expected rise in public sector construction activity, particularly in the affordable housing sector. Achieving that modest growth rate would depend on the government being proactive in pushing forward with public works and house building. T
This chapter contains interviews with Paula Gopee-Scoon, Minister of Trade and Industry; Augusto Arosemena Moreno, Minister of Commerce and Industry of the Republic of Panama; and Terrence Farrell, Chairman, Economic Development Advisory Board. It also contains a viewpoint from Marla Dukharan, Group Economist, Royal Bank of Canada (Caribbean).
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Buy digital copy of this chapter - £18Following congressional approval of a landmark peace agreement and a late-2016 tax reform package, 2017 looks to be a year of significant promise for the Colombian economy. Investment and infrastructure development are expected to be the key drivers of domestic demand, and the trade balance should continue to improve. Although growth has slowed as a result of the oil price shock, the Colombian economy has been resilient. With major developments in the pipeline, a historical peace agreement renewing optimism, as well as the recovery of non-oil exports and oil prices, the economy is expected to pick up in 2017 and accelerate in the years to come. This chapter includes interviews with Juan José Echavarría, Governer of the Banco de la República; Mauricio Cárdenas, Minister of Finance and Public Credit; Rosario Córdoba Garcés, President, Private Council for Competitiveness; Bruce Mac Master, President, National Business Association of Colombia; and Gerardo Corrochano, Colombia Country Director, World Bank.
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Buy digital copy of this chapter - £18The Peruvian economy is at an interesting crossroads. Over the last two decades it has been one of the fastest-growing economies in the region, enjoying macroeconomic stability, a strong mining sector, an open economy, and growing agro-industry and services sectors. Positive GDP growth has continued despite the end of the commodities boom. According to World Bank statistics, Peru had a nominal GDP of $189.1bn in 2015, making it the sixth largest among Latin American nations. The country has an open economy, with trade representing 45% of GDP. Yet the growth rate has slowed and the initial impetus of a first wave of structural reforms has faded. The question now is whether the new government that took office in July 2016 can address problem areas, implement further reforms and re-accelerate the economy.
This chapter contains interviews with Alfredo Thorne, Minister of Economy and Finance; Peter Shaw, Head of Latin America, Fitch Ratings; and Álvaro Quijandría, Executive Director, ProInversión.
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Buy digital copy of this chapter - £18Economies around the Gulf region have faced a challenging economic environment since the second half of 2014, but a more optimistic outlook for international oil prices in 2017 has offered some welcome relief. The process of fiscal reform that the oil price decline precipitated is, however, set to continue. The restructuring of Abu Dhabi’s public finances has taken into account the federal government’s decision to reduce subsides, as well as the introduction of new fees and taxes by the emirate, and their affects have been felt by nationals and expatriates alike. In the meantime, Abu Dhabi’s ambitious plans to broaden the range of economic activity in the emirate have been granted greater clarity with the publication of the latest iteration of its development strategy in 2016.
This chapter contains interviews with Ali Majed Al Mansoori, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, CEO, Mubadala Investment Company; and Liam Fox, UK Secretary of State for International Trade.
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Buy digital copy of this chapter - £18As the country’s economy has liberalised and grown in recent decades, its trade volumes to developed markets and emerging ones have risen strongly. The country has established a name for itself as a leading exporter both of manufactured goods and traditional products such as tea and spices. A free trade agreement with India signed in 2000 has proved a major boon and is now being followed by a raft of other deals that should both boost export potential and open markets to foreign producers and investors.
This chapter contains interviews with Ban Ki-moon, Former Secretary-General, UN; Malik Samarawickrama, Minister of Development Strategies and International Trade; Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade); Upul Jayasuriya, Chairman, Board of Investment; and Peter Wong, Deputy Chairman and Chief Executive, HSBC.
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Buy digital copy of this chapter - £18After five straight years of robust macroeconomic expansion, the Philippines ranks as one of the best-performing economies in South-east Asia. With rapidly rising domestic consumption, soaring foreign direct investment and a growing services sector, the country is set to record world-leading growth rates in 2017. Although weakening global and regional demand have weighed on exports, and the agriculture sector remains subdued following years of volatile and problematic weather, prudential fiscal management, falling public debt and legal reforms aimed at improving the investment climate have left the country positioned to tap global debt markets and attract new investment.
This chapter contains interviews with Carlos G Dominguez III, Secretary, Department of Finance; Shinichi Kitaoka, President, Japan International Cooperation Agency; Bernie H Liu, Chairman and CEO, Golden ABC; and Helen Y Dee, Chairperson, RCBC.
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Buy digital copy of this chapter - £18Tunisia’s economy has been buffeted in previous years by the fallout from factors such as domestic and regional political and security instability, and the eurozone slowdown. While a strong recovery has yet to materialise, growth prospects have been ticking upward over the past 12 months and, with a successful political transition now behind it, the country has a strong base from which to boost output and revenues. Equally importantly, Tunisia is seeing improvements in export competitiveness and the trade deficit. To help encourage this trend further, the authorities are implementing a range of economic reforms and initiatives, such as a new investment law passed in September 2016 that should help raise the pace of economic expansion in coming years.
This chapter contains interviews with Lamia Boujnah Zribi, Former Minister of Finance; Mohamed Fadhel Abdelkefi, Minister of Development, Investment and International Cooperation; Boutheina Ben Yaghlane Ben Slimane, General Manager, Caisse des Dépôts et Consignations; and Noureddine Taboubi, Secretary-General, Tunisian General Labour Union.
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Buy digital copy of this chapter - £18Kenya was the sub-Saharan Africa’s fifth-largest economy in 2015 behind Nigeria, South Africa, Angola and Sudan, ranked 11th in inward foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues. This performance is not necessarily surprising given the country’s comparative advantages. The East African market has one of the highest financial inclusion rates in the developing world, and a strong and diversified private sector. Kenya is also seen as a safe haven for assets in the region, with significant inflows from countries such as Somalia and South Sudan a contributing factor to the country’s overall balance sheet. The highlight of 2017 will be the general elections, with hopes for a result that is clear and accepted, and a peaceful transition of power if the incumbent loses. Kenya’s fundamental economic performance continues to be strong, with GDP growth expected to grow by 6%. Key sectors such as tourism continue to rebound, however, important structural reforms are still needed to ensure sustained growth.
This chapter contains interviews with Carole Kariuki, CEO, Kenya Private Sector Alliance; Moses Ikiara, Managing Director, Kenya Investment Authority; and Akinwumi Adesina, President, African Development Bank.
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Buy digital copy of this chapter - £18Vietnam’s economic success over the past three decades has been built in no small part on its openness to international trade and investment. It is now among the world’s most open economies, according to the IMF – in the last 15 years alone, its share of world trade has quintupled, with combined imports and exports now equal to around 160-170% of GDP. Along with its location, Vietnam’s political and social stability, and the consistency of its legislation regarding trade, make it a natural base for manufacturers feeding into global supply chains, where reliability of supply is a prerequisite.
This chapter contains interviews with Nguyen Chi Dung, Minister of Planning and Investment; Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade); and Cecilia Malmström, European Commissioner for Trade.
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Buy digital copy of this chapter - £18From being relatively closed and heavily dependent on oil exports to drive growth and accrue foreign currency, Mexico has progressively liberalised and integrated into regional and global value chains. Although economic openness left Mexico more exposed to the global financial crisis than some of its Latin American peers, its economic profile has since allowed it to bounce back as global trade and investment flows recover. Uncertainty is likely to constrain investment in 2017, at least until there is clarity as to the impact of changes in US trade and investment policy. Once the short-term turbulence has been negotiated, a modest acceleration in growth is likely, while continued fiscal and monetary policy vigilance should see debt sustainability assured and inflation pressures contained. This chapter includes interviews with Ildefonso Guajardo Villarreal, Minister of Economy; Paulo Carreño King, Director-General, ProMéxico; and Valentín Díez Morodo, President, Mexican Business Council for Foreign Trade.
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Buy digital copy of this chapter - £18Egypt’s GDP per capita of $3615 in 2015, according to the World Bank, is considerably lower than the world average of $10,058, and establishes the country as lower-middle income. The nation’s transition from an energy exporter to a net importer of gas has resulted in a stubborn current account deficit. Nevertheless, Egypt entered 2016 on the back of some encouraging economic data. According to the Ministry of Planning, real GDP for FY 2014/15 grew by 4.2% at market prices, the most rapid rate of expansion since the 2011 revolution. Improving Egypt’s investment credentials will remain a key concern for the government over the coming year, as it seeks to shift the burden of development from the state to the private sector. The promulgation of the new Investment Law will bring much-needed clarity to important investment factors such as free zones, tax exemptions and the purchase of state-owned land. In the short term, however, the government is likely to continue to face considerable economic challenges.
This chapter contains interviews with Mohamed Khodeir, Chairman, General Authority for Investment; Anis Aclimandos, President, American Chamber of Commerce in Egypt; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18Among the most diversified economies in both the UAE and the wider GCC region, Sharjah has developed strong manufacturing, tourism and logistics industries, among other non-oil sectors. Against a backdrop of reduced oil prices and lower economic growth, local and federal authorities are working to develop the economy further through a range of measures intended to improve the business environment, attract more foreign investment and bolster government finances. Out of a UAE-wide GDP of Dh1.37trn ($373bn) in 2015, Sharjah’s portion reached Dh85.66bn ($23.6bn), or 6.3% of the total, making it the third-largest economy in the federation after Dubai and Abu Dhabi.
This chapter contains interviews with Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE; Sheikh Khaled bin Abdullah bin Sultan Al Qasimi, Chairman, Department of Seaports and Customs.
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Buy digital copy of this chapter - £18Progress on several major infrastructure projects helped sustain Côte d’Ivoire’s sixth consecutive year of solid economic growth in 2016. Works planned under the 2016-20 National Development Plan will be a key driver of growth and are set to play a pivotal part in the country’s bid to achieve emerging-economy status before the end of this decade. The economy has benefitted from prudent fiscal policies, monetary stability, rising public spending and structural reforms aimed at improving the business climate and encouraging public-private partnerships. However, there are some economic headwinds – including fragilities in the banking sector, regional inequalities and a continued dependence on commodity exports. This chapter contains interviews with Jean-Marie Ackah, President, General Confederation of Businesses of Côte d’Ivoire; Emmanuel Esmel Essis, Director-General, Investment Promotion Agency of Côte d’Ivoire; and Akinwumi Adesina, President, African Development Bank.
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Buy digital copy of this chapter - £18The kingdom of Bahrain has thrived as one of the Gulf’s financial centres for decades. Despite increasing competition from emerging financial centres in the region, its advanced regulatory framework, educated workforce and relatively low-cost environment means that it remains an attractive platform for companies engaging with the wider GCC and beyond. The recent decline in oil prices, however, serves as a reminder of the government’s reliance on its hydrocarbons resources for revenues. Facing a stubborn fiscal deficit, Bahrain is in the process of overhauling its subsidy framework and seeking new income streams, both of which are challenging prospects in an economy renowned for generous social support and light-touch taxation. The kingdom’s long-standing diversification strategy, meanwhile, has taken on a new urgency with the prospect of volatile oil prices for some years to come.
This chapter contains interviews with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board; Mahmood Al Kooheji, CEO, Mumtalakat; and Ebrahim Mohammed Janahi, Chief Executive, Tamkeen.
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Buy digital copy of this chapter - £18Having endured low oil prices for the entire year, countries across the resource-rich GCC saw their balance sheets constrained in 2015, and in Oman’s case lower oil revenues led to a nominal GDP contraction of 13.8% and the largest deficit in more than a decade. Closing the fiscal gap is a government priority, with spending cuts, tax reform and increased private sector activity all expected to play a part in the process. The sultanate’s ambition, however, extends beyond the short-term issue of funding; over the longer term, the ability to restructure its economic base will be central to its future stability. This chapter contains an interview with Khalifa Al Barwani, CEO, National Centre for Statistics and Information.
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Buy digital copy of this chapter - £18Although Myanmar remains in trade deficit, its trade balance has been improving in recent months. The trade deficit stood at $1.11bn in the first quarter of 2015 and fell to $945.7m in the same period of 2016, highlighting the impact rising exports are having on trade growth, and painting a brighter picture for long-term trade trends.
This chapter contains interviews with Le Luong Minh, ASEAN Secretary- General; Cecilia Malmström, European Commissioner for Trade; Vivek Pathak, Director for East Asia and the Pacific, International Finance Corporation; U Thura Ko Ko, Managing Director, YGA Capital and Local Representative, Texas Pacific Group; and Peter Beynon, Chairman, British Chamber of Commerce Myanmar.
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Buy digital copy of this chapter - £18The largest economy in the Maghreb, Algeria is also the region’s wealthiest country in terms of purchasing power parity-adjusted per capita. Hydrocarbons are the mainstay of economic activity; however, amid slowing production and exports, as well as the sharp drop in oil prices since mid-2014, the government is taking a range of measures to develop other sectors, with a particular focus on industry, agriculture and tourism. These should bolster diversification efforts that will have long-term benefits, in particular given anticipated falls in oil and gas production over the coming decades, and the long-term prospects are positive. This chapter contains interviews with Ali Haddad, President, Forum des Chefs d’Entreprise; Zied Ladhari, Tunisian Minister of Industry; and Jaime García-Legaz, Former Secretary of State for Trade.
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Buy digital copy of this chapter - £18For several years Ghana was one of the leading lights of the “Africa rising” narrative, with double-digit growth rates that ranked at one point among the highest in the world. The discovery of oil, bumper crops of cocoa and an influx of new investment sus¬tained a robust expansion of GDP. Now, however, though the fundamentals remain attractive, short-term pressures have led to a downturn. External factors – including weakness in key exports like crude oil, gold and cocoa – have contributed, while a depreciating currency, high interest rates, elevated inflation and a ballooning fiscal deficit have exacerbated the declines. To address the structural problems in the econ¬omy and remove the most pressing obstacles to growth, in April 2015 Ghana and the IMF embarked on a three-year, $918m extended credit facility and fiscal consolidation programme aimed at restoring debt sustainability and macroeconomic stability. The programme has already brought measurable macroe¬conomic gains, but there is much to be done still.
This chapter contains an interview with Mawuena Trebarh, CEO, Ghana Investment Promotion Centre.
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Buy digital copy of this chapter - £18Despite facing a set of extraordinary external and internal challenges over the past several years, Jordan’s economy remained resilient in 2015. Although GDP growth fell to a six-year low as the kingdom grappled with a rising refugee population and regional volatility, the banking and industrial sectors continued to record a positive performance. The dissolution of Parliament in May 2016 led to the appointment of Hani Al Mulki, a prime minister who is widely considered to be pro-business and who is expected to accelerate ongoing economic reforms aimed at boosting investment and private participation in a number of major planned infrastructure projects.
This chapter contains interviews with Omar Malhas, Minister of Finance; and Thabet Elwir, Chief of Commission, Jordan Investment Commission.
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The economy of Gabon has been driven in large part by its abundant wealth of natural resources, which have allowed it to support one of the highest per capita GDPs on the continent. However, the country’s economy reached a critical juncture in 2016, with the decrease in the international price of oil since mid-2014 having both highlighted the need for and increased the urgency of plans to diversify the hydrocarbons-dependent economy, while simultaneously reducing the availability of government financing to achieve this transformation. Economic diversification efforts are set to bear increasingly fruitful yields in the coming years – though persistent low oil prices would limit the availability of investment in such efforts and attendant infrastructure improvements, potentially slowing the pace – with several major agribusiness projects coming on-stream.
This chapter includes interviews with Régis Immongault, Minister of Economy, Forecasting and Development Programming; Madeleine Berre, Minister of the Promotion of Private Investment, Trade, Tourism and Industry; Nina Abouna, Director-General, National Investment Promotion Agency; Jean-Bernard Boumah, President, Gabonese Employers’ Confederation; and Abdellah Abbad, President, Chamber of Commerce, Industry and Services – Rabat-Salé-Kénitra Region, Morocco.
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Buy digital copy of this chapter - £18Benefitting greatly from rising oil prices and production over the last decade, Saudi Arabia has used its sizeable revenues to build up strong external buffers and drive GDP growth through extensive spending programmes. The decline in oil prices that began in mid-2014, however, has significantly lowered export revenues and brought the era of fiscal surpluses to a close. The resulting altered economic landscape and growing demographic pressures have presented the recently reorganised government with a significant test, and its response has been to set in motion a series of the most wide-ranging reforms in the nation’s history. Moving forward the country’s Vision 2030 calls for a major shift in the way the Kingdom’s economy operates, moving from a system of state-led growth and centralised planning to a more open market framework where the private sector takes up a leading role in economic expansion.
This chapter contains interviews with Prince Turki bin Saud bin Mohammed Al Saud, President, King Abdulaziz City for Science and Technology; Khaled Al Araj, Minister of Civil Service; and Abdulkarim Al Nujaidi, Director-General, Human Resource Development Fund.
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Buy digital copy of this chapter - £18Although Morocco is set to see weaker GDP growth in 2016, due in large part to a poor agricultural harvest following low rainfall, a series of financial reforms and initiatives, and strong foreign investment, have positioned the country well for future gains. The kingdom has had success in its recent efforts to build up export-oriented manufacturing projects, which should take over from more traditional industries in driving growth as well as provide higher-quality employment over the longer term. If Morocco can continue to attract major investment in high-growth-potential industries such as automobiles, aeronautics, agri-business and offshoring while also developing well-integrated business ecosystems in these areas, it could achieve the sort of growth rates seen in other emerging markets, such those in South-east Asia.
This chapter contains interviews with Mohammed Boussaid, Minister of Economy and Finance; Tanja Gönner, Chair of the Management Board, GIZ; Hafez Ghanem, Vice-President for MENA, World Bank.
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Buy digital copy of this chapter - £18Dubai’s economy is the result of a decades-long pursuit of diversification which has brought evolution into a variety of offerings – including services, finance and trade – that has made the emirate a cross-continental meeting point for commerce. Dubai has felt the impact of the fall in crude prices since mid-2014, but it now has sectors that can thrive regardless of oil market conditions. Since the global financial crisis the emirate’s economic narrative has been framed by its recovery efforts. Despite little direct exposure to the toxic assets that triggered the meltdown, Dubai experienced external shocks as the global economy suffered. However, it has successfully shifted the focus from concerns about the past towards plans for the future. As legacy debts are repaid or restructured new economic potential is emerging, helping to underpin fresh analyses and projections. Dubai will host World Expo 2020, for example, and preparation for this six-month-long series of events is a story analysts are now focused on.
This chapter contains interviews with Obaid Humaid Al Tayer, Minister of State for Financial Affairs; Hamad Buamim, President and CEO, Dubai Chamber; Amina Al Rustamani, Group CEO, TECOM Group; and a viewpoint from Jim Yong Kim, President, World Bank Group.
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Buy digital copy of this chapter - £18The story of Kuwait’s economy, like so many of its neighbours, has been dominated by oil. Once a regional port for pearling and fishing, the country was part of regional Gulf trade networks intimately tied to those of the Indian Ocean. Political independence in 1961, along with its huge hydrocarbons resources, helped Kuwait to become one of the top oil producers in the world. Still, the authorities are aware that crude is a finite resource, a fact brought into the spotlight during the recent period of low oil prices. As a result, the economic development blueprint Kuwait Vision 2035 draws on the country’s trading past in order to secure its future. The blueprint aims to re-kindle Kuwait’s history as a commercial centre, while also developing sectors such as finance and real estate to make them even more competitive internationally.
This chapter contains an interview with Sheikh Meshaal Jaber Al Ahmad Al Sabah, Director- General, Kuwait Direct Investment Promotion Authority (KDIPA); and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18As Africa’s most populous nation, and with the biggest oil and gas reserves in the region, Nigeria has long been one of the continent’s sought-after markets, but also one of its most complex and challenging. A GDP rebasing in 2014 modernised the country’s statistical measurements, expanding GDP to N94.14trn ($155.1bn at the time of printing) in 2015. As the current government approaches the end of its second year in power, the outlook for Nigeria’s economy remains unclear. Through an expansionary budget and a war on corruption, President Muhammadu Buhari hopes to usher in an era of long-term, inclusive growth. However, lower oil prices and a still fragile global economy will likely pose significant challenges through 2017.
This chapter contains interviews with Kemi Adeosun, Minister of Finance; Tunde Fowler, Executive Chairman, Federal Inland Revenue Service; Laoye Jaiyeola, CEO, Nigerian Economic Summit Group; Hajiya Ladi Katagum, Acting Executive Secretary, Nigerian Investment Promotion Commission; and Razia Khan, Chief Economist, Africa, Standard Chartered.
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Buy digital copy of this chapter - £18As South-east Asia’s largest economy and the world’s fourth-most-populated country, Indonesia is an important trade partner within ASEAN, as well as for Japan, China and the US. The country has averaged more than 5% annual GDP growth over the past decade through sound macroeconomic policies, rising domestic demand driven by a burgeoning middle class and high commodity prices. However, a gradual slowdown brought on by a collapse in commodity prices in 2011 and 2012 has weighed on the economy, highlighting the country’s commodity export dependency and pushing trade and investment to the top of the growth agenda.
This chapter contains interviews with Thomas Lembong, Chairman, Indonesia Investment Coordinating Board; Lim Hng Kiang, Singapore Minister of Industry and Trade; and Hugo Swire, UK Member of Parliament.
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Buy digital copy of this chapter - £18The trade and investment landscape in Papua New Guinea has undergone substantial changes in recent years, driven to a large extent by the country’s large liquefied natural gas (LNG) project, PNG LNG. The development comprises gas production and processing facilities, with its initial phase carrying an estimated cost of $19bn, an investment greater than the country’s GDP at constant prices in 2014, which stood at $15.8bn. Since the facility commenced production in April 2014, exports have reached record levels and the country has experienced its largest trade surplus ever. Even with fading hydrocarbons prices, key figures are holding up, putting PNG in an excellent trade position overall.
This chapter contains interviews with Manasseh Sogavare, Prime Minister, Solomon Islands; and Ivan Pomaleu, Investment Promotion Authority.
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Buy digital copy of this chapter - £18Over the past half-decade Qatar has posted robust economic growth on the back of strong hydrocarbons revenues, state-led infrastructure development and a rapidly maturing financial sector. According to Standard & Poor’s, from 2010 to 2015 it was one of the fastest-growing economies in the world, posting average annual GDP growth of 8.6%. Qatar is the world’s top exporter of liquefied natural gas and has the third-largest proven natural gas reserves. Consequently, Qatar’s indigenous population is among the wealthiest in the world, with the country reporting a per capita GDP in excess of $100,000. While gas and oil exports account for a majority of GDP, a handful of non-hydrocarbons sectors have expanded rapidly in recent years. Non-hydrocarbons growth was 7.7% in 2015, while hydrocarbons growth contracted by 0.1%.
This chapter contains interviews with Sheikh Ahmed bin Jassim bin Mohamed Al Thani, Minister of Economy and Commerce; and Vice-Chairperson, Qatar Investment Authority; Saleh bin Mohamed Al Nabit, Minister of Development Planning and Statistics; Yousuf Mohamed Al Jaida, CEO and Board Member, Qatar Financial Centre Authority; Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank; and Fahad Rashid Al Kaabi, CEO, Manateq.
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Buy digital copy of this chapter - £18At first glance, the newly elected government of Trinidad and Tobago faces a formidable first year, marked by one of the deepest slumps in energy prices seen in recent decades. According to provisional data by the Central Bank of T&T, the twin-island economy contracted by 2.1% in 2015, with GDP down 3% year-on-year in the fourth quarter of the year, reflecting a 5% contraction in the energy sector and a combined 1.8% decline in non-energy sectors. Meanwhile, government revenue fell by 6.2% in FY 2014/15, with a 35% decline in energy collections outstripping increases in non-energy and capital receipts. As a result, authorities have embarked on a programme of fiscal austerity and are ramping up efforts to diversify the TT$175.99bn ($27.1bn) economy. According to IMF projections, GDP growth is expected to resume in 2017, but not before an estimated contraction of 1.1% in 2016.
This chapter contains interviews with Paula Gopee-Scoon, Minister of Trade and Industry; Jorge Familiar, Vice-President for Latin America and the Caribbean, World Bank; and Gervase Warner, President and Group CEO, Massy Holdings; as well as a viewpoint from Jeffrey Sachs, Director, the Earth Institute at Columbia University.
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Buy digital copy of this chapter - £18A high-income country with vast petroleum wealth, robust fiscal reserves and a small, highly- educated population, Brunei Darussalam is unique among the ASEAN community. Oil and gas resources have generated high per-capita income, although the economy has contracted in recent years as a result of falling oil and gas prices, which account for more than 90% of export revenues. Although historically high energy prices and prudent policy making have left the Sultanate well-positioned to weather short-term market shocks, productivity has been sluggish and the economy’s dependency on oil and gas production is a concern for the government. As such, Brunei Darussalam has launched a number of reforms in recent years aimed at attracting new foreign direct investment; developing the high-tech, agricultural and manufacturing industries; supporting small and medium-sized enterprises; and encouraging private sector growth. This chapter contains an interview with Mohd Amin Liew Abdullah, Deputy Minister, Ministry of Finance and Chairman, Brunei Economic Development Board (BEBD); and a viewpoint from Andrew Robb, the Australian Government’s Special Envoy for Trade.
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Buy digital copy of this chapter - £18As a leading force in regional integration through the ASEAN trading block, Malaysia has managed to consolidate its position as the principle gateway to South-east Asia. Though smaller in terms of market size than its neighbours, it has consistently punched above its weight in attracting foreign direct investment dollars. Despite external headwinds in 2015 and the beginning of 2016, Malaysia has managed to grow its overall trade volumes in local currency by 1.2% in 2015, reaching a total of RM1.5trn ($371.3bn), equivalent to 127% of GDP. This chapter contains a viewpoint from US President Barack Obama, and interviews with Le Luong Minh, Secretary-General, ASEAN; Thongsing Thammavong, Former Prime Minister of Laos and 2016 ASEAN Chair; Cecilia Malmström, European Commissioner for Trade; and Dzulkifli Mahmud, CEO, Malaysia External Trade Development Corporation.
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Buy digital copy of this chapter - £18Sri Lanka is well situated for trade and an attractive target for international investment. Lying on major shipping and air routes, it is close to the markets of Asia, Africa and the Middle East. Moreover, the country has a literate workforce, good infrastructure, a healthy population and relatively low wages. Since the 2009 cessation of a long-running civil war, Sri Lanka has become one of the region’s more stable nations, and following elections in 2015 it has become increasingly open. The new government has indicated it is doing away with the country’s statist past and is embarking on a period of material liberalisation.
This chapter contains a viewpoint from Malik Samarawickrama, Minister of Development Strategies and International Trade; and interviews with Harsha de Silva, Deputy Minister of Foreign Affairs; Upul Jayasuria, Chairman, Board of Investment; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action Service; and Razeen Sally, Chairman, Institute of Policy Studies.
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Buy digital copy of this chapter - £18The emirate of Abu Dhabi has put its significant hydrocarbons resources to strategic use in recent years, using the wealth derived from oil to underpin the UAE’s diversified economic growth targets. Meanwhile, the emirate’s Economic Vision 2030 has identified sectors through which Abu Dhabi can boost non-oil GDP, with areas such as tourism, manufacturing, ICT and health care now driving the emirate’s non-oil based growth. The fall in oil prices has led to a push for tariff restructuring, and for the first time residents have been asked to contribute towards the provision of utilities, while options for introducing VAT, corporate tax and a remittances tax are also now being explored to further hedge against oil price fluctuations. This chapter contains interviews with Ali Majed Al Mansoori, Chairman, Abu Dhabi Department of Economic Development (ADDED); Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Development Company; Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding; and a viewpoint from Jim Yong Kim, President, World Bank Group.
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Buy digital copy of this chapter - £18One of the most developed and diversified economies in the region, Tunisia has for years attracted praise for relatively prudent management. However, the country has suffered from reduced growth following the 2011 revolution, which in turn has exacerbated a number of structural problems. A pair of terrorist incidents in 2015 further complicated the situation, dampening the performance of the tourism sector – a key employer – but hopes are high that 2016 will see a recovery in growth. Furthermore, the government – with strong support from international donors – is pursuing a wide-ranging series of reforms aimed at streamlining the economy and boosting foreign investment in order to put the country on a strong and sustainable long-term development path. Providing that the government can maintain stability and continue to push through and implement its reform agenda, on which the IMF says the medium-term economic outlook depends, factors such as the country’s well-educated workforce and proximity to Europe should help to attract more investment and boost long-term growth levels. This chapter contains interviews with Slim Chaker, Minister of Finance; Yassine Brahim, Minister of Development, Investment and International Cooperation; Wided Bouchamaoui, President, Union Tunisienne de l’Industrie, du Commerce et de l’Artisanat (UTICA); and a viewpoint from Adnène Zghidi, Managing Partner, BDO Tunisia.
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Buy digital copy of this chapter - £18Trade and investment have witnessed robust growth in Thailand over the past 30 years, as rapid industrial development led manufacturing to overtake agriculture as a primary economic engine. This has had a dramatic impact on exports, with the country rising to become a major regional exporter of electronics, automotive parts and food products. Trade relations have also expanded in recent years on the back of improved bilateral relations with China and the US: Thailand is poised to enter into a major global free trade agreement with each – respectively, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Despite uncertainty regarding the country’s political future, as well as rising concern about falling regional competitiveness, particularly in light of the ongoing process of AEC integration, cautious optimism prevails in Thailand. This chapter contains viewpoints from Julie Bishop, Australian Minister for Foreign Affairs; and Dmitry Medveded, Prime Minister of Russia; and interviews with Cecelia Malmstrom, European Commissioner for Trade; and Thongsing Thammavong, Prime Minister of Laos and 2016 ASEAN Chair.
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Buy digital copy of this chapter - £18The Philippine economy continues to enjoy a period of rapid, broad-based growth as the business process outsourcing (BPO) sector and growing remittances from overseas workers drive growth in consumer-oriented industries and construction. Although real growth decelerated in 2014 to 6.1%, it remained higher than many of the country’s South-east Asian peers, and is expected to remain near 6% for the remainder of the decade. The economy is overly concentrated in the Metro Manila region, and major challenges lie ahead in overcoming long-standing infrastructure bottlenecks and developing stronger energy and manufacturing sectors. Yet the government is increasing its efforts to spread manufacturing and BPO growth across the country and clear obstacles to developing other sectors where outlying regions have strong potential. This chapter contains an interview with Cesar V Purisima, Secretary, Department of Finance; a roundtable with Manuel Pangilinan, Managing Director, First Pacific; Teresita Sy-Coson, Vice-Chairperson, SM Investments Corporation; and Jay Yuvallos, President, Interior Basics Export Corporation; and an interview with Atsi Sheth, Associate Managing Director, and Moody’s Investors Service.
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Buy digital copy of this chapter - £18Located along a strategic international trade route connecting Africa, the Middle East, Europe and Asia, Djibouti’s economic development has been linked with rising global commerce. In order to fully harness its geographic advantages and maintain its competitiveness, the country is now focusing on infrastructure improvements and a gradual diversification of its economy. While growth rates over recent years attest to the fact that the country’s position as a center for international commerce can be leveraged successfully, maintaining this level of economic development will depend on how its infrastructure programme is implemented. The ongoing expansion of transport networks and facilities will need to be coupled with careful management of Djibouti’s fiscal position. This chapter contains interviews with Ilyas Moussa Dawaleh, Minister of Economy and Finance; Mahdi Darrar Obsieh, Director, Djiboutian Investment Promotion Agency; and Youssef Dawaleh, President, Chamber of Commerce of Djibouti; and a dialogue between Hikmat Daoud, Chairman, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations.
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Buy digital copy of this chapter - £18As one of the larger economies in Latin America, Colombia has a track record of above-average GDP growth, a reputation for sound macroeconomic management and market-friendly policies. In 2015 it has demonstrated resilience, absorbing a significant oil price shock – petroleum accounts for roughly half of total exports –while maintaining positive, albeit slower, growth. The economy expanded by an estimated 3.2% in 2015, according to the Ministry of Finance, driven primarily by the retail, agriculture and financial services. Despite continuing global headwinds and internal challenges, including poor logistics performance, a gradual recovery is expected in 2016 and beyond, driven in part by a programme of transport infrastructure investment. Moreover, a peace settlement ending a long-running internal armed conflict is expected to yield a peace dividend in the form of lower security costs, the opening up of previously closed areas of the country to development, and higher economic growth.
This chapter includes interviews with Mauricio Cárdenas, Minister of Finance and Public Credit; Cecilia Álvarez-Correa, Minister of Trade, Industry and Tourism; Ana Maria Carrasquilla Barrera, Chairman of the Board and Executive President, Latin American Reserves Fund (FLAR); and Luis Fernando Castro, President, Bancóldex.
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Buy digital copy of this chapter - £18Increasing revenues and reducing spending have been established as the core objectives of Bahrain’s economic policy, with subsidy reduction across the board likely to be a common theme in 2016. After energy, the financial sector continues to be the second-largest contributor to GDP, accounting for 16.5% of the total in 2014. This is followed by manufacturing which comprised 14.4% of GDP. Meanwhile the drive for greater private sector participation in the economy, particularly from small and medium-sized enterprises (SMEs), continues apace, and currently 97% of all companies in the kingdom fall into the micro or SME category, between them accounting for almost 30% of GDP. In recent years various government and non-government schemes have been launched offering SMEs financing, training, advisory services and infrastructural support.
This chapter contains interviews with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board (EDB); Shaikh Mohammed bin Essa Al Khalifa, Chairman, Tamkeen; and Mahmood Al Kooheji, CEO, Mumtalakat.
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Buy digital copy of this chapter - £18With a newly elected government in power and nearly five years of growth in foreign trade and inward investment under its belt, Myanmar is widely expected to become increasingly integrated into the regional and global economy in the coming years. In the fiscal year (FY) through to April 2015, the nation reported total foreign trade receipts of $29.16bn, up from $18.17bn in the same period in 2011/12/ Foreign Direct investment (FDI), meanwhile, quadrupled from $1.9bn in FY 2011/2012 to $8.1bn in 2014/15. The falling value of the Myanmar kyat against the US dollar; a lack of high-quality transport and electricity infrastructure; restrictive investment and trade regulations; and a relatively underdeveloped legal framework are issues that will require considerable attention. However, based on the past five years of liberalisation, the country’s leaders appear to be serious about continuing to open up the economy, attract increased amounts of FDI and boost trade. This chapter contains interviews with U Zay Yar Aung, Chairman, Myanmar Investment Commission; and Gavin McGillivray, Head, UK Department for International Development; and a viewpoint from Julie Bishop, Australian Minister for Foreign Affairs.
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Buy digital copy of this chapter - £18In the 10 years to 2014 the Peruvian economy experienced rapid growth, averaging 6.2%, placing Peru among the fastest-growing economies in the region. In 2014 Peru was the seventh-largest economy in Latin America and Caribbean, with a GDP of $202.9bn. However, lower commodity prices and resulting lower export revenues for some of its key exports saw Peru’s growth slow considerably in 2015, to an estimated 2.5% according to the IMF. The El Niño weather pattern, which is expected to negatively affect the agriculture, fishing, trade and transport services sectors, the general elections in April, and slower demand from China are some of the challenges facing the Andean economy in 2016. Nonetheless, the IMF expects a rebound, forecasting growth of 3.3% for the year, driven primarily by increased mining activity. This chapter contains interviews with Alonso Segura, Minister of Economy and Finance; Ana Maria Carrasquilla Barrera, Chairman of the Board and Executive President, Latin American Reserves Fund; Carlos Herrera, Executive Director, ProInversión; and Dionisio Romero, President, Grupo Romero.
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Buy digital copy of this chapter - £18Oman’s GDP at current market prices stood at OR31.45bn ($81.4bn) in 2014, up 4.6% on 2013, according to the Central Bank of Oman. However, the drop in global oil prices has put significant pressure on Oman’s GDP expansion. To address this, and indeed to pave the way for a non-oil future, various diversification strategies have been put in place that aim to reduce the county’s reliance on hydrocarbons revenues and stimulate growth across the board. Large infrastructure investment is under way, with the development of Oman’s transport and logistics offerings a key target moving forward. The services sector meanwhile dominates non-oil GDP and comprised 40.7% of total economic activity in 2014. Looking ahead, the government is increasingly aiming to encourage greater private sector activity, with the privatization of various state-owned firms and support for SMEs being significant drivers in this regard. This chapter contains an interview with Sultan bin Salim Al Habsi, Secretary-General, Supreme Council for Planning; and Khalifa Al Barwani, CEO, National Centre for Statistics and Information.
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Buy digital copy of this chapter - £18After several years marked by turbulence and uncertainty, Egypt’s economy received two welcome boosts in 2015. The first was the successful conclusion to the Egypt Economic Development Conference (EEDC) in the first quarter of the year. The second was the successful passage of the 2015/16 budget, which builds upon delicate but necessary reforms to improve Egypt’s public finances. The combination of the two – along with a range of efforts including new economic zones and power plants to improve industrial production and energy output, and a slate of public works projects including an expansion to the Suez Canal – means that Egypt is proceeding along an increasingly smooth, if still occasionally pot-holed, road to growth. There are challenges still to be tackled, but the country’s outlook is brighter than it has been since the 2011 revolution.
This chapter contains interviews with Hany Kadry Dimian, Minister of Finance; Alaa Omar, CEO, General Authority for Investment and Free Zones (GAFI); Anis Aclimandos, President, American Chamber of Commerce in Egypt (AmCham Egypt); Sindiso Ndema Ngwenya, Secretary General, Common Market for Eastern and Southern Africa (COMESA); and Karim Awad, CEO, EFG Hermes.
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Buy digital copy of this chapter - £18Kenya’s economic outlook for the years ahead looks robust, despite recent challenges such as a trade deficit and rising debt. Following 2014’s GDP rebasing, the country is now East Africa’s largest economy and boasts a prominent profile in the EAC. According to official forecasts, growth is expected to be around 6.5-7% in 2015 and to continue at a similar level for the coming years. This follows on from growth of 5.3% in 2014 and 5.7% in 2013. Agriculture was the biggest sector, at 27.3% of GDP by activity, in 2014 and it also accounts for roughly two-thirds of all exports and supports as much as 80% of the rural population directly or indirectly. The second-largest contributor to GDP in 2014 was manufacturing, at 11%.
This chapter contains interviews with Henry Rotich, Cabinet Secretary, National Treasury; Cecilia Malmström, EU Trade Commissioner; Moses Ikiara, Managing Director, Kenya Investment Authority; and Carole Kariuki, CEO, Kenya Private Sector Alliance.
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Buy digital copy of this chapter - £18With industrial production increasing, construction projects breaking ground and transport activity rising, Algeria’s economy has benefitted from stable growth in a diverse array of sectors. However, oil and gas remain its lifeblood. The economy grew by 3.8% in real terms in 2014, according to figures from the National Office of Statistics, up from 2.8% in 2013. The IMF forecasts the figure to fall to 3% in 2015, before recovering to 3.8% in 2016. The government’s 2016 budget is based on non-hydrocarbons GDP growth of 4.6%. Algeria’s near-term economic prospects will depend heavily on oil price movements, and current price levels are putting the country’s trade and fiscal balances under substantial pressure, which will only increase should prices remain steady or fall further. However, the current environment is also pushing the country to attract more investment and step up long-standing plans for diversification, which could help to put Algeria on a more sustainable economic footing in the long term. This chapter contains interviews with Abderrahmane Benkhelfa, Minister of Finance; Ali Haddad, President, Algerian Business Leaders Forum; Kaddour Bentahar, General Manager, Algerian Customs Agency; Michael Lally, US Deputy Assistant Secretary of Commerce for Europe, the Middle East and Africa; and Mohamed Chami, Director-General, Algerian Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £18Ongoing regional conflicts have continued to place significant pressures on Jordan’s economy in the past year. Tourist revenues have been particularly affected while the closure of key trade routes with neighbouring countries has also taken its toll. According to the IMF, however, Jordan has done well despite the effects of regional instability. This is largely due to a recovery in industry and mining, with phosphate production reaching a high of 746,200 tonnes. Moreover, the World Bank forecasts robust GDP growth of 2.5% for the kingdom in 2015 and 3.7% in 2016. A new public-private partnership law and a 10-year economic development strategy are set to support this further growth, with the government working to target billions in foreign investment inflows. Elsewhere Jordan’s fiscal and external balances are expected to stabilise in 2015 and improve moderately over the medium term, while falling oil prices, subsidy reforms and energy diversification will likely improve the country’s economic standing moving forward.
This chapter contains interviews with Umayya Toukan, Former Minister of Finance; Montaser Oklah Al Zoubi, President, Jordan Investment Commission; and Imad Fakhoury, Minister of Planning and International Cooperation.
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Buy digital copy of this chapter - £18South Africa’s economy has experienced relatively slow expansion in recent years, with GDP growth still short of the rates recorded prior to the global financial crisis of 2008-09. Like many of its emerging market peers, the country has been affected by falling commodity prices and the prospect of rising interest rates. However, South Africa continues to benefit from a series of comparative advantages, including its robust financial services industry and strong private sector. In addition to being Africa’s second-largest economy, it is the most globally integrated in terms of capital and trade flows, and is well placed to benefit from growth in Africa and the broader global economic recovery.
This chapter contains interviews with Nhlanhla Nene, Minister of Finance; Rob Davies, Minister of Trade and Industry; and Bobby Godsell, Chairman, Business Leadership South Africa.
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Buy digital copy of this chapter - £18The Ghanaian economy is strongly correlated to global commodities such as cocoa, gold and oil, which are the three main sources of income and foreign currency. Price swings for these three resources, increased spending on domestic public sector wages, an electricity shortage and other external factors have combined to slow the pace of development in recent years, leading to a depreciating currency and a budget shortfall. According to provisional statistics, GDP for 2014 was estimated at $33.4bn, indicating year-on-year growth of 4%, while non-oil GDP totalled $31.12bn. New offshore oil and gas fields are expected to accelerate economic growth starting in 2016, with energy set to contribute 2% to GDP in 2016 and 4.1% by 2017.
This chapter includes interviews with Seth Terkper, Minister of Finance, and Mawuena Trebarh, CEO, Ghana Investment Promotion Centre (GIPC).
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Buy digital copy of this chapter - £18RAK’s path towards economic diversification started early and has seen it transform into an industrial and manufacturing hub, supported by targeted resource development, a fast-expanding network of free zones, and government efforts to promote and incentivise investment. The emirate’s GDP growth was reported at 7.6% in 2013, reaching $7.05bn, with manufacturing representing the single-largest economic sector, contributing 25.1% of GDP.
This chapter contains an interview with Sheikh Ahmad Bin Saqr Al Qasimi, Chairman, Ras Al Khaimah Free Trade Zone (RAK FTZ).
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Buy digital copy of this chapter - £18With a GDP of $1.26trn, Mexico is the second-largest economy in Latin America after Brazil and one of the most liberalised in the region. Though economic growth has been slow, ranging from 2% to 3% during much of the past decade, a series of reforms introduced by the government of Enrique Peña Nieto are expected to accelerate the pace of economic development in the medium term. While initial investor and market excitement over the structural reforms has been tempered by low oil prices and a degree of nervousness over the potential effects of monetary tightening in the US, Mexico is set for growth in 2015, with the economy expected to expand by 3%, according to the IMF, following estimated GDP growth of 2.1% in 2014.
This chapter includes interviews with Ildefonso Guajardo Villarreal (IGV), Minister of Economy; Luis Videgaray Caso, Minister of Finance and Public Credit; Francisco N González Díaz, Director-General, ProMéxico; and Juan Pardinas, Director General, Mexican Institute for Competitiveness.
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Buy digital copy of this chapter - £18Although the recent dip in oil prices is undoubtedly a concern for Kuwait’s economy should prices remain depressed, the successive budget surpluses of recent years and the country’s low breakeven price on oil production mean the country is strongly placed to cope with lower prices without increasing production. Meanwhile, the government remains committed to maintaining capital expenditures and delivering the project pipeline outlined under the National Development Plan 2015-20, and foreign direct investment continues to grow as the government works to encourage foreign involvement in the local economy in a bid to diversify sources of investment. A number of positive policy reforms aimed at diversifying industry and strengthening private sector participation are likely to continue to support steady growth going forward.
This chapter contains interviews with Tariq Abdulsalam, CEO - Investments, Kuwait Projects Company; and Chairman, United Real Estate; Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18While hydrocarbons continue to form the bulk of Saudi Arabia’s revenues, the government has placed an increasing emphasis on economic diversification in recent times. Indeed the Kingdom’s economic growth is now being driven primarily by the non-oil sector, which expanded at a rate of 5% in the decade to 2014. Although low oil prices and the government’s commitment to maintaining spending levels mean the country is expected to run a fiscal deficit in 2015, Saudi Arabia’s ample fiscal reserves suggest it is well positioned to ride out the dip over the medium term. In the meantime, diversification drives will continue, with Saudi Arabia’s 10th Development Plan placing renewed emphasis on education and private sector development. Foreign companies are expected to benefit from the roll-out of e-government in public tendering, which authorities hope will make the system more efficient for foreign investors.
This chapter contains interviews with Prince Turki bin Saud bin Mohammad Al Saud, President, King Abdulaziz City for Science and Technology (KACST); Mofarrej Al Haqbani, Minister of Labour; and Ibrahim Al Hunaishel, Director-General, Saudi Credit and Savings Bank (SCSB).
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Buy digital copy of this chapter - £18With steady GDP growth and consistently low inflation, Morocco’s economic performance has both diversified and strengthened in recent years on the back of growth in the secondary and tertiary sectors, as the government has been channelling capital into productive industries such as manufacturing, finance and telecoms. As an energy importer, the kingdom is benefitting from lower international oil prices, which along with recent subsidy reforms have helped reduce the budget and current account deficits. Most indicators suggest strong economic growth is on the cards for 2015, though a number of challenges still need to be tackled, including less-competitive productivity levels and a stubborn unemployment rate.
This chapter contains interviews with Mohamed Boussaïd, Minister of Economy and Finance; and Tas Anvaripour, CEO, Africa 50 Fund.
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Buy digital copy of this chapter - £18Despite Papua New Guinea’s low ranking in the World Bank’s “Doing Business 2015” report, it regularly draws foreign capital in the billion-dollar-a-year range. The country is attractive for a number of reasons. It remains one of the most liberal economies in the developing world, offering national treatment and few restrictions on investment. It is also blessed with abundant natural resources. The country has sizeable deposits of copper, oil, gas and silver, as well as significant tracts of saleable lumber. On the trade side, it is an open market with low tariffs. With one major resource project already completed and another going ahead, PNG has set the right tone to attract investors and has a good pipeline of activity. More major projects could follow, and importantly smaller players and non-resources investors are starting to see the potential of the nation.
This chapter contains a viewpoint from Xi Jinping, President of China; and interviews with Josaia Voreqe Bainimarama, Prime Minister of Fiji; Miguel Arias Cañete, EU Commissioner for Climate Action and Energy; and Ivan Pomaleu, Managing Director, Investment Promotion Authority (IPA).
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Buy digital copy of this chapter - £18Gabon has seen stable growth over the past five years, aided in part by a government drive to promote diversification in line with its Emerging Gabon Strategic Plan. However, its continued dependence on oil has left the country vulnerable to external shocks, and the low-price environment of 2014 and 2015 will likely cause complications for the next two to three years, as the authorities grapple with lower budgets and greater debt challenges.
This chapter includes interviews with Régis Immongault, Minister of Economy; Madeleine Berre, President, Gabonese Employers’ Confederation, and Partner & General Manager, Deloitte Legal and Tax; and Nina Abouna, Director-General, National Investment Promotion Agency (ANPI).
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Buy digital copy of this chapter - £18With a hydrocarbons-based economy, T&T ranks highly on a number of economic indicators, despite its small size. According to estimates from the IMF, T&T’s per capita income was $21,310 in 2014, the third-highest level in the Americas, after the US and Canada. The World Bank categorises T&T as a high-income nation, while the World Economic Forum classifies it as an innovation-driven economy. The strength of T&T’s energy sector has enabled the country to maintain a stable and strong currency, and post persistent current account surpluses. However, with weaker oil and gas prices and reserves expected to be exhausted by 2025-30, according to the World Bank, economic diversification will be high on the agenda for policymakers. Though lower hydrocarbons prices are set to reduce government revenues, the country’s economic fundamentals should remain strong in 2015 and beyond. This chapter features interviews with Larry Howai, Minister of Finance and the Economy; Vasant Bharath, Minister of Trade, Industry, Investment and Communications (MTIIC); and Gerard Johnson, General Manager of the Caribbean Country Department, Inter-American Development Bank (IDB).
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Buy digital copy of this chapter - £18Panama’s sustained economic growth continued in 2014, with the economy expanding by 6.2%, according to the Ministry of Economy and Finance. The figure represented a slowdown from average annual GDP growth of 7.8% over the six years to the end of 2014 – including double-digit growth in 2011 and 2012 – and was partly due to the impact of a weaker global economy, the completion of major public works and slowing public sector spending. Even so, Panama’s construction boom continued in 2014, with that sector expanding by 14.9%, while the real estate and services sector expanded by 9.7% and the transport, storage and communications sector by 6%.
This chapter features interviews with Dulcidio De La Guardia, Minister of Economy and Finance; Melitón Arrocha, Minister of Commerce and Industry; and Erick Campos, Managing Director, Fitch Central America.
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Buy digital copy of this chapter - £18With full-year realised foreign direct investment (FDI) hitting a new record in 2014, Indonesia’s trade and investment flows have improved considerably over the last 10 years. The capital account deficit was brought back under 3% that year, and at the end of 2014 and in early 2015 the country reported a trade surplus after years in the red. Due to stronger economic growth and new policy initiatives, the uptick could become a sustained trend. However, risks remain. The government and monetary authorities need to keep a grip on policy, making sure they maintain discipline without being too strict. Early indications are that the new administration and the monetary authorities will work effectively towards achieving the right balance through consistent, steady improvements.
This chapter contains interviews with Franky Sibarani, Chairman, Indonesia Investment Coordinating Board; Ngalim Sawega, Chairman and Executive Director, Indonesia Eximbank; and SD Darmono, President Director, Jababeka.
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Buy digital copy of this chapter - £18Turkey has spent the last decade trying to maximise the potential of its geographical position to fuel export-led growth. While this has been hampered by a heavy dependence on imports, especially hydrocarbons, and a bulging current account deficit, the country has made great strides in increasing trade volumes and diversifying markets. With strong domestic growth and a sense of economic stability following the difficulties of the 1990s and the 2001 banking crisis, the country has been able to radically transform the investment environment, garnering record foreign direct investment in the last 10 years. The coming year is likely to see Turkey’s trade deficit shrink as a number of factors converge to boost exports.
This chapter contains an interview with Richard Moore, UK Ambassador to Turkey, and a viewpoint from Dr Jim Yong Kim, President, World Bank Group.
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Buy digital copy of this chapter - £18Wedged between two of the world’s largest economies, Mongolia’s trade and investment policies are something of a balancing act. Reliant on its neighbours for both trade and transit infrastructure, Mongolia’s small, open economy has integrated with the global one by developing relationships with “third neighbours” to improve terms of trade. As surging mineral exports in the past half-decade have exposed Mongolia to the volatilities of the global commodity markets, the government aims to leverage the nation’s abundant natural resources to develop value-added production and diversify away from exports of raw materials.
This chapter contains a viewpoint from Vladimir Putin, President of Russia; and interviews with L. Purevsuren, Minister for Foreign Affairs; and S. Javkhlanbaatar, Director-General, Invest Mongolia Agency.
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Buy digital copy of this chapter - £18As the world’s seventh-most-populous country and its 26th-largest economy, Nigeria boasts a medium-sized middle class in absolute, if not relative, terms, and benefits from having had its first peaceful handover of power since 1999 following the presidential electoral victory in March 2015 of Muhammadu Buhari over incumbent Goodluck Jonathan. Although it is on track to become one of the world’s 20 largest economies by 2020, with average annual growth of 7% in the past decade, Nigeria requires significant private and foreign investment to attain its economic and human development goals. As part of the Jonathan administration’s Transformation Agenda efforts have been made to ease bottlenecks to growth, ranging from power generation and distribution to the agricultural value chain, premised on total infrastructure spending of $2.9trn over the next 30 years. While the economic policy of the incoming Buhari administration had yet to be clarified at the time of printing, investors expect the structural changes that have already been launched – ranging from power-sector restructuring to streamlining rules for doing business – to be seen through.
This chapter contains interviews with Ngozi Okonjo-Iweala, Coordinating Minister of the Economy and Minister of Finance; Aliko Dangote, President and Chief Executive, Dangote Industries; Tony Elumelu, Chairman, Heirs Holdings; Foluso Phillips, Chairman, Nigerian Economic Summit Group (NESG); Saratu Umar, Executive Secretary, Nigerian Investment Promotion Commission (NIPC); and Yemi Kale, Statistician General, National Bureau of Statistics (NBS).
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Buy digital copy of this chapter - £18Fuelled by the ongoing state infrastructure investment drive, non-oil private sector growth was estimated at 9.4% in 2013. The Kingdom posted a budget surplus of $54.9bn in 2013, or 7.4% of GDP, driven largely by oil exports, which averaged 7.54m bpd over the course of 2013. Efforts are under way to boost the employment of nationals and make the most of Saudi Arabia’s young population, and healthy trade ties with countries around the world continue to benefit the economy. Improving access to finance for SMEs remains a priority. This chapter contains a viewpoint from Ibrahim Al Assaf, Minister of Finance, and interviews with Adel Fakeih, Minister of Labour, and Lim Hng Kiang, Singapore Minister for Trade and Industry.
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Buy digital copy of this chapter - £18The Qatari economy boasts a decade-long track record of extremely strong expansion, with the state’s GDP per capita having risen to become one of the highest in the world. While Qatar is the world’s highest exporter of liquefied natural gas, and the country’s income remains largely dependent on hydrocarbons activity, Qatar has, in recent times, pursued a vigorous plan of economic diversification in line with Qatar National Vision 2030. Leading non-hydrocarbons growth are the finance and construction sectors. The banking sector’s macro-indicators are favourable, with sound capital and strong liquid assets, which will allow banks to capitalise on the state’s construction drive. Meanwhile, and as a result of the state’s infrastructure investment programme, the construction sector expanded by 22% year-on-year between Q2 2013 and Q2 2014.
This chapter contains interviews with Sheikh Ahmed bin Jassim bin Mohamed Al Thani, Minister of Economy and Commerce; Abdullah Saleh Mubarak Al Khulaifi, Minister of Labour and Social Affairs; Eisa bin Saad Al Naimi, Minister of Administrative Development; Hassan Al Thawadi, Secretary-General, Supreme Committee for Delivery & Legacy; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.
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While oil and gas production, timber harvesting, and agriculture continue to dominate Sarawak’s economic DNA, significant improvements in transportation and utility infrastructure are now giving rise to an era of economic diversification led by new heavy industries. The state’s relatively small population, large geographical area and diversified economy are providing job opportunities for the state’s inhabitants. The state compares quite favourably to its peers in terms of per capita GDP at $12,507, up from $12,288 in 2012 and $9,150 in 2009. While early investments are primarily being made in energy-intense sectors such as basic metal refining and production, the application of more value-added services focused on the state’s renewable resources has already yielded two large food processing plants and is expected to lead to further development in related fields such as timber and other wood-based manufacturing, advanced ceramics, biotechnology and aquaculture, as well as further downstream applications for the palm oil industry and the wider agriculture sector.
This chapter contains an interview with Awang Tengah bin Ali Hasan, Minister of Resource Planning and Environment, Minister of Public Utilities and Minister of Industrial Development.
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Fuelled by the ongoing state infrastructure investment drive, non-oil private sector growth was estimated at 9.4% in 2013. The Kingdom posted a budget surplus of $54.9bn in 2013, or 7.4% of GDP, driven largely by oil exports, which averaged 7.54m bpd over the course of 2013. Efforts are under way to boost the employment of nationals and make the most of Saudi Arabia’s young population, and healthy trade ties with countries around the world continue to benefit the economy. Improving access to finance for SMEs remains a priority. This chapter contains a viewpoint from Ibrahim Al Assaf, Minister of Finance, and interviews with Adel Fakeih, Minister of Labour, and Lim Hng Kiang, Singapore Minister for Trade and Industry.
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Buy digital copy of this chapter - £18The Philippines’ emergence as a growth leader has been building gradually since the 1990s, following a long period of low growth and political upheaval. The country’s economy continues to enjoy a period of rapid, broad-based expansion as the business process outsourcing sector and rising remittances from overseas workers drive growth in consumer-oriented industries and construction. Although real growth decelerated in 2014 to 6.1%, it remained higher than South-east Asian peers, and is expected to stay near 6% for the remainder of the decade. The Philippine economy is in a strong position with many factors in its favour, from positive demographics and growing bank penetration to improving revenue collection and public governance. After too long spent as the slowest-growing economy in South-east Asia, the Philippines can finally look forward to catching up.
This chapter contains an interview with Cesar V Purisima, Secretary, Department of Finance; a viewpoint from Ramon R Del Rosario Jr, Chairman, Makati Business Club, and President and CEO, PHINMA; and a dialogue with Doris Magsaysay Ho, President and CEO, A Magsaysay, and Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation.
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Buy digital copy of this chapter - £18While hydrocarbons still form the bulk of Abu Dhabi’s economy, the sector’s contribution to GDP has been falling over the last 10 years as the emirate pushes ahead with diversification goals in line with Abu Dhabi Economic Vision 2030. The manufacturing segment has seen sustained growth in recent times with the manufacturing of chemicals and plastics, basic metal and non-metallic mineral products (excluding oil), contributing $31.22bn, $5.47bn and $3.39bn to GDP, respectively, in 2012. The 2015 launch of the Abu Dhabi Global Market (ADGM) is expected to help boost the emirate’s growing reputation as a financial centre and a number of incentives have been proposed for companies operating within ADGM including 100% foreign ownership, a 50-year tax holiday, and a Customs duty exemption. Elsewhere, tourism is another sector that has been targeted for expansion, with the government aiming to attract 8m visitors by 2030. With nearly 3.5m arrivals in 2014, representing year-on-year growth of 25%, it appears the emirate is well on its way to hitting that target.
This chapter contains interviews with Ali Majed Al Mansoori, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Development Company; Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre - Abu Dhabi; Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding; and Mohammad Helal Al Muhairi, Director-General, Abu Dhabi Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £18Driven by rising government spending and public-private partnerships (PPPs) in infrastructure, economic growth has rebounded to high single-digits in the years since 2012. While substantial debt relief and support from development finance institutions is underwriting fast-rising public investment, attracting both foreign and domestic private investment will be crucial to attaining the government’s goal of becoming an emerging economy by 2020 – an area where the government has seen some early successes, with a six-times oversubscribed eurobond and a rise in PPPs. Eager to regain its position as the unrivalled economic hub for the region, the authorities are aggressively reforming the business climate to support private sector development. With substantial public investment in infrastructure driving the country’s rapid economic rebound, Côte d’Ivoire looks set for at least high single-digit growth in 2015 and 2016.
This chapter contains interviews with Prime Minister Daniel Kablan Duncan; Donald Kaberuka, President, African Development Bank; Emmanuel Esmel Essis, Director-General, Investment Promotion Agency of Côte d’Ivoire.
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Buy digital copy of this chapter - £18With Dubai’s economy growing by 4.6% in 2013, and the emirate posting a GDP of $88.65bn, opportunities in various sectors, including Islamic finance and infrastructure and hospitality development, are drawing the attention of investors. The emirate is building up its reputation as an international centre for Islamic finance and under a new Islamic finance master plan it intends to focus on seven pillars, including finance, halal products and tourism. Meanwhile, Dubai International Airport is currently undergoing a major expansion of its runways that will see it surpass London Heathrow Airport in terms of capacity. The government has also put an increased focus on SME development and growth as it seeks to cultivate a spirit of entrepreneurship.
This chapter contains interviews with Sultan bin Saeed Al Mansoori, UAE Minister of Economy; Hamad Buamim, President & CEO, Dubai Chamber; Lim Hng Kiang, Singapore Minister for Trade and Industry; Le Luong Minh, Secretary-General, Association of South-East Asian Nations (ASEAN); and Donald Trump, Chairman and President, The Trump Organisation.
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Buy digital copy of this chapter - £18While Bahrain has witnessed strong growth in recent years, there are concerns that sluggish oil prices and rising debt levels will limit growth into 2015. However the finance and banking sector, which represents the kingdom’s second-largest economic contributor, is expected to continue expanding, with the country having emerged in recent years as a financial services hub, especially in regards to its Islamic finance and insurance offerings. Moreover, foreign direct investment (FDI) flows into the kingdom continue to grow steadily since 2009, totalling $989m in 2013, up 11% from $891m in 2012 and outpacing global FDI flows, which increased by 9% in the same period. Three of Bahrain’s industrial areas are included among a list of the top 20 global free zones of the future, with the additional investment incentives and benefits for foreign investors on offer expected to ensure the kingdom remains an attractive location for companies setting up in the region.
This chapter contains interviews with Kamal bin Ahmed, Acting Chief Executive, Bahrain Economic Development Board; Sheikh Ahmed bin Mohammed Al Khalifa, Minister of Finance; Le Luong Minh, Secretary-General, Association of South-East Asian Nations; Abdul Latif Al Zayani, Secretary-General, GCC; Alderman Fiona Woolf, Lord Mayor of London; and Mahmood Hashim Al Kooheji, CEO, Mumtalakat.
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Buy digital copy of this chapter - £18Myanmar has seen an extraordinary surge in trade and investment in the few years since emerging from isolation. Out of the $9.5bn in FDI permissions granted from April 2012 to October 2014, $2.9bn went to projects in manufacturing; $2.2bn to those in real estate, hotels and tourism; and $2.5bn to transport and communications. Foreign investment in many sectors, however, still remains banned and the list of restricted sectors is set out in regulations that can be revised by the government without parliamentary approval. In this light, the government under President U Thein Sein has been gradually liberalising Myanmar’s trade regime. Largely due to a reform passed in April 2013 that eliminated export and import licensing requirements, the country’s ranking for international trade jumped from 135th to 103rd in the World Bank’s “Doing Business 2015” survey.
This chapter contains interviews with Gregory So, Secretary for Commerce and Economic Development, Hong Kong; U Win Myint, Minister of Commerce; and Serge Pun, Chairman, Serge Pun & Associates Myanmar.
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Buy digital copy of this chapter - £18In 2013 and the first half of 2014 Oman’s economy continued to expand on the back of rising public and private investment, strong oil and gas revenues, and steadily increasing levels of non-oil activity. The sultanate’s GDP rose from $78.3bn in 2012 to $80.57bn in 2013, and while the recent slump in oil prices is a concern, heavy investment in a variety of enhanced oil recovery techniques has boosted output in recent years. Moreover, increasing levels of non-oil activity is high on the agenda with the Oman Vision 2020 long-term development plan aiming to ensure economic and financial stability by boosting private sector participation, diversifying the economy and investing in the Omani workforce. Incoming visitors are increasingly being considered a key source of revenue for Oman with the tourism sector’s contribution to GDP forecast to jump to 8.2% by 2024, from 6.4% in 2013. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry; and Tariq Al Farsi, CEO, Al Raffd Fund.
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Buy digital copy of this chapter - £18Following the end of the commodities supercycle that sustained Peru’s economic growth at an average rate of 6.4% per annum since the mid-2000s, the country saw growth fall sharply over the course of 2014. However, this slowdown is widely seen as a temporary lull, attributable in part to delays in some major mining developments, and the government has sought to counteract the current situation by introducing a range of measures that are designed to stimulate both private and public investment. In 2015 growth is expected to pick up again, ensuring Peru retains its place among the fastest-growing economies both within the region and globally. Nevertheless, certain long-standing structural challenges, such as the poor quality of education and the inefficiency of regional governments, will need to be tackled soon in order to boost growth potential and sustain the remarkable development the country has witnessed over the past two decades.
This chapter contains interviews with Alonso Segura, Minister of Economy and Finance; Alicia Bárcena, Executive Secretary, Economic Commission for Latin America and the Caribbean (ECLAC); and Carlos Herrera, Executive Director, ProInversión. It also includes a viewpoint from Fernando D’Alessio Ipinza, Director-General, CENTRUM Católica.
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Buy digital copy of this chapter - £18After years of sustained high oil prices and a comparatively prudent fiscal policy – albeit balanced on a high breakeven price – Algeria has built up considerable financial buffers, which will help the country to ride out the current decline in global commodity prices. Declining oil prices have also highlighted the government’s efforts to develop the non-hydrocarbons sector, something it has sought to do for several years, with varying levels of success. The state continues to play a key role in the economy, through both regulatory tools and direct intervention via state-owned enterprises. According to the IMF, overall GDP is projected to jump 4% in 2014 to €167.5bn, up from 2.8% in 2013.
This section includes interviews with Amara Benyounes, Minister of Commerce; Issad Rebrab, CEO, Cevital; Mohamed Laid Benamor, President, Algerian Chamber of Commerce and Industry; Kamel Moula, President, Club des Entrepreneurs & des Industriels de la Mitidja; and Réda Hamiani, Former President, Algerian Business Leaders’ Forum.
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Buy digital copy of this chapter - £18South Africa’s economy has come a long way since apartheid ended 20 years ago, with significant improvements in both productivity and capacity – and a GDP that is now 2.5 times larger – but domestic and exogenous pressures have taken their toll on GDP growth. Headline GDP grew by 1.9% in 2013, although its components fluctuated considerably in synch with labour unrest. Although strong by comparison to many members of the OECD – particularly the eurozone – GDP performance in 2013 was nonetheless the third-worst since the end of apartheid in 1994. The turbulence is expected to continue over the short term, although 2015 should show a stronger recovery. South Africa continues to benefit from a number of comparative advantages, such as a robust financial services industry, a strong private sector and well-maintained infrastructure, but with regular strikes, twin deficits and high levels of unemployment, the country’s performance since the onset of the global financial crisis has been lacklustre.
This chapter contains interviews with Nhlanhla Nene, Minister of Finance; Rob Davies, Minister of Trade and Industry; and S’dumo Dlamini, President, Congress of South African Trade Unions; and a viewpoint from Clem Sunter, Scenario Planner and former Chairman of Gold and Uranium Division, Anglo American.
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Buy digital copy of this chapter - £18With the elections over, Egypt’s economy is showing signs of an incipient recovery. After three years of stagnation the IMF anticipates GDP growth will reach 3.5% by 2015, although much of this may be making up for lost time. The new government has outlined an ambitious vision for the future development of the country, and taken the first steps towards solving a structural fiscal deficit. However, Egypt’s economy remains in a fragile state, and the reform that is essential to its long-term recovery is a challenging prospect for any government. The magnitude of this task is readily discernible in the nation’s balance sheet. While a process of fiscal reform had reduced Egypt’s budget deficit to 6.8% by the 2007/08 fiscal year, the political unrest that began in 2011 reversed the contraction, and by 2012/13 the nation was running a deficit of 13.7%. Egypt’s improving political situation, however, has brought with it a new sense of optimism about the economy. The potential for economic recovery over the coming year is real, but much depends on the new government’s ability to cement the putative stability achieved in 2014 and carry out its process of wholesale economic reform.
This chapter contains interviews with Hany Kadry Dimian, Minister of Finance; Anis Aclimandos, Chairman, American Chamber of Commerce in Egypt; Hassan Fahmy, Chairman, General Authority for Investment and Free Zones; and Ahmed Heikal, Chairman and Founder, Qalaa Holdings.
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Buy digital copy of this chapter - £18With one of the world’s largest endowments of hydrocarbons reserves relative to the size of its population, Brunei Darussalam has naturally built its economy around the production and export of oil and gas. However, like many of the world’s traditional oil and gas producers, the Sultanate now faces the challenge of maturing fields. The non-energy private sector accounted for 23.3% of GDP in 2013, with $3.69bn of value added. The government’s gross spending came to $5.8bn in the fiscal year ending March 2013, equal to 35% of GDP. Fiscal surpluses in 2012-13 averaged around $3bn and the IMF expects they will average $4bn in 2014-19, implying that the Sultanate’s rainy day savings will continue to grow.
This chapter contains interviews with Pehin Dato Abd Rahman Ibrahim, Minister of Finance II; and Dato Ali Apong, Deputy Minister, Prime Minister’s Office, and Chairman of the Brunei Economic Development Board.
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Buy digital copy of this chapter - £18Kenya has a liberalised economy with a GDP of $55.2bn, which grew at 5.7% in 2013. Much of the 2013 growth was attributable to relatively low and stable inflation, and the establishment of county governments as public expenditure rose in line with the devolved system of government, according to an economic survey from 2014. Agriculture, wholesale and retail trade, transport and communication, and manufacturing led growth. As an emerging market, Kenya benefits from a number of competitive advantages, not only within East Africa but also within the wider continental context. Kenya’s blueprint for development and future planning, called Vision 2030, serves as an overarching guide to the country’s goal of seeing annual GDP growth of 10% every year from 2012 to 2030.
This chapter contains interviews with Henry Rotich, Cabinet Secretary, National Treasury; James Mwangi, Chairman, Kenya Vision 2030 Delivery Board; Vimal Shah, Chairman, Kenya Private Sector Alliance (KEPSA); Moses Ikiara, Managing Director, Kenya Investment Authority; and Atul Shah, Managing Director, Nakumatt Holdings.
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Buy digital copy of this chapter - £18A few years ago, Ghana’s economy was one of the fastest growing in the world, with GDP growth rates stretching above 14%. But there has been a noticeable change from the unconstrained optimism of recent years. Ghana has missed fiscal deficit targets that, if lower than five years ago, are nonetheless creeping upwards, and the country is beset by rising inflation and a weak currency. As a result, in August 2014, after half a decade of impressive growth, the government entered negotiations with the IMF for fiscal relief. While Ghana is in a difficult position at the moment, its problems are seen as manageable, and the expectation is that the proposed IMF assistance package will help improve the country’s competitiveness on the global market without any undue disruptions.
This chapter contains interviews with Mona Helen K Quartey, Deputy Minister of Finance; Mawuena Trebarh, CEO, Ghana Investment Promotion Centre (GIPC); and Donald Kaberuka, President, African Development Bank.
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Buy digital copy of this chapter - £18The IMF has forecast Jordan’s GDP to expand by 3.5% in 2014 and the government remains committed to tackling long term structural issues in the economy including reducing the fiscal deficit. The role of the private sector is being boosted, particularly with regard to government support for SMEs. Stronger economic ties with Iraq have led to proposals for a Basra-Aqaba pipeline and this, along with the completion of the Aqaba liquefied gas facility next year, is expected to help address the kingdom’s heavy reliance on energy imports. Jordan’s membership in the Greater Arab Free Trade Area offers local companies advantageous access to 17 markets across the Middle East and North Africa, while free trade agreements with countries further afield such as Singapore and Canada offer global opportunities.
This chapter contains interviews with Umayya Toukan, Minister of Finance; Ibrahim Saif, Minister of Planning and International Cooperation; and Awni Rushoud, Investment Commissioner, Investment Commission.
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Buy digital copy of this chapter - £18Classified by the World Bank as an upper-middle income country, Gabon enjoys an average per capita income – estimated at €8950 in 2013 – that is far higher than the sub-Saharan Africa developing country average of €1212.
Oil revenues have sustained the economy, accounting for 56% of total government revenues and 80% of total exports by value, according to US Energy Information Administration (EIA) statistics for 2011. In addition to the hydrocarbons sector, mining and timber activities are major contributors to the economy, primarily through the export of raw materials. With Gabon’s existing oil fields reaching maturity, authorities are looking to minimise the impact of declining oil revenues on the economy, therefore they are embarking on a programme of economic diversification and industrialisation that should also lead to a more inclusive, job-creating pattern of growth. Expansion of the forestry sector, with an emphasis on domestic processing, has the potential to catalyse a more inclusive growth pattern. It is estimated that the economy could grow as much as 6.5% in 2014, following 5.5% growth in 2013 and a 5.7% expansion in 2012.
This chapter contains interviews with Magloire Ngambia, Minister of Investment Promotion, Infrastructures, Housing and Territory Planning; Nina Abouna, Director-General, Agency for the Promotion of Investment and Exports; and Serge Thierry Mickoto, Managing Director, Gabonese Strategic Investment Fund.
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Buy digital copy of this chapter - £18With its position adjacent to two of the world’s largest economies, Russia and China, Mongolia’s trade potential holds significant appeal for foreign investors. Furthermore, just as it strives to diversify the sources of its foreign direct investment, the country’s policy of cultivating “third neighbours” is set to broaden trade patterns geographically and should gradually improve the terms of trade. Exports to the US increased dramatically between 2010 and 2012, from $12m to $42m, while imports from the US grew from $116m to $665m over the same period. Despite this significant growth, trade with the US still represented a very modest share of Mongolia’s overall trade in 2012, when the country’s imports and exports were valued at $4.84bn and $6.74bn, respectively. FDI inflows are expected to reach $2.5bn in 2013, and then be lower in 2014, reaching approximately $2bn, with the overwhelming majority of these funds going to mining and resource extraction. This chapter contains an interview with Fumio Kishida, Minister of Foreign Affairs for Japan; viewpoints from José Manuel Barroso; President, European Commission; and David Johnston, Governor General of Canada; and an interview with Roger Gifford, Alderman and Former Lord Mayor of London.
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Buy digital copy of this chapter - £18The second-largest economy in South-east Asia and the 34th-largest worldwide, Thailand had a GDP of $366bn and a per capita income of $5168 in 2012. Over the past decade, the economy has expanded at an average rate of 4.3%. Since 2008, however, there have been large economic swings that have been exacerbated by seasonal changes. As a major exporter, Thailand is exposed to fluctuations in global demand, and weak growth in its key export markets of the EU, the US, and Japan has been a constraint in recent years. Exports contracted by 4% year-on-year by November 2013. With household debt increasing dramatically, the central bank has raised concerns over the pace of loan growth. Over the longer term, the economy will need to boost higher value-added production to drive growth and ensure it is spread more evenly among the population. Political stability will be key to sustaining strong tourism performance and to the public investment that is so crucial for Thailand to achieve its longer-term growth potential. This chapter contains interviews with Kittiratt Na Ranong, Deputy Prime Minister and Minister of Finance; and Kan Trakulhoon, President and CEO, SCG.
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Despite a 6.7% contraction in net exports in 2012, the value of Indonesia’s trade has expanded significantly over the past decade, with a doubling of exports between 2006 and 2011 to $203.50bn. Rising demand from Asian markets for Indonesia’s key commodity outputs has spurred a redirection of trade. Yet, with most foreign direct investment flowing to sectors linked to consumption, trade has been a smaller growth driver than household spending. This comes despite ASEAN-wide trade liberalisation that has encouraged conglomerates to expand their supply chains to Indonesia. By the first half of 2013, Indonesia’s 10 largest export markets accounted for 73.6% of its total exports, roughly 70% of which stay in Asia. In the first half of 2013, FDI accounted for 68.57% of total investment, while the total stock of inward FDI grew tenfold from 2000 to 2012, reaching $205.66bn. US Investment in oil, gas and mining grew 11% in the eight years to 2012, while manufacturing saw a rise of 21%. By 2012, 52.2% of US FDI was in extractive industries and 46.1% in manufacturing. As investment in Indonesia’s non-commodity sectors continues to grow, the authorities will need to expand access to credit and export finance for its small and medium-sized enterprises, which are key to reducing Indonesia’s reliance of commodity exports. This chapter contains interviews with Muhammad Lufti, Minister of Trade; Le Luong Minh, Secretary-General, ASEAN; Sri Mulyani Indrawati, Managing Director, World Bank; Paul Wolfowitz, former US Ambassador to Indonesia, and Visiting Scholar, American Enterprise Institute; and Wishnu Wardhana, Chair, APEC Business Advisory Council (ABAC) 2013, and President Director and Group CEO, Indika Energy.
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Buy digital copy of this chapter - £18With sustained, long-term economic growth, the highest per capita income in the world, a stable and well-capitalised banking sector, a sovereign wealth fund that is of true global significance and one of the largest reserves of natural gas just offshore, Qatar today has many advantages. It is clear that Qatar is in a strong position from which to continue its robust economic performance, and the years ahead will see a vast construction drive, in line with the principles of Qatar National Vision 2030 and catalysed by preparations for the 2022 FIFA World Cup. Qatar holds potential for investors, both domestic and international, as the country heads towards a much greater global presence in the years ahead. This chapter contains interviews with Sheikh Ahmed bin Jassim bin Mohamed Al Thani, Minister of Economy and Commerce; Ali Shareef Al Emadi, Minister of Finance; Saleh bin Mohamed Al Nabit, Minister of Development Planning & Statistics; Saad Ibrahim Al Muhannadi, President, Qatar Foundation; Chung Hongwon, Korean Prime Minister; and Fumio Kishida, Japanese Minister for Foreign Affairs.
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Buy digital copy of this chapter - £18As the largest and most populous of the seven emirates that make up the UAE, Abu Dhabi plays a central role in the federation’s economy. Following the roadmap laid out in the Abu Dhabi Economic Vision 2030, its long-term economic development plan, the emirate has succeeded in nurturing new economic sectors and seems to be on track to meet its goals. The oil and gas sector accounted for 56.5% of Abu Dhabi’s GDP at current prices in 2012, followed by construction (9.6%), manufacturing (5.9%) and real estate (4.4%). According to the IMF, Abu Dhabi’s efforts to broaden its economic base will help drive annual growth of 4% in the non-oil economy over the coming years. This chapter contains interviews with Nasser Alsowaidi, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, CEO, Mubadala; Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi; Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding; and Mohamed Thani Murshed Al Rumaithi, Chairman, ADCCI.
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Buy digital copy of this chapter - £18Since gaining control of the Panama Canal in 1999, the country has recorded impressive economic expansion. GDP growth averaged 6.8% from 2000 to 2012, according to the World Bank, and double-digit growth for four of the past seven years, government data show. Public sector spending on national infrastructure has emerged as the primary driver of expansion in the past few years as the country prepares for the post-Panamax era of the canal. The canal’s impact both domestically and internationally is set to expand substantially upon the completion of a third set of locks, guaranteeing long-term economic progress. The already-established logistics and financial sectors will continue to play leading roles in the wider economy in the long term, while nascent sectors such as tourism and mining show significant potential for growth. Bureaucracy and poor human resources development remain the main hindrances to national economic development. This chapter includes interviews with Frank de Lima, Minister of Economy and Finance; Nicolás Ardito Barletta, Director-General, National Centre for Competitiveness; and José Pacheco Tejeira, Vice-Minister of Foreign Trade.
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Buy digital copy of this chapter - £18A new foreign investment law, an open telecommunications license tender and the exchange rate float, all in the past two years, have shown the government’s focused interest on developing the necessary legal, financial, and policy measures for attracting foreign investment and boosting the economy. A budding young labour force, abundant natural resources and a strategic geographic position at the heart of high-growth Asia give the country the potential to be a key global player in the coming decades. Official figures report that economic growth for FY2012/13 was 7.6%. In 2012, agriculture made the greatest contribution to GDP at 33% of the total. Thanks in part to the large informal economy, SOEs account for over two-thirds of government revenues, with tax receipts at a modest 3.3% of GDP. Recent years have seen large investment projects developed by Asian investors, but the new Foreign Investment Law of August 2012 has caught the attention of larger Western firms looking for exposure to the next frontier high-growth market. Myanmar has just begun its development process and, although growth will be strong, there are still many legal and regulatory measures that need to be taken before Western firms consider it to be largely risk free. This chapter contains interviews with U Soe Thane, Minister of the President’s Office and Former Chairman, Myanmar Investment Commission (MIC); Dr Kan Zaw, Minister of National Planning and Economic Development; Serge Pun, Chairman, Serge Pun and Associates (Myanmar); and Le Luong Minh, Secretary-General, ASEAN.
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Buy digital copy of this chapter - £18As the emirate celebrates its victory in the bid to host World Expo 2020, infrastructure and transport development is expected to attract significant investment over the next few years. GDP growth reached 4.9% in the first half of 2013, the strongest result for the January-June period since 2008. Trade, the strongest of the emirate’s economic foundations, continues to grow, with non-oil foreign trade increasing by almost 10% over the first three quarters of 2013, totalling some $275bn. There are concerns that the circumstances that led up to the post-2008 boom-bust cycle are reappearing, however, measures have already been taken to prevent or at least dampen the kind of speculative fever that laid the emirate low four years ago.
This chapter contains interviews with: Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry; and Sami Al Qamzi, Director-General, Department of Economic Development.
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Buy digital copy of this chapter - £18The sultanate’s economy continues to enjoy the benefits of petroleum wealth, which has provided budget surpluses in most years and served as a backbone for growth. However, planning is well under way for an era in which oil will not be the main economic driver, with the twin goals of diversification and creating an increased number of private sector jobs at the top of the government’s current agenda. This chapter contains an interview with Sayyid Faisal Al Said, Director-General of Marketing & Media, Public Authority for Investment Promotion and Export Development.
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Buy digital copy of this chapter - £18Over the course of the past decade Peru has recorded impressive economic growth, posting rates in excess of 6% from 2010-12. Though the pace of growth is estimated to slow to between 5.2% and 5.4% in 2013, mainly due to external shocks, observers are cautiously optimistic about Peru’s prospects for continued economic development. While the mining and hydrocarbons sectors continue to account for the bulk of exports as well as foreign direct investment, the recent growth of non-primary sectors, in particular construction, retail and services, point to increasing economic diversification. This is largely driven by greater domestic demand, expected to grow at 6.5% and 5.8% in 2013 and 2014, respectively. With a stable macroeconomic environment, prudent fiscal management and a number of new free trade agreements, Peru is well positioned for continued expansion. This chapter contains interviews with Karl de Gucht, EU Trade Commissioner; Luis Miguel Castilla Rubio, Minister of Economy and Finance; Javier Illescas, Executive Director, ProInversion; and Reubens Amaral Junior, CEO, Banco Latinoamericano de Exportaciones.
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Buy digital copy of this chapter - £18While other countries in the region may have been taking the spotlight as top performers, the Philippines has been recording steady and continuous growth. Indeed, the country has not had a serious annual drop in GDP since 1985. Going forward, expectations are positive. While the IMF has been reducing growth forecasts in the region, the organisation’s 2014 prediction for the Philippines is staying stable at 6%. The economy’s strong fundamentals have received the recognition of the IMF and international credit rankings agencies; however, greater investment will be key to unlocking the country’s full potential. This chapter contains interviews with Cesar V Purisima, Secretary, Department of Finance; Roberto F Ocampo, Former Secretary of Finance, and Co-Vice Chairman, Makati Business Club; Guillermo Luz, Co-Chairman, Private Sector, National Competitiveness Council (NCC); and Miguel Varela, President, the Philippine Chamber of Commerce and Industry (PCCI).
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Buy digital copy of this chapter - £18Nigeria has achieved consistently high growth over the past decade, including 7.4% in 2011 and 6.6% in 2012, according to the African Development Bank. This expansion makes Nigeria one of the continent’s most consistent performers, with over twice South Africa’s average growth. The IMF forecasts economic growth of 7.2% in 2013 and 7% in 2014. Non-oil GDP is expected to rise 8.5% in 2013, according to the Nigerian Economic Summit group. The reforms being enacted – establishing a gas-to-power value chain, expanding the industrial base and leveraging agricultural potential to reduce imports – have been applauded by investors and development partners. Ensuring full implementation of the federal government’s economic diversification strategy in the run-up to the 2015 presidential and state governor elections will be key to accelerating and broadening growth. This chapter contains a viewpoint from Ngozi Okonjo-Iweala, Coordinating Minister for the Economy and Minister of Finance, and interviews with Frank Nweke II, Director-General, Nigerian Economic Summit Group; Mustafa Bello, CEO, Nigerian Investment Promotion Commission; and Ed Fast, Canadian Minister of International Trade.
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Having weathered the global economic crisis relatively easily and avoided most of the political turmoil that affected its neighbours during the Arab Spring, Algeria has continued along a steady path of economic growth and social development. In 2012 the country’s GDP reached AD15.84trn (€145.73bn), a 3.3% increase over the previous year. Algeria’s considerable oil and gas reserves, accounting for more than 60% of government revenues, have provided the authorities with sufficient fiscal flexibility to embark on major spending projects in nearly all sectors and subsidise key products such as fuel and food. Despite the economic growth, the expanding population and rising consumption are driving up unemployment and inflation. This chapter contains interviews with Karim Djoudi, Minister of Finance; Mustapha Benbada, Minister of Trade; Mohamed Seghir Babes, President, National Economic and Social Council; Réda Hamiani, President, Algerian Business Leaders’ Forum; and a viewpoint with Christine Lagarde, Managing Director, IMF.
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Buy digital copy of this chapter - £18Economic reforms introduced beginning in 2004 have had a noticeable impact on the economy’s performance. In the three years prior to the global financial crisis, GDP growth averaged 7% per annum and FDI peaked at $13.2bn in 2007/08. However, the events of the past two years have underlined the fact that Egypt’s growth over the previous years has not been shared by all sectors of society, although the subsequent turmoil has dramatically complicated attempts to overhaul or reform some of the more delicate issues facing Egypt’s economy. Recent political upheaval has adversely affected key sectors: tourism receipts fell by 29.6% in 2011 and FDI saw a net outflow, contributing -0.2% to GDP in the same year. With the IMF cutting its 2013 forecast for GDP growth to 2% and predicting unemployment to hit 13.5%, combined with the budget deficit reaching 11.8% of GDP in the first 11 months of the 2012/13 fiscal year, according to the Ministry of Finance, the challenge remains a significant one. This chapter contains interviews with Anis Aclimandos, President, American Chamber of Commerce in Egypt; and Walid El Nohazy, Executive President, Arab Mediterranean Free Trade Agreement (Agadir Agreement).
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Buy digital copy of this chapter - £18Ras Al Khaimah’s economy is well diversified, with five sectors accounting for more than 8% of GDP each: resource extraction and related services; trade; financial services; government services; and construction. Manufacturing is the mainstay of the economy, comprising 26% of GDP. Free zones have been crucial to the emirate’s economic growth, with the government offering investors a range of incentives to set up shop. By improving transport links with neighbouring GCC states, the government hopes to realise new gains and investments into each of these areas. Tourism is also expected to benefit from improved infrastructure, including sector-specific facilities that boost the emirate’s appeal as a destination. This chapter contains an interview with Sheikh Ahmad Saqer Mohamed Al Qasimi, Chairman, Ras Al Khaimah Free Trade Zone.
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Buy digital copy of this chapter - £18The past 40 years of oil production have turned this small but strategically positioned Central African state into an upper middle-income economy. The country’s extractive industries are sizeable by global standards, with oil, timber and manganese being key exports. Following the 2008-09 financial crisis, GDP growth provided evidence of a recovery, reaching 7% in 2011 and 5% in 2012, according to the African Development Bank. With a current account and fiscal position persistently in surplus, Gabon has the resources to realise its ambitious public investment plans. The issue will be in balancing its books, namely the non-oil fiscal deficit, and in streamlining its regulatory framework to attract the private investment necessary to finance the target figure of 72% of investments planned by 2025. This chapter contains interviews with Magloire Ngambia, Minister of Investment Promotion, Public Works, Transport, Housing and Tourism; Henri-Claude Oyima, Director and Chairman, BGFI Bank; Nina Abouna, Director-General, Agency for the Promotion of Investment and Exports (APIEX); Yves Fernand Manfoumbi, Director-General of the Budget; and Richard Attias, Executive Chairman, Richard Attias & Associates.
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Buy digital copy of this chapter - £18The economic outlook appears broadly positive in the short to medium term, with production of oil, the backbone of the economy, reaching 2.8m bpd in 2012 and continued budget surpluses forecast for 2013/14. Spending linked to the National Development Plan should help to support the expansion of the non-oil sector, particularly via planned investments in infrastructure and industry. This chapter contains interviews with Bader Al Saad, Managing Director, Kuwait Investment Authority; Faisal Al Ayyar, Vice-Chairman, Kuwait Projects Company; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18With a gross GDP of approximately R3.2trn ($390bn) as of year-end 2012, South Africa has the largest economy in Africa and the 28th largest globally. Industrial strife and policy uncertainty, however, have become key sources of investor concern of late. Recent years of slowing growth have failed to make much of a dent in structurally high unemployment and inequality, although a new government-endorsed development plan seeks to broaden inclusion and establish the foundations for higher-value-added growth. Despite significant downside risks, the development agenda laid out in the 2013 budget and other government policies are designed to steer both its economic planning and private sector investment for the next two decades. This chapter contains interviews with Pravin Gordhan, Minister of Finance; and Rob Davies, Minister of Trade and Industry.
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Buy digital copy of this chapter - £18The state is pushing ahead with structural reforms that should provide a sound base for future development. GDP is forecast to expand by 3.5% in 2013, while the government has made reducing the fiscal deficit a priority. Trade opportunities with Iraq are also being explored, and longer-term initiatives, including the development of shale oil and renewables, should help to address long-standing energy challenges. This chapter contains interviews with Umayya Toukan, Minister of Finance; Awni Al Rushoud, Acting CEO, Jordan Investment Board; Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (KFAED); and Henry Azzam, CEO, Social Security Investment Fund (SSIF)
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Buy digital copy of this chapter - £18Despite a number of notable uncertainties in the global economy, Bahrain’s economic outlook remains mostly positive. Largely insulated from international economic turmoil, the kingdom saw more than 6% GDP growth in 2008 and 3% in 2009. In 2012 the economy expanded at a rate of 3.4%, largely due to the robust private sector, which a number of government initiatives are aimed at supporting, such as fostering small and medium-sized enterprise growth and promoting innovation. With forecasts for expansion throughout the Gulf region, particularly in the domestic non-hydrocarbons sector, some expect to see Bahrain's GDP grow by 5% in 2013. This chapter contains interviews with Mahmood Hashim Al Kooheji, CEO, Mumtalakat; Shaikh Mohammed bin Essa Al Khalifa, Chairman, Tamkeen; and Sheikh Khalid bin Abdullah Al Khalifa, Chairman, Mumtalakat.
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Buy digital copy of this chapter - £18The Turkish banking sector has suffered from a pattern of booms and lulls in the past, and, as a result, a number of policy reforms have been instituted to improve regulation. The sector looked to be starting a process of maturation in 2013 as it continued to record solid growth without overheating, with lending growing at an annualised rate of 16% in the first two months of 2013. The efforts being made by bankers and regulators to take the long-term view, when markets are putting little pressure on them to do so, bode well. Lower inflation, higher domestic savings, focus on SME lending and longer-term foreign financing will make Turkish banks more resilient and able to fund larger projects. But, as the country enters a middle-income stage of development when economic growth usually becomes harder, banks will need to pay close attention to loan quality. This chapter contains an interview with Erdem Başçı, Governor, Central Bank of the Republic of Turkey, as well as a banking dialogue with Hakan Ateş, CEO, Denizbank and Süleyman Asla, CEO of Halkbank.
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Buy digital copy of this chapter - £18Dominated by hydrocarbons, the energy sector in Brunei Darussalam has seen production begin to falter in the past five years and, therefore, is now awaiting the results of exploration and development programmes being carried out by international oil companies. There remains a high degree of optimism that these efforts will bear fruit, with the government setting ambitious production targets over the next two decades. In the interim, the government faces the threat of revenue erosion from its biggest source of income. However, despite this pause, there continues to be significant activity in the energy industry. In many respects, the sector remains outward facing; the country leans heavily on hydrocarbons for export revenue. As such, the government is pushing hard to maximise output, a strategy that involves bolstering production from existing fields and ramping up the search for new ones. This chapter contains interviews with Pehin Dato Yasmin Umar, Minister of Energy; Dato Matsatejo Sokiaw, Managing Director and CEO, Brunei National Petroleum Company; and Qui Jianlin, Chairman, Zhejiang Hengyi Group, as well as and a dialogue with Yves Grosjean, General Manager, Total E&P Deep and Offshore Borneo; and Ken Marnoch, Managing Director, Brunei Shell Petroleum.
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Buy digital copy of this chapter - £18Key reforms implemented in the aftermath of the 2008-09 financial crisis have created a more flexible and resilient banking sector, just as the economy entered a period of slow growth in 2012. While the sector has expanded dramatically over the past two years, banks faced a liquidity squeeze in 2012 that has reduced the pace of growth. Over the long term, however, Mongolia’s leading banks stand to benefit from a rebound, although they will need to mobilise fresh sources of capital to sustain expanding loan books. To encourage higher non-interest income on banks’ balance sheets, provisions have been made for new sources of fee-based revenue, such as the sale of insurance. Larger banks have secured the necessary funds to maintain lending at a slower pace until economic growth rebounds, although persistent inflation is likely to keep nominal lending rates prohibitively high. While foreign banks are positioning themselves in the market through loans, credit lines and equity stakes to support the corporate sector, more sustainable investment is expected to come in the form of securities issuance offshore. This chapter includes interviews with N. Zoljargal, Governor of the Bank of Mongolia, and M. Bold, President of the Mongolian Bankers Association.
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Buy digital copy of this chapter - £18While growth at some banking institutions slowed in 2012, due mainly to the pressures of exogenous slowdowns, the sector has remained largely resilient due to prudent regulation by the central bank. The country’s banks posted aggregate net income of €3.2bn in 2011, a 9% increase over €2.9bn in 2010, which translated to 4% growth in net income that year. The government is now grappling with rising fiscal and current account deficits, which became more severe in 2012 due to lower revenues from agriculture and tourism, the country’s main sources of income. To address tightening levels of liquidity, the central bank has cut reserve requirements and approved certificates of deposits. Meanwhile, new regulations set to come into effect will allow for the operation of fully fledged Islamic banks in the kingdom. This chapter includes interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Mohamed El Kettani, CEO, Attijariwafa Bank.
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Buy digital copy of this chapter - £18The Kingdom’s banking sector posted solid growth in 2011 and 2012 and is now one of the largest in the GCC, with total assets reaching $439.7bn by the third quarter of 2012. In addition, bank profitability has risen in recent years, reaching $8.23bn at the end of 2011, up from $6.94bn at the end of 2010 and $7.14bn at the end of 2009. The industry’s expansion over the past few years is largely the result of strong fundamentals and proactive government oversight, especially in the wake of the 2008-09 international economic downturn. Since mid-2011, in particular, the banking sector has benefitted from solid non-oil GDP growth and strong spending from both the government and private sector players. Looking ahead, the sector is poised for continued expansion, with high liquidity levels meaning that many banks are preparing to boost lending further. This chapter includes a dialogue between Patrice Couvegnes, CEO, Banque Saudi Fransi, and Bernd van Linder, Managing Director, Saudi Hollandi Bank.
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Buy digital copy of this chapter - £18Operating within the largest banking sector in the GCC, Abu Dhabi’s banks have thrived, and today the UAE capital is home to some of the most successful lenders in the country. Recent years have seen a number of regulatory changes brought in. These include more prudent credit risk management policies, new controls on lending activity, and changes to the nature of banks’ concentration of risk levels. The central bank’s new regulations on retail lending, for example, aim to establish a more transparent relationship between banks and their customers and boost the overall credibility of the banking system. Looking ahead, the government’s commitment to sizeable infrastructure projects underpins the future growth of the banking sector. Still, the increasingly competitive nature of the domestic banking market will continue to drive the established trend of revenue diversification. This chapter includes an interview with Ala’a Eraiqat, CEO, Abu Dhabi Commercial Bank.
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Buy digital copy of this chapter - £18Banking institutions currently account for around 77% of financial sector assets, while the sector’s overall penetration rate remains among the region’s lowest. The banking market remains highly fragmented, with 120 commercial lenders in 2012, alongside a much larger number of smaller institutions. Amidst rapid loan growth, average default rates for the country have dropped to historically low levels, though some suspect they will rise again in 2013. Relatively insulated from the volatility of international markets and supported by strong domestic consumption and rising incomes, Indonesian banks stand on healthy footing with high profitability and sufficient liquidity to expand their physical presence and lending. This chapter contains an interview with Darmin Nasution, Governor, Bank Indonesia.
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Buy digital copy of this chapter - £18After facing some tough challenges in recent years, Dubai’s banking sector now shows signs of having turned the corner. Stronger regulation and more robust financials are providing a healthier environment for expansion, and significant progress has been made in tackling the legacy of the global financial crisis. In the year ahead banks are likely to remain conservative in their strategies, managing margins carefully in a tight environment. Regulatory changes should help to boost transparency and prevent unbudgeted risks. It is also widely expected that the banking sector will attract more Asian banks, as Chinese lenders are showing particular interest, especially firms with significant investments in Africa. The chapter includes an interview with Rick Pudner, CEO, Emirates NBD.
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The Report: India 2013 will contain a detailed analysis of the political sector in this region.
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Buy digital copy of this chapter - £18Backed up by strong macroeconomic fundamentals and the sultanate’s reputation for stability and sound financial management, Oman’s banking sector has been remarkably resilient in recent years. The sector has registered good growth in the face of market volatility linked to the Arab Spring and the eurozone crisis. Going forward, banks are now entering a period of substantial change. In 2013, Islamic banks will enter the field for the first time, bringing heightened competition for deposits and loans, while also bringing wider choice for Omani individuals and businesses. Indeed, with competition set to increase, conventional banks are now focusing on expanding into Islamic banking, opening dedicated branches for sharia-compliant financial services. This is set to bring a wider range of products and services within the sector. This chapter includes an interview with Hamood bin Sangour bin Hashim Al Zadjali, Executive President of the Central Bank of Oman (CBO).
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Buy digital copy of this chapter - £18Malaysia’s banking sector is well-capitalised and stable, with larger financial institutions now looking at overseas expansion to increase their clout. The regulators’ encouragement of consolidation under the Financial Sector Master Plan, which ended in 2010, reduced the number of banks from around 20 down to 8 major institutions. These have high capital-adequacy ratios and low ratios of non-performing loans, even as they extend a volume of credit equal to 132% of the Malaysia’s GDP. While future mergers could still occur, the larger trend is outward growth, as Malaysian institutions look to the under-banked populations of Indonesia, the Philippines, and Thailand. This chapter includes interviews with Zeti Akhtar Aziz, Governor of Bank Negara Malaysia; and Nazir Razak, CEO, CIMB Group Holdings.
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Buy digital copy of this chapter - £18Algeria is ranked the fourth-largest producer of crude oil in Africa, with an estimated 12.2bn barrels of proven reserves as of January 2012. The country was also estimated to have 159trn cu feet (tcf) of proven natural gas reserves as of January 2012 and produced 2.83 tcf of natural gas in 2010. Given its substantial reserves, Algeria has maintained its position as a major global player in the hydrocarbons sector. Numerous contracts have been signed with international firms for new projects, which include plans to develop gas fields and unconventional sources. With new, long-awaited revisions to the hydrocarbons law, collaboration with international oil and gas firms is expected to intensify in the future. Algeria also has proven deposits of valuable minerals such as gold, zinc, copper, lead, uranium and phosphates. However, these have so far been largely unexplored. Therefore, as part of its economic development and diversification plans, Algeria is now setting up joint ventures with international mining companies to exploit these mineral reserves. The government offers incentives for investors in the mining sector, including tax exemptions and rebates. This chapter contains interviews with Youcef Yousfi, Minister of Energy and Mines; Abdelhamid Zerguine, CEO, Sonatrach; Jean-Marie Dauger, Executive Vice-President, Global Gas & LNG Business Line, GDF Suez; and Farid Benhadji, CEO, Manal.
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Buy digital copy of this chapter - £18Nigeria had seven banks with total assets in excess of N1trn ($6.4bn) as of end-2011, with the top four accounting for 55.62% of the sector’s net profits. Yet although the continent’s most populous nation boasts some of its largest banks by assets, just 21% of Nigeria’s population of about 165m people is banked, according to a 2011 study by the Central Bank of Nigeria (CBN). Bank credit remains skewed towards corporate borrowers, with about 80% of the top 14 banks’ income coming from corporate banking in 2011. The mortgage market remains small, with total lending in this segment equivalent to less than 1% of GDP. While the sector fell short of expectations of a full turnaround in 2011, first-half results for 2012 marked a turnaround in the industry’s profitability. This chapter contains interviews with Lamido Sanusi, Governor, Central Bank of Nigeria; and Razia Khan, Head of Research for Africa, Standard Chartered.
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Buy digital copy of this chapter - £18High oil and natural gas prices, combined with a 20-year strategic investment programme, have catapulted Qatar into the ranks of the highest per-capita income economies in the world. Yet the country continues to demonstrate an ability to leverage its significant natural resources to drive growth and is well placed to meet the goals and vision for economic diversification outlined by the National Vision 2030. The state has used its vast oil and gas revenues to create a strong foundation upon which other sectors can expand. The non-hydrocarbons economy is estimated to grow by between 9% and 10% until 2016. Moreover, winning the right to host the 2022 FIFA World Cup means that infrastructure expansion will likely support economic growth over the next 10 years to the tournament. This chapter includes interviews with Yousef Hussain Kamal, Minister of Economy and Finance; Sheikh Jassim bin Abdulaziz Al Thani, Minister of Business & Trade; and Saleh Al Nabit, Secretary-General, General Secretariat for Development and Planning (GSDP).
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Producing approximately 89m barrels in 2011, Gabon is currently the sixth-largest oil producer in sub-Saharan Africa. While oil production has been on a steady decline since peaking in the late 1990s, offshore and deepwater fields remain largely untapped. Given greater industrialisation, growth is expected to occur in electricity generation, with new generators and three new dams currently under construction. A number of challenges remain for the industry in the medium term. These include the country’s new hydrocarbons code, which has yet to be passed (and for which IOCs must wait before they can begin exploration on new fields) and the fact that deepwater exploration and production is an expensive and logistically difficult for the country. This chapter contains interviews with Etienne Ngoubou, Minister of Petroleum; Serge Toulekima, Managing Director, Gabon Oil Company; and Robert L Gerry, Chairman and CEO, VAALCO Energy.
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Buy digital copy of this chapter - £18The 2011 revolution had an impact on Egypt’s sizable banking sector but was not nearly as dramatic as was expected, thanks to a steady stream of reforms since 2004 that have improved the overall health and transparency of the country’s financial institutions. High exposure to sovereign debt weakened the outlook for some banks, and profitability took a hit, but overall liquidity remains high, thanks to an increase in deposits of 6% in the year up to September 2011. By the end of 2011, non-performing loans had dropped from 13.6% to 10.9%, and non-government lending began to see a slight rise year-on-year by early 2012. This chapter contains an interview with Farouk El Okdah, Governor, Central Bank of Egypt; and Hisham Ezz Al Arab, Chairman, Commercial International Bank.
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Buy digital copy of this chapter - £18Ghana has a relatively active banking sector, with 27 universal banks, 135 rural banks and 49 non-bank financial institutions, including leasing firms, mortgage providers, and savings and loan institutions. The contribution of the banking and insurance sectors to GDP has risen steadily in recent years, from 2.7% of GDP in 2006 to 5.2% in 2010. Deposits have also been on the rise, increasing from $2.6bn in December 2007 to $7.6bn in September 2011. The sector is currently seeking to provide a greater variety of technology-enabled banking services and increase the ability of banks to lend and fund major projects in other sectors of the economy. This chapter contains an interview with Samuel Ashitey Adjei, Managing Director, Ecobank Ghana; and a viewpoint by Kofi Wampah, Acting Director and Deputy Governor, Bank of Ghana.
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Buy digital copy of this chapter - £18Thailand’s banking sector is well capitalised and highly conservative, a legacy of the 1997-98 Asian financial crisis, which left financiers in the region averse to systemic risk. It is also a very local affair, with less than 15% of assets held by foreign banks. This may change in 2015 when new banking regulations come into force, but little shakeup is expected for the time being. The banking sector is also expecting an impact from new caps on deposit insurance, which are being implemented by the Bank of Thailand in the hopes of pushing commercial clients toward the capital markets. This section has interviews with Prasarn Trairatvorakul, Governor, Bank of Thailand; Chartsiri Sophonpanich, President, Bangkok Bank; and Matthew Lobner, CEO, HSBC Thailand.
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Buy digital copy of this chapter - £18Despite the lingering effects of the 2008-09 international economic downturn and the more recent political unrest in the region, Ras Al Khaimah’s financial services sector is expected to grow substantially, fuelled by steady expansion in retail banking, Islamic financial services (IFS) and the insurance segment. Indeed, annual deposit growth at UAE banks reached a high of 16% in April 2011. However, financial institutions face a host of challenges; perhaps most notably, the real estate and construction sectors continue to face difficulty in terms of obtaining loans from banks. Local banks are under pressure from the government and central bank to increase lending further, in an effort to boost overall economic growth. Despite these issues, RAK has received consistently high ratings from two of the most prominent credit ratings agencies, thanks to its continuing development, social and political stability, and membership in the UAE.
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Buy digital copy of this chapter - £18As the economy faces short-term challenges of low growth and a tight fiscal position, preparation is under way to support long-term recovery and lay foundations for the encouragement of investment as new sectors open up, notably in infrastructure and energy. Jordan faces several short-term challenges it must overcome to lay the foundations for when growth is expected to pick up from 2013. It must secure cheaper energy through an agreement with Egypt for regular supplies of gas and must reform subsidies to reduce non-productive expenditure and instead boost spending on education and infrastructure. If 2012 looks to be a year for scoping out investment opportunities and laying foundations for the future, 2013 should see the start of several new large-scale development projects and a return to stronger economic growth. This chapter includes interviews with Awni Al Rushoud, Acting CEO of the Jordan Investment Board; Maen Nsour, Director-General of the Social Security Corporation; and Umayya Toukan, Minister of Finance.
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Buy digital copy of this chapter - £18The nation’s efforts over the past decade have seen slow progress on its bid to join the EU, however, Turkey has become vastly more prominent on an international scale. While still hamstrung by the Kurdish issue, the country’s “Good Neighbour” policy has made it a key partner in engagement with Western powers. Internally, the AKP is credited with providing the stability that has ushered in Turkey’s economic success in the past decade, and it is unlikely that the opposition will achieve success in the coming years without cooperation with the leading party. The Politics chapter contains interviews with Recep Tayyip Erdoğan, the Prime Minister of Turkey; Ahmet Davutoğlu, the Minister of Foreign Affairs; Rifat Hisarcıklıoğlu, the President of the Turkish Foreign Economic Relations Board (DEİK); and Joe Biden, the Vice-President of the US.
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Buy digital copy of this chapter - £18South Africa is a parliamentary representative democratic republic, wherein the elected president exercises executive power and acts as both head of state and head of government. Legislative power is wielded by both the government and two chambers of parliament, the National Assembly (the lower house) and the Council of Provinces (the upper house). The judiciary operates as an independent arm of government. South Africa is a multi-party democracy with about 80 political parties, 13 of which are currently represented in the National Assembly. The ANC has dominated the electoral landscape since the first democratic elections of 1994, while the Democratic Alliance (DA) is the country’s official opposition party, with 67 seats in the current parliament. This chapter contains interviews with President Jacob Zuma; Fernando Damata Pimentel, Brazilian Minister of Development, Industry and Foreign Trade; and Andris Piebalgs, European Commissioner for Development.
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Buy digital copy of this chapter - £18Financial services, industrial manufacturing and a business-friendly environment have traditionally differentiated the island Kingdom from other GCC states. Lacking the hydrocarbons of its neighbours, Bahrain has spent years diversifying its economy to meet future challenges. This made it one of the first GCC states to move its economy beyond a traditional reliance on hydrocarbons exports, and Bahrain has always been a good base from which to build a business targeting regional opportunities. The need to make wide-ranging infrastructure upgrades to improve the economy in areas such as housing, health care and education will be used by the government to provide public works contracts for local private firms. Planned infrastructure improvements are important for putting the economy on a stronger footing with its regional competitors, but the wider aim of the spending drive is to increase the level of activity and participation of the private sector in the economy overall. This chapter includes interviews with Sheikh Nasser bin Hamad Al Khalifa, Chairman, Supreme Council for Youth and Sports; Mahmood Hashem Al Kooheji, CEO, Tamkeen; and Surapong Tovichakchaikul, Thailand’s Minister of Foreign Affairs.
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Buy digital copy of this chapter - £18Economic growth in the Philippines slowed from 7.6% in 2010 to 3.7% in 2011, and public-private partnerships (PPPs) that would have boosted public spending were delayed. The Aquino administration says that the wait is due to strict anti-corruption measures, and promises that 2012 will see these projects move forward. In the meantime, in late 2011 Aquino unveiled a spending package worth $1.6bn to bolster sagging demand. Local manufacturing plays a smaller role in the Philippines than it does in several of its ASEAN rivals, while the service sector, and in particular business-process outsourcing, has a bigger role. The economy also has a unique dependence on remittances from Filipinos who work overseas. This chapter features interviews with Cesar Purisima, Secretary, Department of Finance; Ramon R del Rosario Jr, Chairman, Makati Business Club; Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation; Karel De Gucht, EU Trade Commissioner; Helen Dee, Chairperson, Rizal Commercial Banking Corporation; and Washington SyCip, Founder, SyCip, Gorres, Velayo & Co.
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Buy digital copy of this chapter - £18Kuwait’s economy is famously based on its natural resources, including 8.2% of the world’s oil reserves and around 1% of global gas reserves. The economy is therefore inextricably linked to the price of oil and will remain so for the medium term at least. However, in recent times oil revenues have surged, and together with strong public finances and a young and growing population, the country’s GDP rose 5.7% in 2011. The non-oil economy accounted for 55% of GDP in 2009, a figure the government seeks to increase to reduce dependence on hydrocarbons. Going forward, another key government target is the growth of the private sector’s contribution to the economy, with some $133bn worth of infrastructure projects over the next decade – as part of the National Development Plan (NDP) – to be implemented by public-private schemes. Moreover, 80% of NDP projects are slated for non-hydrocarbons industries. This chapter includes interviews with Minister of Finance Mustafa Al Shamali; Abdalla Salem El Badri, Secretary-General, OPEC; Faisal Hamad Al Ayyar, Vice-Chairman, Kuwait Projects Company (KIPCO); and Moritz Kraemer, Managing Director and Head of EMEA Sovereign Ratings, Standard & Poor’s.
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Buy digital copy of this chapter - £18Already the world’s 17th-largest economy with a nominal GDP of $768bn in 2010, Indonesia is one of the three fastest-growing economies in Asia. Authorities are working to use the country’s key competitive advantages to attract the long-term investment needed to realise their goal of becoming one of the top 10 economies by 2025. Growth was forecast to reach 6.3-6.5% for 2011. However, addressing infrastructure will be a major challenge for the government, which has struggled for several years to come up with a clear plan for public-private partnership (PPP) projects for transport. The administration of Susilo Bambang Yudhoyono has pledged increased spending, but projects have been delayed due to issues such as land acquisition, and are just now moving towards tenders. Overall, growth is expected for both the short and long term, but more investments will be necessary to keep up with the booming ASEAN region. This chapter features interviews with Hatta Rajasa, Coordinating Minister of Economy; Agus Martowardojo, Minister of Finance; Prijono Sugiarto, President Director, Astra International; Gita Wirjawan, Minister of Trade and Chairman, Investment Coordinating Board; Bobby Umar, President Director, Bakrie & Brothers; and a viewpoint from Maxime Verhagen, Deputy Prime Minister and Minister of Economic Affairs of the Netherlands.
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A detailed analysis of the South African economy will feature in The Report: South Africa 2012.
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While hydrocarbons continue to form the bulk of Saudi Arabia’s revenues, the government has placed an increasing emphasis on economic diversification in recent times. Indeed the Kingdom’s economic growth is now being driven primarily by the non-oil sector, which expanded at a rate of 5% in the decade to 2014. Although low oil prices and the government’s commitment to maintaining spending levels mean the country is expected to run a fiscal deficit in 2015, Saudi Arabia’s ample fiscal reserves suggest it is well positioned to ride out the dip over the medium term. In the meantime, diversification drives will continue, with Saudi Arabia’s 10th Development Plan placing renewed emphasis on education and private sector development. Foreign companies are expected to benefit from the roll-out of e-government in public tendering, which authorities hope will make the system more efficient for foreign investors. This chapter contains interviews with Prince Turki bin Saud bin Mohammad Al Saud, President, King Abdulaziz City for Science and Technology (KACST); Mofarrej Al Haqbani, Minister of Labour; and Ibrahim Al Hunaishel, Director-General, Saudi Credit and Savings Bank (SCSB).
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Buy digital copy of this chapter - £22Sharjah has emerged as a centre for higher education in the GCC and is home to two universities ranked in the top 500 globally. Federal restructuring has led to the establishment of key entities such as the Federal Authority for Early Childhood Education, indicating a comprehensive approach to education reform. Noteworthy initiatives include the introduction of Ajyal Schools blending national and US curricula, a four-day school week and a comprehensive training programme to integrate Emirati students into the private sector. Sharjah has also been fostering research and innovation through the Sharjah Research, Technology and Innovation Park, attracting global talent and driving innovative. Scholarships, collaborations with private investors and a focus on specialised vocational academies contribute to Sharjah's goal of building a diversified and high-tech knowledge ecosystem. This chapter includes an interview with Tod Laursen, Chancellor, American University of Sharjah.
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Buy digital copy of this chapter - £22Kuwait’s government is actively seeking sizeable private and international investment in its economic diversification and privatisation drive, having made significant amendments to the country’s investment laws. A strong hydrocarbons sector feeds downstream industry, providing readily available feedstock and significant incentives for private investors to enter the country’s industrial markets. In recent years, a political impasse has impeded progress, a trend exemplified in February 2024 by the emir’s dissolution of Parliament. The creation of a more business-friendly political environment could significantly benefit the country, and in such a scenario regulatory changes are poised to contribute positively, fostering increased investment inflows and supporting a robust balance of trade. This chapter contains an interview with Sheikh Meshaal Jaber Al Sabah, Director-General of the Kuwait Direct Investment Promotion Authority.
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Buy digital copy of this chapter - £22Abu Dhabi’s commitment to diversification and improving its business environment led the emirate to record the MENA region’s fastest economic growth rate in 2022, at 9.3%. The focus on strengthening and diversifying manufacturing lines, alongside enhancing export capabilities, is propelling continued growth. Regulatory updates and progressive development strategies seek to revitalise foreign direct investment across key sectors such as real estate and high-value manufacturing. Collaborative efforts to bolster international trade and dynamic government bodies are helping to improve Abu Dhabi’s investment climate, fostering a thriving economy. As a result, Abu Dhabi has become a magnet for international investors, companies and entrepreneurs. The emirate’s expanding production profile is being harnessed to drive exports, contributing significantly to economic expansion. The synergy between public and private entities, exemplified by organisations like Mubadala Investment Company and ADQ, showcases the government’s commitment to driving growth and enhancing business ecosystems. This chapter contains interviews with Waleed Al Mokarrab Al Muhairi, Deputy Group CEO, Mubadala Investment Company, and Chairman, Mubadala Capital; and Hamad Al Ameri, Managing Director, Alpha Dhabi Holding.
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Buy digital copy of this chapter - £22Saudi Arabia's banking sector is undergoing its first regulatory overhaul in over half a century. These changes, combined with regulatory sandboxes and support for financial technology (fintech) firms, mark a rapid transformation. Traditional banking methods face disruption as digital payments and smartphone banking surge, and the competitive landscape includes local and international institutions. The Saudi Central Bank, a well-respected regulator, has been working to support expansion in the sector, which has witnessed increased net profit and assets. Fintech inclusion in the 2023 draft banking law and the Open Banking Lab signal modernisation. While the prospect of unstable global inflation could present liquidity pressure, there are reasons for optimism in the Saudi banking sector. This chapter contains interviews with Ayman Al Sayari, Governor, Saudi Central Bank; and Ibrahim Bin Hamad Al Rashi, CEO, Social Development Bank.
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Due to the introduction of new players, innovative products and services and regulatory reforms, the banking sector in Libya and Misrata has undergone significant changes. The Central Bank of Libya (CBL) and the Libyan Foreign Bank – which is 100% owned by the CBL – oversee and regulate the industry, with the Bank of Commerce and Development, the National Commercial Bank and Sahara Bank among the most significant players. Lending to small and medium-sized enterprises (SMEs) and households is a critical area of focus for the banking sector in Libya and Misrata. Banks have introduced dedicated units to make it easier for SMEs to gain access to credit and develop a more supportive environment for business entities. By providing digital banking services that are easy to use and secure, the CBL is taking steps to transform Libya into a cashless economy to address the role of cash in people’s lives. Misrata has emerged as an important centre for Libya’s insurance and non-banking financial sectors, attracting local and international players. Despite the challenges, the insurance sector has continued to grow steadily in recent years. Misrata has also emerged as a centre for non-banking financial services in Libya. This sector includes various services such as microfinance, leasing and factoring, and it has been growing steadily over the past few years. This chapter contains an interview with Farouk Laabidi, General Manager, Assaray Trade & Investment Bank.
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Buy digital copy of this chapter - £22The financial services industry plays a crucial role in Bahrain’s economy, contributing 16.8% to GDP. Recognising the need to reduce dependence on oil, the government has prioritised the development of the sector. In order to strengthen the local economy and facilitate recovery from the Covid-19 pandemic, the government introduced the Economic Recovery Plan. The plan is centred around securing over $30bn for investment and financing infrastructure projects. Additionally, the Central Bank of Bahrain devised the Financial Services Development Strategy 2022-26, which outlines five pivotal priorities: job creation, legislation and policies, financial markets, financial services and financial technology, as well as the insurance segment. This strategic framework aims to achieve medium-term goals, including raising the sector’s contribution to GDP to 20% by 2026 and further expanding it to 25% over the longer term. This chapter contains interviews with Usman Ahmed, Group CEO, National Bank of Bahrain and Yaser Alsharifi, CEO, Bahrain Islamic Bank.
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Buy digital copy of this chapter - £22Djibouti's financial services sector is undergoing notable reforms that aim to support broader economic growth. There is a focus on expanding technological infrastructure to enhance efficiency and accessibility in banking, capital markets and insurance. Updated regulations are being implemented to diversify the market, attract more players and foster healthy competition. Microfinance is being leveraged to boost the penetration of financial services, particularly among underserved segments of the population. Additionally, new laws are targeting the reduction of non-performing loans, aiming to strengthen the financial stability of institutions and promote responsible lending practices. These initiatives collectively contribute to the growth and modernisation of Djibouti's financial services industry, supporting economic development and financial inclusion. This chapter contains interviews with Ahmed Osman Ali, Governor, Central Bank of Djibouti; Mohamed Aden, General Manager, Assurance AMERGA; and Jama Hersi Abdi, General Manager, Salaam Africa Bank.
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Buy digital copy of this chapter - £22While many Nigerian banks are likely to see greater profitability in 2023, they are still grappling with distressed legacy loans to oil, gas and power companies. Moreover, the cautious policies of financial institutions and the Central Bank of Nigeria (CBN) are indicative of uncertainty in the global financial sector, reflected in continued caution in the policies at home. However, the CBN’s recent policy announcements regarding cryptocurrencies may portend a more expansive regulatory posture. Ultimately, the asset quality and capital ratios of banks are set to remain strong as such institutions maintain a conservative approach to credit growth. Furthermore, Nigeria’s financial technology (fintech) segment is set to further impact banking by streamlining and widening services offered by conventional banks, as well as by creating greater competition between conventional lenders and standalone fintech firms.
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Buy digital copy of this chapter - £22As a cornerstone of the economy, Oman’s banking sector experienced significant growth and development between 2012 and 2022. While the disruption caused by the Covid-19 pandemic – and in particular its knock-on effects on global energy markets, supply chains and inflation – has weighed on the pace of expansion, Omani banks’ strong performance and stability in the years preceding the health crisis have allowed the sector to weather the multiple global economic headwinds since 2020. One of the key strengths of the banking sector is its well-regulated environment, which is overseen by the Central Bank of Oman (CBO). The CBO has implemented strict regulations to ensure that banks operate in a safe and sound manner, which has helped to maintain the stability of the wider financial system. It has also implemented measures to promote financial inclusion, such as the introduction of mobile banking and the expansion of branch networks to reach underserved areas. This chapter contains an interviews with Tahir bin Salim Al Amri, Executive President, Central Bank of Oman; and Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat.
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Buy digital copy of this chapter - £22Kuwait’s trade and investment profile has long been dominated by oil, with revenue from its vast reserves used to fund overseas investment, generating sustainable long-term returns and safeguarding future prosperity. As Kuwait emerges from the disruption of the Covid-19 pandemic with robust public finances and a new government in place following elections in September 2022, it has an opportunity to drive forwards projects that diversify exports and attract inward investment in high-potential industries. Kuwait has a long-established legal framework that governs public-private partnerships, which could potentially play a key role in the country’s broader efforts to widen the scope of private sector participation in the economy under the direction of New Kuwait 2035. This chapter contains an interview with Sheikh Meshaal Jaber Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority.
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Buy digital copy of this chapter - £22Saudi Arabia’s banking sector is dynamic and competitive, comprised of domestic universal banks, foreign specialists and finance companies vying for market share. It is also a sector in the midst of significant and regulation-driven change, as the Kingdom’s leadership works to implement its long-term economic blueprint, outlined in detail in its Vision 2030 programme. Indeed, the financial sector is expected to play a major role in the Kingdom’s diversification initiatives. This cross-sectoral economic transformation is fuelled by technology and innovation-driven process optimisation to create new opportunities. In the banking sector specifically, digitalisation is seen as the key to unlocking a new era of enhanced services, eased connectivity and enhanced financial inclusion. This chapter contains an interview with Tony Cripps, CEO, Saudi British Bank.
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Buy digital copy of this chapter - £22Côte d’Ivoire’s banking sector has played a key role in post-2012 economic recovery and growth, financing large-scale infrastructure projects, private sector industrial expansion, agricultural activity and the services industry. The banking sector has been competitive and this trend is expected to continue in the short term, with both traditional banks and non-bank players increasing their product offerings in an effort to attract customers. Against the backdrop of an enabling regulatory framework, the accelerating adoption of digital and mobile money services could see financial technology companies and non-bank financial institutions expand further into micro-loans, while traditional banks will likely continue to scale down their operational costs, particularly branch networks. This chapter contains interviews with Tiémoko Meyliet Koné, Former Governor, Central Bank of West African States; and Aymeric Villebrun, CEO, Société Générale Côte d’Ivoire.
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Buy digital copy of this chapter - £22Bahrain is home to one of the region’s most vibrant financial sectors, with financial services rivalling oil and gas in terms of economic importance. Indeed, by late 2021 the financial sector had overtaken hydrocarbons as the largest contributor to the economy. The Islamic finance sector is also strong, with Bahrain ranking fourth out of 135 countries and second in the MENA region in terms of Islamic finance development in a 2021 report by financial analysis firm Refinitiv. Through initiatives such as the launch of the region’s first cross-border innovation centre in 2020, the kingdom is also working to establish itself as a global financial technology centre. This chapter contains interviews with Jean-Christophe Durand, CEO, National Bank of Bahrain; Abdulrahman Ali Saif, CEO, Bank of Bahrain and Kuwait; and Hassan Jarrar, CEO, Bahrain Islamic Bank.
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Years of careful financial regulation have helped to create a robust banking system. The sector has continued to boast low levels of non-performing loans, high capital adequacy ratios and sufficient provisioning. As a result, by 2022 it was clear that Egypt had avoided some of the worst economic consequences of the Covid-19 pandemic seen elsewhere. As of April 2022 around two-thirds of Egypt’s population remained outside the banking sector, underscoring opportunities in the sector. However, new challenges arose with Russia’s invasion of Ukraine in February 2022. Turbulence in capital markets led to a significant squeeze on foreign exchange liquidity, with the Central Bank of Egypt issuing restrictions on non-strategic imports in the first quarter of the year. Overall, the 2022-23 period is likely to continue to bring volatility to global financial markets. This chapter contains an interview with Hussein Abaza, CEO, Commercial International Bank.
Trade & Investment
Buy digital copy of this chapter - £22After weathering a succession of external shocks in recent years, Qatar’s trade and investment outlook is promising in the short and medium term. Years of low oil and gas prices, the 2017-21 economic blockade and the Covid-19 pandemic have all affected the flow of cross-border commrce and finance. The authorities are leveraging the 2022 FIFA World Cup to showcase Qatar’s wider economic opportunities, which benefit from the country’s strengthened regulatory regime, reformed administrative processes, and digitalised trade and investment operations. Qatar has actively sought foreign investment and amended laws to facilitate higher foreign ownership rates. Performance in the areas of trade and investment is set to improve further as countries around the world recover from the economic effects of the pandemic. This chapter contains interviews with Sheikh Ali Al Waleed Al Thani, CEO, Investment Promotion Agency Qatar; Fahad Rashid Al Kaabi, CEO, Manateq; and Abdulrahman Hesham Al Sowaidi, Acting CEO, Qatar Development Bank.
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Buy digital copy of this chapter - £22Moves prior to the Covid-19 pandemic to shore up the banking sector proved prescient, as they put local institutions in an advantageous position to face the unique challenges posed by the health crisis. After a sector clean-up, both assets and deposits rose as asset quality improved, and higher minimum capital requirements ensured that banks were more resilient to shocks. This positive trend continued into the pandemic, bolstered by digitalisation initiatives aimed at both improving service provision for existing customers and attracting the previously under- and unbanked. While the sector is concentrated, with the top-five banks accounting for nearly half of total deposits in the country, the introduction of new technologies and products is expected to foster diversification as new players disrupt the sector. This chapter contains interviews with Ernest Addison, Governor, Bank of Ghana; and Abena Osei-Poku, Managing Director, Absa Bank Ghana.
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Both Nigeria’s banking system and capital markets have seen significant changes over the course of recent years. Indeed, measures implemented in 2020 to restructure loans, enhance oversight and boost accountability are expected to create stronger sector players in the longer term. Meanwhile, an ongoing focus on financial inclusion has led to the emergence of new segments, including non-interest finance, microbanks, bancassurance and payment service banks. However, the economic effects of the Covid-19 pandemic are still expected to affect the banking system in the short term, including loan quality, profitability and currency stability. Even so, the Central Bank of Nigeria has identified banks as key players in a sustainable recovery due to their ability to strategically allocate credit to fuel widespread growth. Meanwhile, continued steps towards demutualisation and the launch of the Growth Board in 2020 will make the Nigerian Stock Exchange more competitive. The wider investment landscape is also set to benefit from ongoing efforts to bolster financial inclusion and promote awareness of the advantages of capital markets as an alternative to conventional banking when it comes to funding business expansion and growing and preserving individual wealth.
This chapter contains an interview with Samaila Zubairu, CEO of Africa Finance Corporation.
Education & Health
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With regular activities severely disrupted in 2020 due to the Covid-19 pandemic, schools in Sharjah had to shift quickly to online learning and integrate new health protocols when in-person instruction resumed. Rapid adoption helped the emirate maintain its position as a regional centre for education. Hospitals and clinics, meanwhile, devoted substantial resources to testing and care to fight the novel coronavirus. Priorities established before the pandemic, as well as lessons learned in 2020, are now shaping the education and health sectors in 2021. One of the primary short-term goals of the Sharjah authorities is to manage the pandemic, and ensure education and health services continue with minimal disruption.
This chapter contains interviews with Muhadditha Al Hashimi, Chairperson, Sharjah Private Education Authority; and Abdulla Ali Al Mahyan, Chairman, Sharjah Health Authority.
Financial Services
Buy digital copy of this chapter - £22The Philippines’ financial services sector entered the Covid-19 pandemic on a solid footing, thanks to decades of regulatory reform to address the vulnerabilities exposed by the 1997-98 Asian financial crisis. Strong capital buffers, high levels of provisioning and near-universal public health cover insulated the country from many of the impacts that other markets continue to wrestle with. While geographic spread and socio-economic disparities remain structural barriers, increasingly tech-focused growth strategies are improving both bottom lines and financial inclusion among the population in measurable ways. The country has experienced a boom in digital banking as a result of the Covid-19 pandemic, with several digital-only banks announcing plans to enter the market, legacy banks rapidly upgrading their online offerings and the central bank eyeing ambitious digital banking targets. This chapter contains interviews with Benjamin E Diokno, Governor, Bangko Sentral ng Pilipinas; Kelvin Ang, CEO, AIA Philam Life; and Sanjiv Vohra, President and CEO, Security Bank.
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Buy digital copy of this chapter - £18Papua New Guinea has an abundance of wealth in hydrocarbons and minerals that provides it with a solid foundation for economic growth, but also leaves the country vulnerable to the volatility of global commodity markets. As such, the government is following a long-term economic development strategy that aims to expand the state’s revenue share from lucrative extractive projects, encourage offshore processing of natural resources, promote inclusive growth and attract new investments in sectors deemed to offer significant potential, notably agriculture. The government took decisive actions to prevent community transmission of Covid-19, which constrained business activity in the first half of 2020 but also left the country well placed to bounce back without widespread public health consequences. If policymakers can maintain their success in containing the virus and conclude negotiations for resource projects while channelling revenue towards other productive sectors, the prospects for investment are bright. This chapter contains interviews with Sasindran Muthuvel, Minister for State-Owned Enterprises; and Ian Ling-Stuckey, Treasurer.
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The largest of its kind in North Africa, Egypt’s banking sector has also long been seen as one of the most stable in the region. Since 2010 the industry has overcome the challenges of political revolution, currency crises and an interest rate environment that has acted as a barrier to credit extension. In early 2020 the outlook for the sector was broadly positive, but by the close of the first quarter it became apparent that Covid-19 would have a deleterious effect on the domestic economy. As a result, Egypt’s financial institutions are likely to focus on maintaining their asset quality rather than boosting their lending portfolios. Social distancing, meanwhile, is set to add momentum to the more widespread adoption of online banking and digital payments, which should help to boost financial inclusion. This chapter contains an interview with Hisham Ezz Al Arab, Chairman and Managing Director, Commercial International Bank.
Trade & Investment
Buy digital copy of this chapter - £18Abu Dhabi has leveraged its hydrocarbons wealth to pursue a sovereign investment strategy that spans the globe, establishing itself as one of the largest overseas investors in the world. To strengthen the exchange of capital and ideas, the government has worked to create free zones to capture foreign direct investment, benefitting the emirate’s economic diversification strategy. Abu Dhabi’s status as a trading power, meanwhile, is supported by large export volumes of crude and refined oil bound for destinations as diverse as the Netherlands and Japan, and the emirate’s expansive logistics infrastructure has helped it become a primary intake point for imports to GCC countries. This chapter contains interviews with Tariq Bin Hendi, Director-General, Abu Dhabi Investment Office; and Mohamed Helal Almheiri, Director-General, Abu Dhabi Chamber of Commerce and Industry.
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Indonesia is the only G20 economy in South-east Asia and is home to the world’s fourth-largest population. While it possesses a variety of natural resources, taking full advantage of this endowment is challenging due to constraints such as an archipelagic geography, an infrastructure deficit and workforce inefficiencies. Reforms aimed at addressing some of these shortcomings are on the table, though they face growing resistance, especially amid the Covid-19 crisis. Real GDP growth was 5.03% in 2019. Prior to the outbreak of Covid-19, an uptick in GDP was expected in 2020. At a policy meeting in February, Perry Warjiyo, governor of Bank Indonesia, predicted Covid-19 would have a V-shaped effect on economic growth in 2020, with a baseline growth rate of 5.1% that could rise to 5.2% with fiscal policy support. However, as the pandemic quickly worsened and numerous countries enacted strict lockdown measures, this was revised down to 2.3% in April. This chapter contains interviews with Sri Mulyani, Minister of Finance; Perry Warjiyo, Governor, Bank Indonesia; and Wimboh Santoso, Chairman, Financial Services Authority.
Banking
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The banking sector has been central to the country’s ongoing economic recovery, providing a strong growth platform for lenders operating in Côte d’Ivoire. As liquidity demands become stricter, new opportunities for mergers and acquisitions may arise – especially as some smaller competitors face difficulties raising new capital and expanding their customer base. Challenges for the sector’s growth in the short term notably include the 2020 presidential election, which may lead investors to adopt a wait-and-see approach. On a global level, it remains to be seen how far – and for how long – banking operations and economic activity more broadly will be disrupted by the Covid-19 pandemic. In the meantime, the ongoing integration of more stringent liquidity and lending ratios is helping to solidify the Ivorian banking sector. This chapter contains interviews with Tiémoko Meyliet Koné, Governor, Central Bank of West African States; and Jean-Luc Konan, Managing Director, Groupe COFINA.
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Buy digital copy of this chapter - £18The revenue raised from outgoing shipments of oil fund the government’s social and infrastructural programmes, and are therefore central to the Kingdom’s economy. The onset of the Covid-19 pandemic in the first quarter of 2020 has slowed economic activity and reduced investor sentiment around the world, thus its effect on the Kingdom’s trading activity and inward investment is yet to be seen. However, the process of legislative and regulatory reform that has altered the nation’s trading and investment landscape in recent years is expected to continue to long-term benefit. The government’s goal, according to Vision 2030, is to rank within the top-20 countries on the World Bank’s ease of doing business index – a feat that will require additional revision and innovation in the decade to come.
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Qatar’s wealth of hydrocarbons puts it at the centre of global trade, with its liquefied natural gas feeding factories in China and powers stations in Japan, while its helium is used in everything from MRI scanners to aircraft parts. Qatar's rapid economic growth in the past two and a half decades should help the trade sector weather the challenges it faces in 2020. On the home front, investors are working to develop industrial segments that can draw on Qatar’s multiple economic strengths to make innovative products that can leverage its modern port and airport infrastructure to develop new overseas markets. This chapter contains interviews with Fahad Rashid Al Kaabi, CEO, Manateq; and Ali Al Waleed Al Thani, CEO, Investment Promotion Agency.
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In recent years Morocco’s banking sector has experienced a period of consolidation at home and expansion abroad following a surge in lending in the decade leading to 2012. The country’s leading banks are now among the largest in Africa, with extensive continent-wide holdings. Despite GDP growth trending lower and the associated slowdown in lending and spike in non-performing loans, profitability and capitalisation have remained relatively stable, underpinned by important regulatory changes. The authorities are working to increase financial inclusion by targeting small and medium-sized enterprises, women, youth and rural residents, all of whom are traditionally under-represented in the financial system. Diversified offerings, including sharia-compliant participatory banking, and financial technology products, such as e-wallets, are important developments towards this end. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Kamal Mokdad, CEO and Head of International Global Banking, Banque Centrale Populaire.
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In the face of economic sluggishness in 2019, Trinidad and Tobago’s banking sector showed continued consolidation and resilience. As the sector plays an increasingly critical role in the country’s diversification progress, executives are focused on supporting small and medium-sized enterprises. In the near term, domestic banks are seeking to hone their competitive edge and enhance their capacity for dealing with digitalisation as personal finance needs evolve. Overall, releasing the potential of non-energy sectors via structural reforms will pave the way to develop an economy equipped with greater financial clout. Increasing the ease of doing business, reducing administrative and unproductive barriers to investment, and assuming better flexibility in response to rising global competition would also aid the country in fostering durable growth over the longer term. This chapter contains interviews with Nigel Baptiste, CEO, Republic Financial Holdings; and Ronald Carter, CEO and Chief Country Officer, JMMB Bank TT.
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A regulatory crackdown on poor business practices and weak capital positions in Ghana’s banking sector has resulted in a series of market exits since August 2017. The outcome is a smaller but more sustainable banking industry, though this has come at a price. The Bank of Ghana puts the total cost of its clean-up operation at GHS10.98bn ($2.1bn), equivalent to over 3% of the nation’s GDP in 2019. The central bank’s reform effort means that Ghana’s banks will have greater capacity to respond to rising demand from the private sector, thanks to larger capital bases and improved corporate governance structures. Demand for credit is likely to be driven by growing sectors such as manufacturing and mining, as well as the government’s need for debt financing to cover its fiscal deficit. This chapter also contains interviews with Ernest Addison, Governor, Bank of Ghana; and Julian Opuni, Managing Director, Fidelity Bank.
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Buy digital copy of this chapter - £18A powerful driver of economic and non-oil growth, Bahrain’s banking sector plays an important role in ongoing diversification and development efforts. Furthermore, the kingdom has maintained its status as a regional financial centre, even with increasing competition from GCC neighbours. With financial technology developing rapidly, and profits, soundness indicators and asset growth remaining healthy, Bahrain’s banking system is well positioned to continue leading non-oil growth and diversification in the kingdom. Assets and profits have risen in recent years, with listed banks recording strong lending growth. The percentages of delinquent and non-performing loans have declined, even though overall mortgage and credit card lending has increased. This chapter contains an interview with Jean-Christophe Durand, CEO, National Bank of Bahrain.
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Oman’s banking sector has continued to perform well despite economic headwinds. Falling oil prices have increased the demand for credit and, as a result, banks’ lending and assets have continued to expand, although liquidity has tightened. Meanwhile, the vibrant Islamic banking and financial services segments have supported the sector’s growth. According to the Central Bank of Oman, at the end of 2018 there were seven local commercial banks operating across 420 branches; nine foreign banks with 31 branches; two local Islamic banks with 24 branches; and six Islamic windows, which are part of conventional parent banks, with a total of 58 branches. This chapter contains an interview with Tahir bin Salim Al Amri, Executive President, Central Bank of Oman.
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Since initiating the process of liberalising its economy and encouraging greater foreign participation, Myanmar’s international investment inflows and trade have expanded significantly. This has gone hand in hand with strong domestic economic growth, even at a time of global trade slowdowns and protectionist headwinds. Capitalising on its strategic location as a crossroads between China, India and South-east Asia, as well as leveraging its abundant natural resources and youthful population, Myanmar has indeed made remarkable progress in just a few short years. Yet the horizon is not without storm clouds, both in the form of economic responses to the country’s internal conflicts from the international community and continuing challenges to the ease of doing business. Nevertheless, investment from Asia’s economic powers remains strong, even if Western commitments are limited. This chapter contains interviews with U Thaung Tun, Chairman, Myanmar Investment Commission; and Minister of Investment and Foreign Economic Relations; and U Than Myint, Minister of Commerce.
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Home to nearly one-third of the GCC’s banking assets, the UAE’s banking industry is the biggest in the region. Dubai is one of the nation’s two financial centres, and through its vibrant onshore and offshore markets, the emirate has established itself as an integral component of the global financial services sphere. Despite the adverse effects of low oil prices in recent years, the domestic banking sector has remained both well capitalised and liquid, while its financial performance has been characterised by rising net profits and lower cost-to-income ratios. This chapter contains interviews with Bernd van Linder, CEO, Commercial Bank of Dubai; and Elissar Farah Antonios, Cluster Head UAE, Levant and Iraq, Citi.
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After accumulating large amounts of wealth through the export of oil, Kuwait is now looking to deploy that wealth to develop and diversify the economy. The nation aims to attract $200bn in foreign direct investment over the next 15 years to 2035 and become a global centre for trade and finance. The government is making concrete steps towards achieving its ambitions with incentives for the private sector and investments of its own. This chapter contains interviews with Sheikh Meshaal Jaber Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; and Meshal Alothman, Director-General, Public Institution for Social Security.
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Chastened by a credit boom and bust during the first half of the 1990s, the authorities have reformed, liberalised and privatised the banking sector while ensuring strong regulatory oversight and, in turn, relatively conservative lending practices. This explains, in part, the small size of the sector as well as the low levels of financial inclusion across the country. While the banking sector serves large corporations and the middle class relatively well, many smaller – and particularly informal – businesses struggle to access credit, and almost half of the 125.9m-strong population that lives in poverty have limited access to financial services. The authorities’ efforts to boost financial inclusion and improve financial literacy are beginning to bear fruit, however, with bank accounts becoming more ubiquitous and consumer credit levels picking up. This chapter contains an interview with Alejandro Díaz de León, Governor, Banco de México; and Carlos Serrano, Chief Economist, BBVA México.
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Buy digital copy of this chapter - £18Efforts to increase public governance are gradually bolstering confidence in Papua New Guinea’s economy, despite national performance being heavily dependent on somewhat-unpredictable extractive industries. These were affected in the first half of 2018 by an earthquake in February, and recovered in the second half when international commodities prices rose. Recovery in liquefied natural gas production and mining operations after the earthquake continued into 2019, yet weeks of political unrest led to the resignation of Peter O’Neill as prime minister in May. Succeeded by James Marape, the former minister of finance, the new coalition government has inherited significant challenges alongside a host of exciting opportunities. This chapter also contains interviews with Dairi Vele, Treasury Secretary; Robert Nilkare, President, Business Council of Papua New Guinea; Paul Barker, Executive Director, Institute of National Affairs; and Stacey O’Nea, CEO, Port Moresby Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £18In a context of significant macroeconomic challenges, Tunisia’s banking sector has demonstrated solid performance over 2017 and 2018. However, the banking sector will continue to grapple with a number of pressing challenges in the coming years, stemming in large part from weaknesses in the broader economy, which raises banks’ portfolio risk. Although the central bank is likely to continue to push for sector consolidation, in order to strengthen the sector’s players and boost overall stability, it is uncertain when a clear move towards consolidation will begin to take place. For the moment, having a large number of inadequately financed banks will continue to prevent the sector from making a more complete contribution to the economy. This chapter contains interviews with Mohamed Agrebi, General Manager, Banque Internationale Arabe de Tunisie; and Essma Ben Hamida, Co-Founder, Enda Tamweel.
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With some 175 ethnolinguistic groups spread across the vast archipelago of the Philippines, uniting remote regions and distinct communities under a national identity has been a challenging task for the central government. Political power gradually became concentrated in the present capital Manila under Spanish and US colonial regimes, and the notion of a strong central government was embraced by many of the initial post-colonial administrations. However, the enactment of the Local Government Code of 1991 transferred more power to local government units. In order to promote development, resolve lingering tensions and attract investment in the regions, the administration of President Rodrigo Duterte is trying to gain support for constitutional reform to establish a federalist system of government that hands more autonomy to the regions. This chapter also contains an interview with Vince Dizon, President and CEO, Bases Conversion and Development Authority.
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Buy digital copy of this chapter - £18The banking sector has already begun to show signs of improvement in line with macro economic indicators. Measures taken by the national government and the Central Bank of Colombia appear to have enabled the sector to weather the storm, and improving economic conditions should pave the way for a positive performance from the financial sector. Despite the slow evolution of equities trading, Colombia’s capital markets appear to be moving in the right direction with regard to corporate debt, and the expansion of derivatives, Venture Capital and private equity markets. Moreover, regulators continue to engage closely with their counterparts to foment the further development of the Latin American Integrated Market, meaning the regional market will likely continue to gain prominence. The insurance sector in Colombia looks set to maintain its positive trajectory over the medium term, with GDP forecast to expand, and a population increasingly willing to purchase new insurance products. Also, the growth of insurtech will likely be a decisive shift for both customers and providers, giving customers a better experience and broader choice of products, and firms the ability to tap into artificial intelligence and data analytics to boost sales. This chapter contains interviews with David Bojanini, CEO, Grupo SURA; Juan Pablo Córdoba, President, Colombian Securities Exchange; and Javier Díaz Fajardo, President, Bancóldex.
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The banking crises of the 1980s and 1990s have left Peru with a highly concentrated, conservative banking system that is on one of the region’s most solid foundations, boasting strong capital and liquidity. The sector has retained a positive outlook from global credit ratings agency Moody’s since November 2017, which last reaffirmed this view in October 2018, predicting a recovery in loan growth, stable asset risk and solid profits to bolster capital buffers. However, though domestic lending to the private sector has increased, provision of credit remains comparatively low, at 41.1% of GDP. Furthermore, despite significant progress to increase banking penetration, financial inclusion metrics remain below the Latin American average. If Peru’s financial system truly embraces the digital era, financial inclusion indicators should improve, representing a chance for banks to vastly grow their customer base. This chapter contains an interview with Gianfranco Ferrari, CEO, Banco de Crédito del Perú.
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Buy digital copy of this chapter - £18Egypt has been a regional banking powerhouse for more than a century and is home to the biggest bank¬ing sector in North Africa. The industry is also one of the region’s most stable, surviving both the economic turbulence that followed the Arab Spring and a more recent foreign currency crisis that saw government auctions of US dollars and the growth of a parallel market for foreign currency. The resolution of the currency challenge through the flotation of the Egyptian pound in 2016 has helped strengthen bank profitability, and a positive economic outlook for 2019 underwrites the continuance of this trend. However, the sector also faces near-term challenges, including a looming deadline for a bold small and medium-sized enterprise lending target, the introduction of new accountancy standards and the probable implementation of a significantly revised banking law. This chapter contains interviews with Hisham Ezz Al Arab, Chairman, Federation of Egyptian Banks and Commercial International Bank; and Dante Campioni, CEO, AlexBank.
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Buy digital copy of this chapter - £18Indonesia is one of the world’s richest countries in terms of natural resources. With extensive oil, gas and solid mineral deposits, it is also one of the largest global economies. In 2017 the economy passed the $1trn mark, making it the 16th largest in the world. Its growing middle class, emphasis on industrialisation and services, and drive to improve infrastructure are laying the foundations for continued economic growth. Indonesia is also now home to four unicorns – start-ups valued at $1bn or above – highlighting its potential to develop the entrepreneurial and creative industries. The country is also working to attract both foreign and domestic funding by opening up and incentivising investment in additional sectors, as well as the development of infrastructure. This chapter also contains interviews with Perry Warjiyo, Governor, Bank Indonesia; Triawan Munaf, Chairman, Creative Economy Agency; and Wimboh Santoso, Chairman, Financial Services Authority.
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Buy digital copy of this chapter - £18Firming oil prices have brought about an improvement in Saudi Arabia’s trade balance in 2018. The government’s longer-term ambition, however, is to protect itself from the uncertainty of the energy market by diversifying the export base away from hydrocarbons. The Kingdom’s newly formulated economic strategy also aims to boost foreign investment, thereby reducing the economy’s dependence on public spending. Both of these objectives are being pursued through a cross-government effort that is reshaping Saudi Arabia’s business environment. The changes being made to the legislative and regulatory frameworks that govern trade and investment bode well for economic growth in the long term, although concrete results in the short term have yet to be secured. This chapter contains an interview with Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority.
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Buy digital copy of this chapter - £18Rising oil prices and effective policy-making have played a significant role in returning Qatar to a healthy trade surplus. A swift response by a range of government ministries has secured new routes to global markets. In March 2018 Hamad Port, which officially opened in 2017, celebrated the handling of 1m twenty-foot equivalent units ahead of schedule. Foreign investment also continues to rise on a year-on-year basis. Legislators are overhauling laws and regulations in order to maintain this positive trend, a process that promises to open the economy to further global capital. This chapter includes interviews with Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority; and Fahad Rashid Al Kaabi, CEO, Manateq.
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Buy digital copy of this chapter - £18Sri Lanka’s economy has been making progress in recent years, which should stand it in good stead during the potentially difficult times ahead. Major efforts have been made to instil greater fiscal discipline, and modernise monetary and exchange rate policy, while steps have also been taken in the management of government expenditure and the maximising of public sector revenue. Meanwhile, trade and foreign direct investment have continued to rise, and infrastructure development is gradually moving Sri Lanka towards realising its long-term goal of becoming an essential transportation and trans-shipment centre for the Indian Ocean and South Asia. There has also been positive progress in establishing the island as a tourism destination and in mobilising the population to help cultivate a more entrepreneurial, gender-balanced and inclusive economy. This chapter contains interviews with Rajendra Theagarajah, Chairman, Ceylon Chamber of Commerce; and Krishan Balendra, Chairman, John Keells Holdings.
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Buy digital copy of this chapter - £18In both Abu Dhabi and the wider UAE, diversification away from the hydrocarbons sector is a key component of economic planning, and the emirate is moving to increase the role of non-oil exports in its trading profile. This will largely be supported by continued investment in the emirate’s port infrastructure, industrial and free zones, and the connectivity between the two. Agreements with Chinese authorities are expected to both boost port capacity in the emirate and help to build a foreign direct investment pipeline from China. This chapter contains interviews with Mohamed Thani Murshed Al Rumaithi, Chairperson, Abu Dhabi Chamber of Commerce; and Ahmed Ali Al Sayegh, Chairman, Abu Dhabi Global Market.
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Buy digital copy of this chapter - £18Featuring both onshore and offshore markets, Dubai’s banking sector has become an integral part of the global financial services universe. Facilities range from conventional financial intermediation in a competitive domestic landscape to advanced specialist services housed in the Dubai International Financial Centre, the emirate’s financial ser¬vices free zone. Dubai has also positioned itself as a global centre for Islamic banking, a young and fast-developing market segment. With oil prices ticking up in the latter half of 2017 and first half of 2018, the outlook for Dubai’s financial services providers is improving in tandem. This chapter contains an interview with Bernd van Linder, CEO, Commercial Bank of Dubai.
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Buy digital copy of this chapter - £18In hand with sustained economic growth in recent decades, Morocco has been able to establish one of the region’s most competitive and sophisticated banking sectors. This has translated into significant penetration levels for banking services, a wide array of products and a handful of large-scale banking players with international reach across the continent. Despite the years of development, however, the sector has had to contend with slower rates of lending and a lukewarm economic context of late. This has led to some strategy realignment, both by the country’s lenders as well as by the monetary authorities, who are keen to maintain the industry’s role as a dynamic factor in the kingdom’s economy. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Ismail Douiri, General Manager, Attijariwafa Bank.
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Buy digital copy of this chapter - £18Ghana’s banking industry has undergone a challenging period in recent years, weathering an economic downturn and a rising tide of non-performing loans. While delinquent debts have undermined sector stability and remain a key challenge, the country’s lenders continue to grow their assets and remain profitable. With a wholesale regulatory reform of the sector well under way, the prospects of continued expansion by a strengthened and revitalised sector are good. Moreover, stronger economic growth and increased stability among lenders is expected to boost sector performance in 2019. Most ratings agencies anticipate a return to loan growth and rising fee incomes as confidence returns to the industry after its recapitalisation. This chapter contains interviews with Ernest Addison, Governor, Bank of Ghana; and Daniel Addo, CEO, Consolidated Bank Ghana.
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Buy digital copy of this chapter - £18Despite the challenges to Tunisia’s economy, the banking sector has experienced positive growth in recent years. Several risks, however, still threaten the overall health of the sector, including a reduction in available liquidity, low levels of capitalisation and credit risk. In an effort to address these issues, the Central Bank of Tunisia has been implementing significant structural reforms, however, barriers to consolidation may limit activity in the short term. In the longer term, the financial system will be instrumental to diversifying the economy’s sources of funding away from traditional banks, with more inclusive opportunities stemming from the Islamic banking, microfinance and leasing segments. This chapter contains interviews with Chedli Ayari, Former Governor, Central Bank of Tunisia; and Habib Ben Hadj Kouider, Director-General, Banque Nationale Agricole (BNA).
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Buy digital copy of this chapter - £18Growth in the banking sector has maintained an upward trajectory in recent years, with banking assets growing and investors taking note of the favourable and robust regulatory environment. This, combined with the sector’s profitability, high penetration rates and investment in financial technology, has strengthened Bahrain’s position as a regional leader in banking. Bahrain’s proximity to Saudi Arabia, combined with the availability of an experienced banking workforce, the ease of recruiting expatriates and respect for the Central Bank of Bahrain, have seen it maintain a role as a regional, and in particular Saudi-focused, centre for financial services. This chapter contains an interview with Jean-Christophe Durand, CEO, National Bank of Bahrain.
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Buy digital copy of this chapter - £18Bahrain is among the smaller economies in the GCC, but it is also one of the more diversified, with well-developed financial services and manufacturing sectors. Despite its diversified economy, Bahrain nonetheless faced pressures in recent years as a result of the 2014-15 drop in oil prices. However, an aid package from other Gulf states, announced in late 2018, and an accompanying fiscal-adjustment plan, as well as growth on the back of a partial oil price recovery and a recent major oil and gas discovery, offer hope for a turnaround in 2019. This chapter contains interviews with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board; Mahmood Alkooheji, CEO, Mumtalakat; and Sameer Nass, Chairman, Bahrain Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £18The banking sector has played a key role in financing reconstruction in Côte d’Ivoire since the end of the decade-long political and military crisis in 2011. With headline economic growth expected to hover around a robust 7% per annum over the next five years, Côte d’Ivoire’s banking sector is likely to remain attractive, with more banks attempting to penetrate the market. However, the progressive implementation from January 2018 of international prudential standards means that banks will have to boost their capital if they want to maintain their level of lending. This in turn is expected to drive consolidation in the sector in the medium term. It is hoped this will have the added benefit of improving banks’ risk management. This chapter contains interviews with Tiémoko Meyliet Koné, Governor, Central Bank of West African States; and Aymeric Villebrun, CEO, Société Générale de Banques en Côte d’Ivoire.
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Buy digital copy of this chapter - £18Benefitting from a large population, an ideal geographic position and abundant natural resources, Myanmar’s trade and investment volumes hold enormous potential for future expansion, although the country is facing both domestic and external challenges. Foreign direct investment inflows soared from 2011, upon the country’s economic liberalisation and democratic transition, although they have slumped recently in the wake of ongoing restrictions on foreign business activities, delayed legal reforms and rising international scrutiny of domestic conflicts. Trade volumes have expanded considerably since 2011, supported by strong agricultural output, energy exports and expansion of the labour-intensive garment. However, imports continue to outpace exports and the potential withdrawal of EU trade privileges has darkened the near-term outlook. This chapter contains interviews with U Than Myint, Minister of Commerce; U Zaw Myint Maung, Chief Minister, Regional Government of Mandalay; Patrick Ip, Managing Director, China-ASEAN Investment Cooperation Fund; and Hiroyuki Ishige, Chairman, Japan External Trade Organisation.
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Buy digital copy of this chapter - £18Oman’s banking sector has weathered the economic downturn resulting from the 2014-15 hydrocarbons price drop without a significant erosion in asset quality, and returned to its long-term trend of deposit and loan growth. As a result of firmer oil prices and a broadly positive outlook for the sultanate’s economy, the industry is preparing for a new phase of credit expansion. However, challenges remain. Recent years have seen banks struggle to meet previous levels of profitability, and an ongoing process of regulatory reform is placing a strain on the bottom line of some institutions. This chapter contains interviews with Tahir bin Salim Al Amri, Executive President, Central Bank of Oman; and Waleed Al Hashar, CEO, Bank Muscat.
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The decision by authorities to embark on a programme of monetary financing towards the end of 2017 marked somewhat of a turnaround in a difficult year for Algeria’s banks. A competitive dynamic has remained in recent years, with no new entrants, exits, mergers, acquisitions or privatisations of note. Efforts to improve financial inclusion are under way, however, attempts to grow the banking sector through the mobilisation of domestic resources have been dampened by Algerians’ strong cultural preference for cash and a certain distrust of financial intermediaries. Over the medium term, the end of the monetary financing programme has the potential to add impetus to capital market development, as it is likely to be accompanied by a tightening of bank liquidity and a need for public and private sectors alike to explore alternative sources of funding to bank lending. This chapter contains interviews with Mohamed Loukal, Governor, Bank of Algeria; Brahim Semid, CEO, Banque Extérieure d’Algérie; and Lazhar Sahbani, Partner, PwC Algeria.
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Buy digital copy of this chapter - £18Nigeria’s banking sector is a diversified one, in which the largest banks follow the universal banking model and a range of specialised actors tap specific niches. New trends include merchant banks, sector-specific lending vehicles, and from policymakers, increased focus on financial inclusion. These include microfinance, mobile tools, and the establishment of a network of mobile money agents to service this developing financial infrastructure. For now, however, the banking sector features a slate of risks that leaves banks reluctant to lend to the private sector, and economic actors of most types suffer from inadequate access to finance. Despite this, overall performance is not expected to slide due to the counteracting improvements in the economy. This chapter contains interviews with Godwin Emefiele, Governor, Central Bank of Nigeria; Abubakar Jimoh, Managing Director and CEO, Coronation Merchant Bank; and Emeka Emuwa, CEO, Union Bank.
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Buy digital copy of this chapter - £18As a founding member of the Organisation of the Petroleum Exporting Countries (OPEC) as well as the site of approximately 7% of the world’s crude oil reserves, Kuwait has long been a major energy exporter. In 2017 the nation’s oil sector generated more than 90% of government revenues, and oil exports were equal to some 42% of GDP, the highest figure among member states, according to OPEC data. Like other countries in the GCC, Kuwait has taken advantage of these revenues both to build a deep portfolio of global investments, thereby ensuring long-term returns, and to invest in economic diversification projects at home, with an eye towards developing new industries and attracting foreign direct investment in strategic areas.
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Djibouti’s economic growth, based to a large degree on capital investment in infrastructure development and logistics, has been underscoring the expansion of its banking system. Since liberalisation of the sector in 2006, a number of new financial institutions have set up shop in the country, hoping to take advantage of its growing role as a regional transport and financial hub. With a population of approximately 900,000 inhabitants as of mid-2018, the country’s domestic financial services market remains small. However, the low level of banking penetration can also be seen as an opportunity for growth, both in terms of new customer acquisition and product sophistication. This chapter contains interviews with Ahmed Osman Ali, Governor, Central Bank of Djibouti; and with Nadhir Zouaghi, President, Professional Association of Credit Institutions.
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Buy digital copy of this chapter - £18As the full-year results for 2017 began to emerge, the effects of a new cap on lending interest rates become apparent, with most banks reporting reduced margins and profitability. A tighter lending environment, however, has encouraged banks to find alternative routes to revenue. Technological innovation, in particular, has received a fresh impetus as lenders reach out to prospective customers through new channels, such as mobile banking. However, despite the challenges of 2017, solid fundamentals point to continued positive performance in 2018. Increases in net assets and deposits, consolidation and the continued streamlining and digitisation of bank services have contributed to sector resilience. This chapter contains interviews with Patrick Ngugi Njoroge, Governor, Central Bank of Kenya; Joshua Oigara, CEO and Managing Director, KCB Group; Jeremy Awori, CEO, Barclays Kenya; and Kenneth Kaniu, CEO, Britam Asset Managers.
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Buy digital copy of this chapter - £18The banking sector in Trinidad and Tobago maintained profitability and consolidated its financial stability in 2017, in conjunction with broader improvements in economic health. Banking is poised to play an important role in supporting the country’s continued development, with executives in the sector expecting T&T’s solid economic performance in 2018 to continue into 2019. In a May 2018 public address, Colm Imbert, the minister of finance, announced that the country was on the road to an economic rebound. In the near term, domestic banks are seeking to hone their competitive edge and enhance their capacity for dealing with technological change as the economy evolves and expands. This chapter features interviews with Ronald Harford, Chairman, Republic Financial Holdings; and Karen Darbasie, Group CEO, First Citizens Trinidad and Tobago.
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Buy digital copy of this chapter - £18Although 2017 was another challenging year for Papua New Guinea, with subdued GDP growth against a backdrop of falling government revenues, cuts to public spending and rising fiscal challenges, economic recovery is gradually gathering steam in 2018. A steady uptick in commodity prices supported export growth and augmented the country’s trade surplus, while agriculture and mining recovered from severe drought that significantly impacted economic activity in 2016. Maintaining growth after a boom period – which was driven by construction of the country’s first major liquefied natural gas facility, PNG LNG – has proven challenging for policymakers. However, the economic slowdown has pushed the government to implement fiscal and policy reforms aimed at fostering domestic growth and the non-extractives economy. This chapter contains interviews with Charles Abel, Deputy Prime Minister and Treasurer; Hulala Tokome, Chairman, National Superannuation Fund; and David Toua, Chairman, APEC Business Advisory Council.
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Buy digital copy of this chapter - £18After the adoption of more market-friendly policies, Argentina’s banking sector has gradually begun to show signs of a return to positive growth. Since 2015 the government has been undertaking a number of reforms aimed at boosting investor confidence in the sector, increasing financial intermediation and improving the overall health of the financial services industry. At the same time, banks have experienced strong loan portfolio increases within corporate and consumer segments, fees and procedures have been eased for users, and digital services are on the rise. While reforms engendered since 2015 are assumed to be paying off, the financial services industry and the entire Argentine economy are still enduring a period of structural reforms. This chapter contains interviews with Javier González Fraga, President, Banco Nación; and Eduardo Escasany, President, Grupo Financiero Galicia.
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Buy digital copy of this chapter - £18Despite the deceleration of the Peruvian economy in 2017, driven in large part by the simultaneous impacts of the El Niño climate cycle and the corruption scandals related to Brazilian construction giant Odebrecht, the banking sector has remained stable. According to international credit ratings agency Moody’s, at the close of 2017 the sector was exhibiting sustained profitability, diverse earning sources and improved operating efficiency, with the annual report from the Peruvian Association of Banks recording a 4.7% increase in system-wide net income to PEN2.46bn ($757.4m). In 2018 the banking sector is expected to continue to act as an economic bellwether, maintaining positive indicators in terms of liquidity, solvency and efficiency. This chapter contains interviews with Julio Velarde Flores, President, Central Reserve Bank of Peru; Wilber Dongo, Central Business Director, Caja Arequipa; and Eduardo Torres-Llosa, General Manager, BBVA Continental.
Trade & Investment
Buy digital copy of this chapter - £18With a robust export economy dominated by the manufacturing industry, Thailand has long benefitted from foreign investment in key sectors, such as automotive and electronics, while its agriculture and agro-food base has pushed it to the forefront in global rubber, rice and seafood production. Trade and investment have been under pressure in recent years, and a number of factors have contributed to foreign direct investment gradually falling in recent years. Combined with an ageing population and a shrinking low-cost labour force, Thailand is struggling to compete regionally. Government plans to attract new investment in special economic zones located on the border have not come to fruition, and the country is being outpaced by its ASEAN neighbours in terms of investment growth. This chapter contains interviews with Sontirat Sontijirawong, Minister of Commerce; Duangjai Asawachintachit, Secretary General, Board of Investment; and Hiroyuki Ishige, Chairman and CEO, Japan External Trade Organisation; and a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia.
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Buy digital copy of this chapter - £18Mexico’s banking industry enjoys high capital adequacy ratios and is benefitting from robust profit margins. While some stakeholders have pointed to the sector’s conservative approach as a reason for the slow progress in increasing penetration levels, the sector is in fact expanding financial services to a broader share of the population. Relative to the size of the Mexican economy, the country’s banking sector remains fairly small, dominated by a handful of large international bank groups. Banking profits climbed by 31.5% in 2017 to reach $7.4bn, and domestic credit to the private sector, including banking and non-banking sectors, reached 34.2% as a percentage of GDP in September 2017. The sector has also been successful in implementing various Basel III regulations, with major banks adequately adhering to capital and liquidity requirements. This chapter features an interview with Alejandro Díaz de León Carrillo, Governor, Banco de México.
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With some 7641 islands inhabited by 175 ethnolinguistic groups, the Philippines is one of the most diverse and geographically fragmented countries on earth. The modern Philippines has thus long been faced with the challenge of uniting these multiple groups within a single nation, while also allowing local and regional communities to prosper. The year ahead will likely see the latest chapter in this process begin with a major push towards the creation of a federal state. This, advocates hope, will help address issues of uneven development between the regions, ushering in a new era of investment and enterprise in some previously neglected areas. This chapter contains a roundtable with Mauricio Domogan, Mayor, Baguio City; Oscar S Moreno, Mayor, Cagayan de Oro; and Sara Duterte-Carpio, Mayor, Davao City.
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Buy digital copy of this chapter - £18Tanzania has a well-developed and diverse financial services sector, with a number of large domestic and multinational lenders present, and a rate of financial inclusion that exceeds that of most other large economies in Africa. However, in line with major markets elsewhere on the continent, just five bodies account for roughly half of total assets. 2017 was a challenging year for Tanzania’s banks, as they adjusted to changes in the economic and regulatory environment. Slowing credit growth and increasing loan defaults have compelled the regulator to intervene, adjusting policy rates and increasing supervision of troubled lenders. Nonetheless, the fundamental stability indicators of the sector remain sound, and the industry is well positioned to take advantage of opportunities arising from the government’s development programme. This chapter contains interviews with Benno Ndulu, Former Governor, Bank of Tanzania; Ineke Bussemaker, CEO and Managing Director, NMB Bank; and Charles Kimei, CEO and Managing Director, CRDB Bank.
Explore chapterEducation
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As it works to build a knowledge-based economy, education has become an increasing priority for the UAE. The emirate of Sharjah is placing particular emphasis on innovation and quality as it positions itself as a centre for education within the federation and the wider region. This recognition of the centrality of education is not new, however, as Sharjah has a long history as a leader in this arena. Indeed, Sharjah was the site of the first modern school in the region, founded in 1930, as well as the first school for girls, established in 1955. It is now home to two of the Middle East’s highest-ranking universities, alongside a range of research, vocational and training institutes.
Explore chapterEconomy
Buy digital copy of this chapter - £18As the government continues its expansive reform agenda with Vision 2025, Sri Lanka’s economy is expected to record moderate improvements in 2018. In January 2018 the IMF projected that real GDP growth would increase to 4.6% in 2018 – up from 3.1% in 2017 – as the agriculture sector recovers from drought and flood, and construction is anticipated to lead robust services sector growth. Inflation is forecast to ease to 5% in 2018, while the current account deficit should contract to 2.5% of GDP in 2018. Meanwhile, medium-term growth will average 5% over the years leading up to 2022, according to IMF estimates. This chapter contains interviews with Mangala Samaraweera, Minister of Finance and Media; Changyong Rhee, Director, IMF Asia and Pacific Department; and Rajendra Theagarajah, Chairman, Ceylon Chamber of Commerce.
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Buy digital copy of this chapter - £18Regulatory reforms aimed at implementing interna¬tional best practices across banks, capital markets and the insurance industry have been undertaken in Jordan’s financial services sector, which already benefits from stable, well-capitalised and profitable lenders, and rapid growth and diversification in Islamic financial services. Yet, there remains room for improvement. The majority of the population is still unbanked and overall financial inclusion is low. Meanwhile, many businesses have difficulty accessing credit, despite growing concerns over excess liquidity, although rising government and donor investment in new lending programmes could see financing to small and medium-sized enterprises improve considerably in 2018. This chapter contains interviews with Ziad Fariz, Governor, Central Bank of Jordan; Iyad Asali, General Manager, Islamic International Arab Bank; and Nemeh Sabbagh, CEO, Arab Bank.
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Buy digital copy of this chapter - £18Trade and investment has expanded rapidly in Myanmar since 2011, bolstered by economic liberalisation, legal reforms, a large untapped domestic market and a favourable geographic position bordering Bangladesh, China, India, Laos and Thailand, which together comprise 40% of the world’s population. However, several factors weigh on 2018’s investment outlook, including ambiguous legislation and red tape, depressed global commodity prices and India’s agriculture import quotas. Concerns over the country’s human rights record could also act as a deterrent to Western financiers, even as Chinese firms move in to fill the funding gap in infrastructure, real estate, transportation and industry. Nonetheless, new opportunities created by China’s Belt and Road Initiative are set to play a significant role in supporting Myanmar’s trade and investment growth over the medium term. This chapter contains interviews with U Than Myint, Minister of Commerce; Jin Liqun, President, Asian Infrastructure Investment Bank; and Mai Trang Thanh, President, Honeywell Indochina.
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Buy digital copy of this chapter - £18Bahrain’s reputation as a regional financial centre rests in part on the early flourishing of its banking industry. The country’s first modern bank was established nearly 100 years ago following an agreement between the kingdom’s ruler at the time, Sheikh Isa bin Ali Al Khalifa, and the UK-owned and Indian-headquartered Oriental Bank. As Bahrain’s banking sector completes its third full year of operation in a lower oil price environment, profitability and asset growth in the industry has turned flat. However, thanks to a robust regulatory framework there has been no significant deterioration in asset quality, and there is sufficient liquidity in the system to allow banks to pursue lending opportunities. The sector has also seen some interesting regulatory changes over the past year, aimed at maintaining the kingdom’s position as a regional leader.
This chapter contains an interview with Jean-Christophe Durand, CEO, National Bank of Bahrain.
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Buy digital copy of this chapter - £18Supported by strong economic growth, the banking industry has expanded rapidly in recent years, financing public and private sector investment in reconstruction since 2011. Profitability among the top-tier banks remains strong, with shareholders in publicly listed institutions benefitting from attractive dividends. Although there has been an influx of new banks over the past decade, increased regulation is expected to weigh heaviest on smaller banks, potentially encouraging mergers and acquisitions, notably by new foreign players. Meanwhile, the proliferation of mobile money has allowed a larger proportion of the population to gain access to financial services, with only 16% of adults in possession of a bank account.
This chapter contains interviews with Tiémoko Meyliet Koné, Governor, La Banque Centrale des Etats de l’Afrique de l’Ouest; and Janine Kacou Diagou, Managing Director, Group NSIA.
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Buy digital copy of this chapter - £18In addition to having one of the largest banking sectors in North Africa, Egypt’s is also one of the most profitable. In more recent times, lenders have made easy gains on high-yielding government debt following the 2011 revolution, while an improving macroeconomic environment and the flotation of the local currency led to another robust performance for the sector in 2017. However, there are numerous challenges facing domestic lenders, such as a controversial new banking law and a bold lending target to small and medium-sized enterprises set by the regulator. Both of these issues are linked to the goal of redefining the role of banks in Egypt’s wider economy.
This chapter contains a roundtable with Dante Campioni, Managing Director and CEO, Alexbank; Mohammed El Etreby, CEO, Banque Misr; Hisham Ezz El Arab, Chairman, Commercial International Bank; and Hisham Okasha, Executive Chairman, National Bank of Egypt.
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Buy digital copy of this chapter - £18Oman’s banking sector appears to have ridden out recent economic headwinds largely unscathed. While concerns over liquidity arose in the wake of the oil price slump due to the government’s status as an important depositor, the situation improved in 2017 as the Omani state borrowed from abroad to avoid withdrawing funds or pushing up funding costs through heavy local borrowing. The sector is top heavy, with the leading bank by assets much bigger than its nearest competitors, which has given rise to talk of consolidation. This has yet to happen, though, with plans for two institutions to join forces recently called off. However, the non-bank lending segment saw a merger in 2017. The burgeoning sharia-compliant banking industry, meanwhile, after encountering some growing pains from the outset, is expanding rapidly and moving towards sustained profitability. This chapter contains an interview with Tahir Salim Al Amri, Executive President, Central Bank of Oman; Abdul Razak Ali Issa, CEO, Bank Muscat; and Khalid Al Kayed, CEO, Bank Nizwa.
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Buy digital copy of this chapter - £18Morocco’s banking sector is the most highly developed in North Africa in terms of penetration indicators and is also among the most advanced in the wider MENA region. The industry, which is in the midst of a recovery in lending growth, stands on the verge of another substantial step forward, thanks to the imminent launch of both an Islamic banking sector – backed by the creation of a wider Islamic finance system – and a new system of non-bank payment institutions. Plans are also under way to open up the microfinance segment to depositors and private operators, in addition to ongoing reforms to further bolster the financial system’s overall stability.
This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Abdulbasit Ahmad Al Shaibei, CEO, Qatar International Islamic Bank.
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Buy digital copy of this chapter - £18Dubai is home to some of the Middle East’s largest banks, as well as its major financial free zone. The emirate’s financial institutions have largely recovered from a rise in non-performing loans in the wake of the 2008 financial crisis, and are well capitalised and liquid despite a recent rise in delinquencies in the small and medium-sized enterprise segment. A new bankruptcy law and a recently launched credit bureau are set to underpin sustainable lending growth, and segments like Islamic banking and new financial technologies, with its advancement of blockchains, are helping to drive expansion and improve access to credit.
This chapter contains interviews with Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE; Bernd van Linder, CEO, Commercial Bank of Dubai; and Abdulla Qassem, Chairman, Network International.
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Buy digital copy of this chapter - £18Since the late 1980s Ghanaian banks have increased in stature and number, and for much of the last decade they have enjoyed strong growth rates and large profit margins. The country’s lenders have maintained their stability, avoiding the domestic crises that have befallen some of their emerging and frontier market peers, and sidestepping much of the fallout from the global financial crisis. The tripling of minimum capital requirements by the central bank should help increase credit flow by encouraging small local banks to consolidate, resulting in bigger banks with the capital and capacity needed to clean up loan books, and steer more credit to the private sector. This will also enable institutions to finance larger and more capital-intensive projects.
The chapter contains interviews with Ernest Addison, Governor, Bank of Ghana; and Archie Hesse, CEO, Ghana Interbank Payment and Settlement Systems.
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Buy digital copy of this chapter - £18For many decades Saudi Arabia has built its financial reserves with the proceeds of oil exports, while its increasingly affluent consumers have established the country as a significant importer of goods and services. However, lower oil prices have eroded the Kingdom’s healthy trade surplus, reminding countries around the world of the importance of having a diversified export base. Saudi Arabia’s newly formulated economic strategy aims to do just that, and targets an increase in foreign direct investment inflows to accomplish some of its goals. The coming years are likely to see considerable alterations to both the investment environment and the mechanisms that govern trading activity, as authorities aim to translate the strategy to reality.
This chapter contains interviews with Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority; and Saleh Al Solami, Secretary General, Saudi Exports Development Authority.
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Buy digital copy of this chapter - £18Algeria’s banking sector has held up relatively well. Credit growth remained in positive territory through the first three quarters of 2017, albeit having slowed from the double-digit rates seen prior to 2016. Lenders are capitalised well in excess of Basel III norms, while profitability remains high, particularly among private sector banks. Internet and mobile banking are still in the early stages of development, but market observers see these technologies as having great potential to improve financial inclusion if the relevant legal, regulatory and logistical frameworks are put in place. As bank borrowing becomes increasingly expensive, capital markets are emerging as a financing alternative for a range of domestic firms. The stock market will simultaneously provide non-inflationary financing means to economic agents and have better savings yields. With only a few new entrants to the market, the structure of Algeria’s insurance sector has remained relatively stable, with the four largest state-run insurers continuing to dominate. Purely private sector insurers capture less than one-quarter of the market, despite making modest gains of late. While the life insurance segment accounts for just 10% of total premiums, its growth has been outperforming the non-life segment – a trend that looks set to continue.
This chapter contains interviews with Mohamed Loukal, Governor, Bank of Algeria; Nafa Abrous, CEO, Maghreb Leasing Algérie; Lazhar Sahbani, Partner, PwC Algeria; and Mohamed Benarbia, General Manager, Salama Assurances Algeria.
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Buy digital copy of this chapter - £18As a major hydrocarbons-exporting economy, Qatar owes both its prosperity and much of its continued growth to international trade. Indeed, in any given year the combined value of imports and exports can exceed three-quarters of the country’s GDP. As a result, and despite recent efforts towards economic diversification, the economy remains exposed to swings in the price of oil, with 2016 having proved especially challenging in this regard. Another test came in June 2017 when several of its regional neighbours imposed a blockade on Qatar, which saw the disruption of certain trade flows. The government is committed to opening the domestic economy to further inward investment and is also seeking to encourage the private sector to step in where possible to deliver new infrastructure, with new legal instruments being prepared to improve the framework for public-private partnerships.
This chapter contains an interview with Fahad Rashid Al Kaabi, CEO, Manateq; and Yousuf Mohamed Al Jaida, CEO and Board Member, Qatar Financial Centre Authority.
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Buy digital copy of this chapter - £18Macroeconomic growth gained momentum in 2017 on the back of improved global commodities prices, increased foreign direct investment and robust domestic consumption. Although the country has not yet returned to the near-6% average annual GDP growth recorded in the five years leading up to 2012, its macroeconomic fundamentals remain robust, with an improved current account balance and a sweeping tax amnesty programme supporting a recent sovereign credit rating upgrade. New sovereign and corporate bond issuance will help fund Indonesia’s substantial infrastructure agenda over the medium term, providing a critical finance channel for infrastructure development stakeholders.
This chapter contains interviews with Jim Yong Kim, President, World Bank Group; and Hiroshige Seko, Minister of Economy, Trade and Industry of Japan.
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Buy digital copy of this chapter - £18Despite the challenges to Nigeria’s economy, many of the country’s banks enjoyed healthy revenue and asset growth in 2016. Asset quality issues continue to hinder the sector, but banks have found avenues outside of lending activities to expand their balance sheets. One area of growth stemmed from the devaluation of the naira in 2016. According to the IMF, 45% of loans held by banks are in a foreign currency. Upon devaluation, the book value of these loans in naira terms grew instantly. Naira devaluation provided a one-off boost to the value of existing assets, but material growth in forex or naira lending is not expected in 2017. The purchase of government securities is providing one of the few significant sources of actual revenue growth in the sector. While the past two years have been challenging for Nigerian banks, there is a sense that the industry has turned a corner, and that conditions are set to improve.
This chapter contains interviews with Godwin Emefiele, Governor, Central Bank of Nigeria; and Godwin Nwabunka, CEO, Grooming Centre.
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Buy digital copy of this chapter - £18Despite some weak headline numbers, Papua New Guinea’s economy is set to see a recovery in 2017. Depreciation of the kina and the shortage of US dollars have slowed imports and led to pockets of strength. Robust activity at the small and medium-sized enterprise level and in the informal sector is ongoing, while key statistics, such as the current account, are indicating a return to balance. The recent drought has come to an end, and two major mines are back on-line and ramping up production. Importantly, commodity prices seem to have stabilised globally. The near- to medium-term conditions are right for GDP to edge back up into a more comfortable range. Major gas and mining projects could contribute significantly to growth, while reforms currently being put into place are likely to add to the sustainability of the economy.
This chapter contains interviews with Thomas Abe, Managing Director, Kumul Consolidated Holdings; Dairi Vele, Secretary of the Treasury; and Sir Kostas Constantinou, Managing Director, Lamana Development.
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Buy digital copy of this chapter - £18In a lower oil price environment such as the one that has persisted since late 2014, banking sectors in the GCC find themselves under heightened scrutiny. Kuwait is no exception, but where other banking sectors in the region have been compelled to face sizeable cutbacks in government spending, the nation’s deep reserves have enabled it to defend the development pipeline on which so much of the industry’s business depends. Although challenges through 2016 put pressures on profits and credit growth, these were not seen as threats to sector stability. Nevertheless, challenges remain. The recent economic downturn has highlighted the sector’s dependence on government spending, while an increasingly comprehensive regulatory environment is starting to affect some of the industry’s key ratios. Exploiting untapped areas of the economy and seeking new efficiencies are therefore emerging as the key priorities for the industry in the year ahead.
This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.
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Buy digital copy of this chapter - £18Thailand has benefitted from decades of rapid industrial development to become an upper middle-income economy, with GDP growth averaging more than 7% from the 1950s to the 1990s. However, more recent decades have been marked by an ongoing struggle to escape the middle-income trap. Growth sank in 2014 following a military coup, although political stability and solid macroeconomic fundamentals saw the country’s economic recovery continue in 2016, as GDP growth rose to a three-year high and export receipts increased for the first time since 2012. This chapter contains interviews with Somkid Jatusripitak, Deputy Prime Minister; Porametee Vimolsiri, Secretary-General, National Economic and Social Development Board; and Yol Phokasub, President, Central Group.
Explore chapterTobago Economy
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The new administration of Tobago takes office at a time of both opportunity and challenge. Tobago is one of the most beautiful, unspoiled islands in the Caribbean, which is a highly attractive proposition in today’s competitive tourism environment. Tobago is ready for take-off, with the island at a critical point in its economic development. After years of abundance, largely based on a share of the oil and gas revenues generated by Trinidad and Tobago, the island is now facing a fiscal squeeze. Tobago’s GDP slumped sharply in 2016, while its tourism sector has been underperforming for some time. However, these difficulties also present a major opportunity for growth.
This chapter contains an interview with Kelvin Charles, Chief Secretary, Tobago House of Assembly.
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Buy digital copy of this chapter - £18Although the Colombian economy has been affected by a slowdown in recent years, the country’s banking sector has remained resilient. The majority of the impact has been felt in the external sector, particularly due to changes in the foreign exchange rate. Meanwhile, lending growth remained relatively strong until mid-2016, when the combined effects of weak investment and higher interest rates had a noticeable negative impact on commercial lending. Nonetheless, even as GDP growth slowed during 2016, the share of the financial intermediation sub-sector grew from 6% to 6.5%. Lending is expected to pick up as the economy accelerates through 2017, while other indicators – such as non-performing loans (NPLs), profitability and capitalisation – remain relatively robust. This chapter features an interview with Luis Carlos Sarmiento Gutiérrez, CEO, Grupo Aval.
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Buy digital copy of this chapter - £18Peru’s banking system is widely seen as one of the most stable and well regulated in Latin America. One of main the banking sector stories in 2017 is how this solid services industry will adapt to Peru’s gradual transition from average annual growth rates of 7-8% during the commodity boom to a more moderate medium-term average growth rate, with the economy expected to stabilise at around 4-5%. Successive governments have sought to deepen the country’s financial markets, increase the proportion of the population that has access to banking services, and address the wider issue of financial inclusion and poverty reduction.
This chapter contains interviews with Julio Velarde, Governor, Central Reserve Bank of Peru, and Miguel Uccelli, CEO and Country Head, Scotiabank Peru.
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Buy digital copy of this chapter - £18Abu Dhabi has long been associated with buy-side investment activity, thanks largely to its success in transforming fiscal surpluses into global investments aimed at ensuring future economic security. However, after two full years of lower oil prices, Abu Dhabi’s attractiveness as a destination for inward investment has become more pertinent, with the government seeing boosting foreign direct investment (FDI) inflows as a useful means of mitigating its spending cuts. The same pressures highlight the importance of diversifying the emirate’s export basket, which is dominated by oil and related products. The UAE’s strong performance in indexes such as the World Economic Forum’s “Global Enabling Trade Report” illustrates Abu Dhabi’s capacity to boost its non-oil export activity, and realising this potential is now a strategic imperative.
This chapter contains interviews with Mohamed Thani Murshed Al Rumaithi, Chairman, Abu Dhabi Chamber of Commerce and Industry; and Ahmed Al Sayegh, Chairman, Abu Dhabi Global Market.
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Buy digital copy of this chapter - £18With robust growth figures, improving infrastructure, an increasingly service-dominated economy and a new reform-minded government, Sri Lanka is an economic champion that has too often been overlooked. The island nation has seen continuous growth since a recession in 2001, even during the last years of the civil war, which ended in 2008. The rising tide has lifted all boats, and pockets of poverty are relatively rare, with more and more Sri Lankans able to participate in the country’s economic success.
This chapter contains interviews with Ravi Karunanayake, Former Minister of Finance; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; and Tilak De Zoysa, Chairman, Carson Cumberbatch.
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Buy digital copy of this chapter - £18As a result of the election of President Rodrigo Duterte in mid-2016, decentralisation and rural development have been put in the spotlight for the national agenda. Prospective investors, government planners and citizens are increasingly encouraged to look at provincial sites as destinations for investment, development and migration. The three fastest-growing regions outside of Metro Manila in 2015 were Bicol, Western Visayas and Calabarzon. Decentralisation, however, remains a slow-moving process, as the dominance of Metro Manila as the country’s economic, political and cultural nucleus has only grown stronger over the years, having been the leading magnet for investors, factories and migrants, often at the expense of previously more buoyant regions further afield.
This chapter contains interviews with Hermilando Mandanas, Governor, Province of Batangas; Alfredo Marañon Jr, Governor, Province of Negros Occidental; and Antonio Rafael del Rosario, Governor, Province of Davao del Norte.
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Buy digital copy of this chapter - £18The banking sector in Tunisia has benefitted from a history of relative stability, thanks to a steady hand from the regulator, a focus on banking fundamentals and a comparatively high level of sophistication, particularly in terms of services like leasing. In 2016 several indicators continued to rise, including assets and lending. However, creeping weaknesses, in terms of both public sector institutions and competition, have become more prevalent and are prompting a period of change. The industry, which is currently facing a tight liquidity environment, is also widely thought to be ripe for consolidation, though new players continue to enter the market, attracted in part by the limited level of financial inclusion, which points to extensive greenfield opportunities. Changes such as the recent recapitalisation and restructuring of the country’s public banks, and plans to move the sector towards Basel III norms by 2020 should all help reinforce the stability of the banking system in the years ahead.
This chapter contains interviews with Chedly Ayari, Governor, Central Bank of Tunisia; and Ahmed El Karm, President, Tunisian Professional Association of Banks and Financial Institutions.
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Buy digital copy of this chapter - £18Kenya’s banking sector benefits from healthy fundamentals, which in turn has ensured steady growth in lending and assets, and strong performances for listed creditors. However, 2016 provided the sector with its fair share of challenges to navigate. Nevertheless, the outlook for the country’s lenders is positive. A key driver of growth among Kenyan banks remains their ability to tailor products that meet Kenyans’ needs, which has helped the country attain one of the highest financial inclusion rates in the developing world, at 75%. Sector challenges may have slowed growth temporarily, but the underlying fundamentals for Kenyan banks look strong and stable for the medium term. The country’s banks are fast-growing, responsive, innovative and increasingly well-regulated.
This chapter contains interview with Patrick Njoroge, Governor, Central Bank of Kenya; Lamin Manjang, Managing Director and CEO, Standard Chartered Bank Kenya; Joyce-Ann Wainaina, CEO, Citibank; and Jeremy Awori, Managing Director, Barclays Bank Kenya.
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Buy digital copy of this chapter - £18Among the world’s most impressive emerging market success stories of the past three decades, Vietnam has been achieving high growth rates, encouraging a huge reduction in poverty and attracting billions of dollars of foreign investment. What was, until relatively recently, considered a comparatively poor country by regional standards – with an economy previously weakened by decades of war – is now solidly middle-income. If Vietnam is able to maintain its current momentum, it might potentially achieve high-income status within the coming few decades.
This chapter contains interviews with Dinh Tien Dung, Minister of Finance; Le Luong Minh, Secretary-General, ASEAN; and Stephen P Groff, Vice-President for East Asia, South-east Asia and the Pacific, Asian Development Bank.
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Buy digital copy of this chapter - £18For more than two decades Mexico’s banking sector has been characterised by sound regulation, high capital adequacy ratios and strong profitability. Having learned from previous experiences, the Mexican banking sector emerged relatively unscathed from the 2008 global financial crisis. Since then, lending growth and profitability have picked up, despite a relatively sluggish economy, as has the sector’s share of the economy, with assets as percentage of GDP standing at 41.4% at the end of 2016. With interest rates climbing higher, consumer confidence weakening and macroeconomic uncertainty prevailing, credit growth in Mexico is likely to continue to moderate through 2017, with market observers viewing mortgage lending as being particularly sensitive to the interest rate cycle. Over the longer term, the authorities’ efforts to boost financial inclusion across the country will be crucial to the development of the sector, as well as to socio-economic advances more generally. This chapter features an interview with Agustín Carstens, Governor, Banco de México.
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Buy digital copy of this chapter - £18Egypt’s banking sector has shown itself capable of weathering difficult economic circumstances in recent years. However, profitability has been challenged by a range of forces, including significant changes made in 2016 to the regulatory framework surrounding lending activity and a shortage of foreign currency that negatively affected the daily operations of banks and wider investor sentiment. The sector is also undergoing something of a shake-up in terms of ownership, following an announcement in 2016 by the Central Bank of Egypt that the country intends to sell stakes in two state-owned lenders. Egypt’s banking sector is likely to continue to face some significant changes in 2017-18. The country’s lenders are still well placed to weather volatility, and are generally in good health, but the coming months will test their ability to adapt to changing circumstances.
This chapter contains an interview with Khalid Elgibali, Division President, Mastercard MENA.
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Buy digital copy of this chapter - £18In recent years the UAE has emerged as a centre for higher education within the GCC, with strong government initiatives, impressive infrastructure, a growing number of international collaborations and a multicultural student body. Within the federation, Sharjah is increasingly regarded as a key location for tertiary studies, home to its sprawling University City and two of the UAE’s most prestigious institutions, the University of Sharjah and the American University of Sharjah. Primary and secondary education in the emirate is meanwhile undergoing strong growth in both public and private schools, requiring investment and a re-evaluation of priorities.
This chapter contains an interview with Björn Kjerfve, Chancellor, American University of Sharjah.
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Buy digital copy of this chapter - £18The banking sector has seen sustained double-digit growth since 2011, reinforcing Côte d’Ivoire’s role as the UEMOA bloc’s primary banking centre. The potential for continuing that growth is significant, as is the impact a larger financial sector would have on the national economy. That said, there are weaknesses in terms of sector performance with regard to its ability to lend, in particular. To address this, the authorities are currently steering a course of ambitious restructuring, namely the privatisation of low-performing public banks, to further clean up the sector. The restructuring plan’s primary goal is to make banking more profitable, as well as increase retail and corporate lending. This chapter contains an interview with Tiémoko Meyliet Koné, Governor, BCEAO; and a roundtable with Daouda Coulibaly, Managing Director, Société Ivoirienne de Banque; Charles Daboiko, Managing Director, Ecobank Côte d’Ivoire; and Jean-Louis Menann Kouamé, CEO, BICICI.
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Buy digital copy of this chapter - £18Bahrain’s banking sector has managed two years of a challenging low oil-price environment without seeing significant deterioration in its financial stability indicators. Conventional lenders and Islamic financiers operating within the kingdom’s famously robust regulatory framework have also managed to maintain profitability throughout this period thanks to efficiency drives and continued government spending on large infrastructure projects. However, with the industry facing a third successive year of low oil prices, efforts to maintain growth margins are becoming more challenging.
This chapter contains an interview with Jean-Christophe Durand, CEO, National Bank of Bahrain.
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Buy digital copy of this chapter - £18A number of challenges have confronted Oman’s banking sector in recent years: a structural shake-up in the form of a new Islamic segment has increased competition levels; declining oil prices, which have constricted lending opportunities in some segments and compelled the regulator to encourage greater credit extension to others; and uncertainty surrounding the growth of regional economies, which further clouds the sector’s growth prospects in the short term. Nonetheless, the sector has continued to produce robust results, and is well positioned to weather the current economic turbulence. This chapter contains interviews with Hamood Sangour Al Zadjali, Executive President, Central Bank of Oman; and AbdulRazak Ali Issa, CEO, Bank Muscat.
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Buy digital copy of this chapter - £18After its historic transition to civilian rule following years of incremental reforms, Myanmar is enjoying a period of exceptional growth. Once an outlier in the region, Myanmar now has the fastest-growing economy in ASEAN, and is seen as a source of regional strength and a destination of opportunity. Further liberalisation is planned, international investment is expected to remain strong and the domestic economy is becoming increasingly efficient. Optimism reigns as the experiment in reform has proven durable. While many emerging economies struggle to maintain a high rate of expansion in the face of global uncertainty, Myanmar is set to remain on course.
This chapter contains interviews with U Kyaw Win, Minister of Planning and Finance; Sean Turnell, Economic Advisor, National League for Democracy and Associate Professor, Department of Economics, Macquarie University; U Thurance Aung, Vice-President, Myanmar Japan Thilwa Development; and Keiichiro Nakazawa, Chief Representative, Japan International Cooperation Agency, Myanmar Office.
Explore chapterEnergy
Buy digital copy of this chapter - £18As Algeria attempts to curb the impact of the global downturn in oil prices and sustain economic growth, boosting hydrocarbons production to make up for lower prices and keep pace with rising domestic demand is a priority. Making the market attractive to foreign investors is fundamental to raising production, as are measures to ensure sustainable consumption of energy. With two-thirds of the territory still unexplored and the EU export market next door, there is still plenty of scope to expand both production and revenues even amidst the current low price environment. This chapter contains a viewpoint from Noureddine Boutarfa, Minister of Energy; and interviews with Akli Brihi, Maghreb Cluster President, Schneider Electric; and Amine Mazouzi, CEO, Sonatrach.
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Buy digital copy of this chapter - £18The Ghanaian banking sector had a difficult year in 2015, amid weakening macroeconomic conditions in the country. Growth fell below the rate seen in 2014, while non-performing loans rose significantly. However, banks used 2016 to retrench, lower their risk exposure and attempt to turn around weaknesses in their loan portfolios that were held over from 2015. Additional uncertainty created by the general election in December 2016 reinforced conservative behaviour, but the sector’s prospects in 2017 are promising. The industry remains one of the economy’s brightest performers, and the large unbanked population offers plenty of scope for expansion.
This chapter contains an interview with Abdul-Nashiru Issahaku, Governor, Bank of Ghana.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18The financial services sector is one of the most robust and mature in Jordan, remaining resilient in the face of significant external volatility and retaining its role as a driver of economic growth in 2015. The banking sector in particular has been a major source of strength, with the Central Bank of Jordan maintaining a pro-growth monetary stance, following on from growth in deposits and profits at commercial banks in 2015.
This chapter contains an interview with Ziad Fariz, Governor, Central Bank of Jordan (CBJ); and Nemeh Sabbagh, CEO, Arab Bank.
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Buy digital copy of this chapter - £18In a global environment of low oil prices, the Emerging Gabon Strategic Plan has sought to diversify the economy away from hydrocarbons since 2010. As such, over recent years the government has increased development of the hydropower sector, as well as expanding the country’s large natural gas supplies. Despite the oil crisis, Gabon remains very much dependent on oil revenues. The government is counting on the 11th licensing round to generate renewed interest in the industry and boost declining national production. Perhaps the biggest upcoming change expected to alter the energy sector is the growth of gas production, with new offshore deposits paving the way for output to increase. While the complexity of the deposits may limit export competitiveness, the steadily rising domestic need for power and the launch of new petrochemicals and fertiliser plants should ensure ample demand for deepwater gas.
This chapter contains interviews with Etienne Dieudonné Ngoubou, Minister of Petrol and Hydrocarbons; Guy Maurice, Senior Vice-President for Africa, Total E&P; Jean Paul Camus, Director-General, Société d’Energie et d’Eau du Gabon.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Historically the Kingdom has benefitted greatly from its ability to ship its hydrocarbons resources to consumers across the world, while its strong economic growth in recent decades has made it a significant importer of goods and services. Meanwhile, the country’s transport links, large consumer market and a relatively high per capita income combine to make it an attractive destination for investment capital. However, recent years have revealed a range of challenges facing the future growth of trade and investment: levels of foreign direct investment declined for seven consecutive years until 2015, and the fall in oil prices that began in the second half of 2014 has all but erased its once-comfortable trade surplus. It is unsurprising, therefore, that trade and investment are treated as key priorities in the Vision 2030 strategy. With the government’s eye on these important facets of economic life, the coming months and years are likely to bring some interesting developments with regards to the Kingdom’s global connections.
This chapter contains interviews with Prince Saud bin Khalid Al Faisal, Acting Governor, Saudi Arabian General Investment Authority; and Abdulrahman Al Zamil, Chairman, Council of Saudi Chambers of Commerce and Industry.
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Buy digital copy of this chapter - £18The banks of Morocco rank among the largest on the continent, with a regional footprint matched only by South Africa’s biggest lenders. Recent years have seen these institutions deepen programmes for small and medium-sized enterprises and expand cashless transactions. The industry is not without challenges, however: having dealt with the issue of depressed liquidity levels several years ago, the sector is now faced with low lending growth and rising levels of non-performing loans, and when faster growth will return is unclear. However, continuing regulatory reform will enhance the stability of the system, and banks’ continuing expansion abroad, as well as the launch of Islamic banking and new payment institutions, will help to maintain profits, bring major new players into the kingdom, diversify the product offering and help boost financial inclusion levels that are already high by regional standards.
This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Adnan Ahmed Yousif, President and Chief Executive, Al Baraka Banking Group.
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Buy digital copy of this chapter - £18The banking sector is a pillar of Dubai’s economy, having provided the basis for development over the past decade. The banks serve as conduits that link Dubai to regional and global economies, and their publicly traded shares are one of two main drivers of the local stock market, along with real estate stocks. For now, the banking sector in Dubai appears to be in the midst of transition, with lenders adjusting to changing demand patterns triggered by lower oil prices and continuing to evolve their offerings and operations. While it is expected that top-line growth will be muted in 2016, banks as a group appear ready to meet the challenge of staying profitable. The emirate’s lenders exist in the wider national system of the UAE, which means they are licensed at the federal level and authorised to operate anywhere within the seven emirates, regardless of where they are based.
This chapter contains interviews with Mubarak Rashed Al Mansoori, Governor, Central Bank of the UAE; and Abdulla Qassem, Chairman, Network International.
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Buy digital copy of this chapter - £18With a raft of large-scale, government-led development projects on the docket, rising retail deposits and strong support from regulators and other authorities, Kuwait’s banking sector is widely considered to be poised for a period of long-term growth. This follows a difficult period linked to the broader economic volatility that has impacted the Gulf region in recent years. Nonetheless, as of the first quarter of 2016 the nation’s 11 domestic lenders had KD59.8bn ($197.8bn) in total assets, up considerably from KD56.7bn ($187.5bn) at the end of the same period in 2015. Relatively plentiful liquidity has contributed to rising levels of credit issuance in 2015 and 2016, with data showing industry-wide credit growth in excess of 8% over the course of 2015.
This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait (CBK).
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Buy digital copy of this chapter - £18Against the backdrop of a slowing economy and low oil prices, the Nigerian banking sector – filled with heavyweight regional players and the largest sector on the Nigerian Stock Exchange – has sought to play an increasingly important intermediary role, facilitating efforts to diversify the economy by expanding private sector credit and lending to small and medium-sized enterprises. However, macroeconomic conditions, including a depreciating currency and changes to the government’s fiscal policy, are impacting the ability of banks to deploy capital in the real economy. Furthermore, the Central Bank of Nigeria has unveiled a number of plans to tighten the risk management of the sector and further reduce the exposure of banks to government debt, all of which could herald significant changes to the competitive landscape.
This chapter contains an interview with Godwin Emefiele, Governor, Central Bank of Nigeria; and a roundtable with Peter Amangbo, Group Managing Director, Zenith Bank; Uzoma Dozie, Managing Director, Diamond Bank; and Herbert Wigwe, Group Managing Director, Access Bank; and Adesola Adeduntan, Managing Director and CEO, First Bank.
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Buy digital copy of this chapter - £18Long considered South-east Asia’s economic powerhouse, Indonesia has seen growth decelerate in recent years as commodities prices fall and demand in China weakens, while currency depreciation in light of US monetary easing has affected its manufacturing and industrial sectors, as well as small and medium-sized enterprises. Falling global oil prices led to a removal of oil subsidies, which freed up new fiscal space in 2015. However, a concurrent decline in prices for commodities such as palm oil and minerals brought growth to a six-year low that year, with forecasts for 2016 remaining subdued in the wake of ongoing global uncertainty.
This chapter contains an interview with Sri Mulyani Indrawati, Former Managing Director, World Bank.
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Buy digital copy of this chapter - £18The economy of Papua New Guinea is decelerating, with the GDP growth rate expected to fall by half in 2016 to 4.3% and by nearly half again to 2.4% in 2017. A combination of the end of the construction phase of the PNG Liquefied Natural Gas (LNG) project and an unexpected drop in energy prices has resulted in a significant decline in business activity and state revenues. The PNG economy is in for a rough few years as it adjusts to the drop in LNG prices and awaits the start of the next major project. How¬ever, barring any further dramatic declines in energy prices, growth will remain positive and the government will be able to bring its spending closer in line with revenues.
This chapter contains interviews with Peter Lanslow, Managing Director, Steamships Trading; and James Lau, Managing Director, Rimbunan Hijau (PNG) group; and a viewpoint from Joseph Ernest Zveglich Jr, Director, Macroeconomic Research Division, Economic Research and Regional Cooperation Department, Asia Development Bank
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Buy digital copy of this chapter - £18Although Qatar continues to enjoy a healthy trade surplus, benefitting from its position as a critical energy supplier to a number of countries worldwide, export revenues in 2015 were dramatically affected by falling oil and gas prices, while the state’s import bill continues to rise as a result of major infrastructure construction and rapid population growth. Declining export revenues have also seen foreign direct investment (FDI) outflows drop as two major state-owned corporations underwent significant restructuring in 2015. These challenges have been a boon to non-oil growth and economic diversification. Domestically, FDI showed a sharp turnaround in 2014 as ongoing liberalization, including the establishment of new special economic zones and improved access to financing, further bolstered non-oil growth, particularly within the small and medium-sized enterprise segment. The Qatar Stock Exchange has also benefitted from several emerging market upgrades on major global indices, which should help offset losses recorded in 2015 and keep domestic markets on a growth path in 2016.
This chapter contains a viewpoint from David Cameron, Former UK Prime Minister; and interviews with Chrystia Freeland, Canadian Minister of International Trade; and Shahin Mustafayev, Azerbaijani Minister of Economy and Industry.
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Buy digital copy of this chapter - £18The smaller island of Tobago has a history of colonial rule by a succession of different European powers, including Spain, France and Britain, and in 1889 the British government first grouped the island with Trinidad under a single colonial administration. Trinidad & Tobago sought and achieved independence from British colonial rule in 1962 and became a repub¬lic in 1976. A significant proportion of the population has, however, consistently sought greater autonomy for Tobago within the existing constitution of the twin-island republic, and from time to time a smaller group on Tobago has argued for full independence. Tourism remains the strongest single economic activity in Tobago. The 300-sq-km island offers beautiful beaches, tropical forests and a wide range of leisure activities. Attractions include the Tobago Main Ridge Forest Reserve, a candidate for UNESCO World Heritage status, and Pigeon Point Beach, which has been ranked among the world’s best beaches by media outlets such as CNN and the UK’s The Guardian. This chapter contains an interview with Orville London, Chief Secretary, Tobago House of Assembly (THA).
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Buy digital copy of this chapter - £18One of the largest exporters of oil and gas in South-east Asia, Brunei Darussalam has long benefitted from its strong trade relationships with Japan, China and its ASEAN neighbours, building a robust trade surplus in the years to 2014 on the back of rising exports and elevated petroleum prices. The oil market’s mid-2014 turnaround has had a dramatic impact on the Sultanate’s trade balance, however, with export revenues tumbling after oil lost two-thirds of its value on global markets between June 2014 and February 2016. Although Brunei Darussalam maintains a trade surplus, exports contracted significantly in 2015, and the outlook for 2016 is subdued as a result of a rising global oil glut. This has underscored efforts to reduce oil export dependency through new diversification measures, which should see manufacturing and industrial exports continue increasing their contribution to total trade in the coming years. This chapter contains an interview with Cecilia Malmström, European Commissioner for Trade.
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Resource rich and export-oriented, Malaysia’s economy has endured another major test in resilience, with a global slump in commodities and China’s slowdown reducing revenues from the key sectors of energy, palm oil and manufacturing. In 2015 the local currency, the ringgit, saw its biggest sell-off since the 1997 Asian financial crisis. Yet economic data continued to suggest business as usual. With a flexible currency regime, ample liquidity in domestic banks and alternative sources of growth, the country was able to absorb the external shocks. This chapter contains interviews with Abdul Wahid Omar, Minister in the Prime Minister’s Department; Zakri Abdul Hamid, Science Advisor to the Prime Minister and Joint-Chairman, Malaysian Industry-Government Group for High Technology; Ahmad Tajussin Ali, Chairman, UEM Group and Construction Industry Development Board and Joint-Chairman, Malaysian Industry-Government Group for High Technology; and Saw Choo Boon, President, Federation of Malaysian Manufacturers, and Co-Chair, Special Task Force to Facilitate Business.
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Buy digital copy of this chapter - £18The Sri Lankan economy has been growing well recently despite a degree of political uncertainty and the global slowdown in emerging markets, with GDP expanding on average more than 6% since 2010. The new government inherited an economy with great potential but burdened by debt and lacking the types of investment to see it through to the next stage. Accelerating growth is now necessary, not only in order to pay down its debts but also to avoid the middle-income trap. Sri Lanka has developed new avenues for significant expansion, such as its burgeoning tourism sector, and investments in shipping and infrastructure. If the country can build on the steps it has already taken, there is no reason why it should not continue to prosper.
This chapter contains interviews with Ravi Karunanayake, Minister of Finance and Planning; Kabir Hashim, Minister of Public Enterprise Development; Ajit Gunewardene, Deputy Chairman, John Keells Holdings; and Mohan Pandithage, Chairman and Chief Executive, Hayleys.
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Buy digital copy of this chapter - £18Recent decades have seen the GCC become increasingly connected to the wider global economy through trade and investment links. Over the years capital flows between the Gulf and the rest of the world have deepened significantly, with both the historically important blocs of Europe and North America, and emerging market economies such as India, China and Brazil. The total stock of FDI in Abu Dhabi has seen steady growth, rising from $16.6bn in 2012 to $22.1bn in 2014, while the largest contributor to non-oil exports in 2014 was the manufactured goods category, which accounted for 51.2% of the total. Meanwhile, a new investment law currently being worked on promises to re-shape the patterns of FDI into the country with social infrastructure sectors such as health and education set to benefit as a result. This chapter contains interviews with Mohammad Helal Al Muhairi, Director-General, Abu Dhabi Chamber of Commerce and Industry (ADCCI); and Ahmed Al Sayegh, Chairman, Abu Dhabi Global Market (ADGM).
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Buy digital copy of this chapter - £18The Tunisian financial services industry, of which banking is by far the largest component, accounted for 3.7% of the country’s GDP in 2014. Sector activity rose by 3.8% in 2014 and a further 3.3% during the first nine months of 2015 compared to the same period a year earlier. The sector’s trajectory is largely positive, with lending and leasing activity growing rapidly in recent years, but the stability and profitability of the sector has been negatively affected by poor performance at several large state-owned banks as well as by market fragmentation. However, year 2015 saw several of these institutions recapitalised alongside changes made to their management structures. The recapitalisation of key public banks is set to return the sector to comparative health as well as help to address the wider issue of tight liquidity in the market. While it is uncertain if management changes at the banks can ensure they do not again start to build up poor loan books, the improvement of the democratic environment should reduce pressures for politically-connected lending that occurred in the past. This should in turn help to bolster financial sector stability, as should plans to raise prudential ratios under the new banking law, which will also help to support continued rapid growth in emerging niches including Islamic banking and leasing. This chapter contains interviews with Chedly Ayari, Governor, Central Bank of Tunisia (CBT); and Ahmed Rjiba, CEO, Banque de l’Habitat.
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Buy digital copy of this chapter - £18Although buoyed by decades of steady expansion, Thailand – South-east Asia’s second-largest economy – saw growth falter in recent years in the wake of political unrest and challenging external conditions. However, falling global oil prices combined with stimulus packages benefited the economy and spurred a moderate recovery in 2015. The government is set to launch 20 infrastructure projects before 2018, covering rail, roads, air transport and ports, as part of an investment plan running until 2020. Public-private partnerships are expected to comprise 20% of the plan’s budget. Concerns about China and depressed commodities prices will continue to weigh on economic growth, although Thailand remains well positioned to manage these challenges, with robust international reserves and rising government spending expected to support and sustain recovery into 2017. This chapter contains a viewpoint from Veerathai Santipraphob, Governor, Bank of Thailand.
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Buy digital copy of this chapter - £18The Philippines has been a pioneer in decentralisation for Asia, having commenced its local governance reforms in 1991 through the formulation and implementation of the Local Government Code (LGC), which served as the operating framework for the local government system. The LGC seeks to increase local government autonomy and accountability by assigning functions and revenue generating powers to local government units. In 2014, the National Capital Region (NCR) contributed more than one-third to the country’s GDP, at 36.3%, while both Calabarzon and Central Luzon followed in contribution, with shares of 17.2% and 9.3%, respectively. Central Visayas took fourth place, with a share of 6.5%. As the NCR’s congestion intensifies and both the labour pool and real estate market approach saturation, investors are increasingly looking to reverse the flow of migration into the metropolis and move into the provinces to capitalise on untapped labour pools and lower costs. This chapter contains interviews with Albert S Garcia, Governor, Province of Cebu; Hilario Davide III, Governor, Province of Bataan; and Jose Ma R Zubiri Jr, Governor, Province of Bukidnon.
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Buy digital copy of this chapter - £18On the back of a rise in both capital investment and transport activity, Djibouti’s banking sector has seen considerable expansion in recent years. The most visible change has been the growing number of players in the market, which has led to an increase in competitiveness, and the expansion of products and services targeting local clients. The increasingly robust regulatory role being adopted by the Central Bank of Djibouti has led to the promulgation of various new rules – ranging from risk assessment frameworks and sharia compliance to regulations for new payment systems. This should help pave the way for increased retail and corporate activity. Although some vulnerabilities persist, the range of measures currently on the sector’s reform agenda is set to further modernise the financial industry. Better payment systems and improved credit guarantees will not only help the banking sector, but will have a broader positive impact on Djibouti’s economy.
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Buy digital copy of this chapter - £18Despite the current economic deceleration, Colombia’s banking sector remains strong, with bank profitability, capital adequacy and return on equity (ROE) indicators holding up well during 2015. Loan portfolio growth reached 15.5% that year, according to Colombia’s central bank, while non-performing loans rose to 3.08% at the end of August 2015. Meanwhile, the capital adequacy ratio fell to 15.2% in the same period, comfortably above the minimum legal requirement of 9%, and ROE rose to 15.4%, up from 12.3% at the start of the year. If the expected macroeconomic recovery takes place during the following years, total loan portfolio is expected to continue growing at double-digit rates in nominal terms, although in 2016 the growth rate will be in single digits in real terms, and marginally lower than in 2015. Longer term, lending to corporate, trade financing, higher-end consumer loans and the emerging mortgage loan sector hold out the promise of sustainable expansion.
This chapter includes an interview with Luis Carlos Sarmiento Gutiérrez, CEO, Grupo Aval.
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Buy digital copy of this chapter - £18Thanks to a prudent yet flexible regulatory system, Bahrain’s lenders have been able to extend from a relatively small domestic base to become significant regional and global players. The wide range of external markets served by Bahrain’s banking sector makes for natural risk diversification, which has helped the industry maintain strong performance against global economic challenges. The country’s banking industry is divided by the licensing regime into both conventional and Islamic, and retail and wholesale operations, with numerous institutions holding multiple licence types. Moving forward, intense competition for business in the credit card segment has seen entry-level requirements for credit fall considerably in recent years, while an internet penetration rate of around 96% means Bahrain is set to continue playing a major role in the regional boom in e-commerce.
This chapter contains a viewpoint from Rasheed Al Maraj, Governor, Central Bank of Bahrain; and an interview with Ahmed Dayyat, Country Head, Mashreq Bank Bahrain.
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Buy digital copy of this chapter - £18After nearly half a century of isolation, followed by five years of reform-driven growth, Myanmar’s economy is currently expanding at a record rate. As of late 2015 rising investment, growing exports and steadily increasing foreign involvement were expected to push GDP growth to 9.3% during FY 2015/16, which ends in March 2016. The current period of economic expansion is a result of two main causes: a raft of new government liberalisation policies, which have made it much easier to do business in the country, and the fact that Myanmar started from a low development base in 2011, which has meant wide scope for growth as its economy plays catch-up. Regardless, the nation’s rapid growth is widely seen as a positive indicator of future performance and potential. This chapter contains interviews with Axel van Trotsenburg, Vice-President for East Asia and the Pacific, World Bank; Melyvn Pun, CEO, Yoma Strategic Holdings; Dr Kan Zaw, Minister of National Planning and Economic Development; and Adam McCarty, Chief Economist, Mekong Economics.
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Buy digital copy of this chapter - £18The Peruvian banking system continued to grow throughout 2015, with total bank credits rising by 15.26% year-on-year (y-o-y), to PEN250.8bn ($80bn) in September. The increase in bank credits in August 2015 reflected strong expansion in local currency lending, offset by a contraction in US dollar lending. Total outstanding local currency lending rose to PEN140.71bn ($44.9bn), at the end of August, up 35.2% y-o-y, while foreign currency lending was $23.67bn, down 18.6% y-o-y. Non-performing loans stood at 2.7%, representing an increase of 0.24 percentage points y-o-y, according to the Peruvian Banking Association. The upcoming national election, the risk of disruption because of the El Niño weather pattern and the possibility of a further slowdown in China are all factors to be monitored as potential downside risks to an otherwise solid and healthy outlook for the banking and financial sector. This chapter contains an interview with Julio Velarde, Governor, Central Reserve Bank of Peru.
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Buy digital copy of this chapter - £18Oman’s stable and tightly regulated banking sector has continued to perform well in recent times. The expansion of the newly launched sharia-compliant segment, coupled with strong asset growth, has been central to the sector’s development. Indeed, the Central Bank of Oman has established a Sharia Supervisory Authority to help regulate the sharia-compliant segment while commercial banking assets have continued to expand, growing at a compound annual growth rate of approximately 12% between 2010 and 2014, well ahead of inflation. As the government ramps up its investment in infrastructure projects, project finance is seen as one of the most promising areas for lending growth. Boosting SME lending is also a priority for the economy, with the Central Bank of Oman introducing a requirement for all banks to allocate 5% of their total loan books to SMEs by 2016. This chapter contains an interview Hamood Sangour Al Zadjali, Executive President, Central Bank of Oman; and a roundtable discussion between AbdulRazak Ali Issa, CEO, Bank Muscat; Amin Al Husseini, CEO, Oman Arab Bank; and Lloyd Maddock, CEO, Ahlibank Oman.
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Buy digital copy of this chapter - £18Benefitting from the nation’s increasing economic stability over the past year, Egypt’s banks have enjoyed both ratings upgrades and continued profitability. Thanks to an ambitious government development strategy and new investment legislation, the project finance pipeline is returning to form after a period of muted activity. Elsewhere on the aggregate loan book, competition is heating up to serve a largely untapped retail segment and the nation’s challenging, but potentially rewarding, small and medium-sized enterprise (SME) segment. With only 14% of the adult population owning or sharing an account at a formal financial institution, according to a 2014 survey by the World Bank and Gallup, the banking sector has much potential. A low median income plays a part in modest banking penetration. Yet the Egyptian economy contains significant investable liquidity, as was shown in September 2014 when LE64bn ($8.7bn) was raised in Suez Canal development certificates in a week, mostly through individuals. How banks approach this largely untapped market is a very compelling question
This chapter contains an interview with Dante Campioni, CEO and Managing Director, ALEXBANK.
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Buy digital copy of this chapter - £18The banking sector is growing and profitable, although expenses are climbing faster than revenues and non-performing loans have also increased. The overall balance sheet reached KSh3.6trn ($39.6bn) in June 2015, up 21.4% from KSh3trn ($33bn) a year earlier. A number of factors also stand to benefit the sector going forward. Kenya’s banks are gearing up to participate in financing huge infrastructure projects, including power plants, port expansions, 10,000 km of roads, and the Lamu Port-Southern Sudan-Ethiopia Transport Corridor that includes a northern oil pipeline to Uganda. Meanwhile, Kenya’s growing middle class is boosting retail banking and products such as mortgages and personal loans and is likely to continue to drive the adoption of credit cards.
This chapter contains an interview with Patrick Njoroge, Governor, Central Bank of Kenya; and a roundtable with: Gideon Muriuki, Group Managing Director and CEO, Co-operative Bank of Kenya; James Mwangi, Group Managing Director and CEO, Equity Bank; and Joshua Oigara, Group CEO, Kenya Commercial Bank.
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Buy digital copy of this chapter - £18Hydrocarbons wealth has underwritten Algeria’s growth for decades, allowing the country to accumulate huge foreign currency reserves and underwrite a major public spending campaign over the past 10 years. However, the dramatic drop in oil prices since mid-2014 has had an impact. Despite GDP growth of 4% in 2014, Algeria also experienced its first current account deficit since the late 1990s, equivalent to 18% of its GDP. In response to this situation the government has made aggressive plans to boost oil and natural gas production, including increasing onshore exploration, starting production on unconventional deposits and reforming the regulatory framework to improve investment attractiveness. A significant acceleration of its renewables targets is also under way to help meet rising domestic demand. This chapter contains a viewpoint from Salah Khebri, Minister of Energy; and interviews with Francesco Starace, CEO, ENEL; and Touffik Fredj, President and CEO for North-west Africa, General Electric.
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Buy digital copy of this chapter - £18Finance and insurance remain major drivers of Jordan’s economic growth and in 2014 contributed they contributed a combined $3.6bn, or 13.9%, to GDP. Although lending has slowed somewhat, the sector remains well capitalised with banking sector deposits expanding by a robust 9.7% in 2014 to reach $42.7bn at the end of the year, a $3.8bn increase compared to a $3.7bn rise in 2013. Meanwhile the Jordan Securities Commission is undertaking feasibility studies to examine the possibility of demutualising and eventually privatising the Amman Stock Exchange. For its part, the insurance industry recorded 30.5% growth in combined net profits in 2014, with gross profits rising to a total of $46m, up from $31.9m the previous year, while new government legislation specifying the structure and transfer framework for the issuance of sharia compliant debt represents a positive step for the kingdom’s bond markets.
This chapter contains interviews with Ziad Fariz, Governor, Central Bank of Jordan; and Nemeh Sabbagh, CEO, Arab Bank.
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Buy digital copy of this chapter - £18While South Africa’s banking sector already ranks as one of the best regulated and well capitalised in the region, regulatory changes are set to bring further improvements to the industry’s soundness and stability, as well as the treatment of its customers. The sector does, however, continue to face headwinds. As expansion of the broader economy has slowed, loan growth for banks has also eased. High levels of consumer credit, ratings downgrades and the closure of a local bank have also raised concerns. Nonetheless, growth amongst South African banks is expected to accelerate in the medium term. The sector is also set to benefit from ongoing investment in compliance and regional expansion over the long run, though the industry’s pivot to Africa is also likely to shift risk profiles.
This chapter contains interviews with Lesetja Kganyago, Governor, South African Reserve Bank; and Mike Brown, CEO, Nedbank.
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Buy digital copy of this chapter - £18Despite the challenges faced in the economy in general – for example, the decline in the currency, the rise in government debt, low commodity prices and a persistent deficit – the Ghanaian banking sector has remained profitable and well capitalised. The country’s lenders have managed not only to survive but also to thrive. The banking sector is highly competitive and open, albeit somewhat crowded. The country has 28 deposit money banks, 60 non-bank financial institutions, 138 rural and community banks, and 503 microfinance institutions.
This chapter includes an interview with H A Kofi Wampah, Governor, Bank of Ghana (BoG).
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Buy digital copy of this chapter - £18RAK’s financial services sector has posted robust growth in recent years. New regulations in line with Basel III standards are set to stabilise and protect banks, setting new capital and liquidity standards, while changes to the insurance sector are expected to limit investment losses in the UAE’s equities markets. While local banks are increasingly focusing on retail and SME lending, construction development in the region continues to bode well for the sector, with events such as Dubai’s World Expo 2020 and FIFA World Cup 2022 in Qatar set to generate greater investment and financing demand.
This chapter contains an interview with Peter England, CEO, National Bank of Ras Al Khaimah.
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Buy digital copy of this chapter - £18Mexico’s banking system has enjoyed two decades of growth and stability. Operating with comparatively high capital reserve levels, Mexico has a stable and profitable banking system. In the period from 2010 to 2014, the financial system as a whole grew at an average annual rate of 10%. As of March 2015 total assets in the commercial banking system stood at $541.8bn, with 45 active banks. The industry has a high level of concentration: the top six banks controlled 58.7% of total assets and 60.2% of the total loan portfolio. Recent adjustments to the regulatory framework, such as the 2014 banking reform, can be seen as fine-tuning an essentially robust industry framework. However, banking penetration remains low and financial exclusion indicators are comparatively high, with more than half the population not having a bank account.
This chapter features an interview with José Marcos Ramírez, CEO, Grupo Financiero Banorte.
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Buy digital copy of this chapter - £18Kuwait’s banking system has improved markedly in the years since the global economic downturn: at the end of 2014, total customer and government deposits held by local banks stood at $129.6bn, up from $125.5bn at the end of 2013. Meanwhile, a series of new rules put in place by the Central Bank of Kuwait and other regulatory bodies in recent years have steadied the sector, providing a stable framework for future expansion. As of September 2014 the capital adequacy ratio in Kuwait’s banking industry was 18.3%, up from 15.6% at the end of 2008 and well above the 12% minimum. Kuwait’s sovereign net foreign assets, meanwhile, were valued at 269% of GDP at the end of the 2014 – the highest of any rated sovereign, according to Fitch – and government debt was at just 5.3% of GDP, an indication of Kuwait’s strong fiscal position.
This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18With its sound government finances and trade-friendly policies, Saudi Arabia presents an attractive option for investors. The Kingdom currently benefits from high levels of macroeconomic stability, combined with low debt and a budget that until 2015 had been consistently in comfortable surplus. In June 2015 the country’s stock exchange, Tadawul, was opened to qualified foreign investors for the first time, driving increased participation by institutional investors that is expected to help reduce the exchange’s recent volatility. Meanwhile, the Kingdom is investing heavily in education and vocational training to further enhance its attractiveness to foreign business, and the drive for economic diversification continues apace, with non-oil exports growing faster than oil exports in recent years.
This chapter contains interviews with Abdullatif Al Othman, Governor, Saudi Arabian General Investment Authority (SAGIA); and Yoon Sang-Jick, Minister of Trade, Industry and Energy, Republic of Korea.
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Buy digital copy of this chapter - £18Thanks to lower oil prices and improving conditions in its major export markets, Morocco’s trade deficit in 2014 shrank by 6.2% over the previous year and looks set to perform even better in 2015. Levels of foreign direct investment, especially from France, have grown substantially in recent years, boosted by investor incentives and good infrastructure, though they could be higher still if more progress were made on enhancing the ease of doing business and addressing challenges such as corruption. Outward investment has also been on the rise – the average in the 10 years to 2013 was up 12-fold on the previous decade – much of it moving south of the Sahara, where Morocco is emerging as a regional economic power.
This chapter contains interviews with Hamid Ben Elafdil, Director-General, Invest in Morocco; and Dominic Jermey, CEO, UK Trade & Investment.
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Buy digital copy of this chapter - £18With a strong economy in recent years, the GDP growth rate rose to a high of 8.9% in 2011, after stagnating in the early 2000s, only to fall back in 2013 to around 5% and then rise again to more than 8.4% in 2014. Construction work on the Papua New Guinea liquefied natural gas (LNG) project led to the economic boom in 2011, while the slowdown was the result of the end of that phase and the hiatus before the start of production. Despite the positive impact that the PNG LNG project is expected to have, the price of LNG has been falling along with commodities worldwide, and this will feed through to PNG’s returns in the near term. The key for the country is the development of the infrastructure and the non-minerals sectors, which will require careful spending and a measured, but proactive, policy.
This chapter contains a viewpoint from Shinzo Abe, Prime Minister of Japan; and interviews with James Marape, Minister of Finance; Wapu Sonk, Managing Director, National Petroleum Company; James Lau, Managing Director, Rimbunan Hijau (PNG) Group; Ben Micah, Minister for Public Enterprises & State Investments; and Frederick Reiher, Chairman, Air Niugini.
Explore chapterEnergy
Buy digital copy of this chapter - £18Oil is the lifeblood of Gabon’s economy, representing half of state revenues and around 80% of export earnings in 2014. The absence of major new discoveries, declining production at mature fields and the halving of oil prices over the past year have dampened the short-term outlook, leading to a push for enhanced oil recovery and new exploration. If confirmed, recent offshore gas discoveries will help to boost output.
This chapter includes interviews with Etienne Dieudonné Ngoubou, Minister of Petroleum and Hydrocarbons; and Serge Toulekima, CEO, Gabon Oil Company.
Explore chapterEnergy
Buy digital copy of this chapter - £18With commercial production of crude oil dating back to 1908, T&T’s long history in the energy industry has helped the country punch above its weight in regional and global terms. In 2013 T&T produced 1.5trn cu feet of natural gas, making it the world’s sixth-largest LNG exporter and largest LNG supplier to the US. T&T is also the world’s largest exporter of ammonia and second-largest exporter of methanol. In recent years natural gas has overtaken oil in importance, with crude oil production declining from a high of 144,674 bpd in 2005 to 81,278 bpd in 2013, reflecting maturing oilfields and operational challenges. Even so, the oil and gas sector remains a key pillar of T&T’s economy, accounting for 42% of GDP in 2014, 80% of exports from April 2013 to May 2014, and 34.8% of fiscal revenues for the period from October 2013 to September 2014. This chapter contains interviews with Kevin Ramnarine, Minister of Energy and Energy Affairs; Norman Christie, Regional President, BP Trinidad and Tobago (BPTT); and Indar Maharaj, President, National Gas Company (NGC).
Explore chapterCanal
Buy digital copy of this chapter - £18A pillar of the economy, the Panama Canal’s contribution to the national treasury exceeded $1bn in the 2014 fiscal year, while its direct contribution to GDP reached $2.7bn (6%). The canal saw 325.8m PC/UMS tonnes of cargo pass through the same year, an increase of 2% on 2013, driven primarily by the dry bulk segment, which grew by 20% year-on-year. The Panama Canal Authority estimates its indirect contribution to GDP to be 29%. The canal’s eight-year expansion project, which reached 90% completion in June 2015, will double the waterway’s capacity and have a wide impact on the Panamanian economy. Beyond an increase in toll revenues, it is expected to impact areas as varied as the supply chain, trans-shipment activity and industrial real estate space. Ultimately, it should help Panama retain the importance in global shipping the country has enjoyed for the past century, while solidifying its status as a regional hub.
This chapter features interviews with Jorge Luis Quijano, CEO, Panama Canal Authority; and Juan Carlos Croston, President, Maritime Chamber of Panama.
Explore chapterEconomy
Buy digital copy of this chapter - £18Early moves made by the government of the new president, Joko Widodo, appear to be helping the economy considerably, especially on the FDI side. With the application of the right policies, the country could return to growth above 6%, and perhaps eventually reach the 7% target set by the new president. Indonesia is working off a sound economic base. The decline in GDP growth has been stopped, and the country is starting to make the transition from a consumption- and export-dependent economy to one that is more driven by investment, manufacturing and perhaps even the export of finished products. Risks remain, particularly in terms of overly aggressive policies on the one hand and implementation issues and protectionism on the other. If the right balance can be struck and the government’s plans can be translated into tangible projects, many see the possibility for growth to return to levels that are higher than regional and global averages.
This chapter contains interviews with Bambang Brodjonegoro, Minister of Finance; and Basuki “Ahok” Purnama, Governor of Jakarta.
Explore chapterEconomy
Buy digital copy of this chapter - £18Throughout 2014 Turkey had to shoulder its fair share of international financial turbulence, especially in terms of currency volatility. However, despite investor concerns, the country has largely retained its appeal and long-term growth potential, provided appropriate structural reforms are enacted. The past decade has seen the economy thrive. A young and growing population and a strategically important location have helped make Turkey a potential economic heavyweight. However, concerns remain over renewed political uncertainty and the private sector’s exposure to external debt. If the country can overcome the current investor uncertainty and improve productivity through much-needed reforms, the ambitious growth targets set by the government could eventually be reached.
This chapter contains interviews with Mehmet Şimşek, Minister of Finance; Mark Lewis, Former Senior Resident Representative in Turkey, International Monetary Fund; and Ömer Cihad Vardan, President, Foreign Economic Relations Board of Turkey.
Explore chapterEconomy
Buy digital copy of this chapter - £18Given its small, open economy with abundant resources including coal, copper, gold, zinc and fluorspar, Mongolia faces the same boom-and-bust cycles of any resource-dependent nation. The country has the natural endowments to provide opportunities for its 3m citizens; however, managing fluctuating growth rates, ranging from -1.3% in 2009 to 17.3% in 2011, as well as investment, trade and fiscal revenues, remains a challenge. Drawing on support from its two neighbours in the short term, the government is trying to ensure a soft landing for the economy following a significant reduction in foreign investment. That said, a rebound in investment is expected for 2015 due to a raft of new legislation taking effect. As the government consolidates its expansionary policies, it will need to accept slower growth in the interests of economic stability.
This chapter contains interviews with Jim Dwyer, Executive Director, Business Council of Mongolia; Graeme Knowd, Associate Managing Director Asia, Corporate & Financial Institutions, Moody’s Investors Service; and L. Boldkhuyag, Chairman, Bodi Group.
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Buy digital copy of this chapter - £18Nigeria’s banks have been through some challenging times in recent years, but for all their travails, they have turned in an impressive performance and continue to present a compelling narrative to foreign investors. However, the challenging times are not over just yet. West Africa’s largest banking sector – accounting for74% of regional banking assets and now fully recovered from its last crisis in 2009 – is facing structural changes that affect its traditional profitability drivers. The recent benchmark interest rate hike by the Central Bank of Nigeria, to 13%, and the devaluation of the naira, down by nearly 30% in just three months to $1:N198, are likely to affect debt servicing on loans denominated in foreign currency. As banks increase their exposure to large corporate deals at ever slimmer margins, they are being prodded to expand their retail and SME loan books to offset drops in traditional revenue streams. The resolution of the last banking crisis, and likely arrival of new players, should boost competition and prompt lenders to develop the data ecosystems needed to tap the retail market.
This chapter contains a viewpoint from Godwin Emefiele, Governor, Central Bank of Nigeria (CBN), and an interview with Daniel Monehin, Division President, Sub-Saharan Africa, MasterCard.
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The past year has been a positive one for the Kingdom’s banking sector, with asset growth and profitability continuing the upward trend that has buoyed the industry in recent years. Growing cooperation between local and overseas banks has helped the sector, while remittance flows in the Kingdom are second only to those in the US. Government initiatives offer support for SMEs looking to boost employment and the non-hydrocarbons sector. In overhauling their technological infrastructure and rolling out new tech-based services to their customers, Saudi Arabia’s banks have a strong platform to expand their operations. The banking sector has shown itself to be particularly adept at building retail loan books and the new mortgage law looks set to help in this regard. This chapter contains a viewpoint from Fahad Al Mubarak, Governor, Saudi Arabian Monetary Agency (SAMA), and an interview with Bernd van Linder, CEO, Saudi Hollandi Bank.
Explore chapterTrade & Investment
Qatar’s healthy trade surpluses, expanding international investment portfolio, and growing bilateral relations in Asia and Europe have driven the state’s trade and investment growth in recent years. Amendments to the Investment Law of 2000 in 2004, 2009 and 2014 have opened up investment opportunities by enabling foreigners to participate in financial services, hold stakes of 49% in listed companies and up to 100% of businesses in some sectors. Meanwhile, in a bid to attract investment and develop local talent, Qatar is launching three special economic zones to serve as the base of a homegrown private sector. This chapter contains interviews with Shashank Srivastava, CEO, Qatar Financial Centre Authority; and Lim Hng Kiang, Singaporean Minister for Trade & Industry.
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The past year has been a positive one for the Kingdom’s banking sector, with asset growth and profitability continuing the upward trend that has buoyed the industry in recent years. Growing cooperation between local and overseas banks has helped the sector, while remittance flows in the Kingdom are second only to those in the US. Government initiatives offer support for SMEs looking to boost employment and the non-hydrocarbons sector. In overhauling their technological infrastructure and rolling out new tech-based services to their customers, Saudi Arabia’s banks have a strong platform to expand their operations. The banking sector has shown itself to be particularly adept at building retail loan books and the new mortgage law looks set to help in this regard. This chapter contains a viewpoint from Fahad Al Mubarak, Governor, Saudi Arabian Monetary Agency (SAMA), and an interview with Bernd van Linder, CEO, Saudi Hollandi Bank.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Although foreign direct investment (FDI) volumes are smaller than what countries in its peer group attract, the Philippines has been catching up at an impressive pace. FDI rose from $1.1bn in 2010 to $4.9bn in the first nine months of 2014 as economic growth has accelerated and business policies have improved. With seven investment promotion agencies offering a variety of tax exemptions and other benefits, the Philippines provides considerable incentives to attract foreign investment. FDI is likely to continue to grow as low oil prices benefit consumers of the Philippines’ electronics and business process outsourcing services exports. In the long run, the country’s success will depend on whether it tackles the tough issues of institutional reforms and infrastructure investment.
This chapter contains an interview with Alfred M Yao, President, Philippine Chamber of Commerce and Industry; and a roundtable with Arthur P Tugade, President and CEO, Clark Development Corporation; Deogracias G P Custodio, Chairman and Administrator, Freeport Area of Bataan; Lilia B de Lima, Director-General, Philippine Economic Zone Authority; and Roberto Garcia, Chairman and Administrator, Subic Bay Metropolitan Authority.
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Buy digital copy of this chapter - £18The UAE accounted for 30% of the GCC’s total banking assets in 2014 following another year of steady growth, with Abu Dhabi playing a key role in this expansion. Having successfully emerged from the global economic turbulence of recent years, the sector is on a trajectory of loan-book growth and sustainable profits with all five of the emirate’s biggest lenders posting profits in 2013. A new Financial Service Law, now in draft form, provides for the move to a twin-peaks model of regulation in the near future, with the Central Bank of the UAE likely to act as the prudential regulator. Leading institutions in the emirate are increasingly searching abroad for expansion opportunities with a focus on the rapidly growing West-East corridor – an area already home to 13 mega-cities, with a further 12 set to become mega-cities by 2025.
This chapter contains an interview with Alex Thursby, Group CEO, National Bank of Abu Dhabi.
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Buy digital copy of this chapter - £18As the established banking centre of the West African Economic and Monetary Union (Union Economique et Monétaire Ouest-Africaine, UEMOA), Côte d’Ivoire’s financial services industry has sustained double-digit growth since emerging from the national crisis in 2011. The market still faces legacy issues, such as high aggregate non-performing loans and under-performing public lenders, but authorities are steering a course of ambitious restructuring and privatisation that should help sanitise the sector. As in many emerging markets, lending is still skewed towards the high-end corporate segment. Yet growing competition among regional and international banks is driving efforts to attract both consumers and small and medium-sized enterprises. With banking penetration still low, there is considerable scope for the sector to further support economic growth.
This chapter contains interviews Tiémoko Meyliet Koné, Governor, Central Bank of West African States; and Mohamed El Kettani, CEO, Attijariwafa Bank.
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Buy digital copy of this chapter - £18Dubai’s banking sector, which forms part of the wider UAE banking system, has continued to recover since the global financial crisis. Banking sector assets climbed 13.1% in 2013, from $487bn to $552.5bn, while deposits rose from $318bn to $348bn, a 9.5% advance, and capital adequacy ratios remained strong, at 18.3% overall. New regulations designed to protect financial institutions from systemic risk, including caps on lending to government-related entities, have been put in place, while single borrower exposure has been limited to 25% of available capital. A growing expat population and favourable exchange rates have supported growth in Dubai’s remittance industry, while the Dubai Gold and Commodities Exchange has seen strong expansion of forex trading activities in recent years.
This chapter contains an interview with Peter Baltussen, CEO, Commercial Bank of Dubai.
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Buy digital copy of this chapter - £18Despite being buffeted by successive financial storms since 2008, Bahrain’s banking sector has remained resilient and in February 2014 the Central Bank of Bahrain’s (CBB) “Financial Stability Report” showed many areas of strength and renewed vigour. In 2014 the finance and banking sector accounted for nearly 17% of GDP, according to the CBB, making it the second-largest contributor after the hydrocarbons sector. Deposits reached BD15.23bn ($40.4bn) in February 2013, their highest levels since 2008, while the central bank expected credit growth to the private sector to increase in 2014 after reaching a peak of $18.56bn at the end of September 2013. Meanwhile, the CBB has been urging greater consolidation across the sector to strengthen against future financial shocks, with both conventional and Islamic banks on the lookout for merger opportunities.
This chapter contains a viewpoint from Khalid Hamad, Executive Director - Banking Supervision, CBB, and Chairman, International Islamic Financial Market; and CEO, National Bank of Bahrain; and Hassan Jarrar, CEO, Standard Chartered Bahrain.
Explore chapterEconomy
Buy digital copy of this chapter - £18A series of political and economic reforms have led to the lifting of most international sanctions since 2012. While it may take many years of intensive foreign investment and rapid growth to catch up to other south-east Asian countries, Myanmar has exceptional potential for a country in its income range. Agriculture, fishing and forestry is the country’s largest sector, contributing 30.5% to Myanmar’s GDP in FY2012/13. Manufacturing is the second-largest sector, accounting for 19.9% of GDP in FY2012/12, followed by retail and wholesale trade with 19%, transport and communication with 13.3%, and mining with 6.1%. Since a historic reform process began in 2010, foreign investment has been pouring in, driving annual growth to more than 8%, according to IMF estimates. There are good reasons to believe the economy will continue to enjoy exceptionally strong growth in the years ahead. In the short term, much will depend on the outcome of the national elections, which are due in autumn 2015. This chapter contains interviews with U Soe Thane, Minister of the President’s Office; Hidetoshi Nishimura, Executive Director, Economic Research Institute for ASEAN and East Asia (ERIA); and U Set Aung, Chairman, Thilawa Special Economic Zone (SEZ). It also includes a viewpoint from John Kerry, US Secretary of State.
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Buy digital copy of this chapter - £18The Omani banking sector once again posted solid growth in 2013 and the first half of 2014 as steadily growing demand for financial services continues to expand the sector. Government initiatives to boost entrepreneurship and the establishment of small and medium-sized enterprises (SMEs) has resulted in a Central Bank drive requiring local banks to increase lending to SMEs to at least 5% of their loan books by 2015. While this presents a challenge to the sector, the outlook remains positive, with deposits and credit issuance rising. Moreover, the emergence of the sharia-compliant segment presents strong growth potential for local banks. With 3.6% of total banking assets in the sultanate being held by sharia-compliant entities at the end of 2013, the sector, which in September 2014 comprised two Islamic banks and five Islamic “windows” operated by conventional banks, is expected to expand rapidly in the coming years. This chapter contains interviews with Hamood Al Zadjali, Executive President, Central Bank of Oman (CBO); and AbdulRazak Ali Issa, CEO, Bank Muscat.
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Buy digital copy of this chapter - £18With a record of consistent profitability and credit growth, the banking sector has ridden the wave of Peru’s economic expansion during the past decade. As of June 2014, direct lending by the banking sector stood at PEN211.7bn ($75.58bn), having increased by 16% over the previous year. A firm regulatory environment is credited with having ensured that the country’s banks made it through the 2008 global financial crisis relatively unscathed. However, in 2014, the proposed end of the commodities supercycle, an economic slowdown and the prospect of rising international interest rates presented the banks with a new set of challenges. Even so, recent developments, including accelerating de-dollarisation and the consolidation of microfinance providers, suggest that the maturing industry is already dealing with these issues. The sector is set to see continued growth going into 2015.
This chapter contains interviews with Julio Velarde, Governor, Central Reserve Bank of Peru (BCRP); Carlos González-Taboada, CEO, Scotiabank Peru; and Daniel Schydlowsky, Superintendent for Banks, Insurance and Pension Funds.
Explore chapterEnergy.
Buy digital copy of this chapter - £18The country boasts the fourth-largest oil reserves and second-largest natural gas reserves in Africa, but production has declined in the last decade as existing fields mature. Changes to the regulatory framework in recent years have resulted in tighter capital inflows, but the government is working to encourage new investment and exploration to bolster production, including a long-awaited revision to the Hydrocarbons Code in 2013. Algeria benefits from some of the largest and most underexplored blocks of territory in the world, and the outlook for both conventional and non-conventional production is significant. Nonetheless, the country faces a number of challenges as it works to scale up energy and electricity production.
This chapter contains interviews with Youcef Yousfi, Minister for Energy and Mines; Saïd Sahnoun, Interim CEO, Sonatrach; Karen Agustiawan, Former CEO, Pertamina; and Abdallah Salem El-Badri, Secretary-General, OPEC.
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Buy digital copy of this chapter - £18With both performance and assets outstripping the continent’s other large emerging markets in Egypt, Nigeria and Morocco, South Africa’s banking sector is the biggest and most developed on the continent. The economy has been shaken by the global financial crisis: the rand has seen unusual volatility, and demand from key markets in Europe and Asia has dropped. However, the country’s banks have been well buffered, and oversight is robust, with South Africa regularly ranking at the top of global tables for the quality of its regulatory framework. Bank margins were still strong in 2013 and were boosted by higher dollar lending across the continent, as banks hedged to prepare for the increasing interest rate cycle. Bank sector assets rose 9% year-on-year and almost broke the $378.8bn level at the end of 2013, representing more than half of total financial services industry assets. South Africa’s banks have shown resilience through economic and cyclical challenges and are expected to keep widening their footprint on the continent in the next few years.
This chapter contains interviews with Gill Marcus, Governor, South African Reserve Bank; and Jim Cowles, CEO for Europe, Middle East & Africa, Citigroup.
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Buy digital copy of this chapter - £18Despite a challenging economic backdrop, Egypt’s banks have succeeded in growing their assets and maintaining profitability over the past year. Their solid performance has been facilitated by a process of reform that began a decade ago. The banking network comprised 3651 branches in 2013, an increase of 41 branches over the previous year, which resulted in a density of 22,900 people per banking unit. Egypt’s banking sector has shown its ability to thrive even in turbulent times by posting a growth in activity over the past year, while maintaining profitability. Over the next year it is likely that the question of regulatory compliance will continue to occupy banks’ management across the sector as the central bank presses on with the Basel III Accord.
This chapter contains an interview with Hisham Ezz Al Arab, Chairman and Managing Director, Commercial International Bank.
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Buy digital copy of this chapter - £18Driven mainly by offshore oil and gas infrastructure, Brunei Darussalam had an estimated stock of $14.2bn of inward foreign direct investment as of the end of 2013, equal to around $35,000 per capita. The country actively recruits foreign investment, offering generous tax incentives to targeted projects that bring in high-paying jobs, help diversify the economy, add value to existing oil and gas production, or efficiently substitute for imports. Foreign investors are paying close attention to how Brunei Darussalam handles its transition into sharia law. Although the Sultanate is not believed to be aiming for a radical implementation, there is concern that any sharia case opened against a foreigner could potentially damage the sense of security to which foreign investors and experienced professionals have grown accustomed.
This chapter contains interviews with Pehin Dato Lim Jock Seng, Minister of Foreign Affairs and Trade II; Jun Yanai, Senior Executive Vice-President and CEO, Energy Business Group, Mitsubishi Corporation; and Kevin Speed, Vice-President and Regional Business Leader, CAE Asia; as well as a viewpoint from Xi Jinping, President of China.
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Buy digital copy of this chapter - £18For a frontier market, Ghana’s banking system is very developed. The sector has expanded rapidly over the past 20 years, and a number of new banks have been licensed. Six domestic banks were established in that time, while in the 1990s several foreign entrants moved in. Though most of the fundamentals are healthy, there are still a number of challenges that limit overall efficiency and performance. The sector remains unusually fragmented. On the other end of the spectrum, despite the existence of specialist rural banks and non-bank financial institutions, much of the country remains unbanked. As the sector consolidates, banks will get stronger and will be better able to take on larger deals; as regulations are refined, it will be better able to withstand shocks.
This chapter contains interviews with Kofi Wampah, Governor, Bank of Ghana (BoG); and Archie Hesse, CEO, Ghana Interbank Payment and Settlement Systems (GhIPSS).
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Buy digital copy of this chapter - £18Jordan’s banking sector, with its diverse array of financial institutions, continued to perform robustly over the past year. In the first half of 2013 non-performing loans dropped to their lowest level since 2009 while the Islamic financial services segment has continued to grow, increasingly seeking out business from small and medium-sized enterprises as well as from the retail sector. In May 2014 the Central Bank of Jordan issued a new set of instructions in line with Basel III standards aimed at ensuring responsible corporate governance within the sector.
This chapter contains interviews with Ziad Fariz, Governor, Central Bank of Jordan; and Nemeh Sabbagh, CEO, Arab Bank.
Explore chapterEnergy
Buy digital copy of this chapter - £18Gabon is the fifth-largest oil producer in sub-Saharan Africa and oil dominates the economy, accounting for roughly half of state revenues and more than 80% of export revenues. Over the last decade, however, output has declined as the country’s larger oil fields mature.
Oil production peaked in 1997 at 370,000 bpd but stabilised in recent years around 240,000 bpd. The decline in production has prompted Gabon to encourage activity in smaller blocks, expand offshore exploration in new blocks, and continue redeveloping existing oil fields. The government has set targets of doubling output to 500,000 bpd and re-joining Organisation of the Petroleum Exporting Countries, which it left in 1997. The government is also taking a more active role in the sector through its still relatively young state-owned oil company, while also tightening oversight. To improve transparency and boost the state’s share of oil revenues, the government has overhauled the legal framework governing the hydrocarbons sector. The new bill was adopted by parliament on July 23, 2014. Under the new hydrocarbons code, the national oil company will have the right to a 15% share in all new petroleum operations, which may strengthen the sector by encouraging shared-equity partnerships between local and foreign players.
This chapter contains interviews with Désiré Guedon, Minister of Energy and Water Resources; Etienne Dieudonné Ngoubou, Minister of Petroleum and Hydrocarbons; Jacqueline Bignoumba, President, Gabon Petroleum Union; and Nicholas Cooper, Executive Director & CEO, OPHIR Energy.
Explore chapterEconomy
Buy digital copy of this chapter - £18Having an estimated $1.3trn in mineral deposits at current market prices, Mongolia holds great promise for investors. With GDP standing at just $10.3bn in 2012, a single large project has the potential to significantly boost foreign direct investment and growth. The core budget deficit declined from $319m in 2012 to $178m in 2013, equal to 1.7% of GDP; however, off-budget spending was rising. The government has announced plans to re-launch the privatisation process, with the aim of reducing the number of state-owned enterprises by one-third. Future economic growth will depend on the success of a range of measures aimed at improving economic conditions and sustainability. This chapter contains interviews with P. Tsagaan, Chief of Staff, Office of the President; Ch. Ulaan, Minister of Finance; Jim Dwyer, Executive Director, Business Council of Mongolia; and B. Byambasaikhan; Managing Partner, NovaTerra LLC, and Chairman, Business Council of Mongolia.
Explore chapterEconomy
Buy digital copy of this chapter - £18Following a decade of growth at an average rate of 6% per year, Indonesia’s economy faced external and internal challenges in 2013. As the world’s 16th-largest economy in 2012, with a GDP of Rp824trn ($824bn) and a population of 247m citizens, Indonesia has strong fundamentals for long-term growth. While the sharp reversal of foreign portfolio investment (FPI) flows from May 2013 emphasised economic imbalances, authorities are seizing on the sense of crisis as an opportunity for enacting needed structural reforms. Despite relatively high inequality and 115m people living on less than $2 a day, the large domestic consumption engine has insulated Indonesia from volatility in world trade. Since 2010 the services sector has become the major employer and accounted for 39% of GDP as of the second quarter of 2013. The manufacturing industry accounts for 23.8% of GDP, construction for 10.3% and mining for 10.4%. Despite disagreements on the pace of the slowdown, growth remains higher than emerging markets’ average of 4.5% in 2013, and points to the resilience of long-term drivers of economic growth. While policy continuity amid the political transition in 2014 will be an important factor in determining the pace of growth, the authorities will continue to balance the need to support domestic consumption growth with ensuring broader macroeconomic stability and the confidence of global investors. This chapter contains interviews with Dipo Alam, Cabinet Secretary; Jokowi, Governor of Jakarta; Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry; Jusuf Wanandi, Co-founder and Vice-Chairman, Centre for Strategic and International Studies; Edward Soeryadjaya, Chairman and Founder, Ortus Holdings; Prijono Sugiarto, President Director, Astra International; and Tri Rismaharini, Mayor of Surabaya.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Thailand is the second-largest recipient of foreign direct investment (FDI) in South-east Asia after Indonesia, with exports accounting for 62.3% of GDP in 2012, or 75% including goods and services. Japan has cemented its position as the largest source of FDI: its share of investment reached 44% in the first three quarters of 2013, up from the 30-40% annual range in the decade to 2012. Trade in China has been instrumental in supporting Thai Exports throughout the global financial crisis, growing 21.03% in 2011. As the Chinese economy slowed in 2013, however, exports to the mainland shrunk 1.61% year-on-year in the first three quarters of 2013. Although trade with ASEAN has grown swiftly in recent years, accounting for 16% of total exports in 2012, slowing regional growth and the effect of slumping currencies caused exports to ASEAN to grow at a slower 6.3% year-on-year in the first nine months of 2013. This chapter contains interviews with Udom Wongviwatchai, Secretary-General, Thailand Board of Investment (BOI); Håkan Buskhe, President & CEO, Saab; and Takanobu Ito, President & CEO, Honda Motor Company.
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Buy digital copy of this chapter - £18Having shown considerable resilience in the face of the global economic crisis, Qatar’s banks now stand to benefit from the nation’s anticipated economic growth. A pipeline of large-scale projects and the government’s development strategy, which is set to use the country’s hydrocarbons revenues to bring about economic diversification, both promise to supply lenders with plentiful opportunities for asset expansion. The highly capitalised banks which operate in the domestic market are also well positioned to expand their brands internationally, a strategic goal considered necessary in view of the limited size of the home market. Moves into foreign markets were a prominent theme in 2013 and will likely remain so going forward as lenders seek to increase their international footprints. This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; and Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman, Al Khaliji.
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Buy digital copy of this chapter - £18The UAE’s banking sector has continued to grow in both depth and complexity to become the largest in the region, accounting for 31% of the total volume of the GCC banking sector and about 20% of the gross volume of the Arab banking sector at the close of 2012. The sector’s profitable trend continued into the first half of 2013: aggregate net profit for the period ending June 30, 2013 reached $2.3bn, a 13.4% rise on $2bn in the first half of 2012. Regulatory reform continues to pose a challenge moving into 2014, but the opportunities that are arising from the emirate’s economic expansion are expected to underwrite the ongoing growth of Abu Dhabi’s lenders. This chapter contains interviews with Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE; and Younis Al Khoori, Vice-Chairman, Al Etihad Credit Bureau (AECB), and Undersecretary, Ministry of Finance.
Explore chapterThe Canal
Buy digital copy of this chapter - £18At $5.25bn, the Panama Canal expansion project is the largest single investment in the country’s history. The annual contribution of canal tolls to the national treasury has more than quadrupled from $201m in 2000 to $981.8m in 2013. The new set of locks will accommodate post-Panama ships, which can carry up to 13,000 twenty-foot equivalent units (TEUs), compared to the current maximum of 5000 TEUs. Just as the nationalisation of the Panama Canal changed the country’s long-term economic competitiveness, so too will the completion of its expansion project. Not only are revenues from the canal expected to double by 2020, fuelling continued public sector spending on infrastructure and social programmes, the expansion will secure what is now one of Panama’s primary economic resources for the long term. This chapter includes an interview with Jorge Quijano, Administrator, Panama Canal Authority; and a viewpoint from Søren Skou, CEO, Maersk Line.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18After being nationalised in 1963, Myanmar’s financial system was liberalised in 1988, allowing for the emergence of several private banks. The government’s strategy for developing the sector includes a three-phase plan that emphasises an independent central bank and adequate regulation. Foreign banks are lining up at the country’s doorstep to tap into this potentially major market in the heart of South-east Asia, but significant challenges lie ahead, and risks to the banks, depositors and borrowers are evident. Competition for Myanmar’s banking sector is fierce, and a wide arsenal of tools must be carefully selected over the coming years if institutions hope to succeed. The country is also on its way to opening a local, modern Yangon Stock Exchange (YSE) by 2015 after Myanmar’s first stock exchange was closed in 1960. Rounding off Myanmar’s financial services sector, the insurance industry is also moving forward as, for the first time in 60 years, Myanmar has permitted private insurance companies to compete with the state monopoly. This chapter contains interviews with U Win Shein, Minister of Finance, and Chairman, Myanmar Investment Commission; U Kyaw Kyaw Maung, Governor, Central Bank of Myanmar; and a banking roundtable with U Than Lwin, Deputy Chairman, KBZ Bank; U Kyaw Lynn, CEO, Cooperative Bank; and U Win Min Khine, Managing director, Apex Bank.
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Buy digital copy of this chapter - £18The sector appears to have largely recovered from the 2008-11 economic crisis, with the first half of 2013 seeing net profits in the UAE’s banking sector rising 20% to $3.7bn, while total assets grew 8% to $517bn during the same period, although there are a number of risks that remain outstanding. The introduction of new regulations has helped to improve overall stability in the real estate market, with the Dubai Land Department doubling the transaction fee for freehold properties to 4% in order to discourage speculation in the real estate sector. Remittances offer significant opportunities due to the emirate’s large expatriate population, while high credit card penetration also creates ideal conditions for e-commerce growth. This chapter contains interviews with Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE; Hesham Abdulla Al Qassim, Vice-Chairman, Emirates NBD; and Peter Baltussen, CEO, Commercial Bank of Dubai.
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Buy digital copy of this chapter - £18High capital adequacy and profitability define the banking sector in Oman. Aggregate net profits from local banks and foreign branches rose 15.6% in 2012 to $786.1m, up from $683.8m in 2011 with local banks accounting for 96.1% of the total. Consumer spending is driving lending markets as the wealth of the population increases, and banks are looking to meet this demand. New support for SMEs, an important part of the drive to diversify the economy away from hydrocarbons, should help change banks’ portfolios. Demand for Islamic services has led to the creation of a new segment, with the two newest entrants into the banking sector being Islamic institutions, whose licences were granted after the 2011 decision to allow sharia-compliant financial institutions to operate in the sultanate. This chapter contains an interview with Hamood Al Zadjali, Executive President, Central Bank of Oman.
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Buy digital copy of this chapter - £18Although the summer of 2013 saw increased political risk and uncertainty in the country’s broader macroeconomic environment, the positive financial results of Egypt’s banking sector over 2012 and into 2013 attest to its overall resilience. A history of conservative regulation has enabled the sector to ride out the economic crisis and most in the industry expect it to successfully weather the current political challenges. Public sector banks continue to play an important role. There are five state-owned banks, three of which control around 40% of the sector’s total assets. Since the 2011 uprising, the credit rating of Egypt’s domestic banks has been repeatedly downgraded, largely as a result of their perceived overexposure to sovereign debt. However, the sector’s funding and liquidity profiles garner a stable outlook from most agencies, thanks to the high proportion of customer deposits in relation to local and foreign funding. In the longer term, the macroeconomic fundamentals that have attracted Gulf banks to the market are expected to remain in place – a diverse economy, a large and young population, an anticipated 3.3% growth rate in 2014, and an underleveraged market. This chapter contains interviews with Hisham Ramez, Governor, Central Bank of Egypt; and Ali Al Kuwari, Acting Group CEO, Qatar National Bank (QNB).
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Buy digital copy of this chapter - £18With a banking penetration rate hovering around 30% and an expanding middle class, Peru represents a solid growth opportunity for the banking industry. Lending activity jumped by 23% in 2012, with much of this coming from a rise in consumer and retail loans. The banking sector is forecast to continue to expand rapidly, with loan growth projected at between 15% and 20% in 2013. While rapid expansion has generated concerns over a possible overheating of the sector, new lending regulations are set to cool credit growth and help ensure sustainability. In addition, the rise of mobile banking has improved access significantly, while correspondent agencies now offer a wider range of services. This chapter contains interviews with Julio Velarde, President of the Central Reserve Bank of Peru, and Walter Bayly, CEO of Banco de Crédito del Perú.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18For a number of years the Philippines worked hard to lower tariff rates, with the average weighted tariff applied falling from 22.4% in 1989 to a low of 2.6% in 2003. However, rates have begun to creep up again. The Philippines is actively considering a number of liberalisations to better align itself with the more open of its regional peers and to better integrate itself with the global economy. Whether to totally open markets or to engage in a sort of low-level managed trade is a debate raging throughout the world, especially in East Asia, and this issue is very much a part of the conversation in the Philippines. This chapter contains interviews with Gregory Domingo, Secretary, Department of Trade and Industry; Arnel Paciano D Casanova, President and CEO, Bases Conversion and Development Authority (BCDA), and Chairman, Philippine Investments Promotions Plan (PIPP) Steering Committee; and Stephen P Groff, Vice President for East Asia, South-east Asia and the Pacific, Asian Development Bank.
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Buy digital copy of this chapter - £18Following a significant overhaul of the sector in 2012, Nigerian banks recorded their strongest performance since the onset of the banking crisis in 2009. The central bank has seized on recent bank restructuring to implement broader structural reforms aimed at safeguarding against future crises. Nigeria boasts a diverse financial sector. In contrast to most other sub-Saharan markets, foreign banks controlled only 13.6% of sector assets in 2012, according to the IMF. With the cleaning of balance sheets over the past two years, a consolidated and restructured market has emerged, and competition and lending are set to increase over the coming years. This chapter contains a viewpoint from Lamido Sanusi, Governor, Central Bank of Nigeria, and a roundtable with Aigboje Aig-Imoukhuede, CEO, Access Bank; Bisi Onasanya, CEO, First Bank of Nigeria; Segun Agbaje, CEO, Guaranty Trust Bank; and Phillips Oduoza, CEO, United Bank for Africa.
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Buy digital copy of this chapter - £18As the world’s 15th-largest oil producer and ninth-largest producer of natural gas, Algeria largely relies on its significant hydrocarbons reserves and strong export markets in Europe and the US to drive its economy. In 2012 the country produced almost 1.7m barrels per day of oil and 81.5bn cu metres of natural gas. State-owned Sonatrach controls around 80% of the upstream segment; however, foreign firms have long had a presence in Algeria and there continues to be major interest from international oil companies. In recognition of the country’s heavy reliance on oil and gas for power, efforts are being made to develop other sources of energy such as solar power and shale gas deposits. In early 2013 a series of changes were made to the Hydrocarbons Law, which promise to further attract foreign investors. This chapter contains interviews with Youcef Yousfi, Minister of Energy and Mines; and Touffik Fredj, President & CEO for North-west Africa, General Electric.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18Ras Al Khaimah was relatively unaffected by the global financial crisis and is well positioned to benefit from growth in neighbouring emirates and the wider region. Financial services in RAK are dominated by the retail banking segment, but the sector as a whole is likely to benefit from the regional construction projects and infrastructure works designed to keep pace with growing populations and commercial needs, as well as major event-driven projects. Several players offer wide variety of sharia-compliant services in the banking sector, while the insurance industry serves the upwardly mobile population and offers one of the most promising avenues for investment in the emirate. This chapter contains an interview with Kris Babicci, CEO, Commercial Bank International.
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Buy digital copy of this chapter - £18Over the last 50 years Gabon’s economy has been largely dependent on oil extraction and this continues to be true today. After reaching peak oil production in 1997, with an average of 370,000 barrels per day (bpd), maturing oil fields and slowing discovery rates have resulted in a decline in output to 245,000 bpd in 2012. Oil companies are embarking on major investment programmes to help boost production from a number of existing oil fields. Access to electricity and water continues to be a challenge, and the government is undertaking a number of reforms to help consolidate the sector. In addition to more conventional renewable resources such as hydro, solar and wind, the government is also exploring the potential of biomass by, for example, using wood waste to generate electricity. This chapter contains interviews with Etienne Ngoubou, Minister of Petroleum, Energy and Hydroelectric Resources; and Izak Elyashiv, CEO, Telemenia; as well as a viewpoint from Charles Tchen, CEO, Independent Petroleum Consultants.
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Buy digital copy of this chapter - £18Despite a variety of ongoing challenges, Kuwait’s banking sector has performed well in recent years. The country’s 10 local banks and 11 foreign players make up one of the oldest banking sectors in the region and the third largest in the GCC. In the wake of the global financial crisis, the Central Bank of Kuwait (CBK) has introduced a raft of new regulations. Although these are likely to have a negative impact on profits in the short-term, they are expected to support sector growth in the long term. This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.
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Buy digital copy of this chapter - £18Competition in South Africa’s highly concentrated banking sector has led to it having the highest penetration rates – both in terms of credit to GDP and banked customers – of any African country. The sector had recovered from the effects of the global financial crisis on the real economy by the start of 2012, but significant uncertainties remain, stemming mainly from the flat growth outlook in the EU, the key market for South Africa’s exports. Despite downside economic risk on the domestic and external fronts, South African lenders remain more profitable than their Western peers. Complying with a raft of new rules will pose its own challenges and bring associated costs, yet remaining at the forefront of regulatory change globally should cement the country’s position as the continent’s most transparent and resilient segment. This chapter contains interviews with Gill Marcus, Governor, South Africa Reserve Bank; and Riaan Stassen, Chief Executive, Capitec Bank; as well as a roundtable with Maria Ramos, CEO, Absa Group; Sizwe Nxasana, CEO, FirstRand; Michael Brown, CEO, Nedbank Group; and Sim Tshabalala, Joint Group CEO, Standard Bank.
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Buy digital copy of this chapter - £18The banking sector has shown signs of a brisk recovery in the past year, with expansion of both assets and deposits at major firms. Banks have boosted profits and built healthy balance sheets by tackling non-performing loans, auguring a return to the growth seen in pre-crisis years. Near-term sector growth is set to come from new lending to small and medium-sized enter-prises and Islamic financial products. This chapter contains interviews with Nemeh Sabbagh, CEO, Arab Bank; Ziad Fariz, Governor, Central Bank of Jordan (CBJ); and Ahmad Abu Eideh, CEO, Standard Chartered.
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Buy digital copy of this chapter - £18With its experienced workforce and historical connections to Saudi Arabia, the Bahrain banking sector has continued to be a key segment of the economy. Although retail banking in the kingdom was largely sheltered from the global economic crisis, the changing international landscape is driving financial institutions to explore new strategies, while the banking regulator is continuing efforts to strengthen the sector by focusing on the new Basel III standards, improving corporate governance and protecting consumer interests. This chapter contains an interview with Ali Moosa, Senior Country Officer for Bahrain, JP Morgan.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Following the 2012 enactment of the new capital markets law, the Istanbul Stock exchange was merged with the Istanbul Gold Exchange and renamed Borsa Istanbul. Following a dismal performance in 2011, equity markets staged a dramatic recovery in 2012, with the dollar-based version of the Borsa Istanbul’s broadest index, the BIST 100, coming within 4% of its record high in January 2013. The government’s commitment to promoting capital markets and its generally practical approach bode well for the sector’s development. Although its ambition to develop Istanbul into one of the world’s top financial centres is lofty, the project is proving to be a positive catalyst for down-to-earth reforms that will be useful in the near term to strengthen markets. This chapter contains interviews with Vahdettin Ertaş, Chairman, Capital Markets Board (CMB); Ibrahim Turhan, Chairman and CEO, Borsa Istanbul; and Özgür Günerı, CEO, Finansinvest.
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Buy digital copy of this chapter - £18The banking sector has performed well historically, with a 70% increase in assets over 12 years. From 2007 to June 2012 total commercial banking assets in the Sultanate grew 30.5% to BN$20.1bn ($15.7bn). The sector is currently facing a period of re-adjustment, absorbing the implications of a more mature regulatory environment and looking at ways to support the government’s development plans. In a moderately sized market with limitations on the opportunities to boost loan growth in place, the challenges for commercial banks remain substantial. Nonetheless, most of the players remain bullish, devising new strategies and products to capture a greater share of the retail and corporate segments of the market. This chapter contains interviews with Dato Haji Mohs Rosli, Managing Director, Autoriti Monetari Brunei Darussalam; and Pierre Imhof, CEO, Baiduri Bank.
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Buy digital copy of this chapter - £18Capital markets in Morocco have seen a number of difficulties in the past years, with the slowdown in the eurozone crisis and continued regional unrest putting pressure on the market. The bourse has posted losses for two years in a row, prompting calls for the accelerated institution of legislative reforms to aid regulators in stabilising operations. The Casablanca Stock Exchange is currently dominated by institutional investors, along with high-net-worth individuals and foreign investors. The authorities are working to get more companies to list by offering incentives, particularly to SMEs, and renewing activity on the bourse is a key goal for market regulators. This chapter includes an interview with Karim Hajji, CEO, Casablanca Stock Exchange; and a viewpoint from Younes Benjelloun, Partner and CEO, CFG Group.
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Buy digital copy of this chapter - £18It has been a good couple of years for the Saudi Stock Exchange (Tadawul), which posted considerable growth in 2011 and 2012. Market capitalisation was up more than 10% over 2011 due to a spate of initial public offerings (IPOs) in late 2011 and 2012. However, while the Tadawul is the largest and most liquid exchange in the region, it lacks large institutional investors; around 90% of trading activity in recent years has been driven by individual retail investors. Additionally, the exchange-based bond market remains small and largely operates on a buy-and-hold basis. Yet despite these issues, the Tadawul is widely expected to continue to grow in the coming years: the government’s ongoing large-scale infrastructure and housing investment programme will likely result in considerable demand for local financing for some time to come.
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Buy digital copy of this chapter - £18While it has been another challenging year for Abu Dhabi’s capital market, some developments in the fixed-income segment, new equities listings and a raft of regulations that promise to add more depth to the market have ensured that it was also an interesting one. The significant regulatory steps taken over the past year, supplemented by a pipeline of reforms still to come, form the framework for the future expansion of the Abu Dhabi Securities Exchange (ADX). Yet more functionality will come with an upgraded trading platform planned for the second half of 2013. Of course, like all exchanges in the region, the ADX faces a challenge in attracting new listings and liquidity, but while mixed results are expected in the short term, the long-term prospects of the ADX remain as strong as ever. This chapter includes interviews with Rashed Al Baloushi, CEO, Abu Dhabi Securities Exchange (ADX); and Nazem Al Kudsi, CEO, Invest AD. It also includes a viewpoint with Mohammad Al Murtada Al Dandashi, Partner & Managing Director, Al Ramz Securities.
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Buy digital copy of this chapter - £18Indonesia’s domestic exchange is dominated by foreign investors motivated by capital gains. Less than 1% of the local population invests in Indonesia’s exchange, and those that do tend to prefer buy-and-hold strategies. Corporations have expanded their bond offerings amid a favourable market of low interest rates, high demand and a risk-free government yield curve. While the government works to diversify the onshore dollar bond offering, new hedging instruments are gradually being developed for onshore futures markets. The scope for currency features, among other areas, is considerable. Despite the political uncertainty that has arisen in the run-up to the elections in 2014, brokerages are forecasting a rally in equities during the second half of 2013 that will be more significant that that achieved in the fourth quarter of 2012. Inflows into the bond and equity markets are likely to be sustained, given the loose monetary policies in Western economies. This chapter contains and interview with Eko Yuliantoro, President Director, Bahana Securities, and a viewpoint from Veronica Lukito, CEO, Ancora International.
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Buy digital copy of this chapter - £18Since the global crisis in 2008-09, when Dubai’s indexes plummeted and international interest waned, there has been much recovery, and certain sections – such as the commodities and precious metals segments – have boomed. The lessons learnt in this financial test have left the emirate’s exchanges and players stronger, with the fundamentals of this vibrant economy returning to bring on a second wave of market activity. Recent times have been characterised by cautious recovery in Dubai’s equity markets, and debt and commodities have continued to do well. The renewed activity on the emirate’s sovereign bond market is likely to be given another boost by the realisation of plans to issue the UAE’s first federal bonds. The market is also benefitting from a global surge in demand for Islamic debt instruments, while encouraging small and medium-sized enterprises (SMEs) to list is hoped to broaden and deepen the capital markets.
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A detailed analysis of India's economy will feature in The Report: India 2013.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The State Property Committee (SPC) created the Mongolian Stock Exchange (MSE) in 1991 as a vehicle for privatising state assets during the transition to a market economy. Despite early attempts to broaden the share ownership in state firms, shares became concentrated in the hands of a few, and, by 2010, it was estimated that 80% of the market’s capitalisation was owned by a dozen individuals. The MSE experienced a record-breaking year in 2011 when share prices surged thanks to foreign investor interest in the commodity-driven economy. Mining sector stocks performed especially well, with some coal producers seeing shares rise over 200%. Strong growth prospects over the medium term will ensure high returns for investors and will likely lead to the strengthening of the local currency. While some value investors will snap up cheap valuations during the economic rebound expected in 2013, the enactment of the new securities law is crucial to opening the market to new liquidity and issues. This chapter includes a viewpoint from James Passin, Principal, Firebird Management.
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Buy digital copy of this chapter - £18While international investor confidence has been affected by the global financial crisis, the sultanate has remained relatively stable, with sustained high oil prices resulting in increasing government spending and higher disposable incomes. Moreover, these are exciting times for Oman’s capital markets, as a number of recent initiatives aimed at broadening activity are coming into play. The introduction of Islamic finance, for example, is set to raise activity in the capital markets, with regulations regarding Islamic bonds and insurance now being considered. Regulators have also moved to install the latest technical and regulatory systems alongside the most up-to-date practices in corporate governance. Going forward, much will depend on the international and regional scenario, of course, but Oman possesses the sound economic fundamentals necessary to withstand any overseas headwinds. This chapter includes an interview with Sheikh Abdullah bin Al Salmi, Executive President of the Capital Market Authority (CMA).
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Buy digital copy of this chapter - £18The local bourse has seen a bonanza of major offerings in 2012, from the $3.1bn IPO of plantations owner Felda Global, to the dual Singapore-Malaysia listing of hospital operator IHH Healthcare. The corporate bond market is also on a record-setting pace, thanks in large part to a string of sukuk sales that included a $9.9bn debt offering from tollway company PLUS. Meanwhile a wave of consolidation, which has already transformed Malaysia’s banking industry, is now hitting brokerages, with at least three major mergers or acquisitions occurring in 2012. Developments on the horizon include the 2016 opening of the Tun Razak Exchange, which the government hopes will become a hub for Malaysian and international financial institutions. This chapter includes an interview with Tajudin Atan, CEO, Bursa Malaysia.
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Buy digital copy of this chapter - £18High levels of liquidity and a total loan book that accounts for just half of deposits characterise the Algerian banking sector. The industry remains dominated by publicly owned banks, which constitute around nine-tenths of deposits and loans, though foreign-backed private banks are major players in trade finance and are highly profitable. Penetration is roughly in line with neighbouring countries and well above that of the wider North African region, but the level of banking sophistication and financial intermediation remains low, with relatively few retail clients borrowing money from banks or using debit cards. Public banks are expected to continue to dominate the industry for the foreseeable future, but the private sector should gain further market share on the back of such factors as network expansion and product innovation. This chapter contains a viewpoint from Mohammed Laksaci, Governor, Bank of Algeria; and a dialogue with Boualem Djebbar, CEO, Banque de l’Agriculture et du Développement Rural, and Karim Eddine Khellili, CEO, Banque Nationale d’Algérie. It also includes an interview with Abderrazak Trabelsi, General Delegate, Professional Association of Banks and Financial Establishments (ABEF).
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Buy digital copy of this chapter - £18The stock market is the continent’s third largest by capitalisation after Johannesburg and Cairo. The Nigerian Stock Exchange (NSE) includes a main board with 186 equities, a board dedicated to SMEs with 12 listings, and a single exchange-traded fund. While investors welcomed what they saw in 2010 as a fleeting recovery in markets, 2011 was more challenging, as it came on the back of sustained volatility in global markets and fallout from the 2008 margin lending crisis. However, regulators have seized on the crisis as an opportunity to restructure exchange fundamentals by improving transparency and governance, while a pipeline of new issues and instruments is being built. These could translate to significant opportunities for value investors. This chapter contains interviews with Oscar Onyema, CEO, Nigeria Stock Exchange; and Wale Agbeyangi, Managing Director, Cordros Capital. It also includes share analyses on six local firms, with information provided by Cordos Capital.
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Banking in Qatar has long been a robust business. The sector weathered the international credit crunch well and has since achieved double-digit asset growth, and leading players are establishing strong overseas positions as they grow out of a highly competitive local market. According to the Qatar Central Bank (QCB), in April 2012 the sector’s total assets stood at QR727.2bn ($199.7bn), up from QR587.6bn ($161.4bn) a year earlier, equivalent to 23.8% growth. Moreover, strong government backing means secure capital adequacy ratios are sometimes triple the Basel II requirements. The sector’s huge potential and focus on development projects provide the promise of continued business; indeed, most banks are bullish that assets, profits, loans and deposits will keep growing in 2013. The chapter includes interviews with Sheikh Abdullah Saud Al Thani, Governor of QC); Sheikh Bandar bin Mohamed bin Saud Al Thani, CEO of Qatar Credit Bureau (Qatar CB); Abdul Hakeem Mostafawi, CEO of HSBC; and Sheikh Faisal bin Abdulaziz bin Jassem Al Thani, Chairman of Ahli Bank.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18Stimulating investment in agriculture is considered a crucial part of diversifying Gabon’s economy and reducing dependency on food imports. The government is currently supporting a two-track investment programme that will encourage agro-industrial projects to increase the sector’s contribution to GDP and support small-scale farmers to boost production for local markets. Gabon has great potential for cash crops and recent increases in investment are likely to scale up production of rubber, palm oil, coffee, cocoa and sugar. The country has signed agreements with foreign companies to develop palm oil plantations, as well as a rubber plantation and processing plant. The timber market, which makes up 6% of non-hydrocarbons GDP, was dealt a blow with the raw timber export ban in 2010 – a ruling that bankrupted many small producers. However, the number of local processing facilities is rapidly rising and the government is focusing on increasing downstream activity in the segment. This chapter contains interviews with Julien Nkoghe Bekale, Minister of Agriculture; and Ernst A Brugger, Chairman, Precious Woods.
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Buy digital copy of this chapter - £18Egypt has a vibrant capital market, with 212 listed companies on the Egyptian Exchange, alongside a primary and secondary bond market with 60 listed bonds, and a dedicated small-cap market for small and medium-sized enterprises, the Nilex, with 20 listings. Four indices track the performance of the domestic market, but the political unrest of 2011 led to declines in all of them by the end of the year of between 42% and 49%. The real estate and commodity sectors were hit particularly hard, as was tourism, but given the positive long-term outlook for the market, valuations became increasingly attractive, and dividends yields were up to three times that of the Middle East and North Africa average. Since the start of 2012, the performance has been far more robust, with a 27% rise in January 2012 – the largest gain in seven years. This chapter contains an interview with Mohammed Omran, Executive Chairman, Egyptian Exchange, as well as a viewpoint from Hussein Choucri, Chairman and Managing Director, HC Securities & Investment. Furthermore, the chapter provides individual stock analyses and data on a cross-section of locally listed companies, courtesy of HC Securities & Investment.
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Buy digital copy of this chapter - £18While activity and liquidity on Ghana’s capital markets are both still relatively low, transaction values have been on the rise and certain reforms are set to inject significant funds into the market in 2012. As of March 2012 there were 34 companies listed on the Ghana Stock Exchange (GSE). The GSE’s value reached $264.4m, the highest to date. The agro-processing and petroleum industries have been among the best-performing sectors in the GSE in 2012. The government is seeking to undertake reforms that will increase liquidity, including pushing firms with few shares to dilute them. Further measures, such as increased tax incentives, might also be instated to boost listings. This section contains an interview with Kofi Yamoah, Managing Director, Ghana Stock Exchange (GSE); and a viewpoint by David Awuah-Darko, Managing Director, IC Securities. In conjunction with IC Securities, OBG provides analyses and data for five major shares on the GSE.
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Buy digital copy of this chapter - £18Thailand’s capital markets are relatively mature, with most major private companies listed on the Stock Exchange of Thailand (SET) or one of three smaller bourses. The SET itself is somewhat unique among regional markets as it is a semi-governmental agency that borrows several features from the mutual structure. Demutualisation has been mooted several times in the past, but the current administration has opposed the concept. Meanwhile, the Thailand Futures Exchanges is seeing more trading in complex instruments like derivatives, with gold the most popular commodity to invest in, although new contracts for silver and oil futures are likely to draw interest. This section has interviews with Vorapol Socatiyanurak, Secretary-General, Securities and Exchange Commission; Asvini Tailanga, Chairman of the Executive Board, Thanachart Securities; and Charamporn Jotikasthira, President, the Stock Exchange of Thailand.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Industry accounted for more than 30% of RAK’s GDP in 2010, reflecting the emirate’s positioning as a leading manufacturing centre within the UAE and broader region. Although the global credit crunch of 2008 did affect some of RAK’s industries, the emirate’s industrial base grew overall, which has made for a more diverse and resilient economy. RAK’s free trade zones and industrial parks continue to offer a business-friendly environment that has attracted industrial investment. Moreover, foreign ownership of companies based in free zones is unrestricted, with no income, sales or corporate taxes levied. The results of this have been clear; in 2011 RAK FTZ was home to more than 5000 firms from 106 countries. In the same year, 2033 licences were granted, an increase of 17% on the 1740 in 2010. Additionally, RAK has continued to see growth in its traditional areas of strength – including building materials and pharmaceuticals – and in new areas, such as metals. This chapter includes an interview with Dr Ayman Sahli, CEO of Julphar.
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Buy digital copy of this chapter - £18Jordan’s banking sector emerged from the global economic crisis in good health, providing much needed economic stability throughout 2011. Of the 17 banks that had declared year-end results for 2011 by March 2012, all reported positive net profits, and sum profit across these banks increased by nearly 25% on 2010. While the sector faces challenges in the form of increasing rates of non-performing loans, criticism for not doing enough to provide credit to small businesses, and a competitive marketplace, banks largely remain profitable with low exposure to risk. The banking sector is well placed to underpin economic recovery and return the country to healthy levels of growth. This chapter includes an interview with Ziad Fariz, Governor of the Central Bank of Jordan; and Kholoud Saqqaf, Executive Vice President of Arab Bank. The chapter also includes a roundtable with Tarek Akel, CEO of Al Rajhi Bank; Iyad Ghasoub Asali, General Manager of the Islamic International Arab Bank; Sami Al Afghani, CEO of the Jordan Dubai Islamic Bank; and Musa Shihadeh, Vice-Chairman and CEO of the Jordan Islamic Bank.
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Buy digital copy of this chapter - £18The Turkish economy rebounded from the global crisis to become an island of economic stability between Europe and the MENA region. The 15th-largest economy globally and the 6th-largest in Europe has experienced an unprecedented transformation in the past decade, as per capita GDP has risen more than three times. While the economy is plagued by a structural current account deficit, due to dependence on foreign energy resources, the nation’s consumer population drove significant GDP growth of 11.9% in 2011, and each of the sectors dependent on consumer spending have seen significant returns. With increased interest in Turkey from the Gulf states and new partners in Africa and Southeast Asia, exporters are finding new alternatives to crisis-plagued Europe, ensuring the growth of foreign trade. The Economy chapter contains interviews with Ali Babacan, the Deputy Prime Minister responsible for the economy; Mustafa V. Koç, the Chairman of Koç Group; Hüsnü Özyeğin, the Chairman of FIBA Holding; and Jim O'Neill, the Chairman of Goldman Sachs Asset Management.
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South Africa’s GDP, which stood at R2.96trn ($362.3bn) in nominal terms in 2011, took a significant hit at the start of the global economic slowdown, contracting by 6.3% in the first quarter of 2009. Since then it has improved noticeably, with real growth rising to 2.9% in 2010 and to 3.1% in 2011. The country’s recovery from the recession has resulted primarily from domestic consumption, both private and public. Prices have been fairly steady, with inflation running at about 5% in 2011, thanks to an inflation-targeting policy by the South African Reserve Bank (SARB). One of the most pressing obstacles that South Africa faces is unemployment, which passed 23% in 2011. With job creation one of the main pillars of the government’s strategic plans, additional attention is being paid to labour-intensive manufacturing sectors. This chapter contains interviews with Pravin Gordhan, Minister of Finance; Rob Davies, Minister of Trade and Industry; Malusi Gigaba, Minister of Public Enterprise; Angel Gurría, Secretary-General, OECD; Chi Jianxin, CEO, China Africa Development (CAD) Fund; and Henk Bleker, Dutch Minister for Agriculture and Foreign Trade.
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Buy digital copy of this chapter - £18Famously one of the most diverse in the region, the Bahraini banking sector is composed of local, regional and international firms that have flourished in a liberal but well-regarded regulatory environment. The past year has been a challenging one for the industry, particularly given the unrest in the early months, yet most licensed lenders in Bahrain entered 2012 on the back of robust financial results. Key sector indicators remained positive in 2011: assets grew 2.6%, lending increased 14.9% and deposit growth registered a 10.1% rise year-on-year. There are certainly challenges ahead, most notably for Bahrain’s wholesale banks whose traditional reliance on funding from European banks has resulted in a potential vulnerability. However, thanks to a government policy of fiscal expansion, the short term presents the prospect of a wealth of new business opportunities. This chapter includes an interview with Abdulkarim Ahmed Bucheery, Chairman, Bahrain Association of Banks, as well as a dialogue feature with Mazin Manna, CEO, Citibank and Patrick Gallagher, CEO, HSBC.
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Buy digital copy of this chapter - £18The Philippines’ well-capitalised banks enjoyed strong profit growth in 2011, and excess liquidity is the main worry at this point. Much-hyped PPP projects could be a fillip for the sector, providing an avenue for lending. A number of factors point to consolidation in the sector, include the labour intensiveness of Philippines banking, rising capital requirements, and merger incentives from the central bank. Foreign acquisitions are also possible, with the Malaysian lender CIMB a candidate to acquire one or more local banks. This section includes interviews with Amando M Tetangco Jr, Governor, Bangko Sentral ng Pilipinas (BSP); Aurelio Montinola, President, Bank of the Philippine Islands; and Florence Tarriela, Chairperson, Philippine National Bank (PNB).
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Buy digital copy of this chapter - £18The banking sector continues to follow conservative lending policies as it returns to pre-downturn strength. Thanks to the adroit response of both the government and the central bank, however, the sector is emerging from a challenging period, ready to grow with the wider economy once again. Indeed, limited competition from foreign banks has helped establish Kuwait’s domestic banking system as one of the most robust in the MENA region. The government’s 2010-14 plan is aimed at reviving the economy and overcoming recessionary pressures. The Financial Stability Law, ratified in May 2009, aims to shore up banks, productive sectors and investment companies, and the Central Bank of Kuwait is taking wide-ranging action to help revive banks’ willingness to lend.
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Buy digital copy of this chapter - £18With only about 20% of Indonesian adults having any sort of relationship with the financial service sector, the country’s massive, untapped customer base offers great potential for the big industry players. The combination of a broadening and deepening market, and ever-sinking interest rates, has boosted the already-growing demand for financial services in the archipelago, from microcredit to mezzanine finance. Challenges ahead include determining how and to what extent the private sector can fund Indonesia's massive infrastructural projects, which are expected to draw both foreign and domestic capital. These long-term projects require a recalibration of time-scales for banks used to thinking in yearlong or five-year periods. This chapter includes interviews with Darmin Nasution, Governor, Bank Indonesia; Gatot M Suwondo, President Director, Bank Negara Indonesia; and a roundtable with Jahja Setiaatmadja, President Director, BCA; Michael Young, President Director, HSBC; Zulkifili Zaini, President Director, Bank Mandiri and David Fletcher, President Director, Permata Bank.
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An analysis of South Africa's banking sector will be included in the report, featuring in-depth interviews and viewpoints from leading experts.
Explore chapterTrade & Investment
With its sound government finances and trade-friendly policies, Saudi Arabia presents an attractive option for investors. The Kingdom currently benefits from high levels of macroeconomic stability, combined with low debt and a budget that until 2015 had been consistently in comfortable surplus. In June 2015 the country’s stock exchange, Tadawul, was opened to qualified foreign investors for the first time, driving increased participation by institutional investors that is expected to help reduce the exchange’s recent volatility. Meanwhile, the Kingdom is investing heavily in education and vocational training to further enhance its attractiveness to foreign business, and the drive for economic diversification continues apace, with non-oil exports growing faster than oil exports in recent years. This chapter contains interviews with Abdullatif Al Othman, Governor, Saudi Arabian General Investment Authority (SAGIA); and Yoon Sang-Jick, Minister of Trade, Industry and Energy, Republic of Korea.
Explore chapterHealth
Buy digital copy of this chapter - £22Sharjah is positioning itself as a prominent centre for health care and wellness, backed by government commitment and investment in Sharjah Healthcare City. With a focus on preventive care and strong partnerships between academia and industry, Sharjah aims to meet growing demand in the region. Recent developments include a new wellness centre and plans for a medical district, reflecting the emirate's dedication to advanced health care services. As the UAE progresses towards mandatory health insurance, Sharjah anticipates new business opportunities and is emphasising affordable health care. The emirate's strategic location, diverse health care ecosystem and relative cost-competitiveness put it in a strong position to tap into the international medical tourism market. With ongoing partnerships, and a commitment to comprehensive and accessible services, Sharjah is poised to contribute significantly to the overall health and well-being of its population. This chapter contains an interview with Dr Abdulaziz Al Mheiri, Chairman, Sharjah Health Authority.
Explore chapterBanking
Buy digital copy of this chapter - £22Increased oil revenue, consolidation and new digital offerings are fuelling the sector’s growth potential. Kuwait’s banks are among the largest and most robust in the region, ranking first in the GCC in terms of average net growth in total banking assets and net profit for 2022. Although supply chain constraints saw global oil prices tumble in 2020, Kuwait’s economic fortunes, and those of its banks, rebounded, with 2022 recording the highest credit growth since 2015. Competition is increasing in the digital banking segment, with the drive for digitalisation at full speed as banks try to cut costs, improve efficiencies and deliver more flexible services to customers. This chapter contains interviews with Basel Al Haroon, Governor of the Central Bank of Kuwait; Isam Al Sager, CEO of the National Bank of Kuwait; and Sheikh Ahmad Duaij Jaber Al Sabah, Chairman of the Commercial Bank of Kuwait.
Explore chapterBanking
Buy digital copy of this chapter - £22Abu Dhabi’s banking sector thrives in a globally connected economy, supported by solid capitalisation, credit growth and profitability. The embrace of technological innovation and financial technology, coupled with strengthened cybersecurity and anti-money-laundering measures, positions Abu Dhabi’s banks for continued growth. High oil prices and a robust non-oil sector are expected to drive further expansion as digitalisation improves efficiency. At the same time, an ongoing commitment to regulatory and supervisory improvements is enhancing Abu Dhabi’s global standing and reinforcing its financial stability. Amid global efforts to tackle inflation, interest rates are expected to remain relatively high, though Abu Dhabi’s lenders are well provisioned to remain profitable. Credit growth is ongoing, albeit at a slower pace, as digitalisation efforts continue to enhance customer service while reducing operating costs. The broader UAE banking sector’s stability and continuity in the face of global challenges underscore its resilience. This chapter includes an interview with Khaled Mohamed Balama, Governor, Central Bank of the UAE.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22Saudi Arabia boasts the MENA region's largest and most liquid stock market, with a capitalisation of approximately $2.7trn. It is an appealing destination for international investment, advancing the Financial Sector Development Programme to diversify the economy beyond hydrocarbons in line with Vision 2030. The programme supports regulatory reforms and the rapid growth of local markets, while aiming to elevate the Saudi Exchange on the global stage. A robust initial public offering pipeline, led by increased merger and acquisition activity, reinforces the attractiveness of Saudi capital markets. Although challenges regarding secondary market trading and innovative equity trading options remain, the macroeconomic environment remains stable and the Saudi Exchange is expected to maintain its leading position in the region. This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; and Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia.
Explore chapterTransport & Logistics
Despite headwinds ranging from ports and terminal closures and the risk of piracy and theft to Libya's political division, this critical sector is rebounding amid improved infrastructure and enhanced logistics capabilities, including the rehabilitation of roads and the expansion of airports. Additionally, in recent years several foreign companies have expressed interest in investing in the logistics industry, both in Misrata and country-wide, recognising the potential for growth and development. Given Misrata’s geostrategic location, transport and logistics are an integral part of the local economy, much of which is linked to the Misurata Free Zone and port located in the city. Expansion can be enhanced through increased investment in infrastructure, including roads, ports and airports, as well as improvements in operational efficiency and effectiveness. Regulatory reform and improved governance will be crucial to attracting foreign investment and promoting private sector participation in the logistics industry. This chapter contains an interview with Muhsen Sigutri, Chairman, Misurata Free Zone.
Explore chapterInsurance
Buy digital copy of this chapter - £22With the countdown to full implementation of the new national health insurance programme (Sehati) well advanced, FY 2023/24 could see a major boost for Bahraini insurers, with opportunities in health for both conventional and takaful (Islamic insurance) firms. The private medical segment has already benefitted from enhanced awareness of the scheme, while other non-life lines of business showed growth during FY 2021/22. Meanwhile, life and life takaful continue to be constrained by relatively low awareness. This was made particularly acute by the Covid-19 pandemic and the economic uncertainty that followed, which led to a drop in policy retention rates. This chapter contains an interview with Abdulla Sultan, CEO, Bahrain Kuwait Insurance Company (GIG Bahrain).
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22Transport and logistics play a crucial role in Djibouti's economic development. The country is actively developing routes and infrastructure to enhance connectivity, both domestically and internationally. New port services are being introduced to facilitate industrial development and trade, attract foreign investment and promote growth. Significant investment is being made to upgrade and expand the transportation infrastructure to support increased trade and logistics activities. In addition, Djibouti is investing in livestock facilities to encourage the legal and regulated trade of animals, tapping into its strategic location as a gateway for livestock exports in the region. These efforts collectively contribute to Djibouti's position as a key transport and logistics centre in the region, driving economic opportunities and regional integration. This chapter contains interviews with Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority; and Robleh Mohamed Barreh, President, Djibouti Freight Forwarders Association.
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Nigeria’s capital markets have demonstrated positive growth despite the downturn in regional capital markets and global headwinds. Indeed, at the close of 2022 the rebranded Nigerian Exchange (NGX) had a 19.9% return on investment, making it the world’s fourth-best performing index. Key to sustaining this momentum in the coming years is attracting blue-chip companies to list on the NGX and easing access to capital markets by expanding retail channels. Despite turbulence in the bond and sukuk (Islamic bond) market, Nigeria continues to attract foreign and domestic interest, and new rules, tighter regulations, digitalisation and paperless transactions are likely to further enhance its attractiveness. The country’s capital markets already offer a wide range of products, and further innovations are expected to broaden and deepen the market.
This chapter contains an interview with Tapas Das, Managing Director and CEO, NG Clearing.
Insurance
Buy digital copy of this chapter - £22Recent years have been challenging for insurers worldwide as they grappled with the impact of the Covid-19 pandemic, supply chain disruptions, turbulent oil and gas prices, and uncertainties concerning economic growth. Despite these challenges, Oman’s insurance sector has demonstrated robust growth. Looking ahead, recovery in the wider economy, regulatory improvements and signs of market consolidation herald further steps towards expansion. The prospects are further enhanced by significant efforts to improve digitalisation and training, with the government and regulator-backed Tamkeen programme turning out more professional insurance graduates. At the same time, the rollout of the Dhamani electronic platform, Oman’s compulsory national health insurance initiative for the private sector and visitors, reached a key milestone in 2022, with the registration and onboarding of delivery stakeholders.
Explore chapterBanking
Buy digital copy of this chapter - £22An easing of disruptions associated with the Covid-19 pandemic, a sustained increase in oil and gas receipts, and the rollout of a new law providing a framework for establishing digital offerings have given Kuwait’s banking sector renewed confidence that has been supported by the country’s wider economic recovery. Indeed, with real GDP returning to growth in 2021 and expected by the IMF to reach as high as 8.7% in 2022, credit and profitability look set to see further expansion. The sector is notable for its high liquidity and strong capitalisation, both of which helped it navigate the uncertainties associated with the pandemic and other global headwinds. Government-led pandemic amelioration and recovery measures helped support depositors and banks, a trend reinforced by the stable rate of deposits from the retail sector and government-related entities observed during the second half of 2021. This chapter contains an interview with Basel Al Haroon, Governor, Central Bank of Kuwait, and a dialogue with Sheikh Ahmad Duaij Jaber Al Sabah, Chairman, Commercial Bank of Kuwait; and George Richani, CEO, Al Ahli Bank of Kuwait.
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Buy digital copy of this chapter - £22Capital markets in Europe, the US and Asia have experienced challenging times in the wake of the Covid-19 pandemic and Russia’s invasion of Ukraine. However, Saudi Arabia’s capital markets have experienced sustained growth, with high-value initial public offerings (IPOs), robust trading, and the Saudi Exchange showing the largest market capitalisation and liquidity of any country across the GCC as of mid-2022. The short and medium-term outlook appears promising, with a strong IPO pipeline, and confidence among foreign and domestic investors that 2023-24 will be an impressive period for the Saudi economy and capital markets. This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; and Rajiv Shukla, CEO, HSBC Saudi Arabia.
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Buy digital copy of this chapter - £22The global inflationary environment is likely to impact monetary policy both in Côte d’Ivoire and across the West Africa region. The relevant authorities are aiming to tame price increases, potentially through tighter monetary policy. A predicted rise in the cost of credit, combined with an increase in prices of raw materials and oil, could negatively impact corporate growth dynamics, and in turn, affect stock market activity. Fortunately, while the first half of 2022 saw signs of stagnation, the momentum that drove market performance in 2021 is expected to continue. In addition to prospects of new company listings and increased transactions on the Bourse Régionale des Valeurs Mobilières, the regional exchange of UEMOA, forecasts are optimistic, projecting that the exchange will close the year with a market capitalisation of $11bn. This chapter contains an interview with Tardy Kouassiblé, Deputy Managing Director, Atlantique Finance.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22Bahrain’s capital markets have faced headwinds in recent years, as the world has confronted the Covid-19 pandemic, volatility in commodity markets and the fallout from Russia’s invasion of Ukraine. Despite these challenges, the kingdom continues to exercise an important influence on regional capital markets, attract international investors and provide a sound platform for listed companies to raise funds. As part of the kingdom’s recovery efforts, the capital markets are courting renewed foreign interest, while a return to domestic economic growth and an enhanced project pipeline also bode well for robust gains in the years ahead. This chapter contains an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Egypt has turned its oil and gas industry around in the years since 2015: heavy investment in this industry now places Egypt in an advantageous position to capitalise on the resurgence of global travel and economic activity. The opening of new transport routes for hydrocarbons will help the country become a global energy centre connecting Europe, MENA and Asia. In addition to redeveloping its oil and gas operations, Egypt is also expanding its renewable energy and nuclear segments as a means of diversifying the energy mix and decarbonising the economy. Indeed, in January 2021 the Ministry of Petroleum and Mineral Resources announced plans to explore nine new oil and gas sites, with an investment of $1.4bn to drill 23 new wells. This should lead to greater energy security and allow the government to meet the needs of a large population.
Explore chapterBanking
Buy digital copy of this chapter - £22Well capitalised and supported by one of the world’s wealthiest economies, Qatar’s banking sector has successfully navigated a range of external challenges in recent years. It has emerged from the Covid-19 pandemic in an advantageous position to leverage the resurgence in local and international demand for a variety of financing options. Consisting of commercial, Islamic, investment and development banks, the sector benefits from the country’s onshore Qatar Financial Centre – which is governed by an independent legal and regulatory body – as well as a growing financial technology industry. The banking sector and the economy as a whole are set to benefit from expanding demand for Qatar’s energy exports, which supports government revenue and lending opportunities. This chapter contains interviews with Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank; Abdul Hakeem Mostafawi, CEO, HSBC Qatar; and Joseph Abraham, Group CEO, Commercial Bank of Qatar.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22The authorities have worked in recent years to increase the depth and breadth of the country’s capital markets, introducing fixed-income, commodity and small business-focused exchanges. Although trading activity was suppressed in 2020, as investors shifted from equities to comparatively lower-risk options such as government bonds, it experienced a healthy rebound in 2021 as the wider economy entered the recovery stage. The sector faces several challenges – including low equities trading, a lack of awareness among the public about the benefits of capital market investment and constrained innovation. However, the government is working on outreach and education initiatives, and introducing new products to bolster participation. This chapter contains interviews with Ekow Afedzie, Managing Director, Ghana Stock Exchange; and Kwabena Boamah, Managing Director, Stanbic Investment Management Services.
Explore chapterEnergy
Buy digital copy of this chapter - £22Nigeria is Africa’s top oil producer and possesses the largest proven gas reserves on the continent, making it a key player in the global energy market. However, despite its wealth of resources, the country has been unable to meet domestic demand and has one of the lowest net electricity generation rates per capita in the world. The pandemic aggravated this trend, as 2020 saw a steady decline in global demand for petroleum products. However, optimism for an improved macroeconomic environment in 2021 bodes well for investment in the energy sector, with growing opportunities in the nascent renewables segment as the country looks to expand electricity access to underserved communities. This chapter contains an interview with Mele Kolo Kyari, Group Managing Director of the Nigerian National Petroleum Corporation.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £22Sharjah’s beaches, shopping centres, museums and unique cultural offering make the emirate a popular tourist destination for nationals and foreigners alike. While international travel slowed significantly in 2020 due to border closures and travel restrictions in response to the Covid-19 pandemic, domestic tourism in Sharjah picked up as UAE residents explored destinations closer to home. Despite the disruption, the emirate inaugurated a number of projects in 2020, many of which promote sustainable tourism and position Sharjah as a family-friendly destination. Tourism authorities intend to build on this momentum and renew international interest throughout 2021 with the help of a new travel campaign, additional development projects, and the resumption of events and activities under strict health and safety protocols. These efforts, in tandem with the UAE’s rapid rollout of Covid-19 vaccines, could see the tourism sector recover sooner than expected: Sharjah aims to attract 10m visitors in 2022. This chapter contains interviews with Khalid Jassim Al Midfa, Chairman, Sharjah Tourism and Commerce Development Authority; Sheikha Hoor Al Qasimi, President and Director, Sharjah Art Foundation; and Hana Saif Al Suwaidi, Chairperson, Environment and Protected Areas Authority.
Explore chapterEnergy
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The Covid-19 pandemic hit the Philippines’ consumption-driven economy hard, with forecasts from the IMF suggesting that real GDP could contract by as much as 9% in 2020. Strict lockdowns took a heavy toll on the energy sector in the form of a steep drop in demand for both electricity and fuel, yet local power providers took steps to ease the financial impact on customers by lowering rates and extending payment windows. In a positive sign for the sector’s longer-term development, interest was sustained in oil and gas exploration activities and midstream infrastructure investment during the pandemic. Beyond the health crisis, the renewable energy and natural gas segments present standout opportunities for the coming years as the Philippines looks to meet rising energy demand and alleviate pressure on the national grid.
Banking
Buy digital copy of this chapter - £18Prior to the outbreak of Covid-19, Papua New Guinea’s banking sector was healthy. Liquidity increased substantially over recent decades, with the liquid asset ratio of commercial banks growing from 40% in 2003 to 49.6% in 2017. However, the pandemic has brought substantial macroeconomic challenges throughout the world, leaving no country unaffected. Although PNG has benefitted from its geographical isolation in terms of public health, its economic recovery will be highly dependent on international commodity prices, from where it receives the majority of its foreign currency. Nevertheless, the banking sector remains resilient due to the strength of key market players and decisive action on the part of policymakers. Ongoing policy initiatives to address spatial and social inequalities will prove crucial to the sector’s long-term objectives, as will efforts to boost digital penetration and financial education. This chapter contains interviews with Loi Bakani, Governor, Bank of Papua New Guinea; and Ian Tarutia, CEO, National Superannuation Fund.
Explore chapterCapital Markets
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Despite uncertainty for economies across the region, Egypt’s capital market reform continued apace. Short-term measures implemented in response to the economic effects of Covid-19 joined a series of reforms aimed at establishing the Egyptian Exchange (EGX) as a safer and more transparent destination for investors. While challenging market conditions have reduced the prospects of initial public offering (IPO) activity in 2020, the issuance of non-state IPOs is expected to pick up again as the economy recovers. More IPO momentum may also emerge from Egypt’s rapidly developing private equity and venture capital sphere, as well as the prospect of military companies being listed on the exchange. Although the performance of the EGX is inextricably linked to that of the economy, and the short-term outlook remains uncertain, longer-term prospects for the market are strong – a local investment firm expects Egypt’s market capitalisation to increase from 15% of GDP in 2019 to 20% in 2024. This chapter contains interviews with Mohamed Farid Saleh, Chairman, EGX; and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.
Banking
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Despite the adverse effects of a low oil price environment over recent years, Abu Dhabi’s banking sector has remained well capitalised with a high degree of liquidity. Meanwhile, its financial performance has been characterised by rising net profits and lower cost-to-income ratios. A recent phase of consolidation has significantly altered the structure of the local market, with the larger balance sheets of financial institutions leaving them better positioned to make gains in an increasingly competitive domestic and international environment. Nevertheless, declining international oil prices and the effects of the global Covid-19 pandemic in early 2020 appear set to make for a challenging year for the emirate’s banking industry. This chapter contains an interview with Hareb Masood Al Darmaki, Chairman, Central Bank of the UAE.
Banking
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Indonesia’s banking sector is large and crowded, with more than 1600 licensed commercial and rural banks. However, there remains plenty of untapped potential, given that the country has the fourth-largest unbanked population worldwide, at 83.1m people as of November 2019. Policymakers want both the number of banks and the unbanked population to shrink. As more Indonesians join the formal financial sector, it is expected that banks will consolidate, thanks to increased foreign investment and mergers. Regulators have been relaxing rules in hopes of attracting foreign entities that are keen to buy banks and create bigger players in the process. This chapter contains interviews with Jahja Setiaatmadja, President Director, Bank Central Asia; and Batara Sianturi, CEO, Citi Indonesia, and Chairperson, International Banks Association of Indonesia.
Capital Markets
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West Africa’s stock exchange, the Bourse Régionale de Valeurs Mobilières (BRVM) has come a long way since its launch two decades ago. Nonetheless, as West African markets continue to undergo rapid economic development, much of the exchange’s full potential has yet to be realised. Côte d’Ivoire – given its strong presence on the exchange – will continue to play a pivotal role. In the short term, the BRVM will need to grapple with a number of events, such as the presidential elections scheduled for the fourth quarter of 2020, as well as global recessionary pressures that will likely affect investment flows as a result of the Covid-19 pandemic. This chapter contains interviews with Félix Edoh Kossi Aménounvé, CEO, Bourse Régionale des Valeurs Mobilières; Niamkey Isidore Tanoé, CEO, Atlantique Finance; Laureen Kouassi-Olsson, Regional Head for West and Central Africa, Amethis.
Explore chapterBanking
Buy digital copy of this chapter - £18The Kingdom’s banking sector started 2020 on a promising note, with 13 local banks serving a population of over 30m people. However, low oil prices and the disruptive effects of the Covid-19 pandemic are likely to undermine asset growth over the course of the year, though the Kingdom’s banks have previously demonstrated the ability to remain profitable despite difficulties. Looking to the longer term, banks are likely to venture beyond the competitive corporate and retail segments and develop their offering in underserved areas of the market, such as lending to smaller enterprises and microfinance. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Tareq Al Sadhan, CEO, Riyad Bank.
Explore chapterBanking
Against a backdrop of sluggish global economic growth and ongoing tensions in the region, Qatar’s banking sector is proving to be strong and resilient, with growth in assets and profits reported by nearly all of the country’s listed institutions at the end of 2019. With a strong pipeline of major development project financing over the short term, against a backdrop of strong and sustained growth in recent years, Qatar’s banking sector can anticipate profits and success well into the future. A merger involving one of its oldest conventional lenders to form the country’s third-largest Islamic bank suggests a considerable appetite for sharia-compliant facilities. This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank; and Joseph Abraham, Group CEO, Commercial Bank of Qatar.
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Macroeconomic stability, a thriving private sector, and a pivotal location bridging Europe and Africa have helped cement Morocco’s position as a major continental financial hub. By African standards, the kingdom’s capital markets are relatively deep, liquid and sophisticated. Recent years have seen challenges arise on all of these fronts, however. Against a backdrop of subdued economic activity, the market saw scarce new equity issues; falling liquidity; and delays to long-planned innovations, such as its small and medium-sized enterprises window. Although efforts to increase depth and liquidity have been hampered by weak economic growth, the 2018-19 period saw the implementation of a number of regulatory developments, which are set to bear fruit in terms of increased activity in alternative financial products and markets in the years ahead. This chapter contains interviews with Karim Hajji, CEO, Casablanca Stock Exchange; Abdeslam Ababou, Managing Partner, Red Med Finance; and Souad Benbachir, Partner and Executive Managing Director, CFG Bank.
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The decade closed with an uptick in activity in Trinidad and Tobago’s capital markets, largely due to increases in initial public offerings, a series of mergers and acquisitions, and a number of bonds issued in the latter half of 2018 and into 2019. Even so, activity in the financial markets remains muted, a pattern seen across many bourses in the Caribbean. The local market tends to be highly concentrated among a few large firms and lacks substantial participation from smaller companies. A drive to boost the participation of citizens and small and medium-sized enterprises in equity markets may bring forth renewed dynamism and interest in the Caribbean’s largest capital market, especially when considered against the backdrop of an overall economic recovery. This chapter contains a viewpoint from Gregory Hill, Managing Director, ANSA Merchant Bank.
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Sector stabilisation and reform are key focuses within the capital markets arena. While the regulator is taking steps to shore up market confidence in light of recent banking and asset management reforms, the long-term ambition of authorities is to introduce new products and services to attract the capital flows necessary for a deeper and more sustainable market. Ghana’s principal exchange is the Ghana Stock Exchange (GSE), which as of the first quarter of 2019 had 33 companies listed on its main board. In terms of market capitalisation, the GSE is dominated by the mining and petroleum sectors, which accounted for 52.5% of the total in 2018. The financial sector is the second-biggest component, contributing 23.85% to total market capitalisation, followed by ICT (15.88%), food and beverages (2.71%), and distribution (2.66%). This chapter also contains interviews with Cecilia Hesse, Managing Director, Temple Investments; and Ekow Afedzie, Managing Director, Ghana Stock Exchange.
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Buy digital copy of this chapter - £18Despite facing challenging macroeconomic headwinds, in addition to illiquidity and limited levels of free-floating shares, Bahrain’s capital markets have been among the best-performing in the GCC in recent years. Indeed, the Bahrain All Share Index reached a nine-year high in mid-2019. Benefitting from lively trading activity, increasing market capitalisation and an expanding debt market, Bahrain’s capital markets are set for a strong performance in 2020. Although illiquidity and sluggish macroeconomic growth continue to pose a challenge, the Bahrain Bourse’s proactive and progressive approach to regulatory reform and digital innovation will help the bourse maintain its competitive edge against a backdrop of rising regional competition. This chapter contains an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse.
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The overall performance of Oman’s capital markets in 2019 was somewhat mixed. While the country’s credit market continued to grow, underpinned by strong sovereign debt issuance, the equity market declined in the wake of a slowing economy. However, stock market valuations have improved considerably, a number of new debt issuances are in the pipeline and the Capital Market Authority is in the process of introducing a number of new laws that should be positive for the development of the sector. This chapter contains an interview with Abdulaziz Al Balushi, Group CEO, OMINVEST.
Explore chapterBanking
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The pace of reform in Myanmar’s banking sector has been increasing in recent years, with liberalisation taking a major step forwards in November 2019 when the Central Bank of Myanmar announced that foreign banks would be able to secure a licence to engage in onshore retail business through a subsidiary or joint venture from 2021. Naturally, challenges remain for an industry that only recently emerged from decades of exclusion from the global financial system. Many citizens remain outside the formal network of banks and microfinance institutions, relying instead on informal sources for their financial needs. Skilled human resources also remain a barrier, as new banking methods increasingly challenge traditional practices, while local professionals trained to global banking standards remain scarce. Furthermore, as reform continues, the regulatory regime remains restrictive in terms of products, interest rates, loan books and deposits. This chapter contains a viewpoint from U Kyaw Kyaw Maung, Governor, Central Bank of Myanmar; as well as interviews with Linus Goh, Head of Global Commercial Banking and Executive Vice-President, Oversea-Chinese Banking Corporation; and Christopher Loh, CEO, uab Bank.
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Dubai’s status as a financial centre rests to a large extent on its advanced capital markets. The city’s various trading floors have played a regionally important role as pioneers of new instruments and market processes, and succeeded in attracting investment from both home and abroad. Competition for scarce liquidity in the Gulf has, however, increased significantly over recent years. With other exchanges in the region overhauling their regulatory frameworks in order to harness investment flows, Dubai’s regulators and exchange authorities are working hard to maintain its position as a key financial centre. This chapter contains an interview with Hamed Ali, CEO, Nasdaq Dubai.
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Performance has rebounded in the Kuwaiti banking and financial sectors after a number of years repairing the damage caused by the 2007-08 global financial crisis. Banks’ balance sheets show that net profits, assets, loans and deposits are all growing strongly, and financial metrics look robust, while various industry assessments show that it is well capitalised. This chapter contains a roundtable with Adel Abdul Wahab Al Majed, Chairman, Kuwait Banking Association; and Vice-Chairman and CEO, Boubyan Bank; Michel Accad, Group CEO, Al Ahli Bank of Kuwait; and Elham Y Mahfouz, CEO, Commercial Bank of Kuwait; and an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.
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After several years of innovation – notably the advent of new investment vehicles and the arrival of a second bourse – alongside the change in government at the end of 2018, the coming years are likely to be characterised by consolidation. Domestically, uncertainty around sectoral policies – specifically in energy, infrastructure and banking – of the administration of President Andrés Manuel López Obrador may introduce periodic volatility in the securities of those sectors. Despite the many strengths of Mexico’s capital markets, subdued economic activity and falling inflation open the possibility for the central bank to ease interest rates in 2020. This chapter contains an interview with José-Oriol Bosch Par, CEO, Mexican Stock Exchange.
Explore chapterBanking
Buy digital copy of this chapter - £18Despite a tight supply of foreign exchange and a slowdown in economic growth in 2018, Papua New Guinea’s banking sector remained well capitalised and registered a robust performance, aided by supportive policies from both the government and the Bank of PNG, the country’s central bank. The successful issuance in September 2018 of the country’s first dollar-denominated sovereign bond raised $500m at a relatively attractive interest rate of 8.375%, helping to relieve some of the foreign exchange pressures, while ongoing economic stabilisation efforts supported business growth. Although commercial banks responded well to challenging macroeconomic conditions, their overall performance remains hindered by the lowest loan-to-deposit ratio of any country in the Pacific region, a consequence of PNG’s legacy of community-based mutual credit transactions. Domestic commercial banks remain well capitalised, but they are nevertheless part of a system that is under some strain. This chapter also contains an interview with Loi Bakani, Governor, Bank of Papua New Guinea; and a viewpoint from Mark Baker, Managing Director, ANZ Papua New Guinea.
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Buy digital copy of this chapter - £18Although Tunisia’s financial market has maintained a pattern of significant growth in recent years, progress has taken place in the context of economic uncertainty and a need for structural reform. The stock market’s role in financing the economy is mod¬est when compared to that of the banking system, and the depreciation of the dinar has introduced a number of additional challenges. Despite its potential to be a reliable source of financing for small and medium-sized enterprises, Tunisia’s alternative market has so far fallen short of expectations. Efforts to attract new companies can be hindered by high returns on bank deposits, which discourages higher-risk investment alternatives like the stock exchange. However, as the economic recovery continues its upwards trend and various regulatory changes make their desired impact, the Tunis Stock Exchange is positioning itself to benefit over the medium term. This chapter contains interviews with Bilel Sahnoun, CEO, Tunis Stock Exchange; and Walid Saibi, General Manager, Tunisie Valeurs.
Explore chapterTrade & Investment
The Philippines is a key bridge between the Americas and Asia, making it a natural conduit for global trade flows. The country also has some of the strongest economic growth rates in the Asia-Pacific region, with growth at 6% or more for 16 out of the 20 quarters between 2014 and March 2019. The nation will continue to have considerable demand for imports as major public infrastructure projects are rolled out and industries expand and move towards higher value-added products. Demand for intermediate goods, as well as building materials and finished products, is therefore high. At the same time, insufficient upstream output of oil, gas and coal means that energy imports are also growing as the economy expands. This chapter also contains interviews with Charito Plaza, Director-General, Philippine Economic Zone Authority; and Allard Nooy, CEO, InfraCo Asia.
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Buy digital copy of this chapter - £18After a surge in stock prices in 2017 that saw the Ghana Stock Exchange (GSE) become the best performing exchange globally, the GSE experienced a significant setback, posting net declines in 2018. Nevertheless, the strong performance of the country’s main index in 2017 has renewed interest in the market as a means of raising capital and made Ghanaian equities a more attractive prospect for investors. While challenges remain, including a lack of variety in investment instruments and low levels of liquidity, the introduction of new minimum capital requirements for banks, coupled with the sustained growth of one of sub-Saharan Africa’s fastest-growing economies, appears set to boost the raising of capital and stock prices over the course of 2019. This chapter contains interviews with Daniel Ogbarmey Tetteh, Director-General, Securities and Exchange Commission; and Alex Asiedu, Managing Director, STANLIB.
Explore chapterEnergy & Utilities
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With the new administration’s pro-business, pro-investment stance, in addition to improvements in international prices, the Colombian oil and gas sector is anticipating increased investment over the coming years. Its efforts to diversify and strengthen its energy mix by capitalising on the country’s abundance of renewable sources and further developing its hydropower segment will likely continue to attract the interest of new industry players. As Colombia’s proven oil and gas reserves begin to decline after having reached their peaks, the announcement of new exploration activities and the first fracking pilot project are reassuring signs that the sector is moving in the right direction. This chapter contains interviews with María Fernanda Suárez, Minister of Mines and Energy; and Astrid Álvarez Hernández, CEO, Grupo Energía de Bogotá.
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While the economy has increased three-fold since the turn of the century, capital markets have not proved able to emulate this growth. With trading volumes falling again in 2018, it is clear that markets need to see more dynamic growth in terms of size and liquidity. Efforts to increase penetration should see the high market concentration give way to more diverse participation from individuals and companies of all sizes and sectors. A cornerstones to this will be ensuring the business community and the wider population are made more aware of the financial benefits that capital markets can bring. Looking to the 2020s, question marks remain as to whether Peru will be able to bolster the size and penetration of its capital markets in a way that more closely reflects the scope and dynamism of its economy. This chapter contains an interview with Marco Antonio Zaldívar, Former Chairman, Lima Stock Exchange.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The year of 2018 was challenging across the board for many emerging markets, and changing trends in global capital movements have brought turbulence to the Egyptian Exchange as well. After rising significantly in the first four months of 2018, the exchange’s main index, the EGX30, showed a sustained retrenchment to end the year at a level not seen since early 2017. Throughout this period, however, the authorities implemented a series of reforms that are establishing the bourse as a safer and more transparent destina¬tion for domestic and international investors. With forecasts for the country’s economy broadly positive, Egypt’s capital markets are well positioned to serve their purpose as facilitators of growth and develop-ment over the coming year. This chapter contains interviews with Mohamed Farid Saleh, Executive Chairman, Egyptian Exchange; and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.
Explore chapterBanking
Buy digital copy of this chapter - £18Twenty years on from a severe financial crisis the effects of which still define the industry, the banking sector in Indonesia is crowded but rich in opportunity. A diverse array of banks and non-bank financial institutions vie for existing customers and work to attract new ones, in what remains a lightly penetrated market. With the world’s fourth-largest population, Indonesia is seen as having great potential, and continues to attract foreign investment. Market strategies, however, are in a state of flux. A handful of major lenders, some of them state-owned, have built national branch networks and constitute formidable competition for any lender following a nationwide universal banking model. Lenders are increasingly looking at financial technologies, in particular those that reach consumers via their mobile phones, as a way to scale up without investing time and money building a physical presence. This chapter also contains interviews with Kartika Wirjoatmodjo, President Director and CEO, Bank Mandiri; Achmad Baiquni, President Director, Bank Negara Indonesia; and Batara Sianturi, CEO, Citi Indonesia, and Chairperson, International Banks Association of Indonesia.
Explore chapterBanking
Buy digital copy of this chapter - £18As one of the biggest banking sectors by assets in the MENA region, Saudi Arabia has been something of a sleeping giant in recent years. Economic uncertainty and the effects of low international oil prices have seen both muted lending growth and deposit acquisition, while economic reforms have led to more market uncertainty. The Kingdom’s lenders have, however, remained profitable throughout this period, and are well positioned to take advantage of opportunities arising from an anticipated acceleration of economic growth. In the meantime, an industry that has seen little structural change over recent decades is about to be transformed by new market entrants and mergers of some of its biggest institutions. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Søren Nikolajsen, Managing Director, Alawwal Bank.
Explore chapterBanking
Buy digital copy of this chapter - £18Over the course of 2018 Qatar’s banking industry demonstrated its resilience in the face of an economic blockade placed upon the country by a number of governments. Credit ratings agencies Moody’s and Fitch both upgraded Qatar’s sovereign credit ratings outlook to stable in the summer of 2018, recognising the improving macroeconomic scenario and the largely successful resolution of the challenges associated with the economic embargo. This action was accompanied by a number of individual bank upgrades, and in October 2018 Moody’s upgraded the entire banking sector from negative to stable, noting that banking sector profitability will remain stable with strong capital buffers. This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Abdul Hakeen Mostafawi, CEO, HSBC Qatar; and Raghavan Seetharaman, CEO, Doha Bank.
Explore chapterBanking
Buy digital copy of this chapter - £18Sri Lanka’s banks are currently experiencing considerable change. Regulatory matters are a prominent concern, alongside the ups and downs of loan growth and economic policy. A careful balancing act is being performed as a result, with those able to tread the narrow path recording healthy bottom lines and continued service expansion in 2018. The year ahead will likely see this trend continue. There is an expectation that an election year may see some fiscal loosening overall, to the benefit of credit growth – particularly in the consumer segment. Meanwhile, meeting the new regulatory standards accompanying the rollout of Basel III and International Financial Reporting Standard 9 requires some significant changes in the way lenders do business. Following a global trend, digitalisation and financial technology are changing the industry, and the next few years look set to be transformative. This chapter contains an interview with Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.
Explore chapterBanking
Buy digital copy of this chapter - £18Banks in Abu Dhabi are well funded and have demonstrated resilience. They also exist in a competitive environment that is widely seen as overbanked. After a major merger created the region’s second-largest lender in 2017, further moves towards consolidation are expected. For now, the banking system has ample liquidity and would benefit from more opportunities to deploy it. The government has been effecting structural reforms since the 2007-08 economic crisis, to boost the efficiency of government spending and encourage greater self-reliance on the part of both the private corporate and government-linked businesses. This is part of a wider effort to prepare for a long-term future in which Abu Dhabi can thrive even when oil prices drop. This chapter contains an interview with Abdulhamid Mohammed Saeed, Group CEO, First Abu Dhabi Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Capital markets in Dubai are spread across multiple exchanges, each with an emphasis on a different asset class. With this structure established and still growing, the aim is to boost activity in all asset classes, and to create an overall offering with the breadth and depth to rival major global financial centres. For now, most securities trading is governed by external factors, foremost among them being oil prices. Equities values in particular have tended to rise and fall with the price of crude. Building long-term liquidity – the presence of enough securities and investors to make buying and selling easy, fast and free from price distortion – is the goal for most emerging markets such as Dubai, and the emirate is deploying a multi-faceted strategy to achieve this. This chapter contains an interview with Hamed Ali, CEO, Nasdaq Dubai.
Explore chapterBanking
Buy digital copy of this chapter - £18Underpinned by rising commodity prices and, consequently, increased domestic spending, Kuwait’s banking sector performed well in the 18 months to mid-2018. The industry posted net profit growth of 8.9% and total asset growth of 5.9% to $251.9bn in 2017, even as local banks moved to adhere to a raft of new provisioning rules. With the price of crude more than doubling from $28 per barrel in January 2016 to $76 in September 2018, the state has expressed confidence in its ability to move forward with $112.5bn in planned capital expenditure under the National Development Plan 2015-20. This will have positive knock-on effects for the banking sector, which has long been a beneficiary of state spending in the form of government deposits and financing opportunities. This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait; and Fatah Adour, General Manager, Citibank Kuwait.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Economic progress and the country’s natural position as an investment bridge between Europe and Africa have allowed Morocco to establish one of the continent’s largest and most sophisticated capital markets. Despite its advantages, however, the Casablanca Stock Exchange has been affected by low levels of liquidity, a scarcity of new listings and an overall lukewarm performance. One significant difficulty has been the bourse’s inability to attract new firms and spur the interest of a large volume of individual investors. Still, the government’s new roadmap is likely to positively impact the stock exchange over the medium term by helping improve offerings and boost demand. Government plans to list certain public companies and attract private investors is also expected to improve performance. This chapter contains interviews with Nezha Hayat, Chairperson, Moroccan Capital Markets Authority; Karim Hajji, General Manager, Casablanca Stock Exchange; and Younes Benjelloun, Partner and CEO, CFG Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Despite macroeconomic challenges, the kingdom’s stock market has performed reasonably well over the past two years. Although listings activity has been weak recently, developments such as the introduction of a real estate investment trust in 2017 and the initial public offering of a local logistics operator in 2018 bode well for the market. A range of reforms being undertaken by the bourse, including new listing rules and plans for new products, are set to further support market liquidity and increase the exchange’s attractiveness.
This chapter contains an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18After four years of high gains following the end of the political instability in Côte d’Ivoire, the Bourse Régionale des Valeurs Mobilières – headquar¬tered in the Ivorian commercial capital Abidjan – is experiencing challenges marked by a significant drop in indexes, reaching a six-year low in 2018. Increased competition for telecoms companies in Senegal and Burkina Faso, a crisis in the Ivorian banking sector and fears of political unrest do not seem to indicate a short-term recovery in prices. However, bright economic prospects for the UEMOA region and increasingly attractive price-to-earnings ratios present medium-term opportunities for investors. As the bourse’s visibility is increasing and more companies list, interest for the equity market will continue to grow. This chapter contains interviews with Felix Edoh Kossi Aménounvé, CEO, La Bourse; and Niamkey Isidore Tanoé, CEO, Atlantique Finance.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18After several years of rapid expansion and double-digit credit growth, Myanmar’s banking sector underwent several necessary reforms in 2017 and 2018, as the Central Bank of Myanmar moved to introduce new prudential regulations and reduce overdraft lending. Although foreign banks remain prohibited from participating in retail activities, a spate of recent directives have made promising strides towards liberalisation, with foreign entities now permitted to provide import and export financing, as well as lend to local businesses – a major step forward for the development of the sector. Financial inclusion has benefitted from rapid mobile adoption and supportive policy-making. This chapter contains interviews with U Kyaw Kyaw Maung, Governor, Central Bank of Myanmar; U Thein Zaw Tun, Managing Director, CB Bank; He Bi Qing, CEO, ICBC Yangon; and U Nyo Myint, Vice-Chairman, Myanmar Insurance Association.
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Buy digital copy of this chapter - £18Muted investor sentiment since 2016 has slowed activity on Oman’s stock market. Downgrades by all three major ratings agencies and constricted spending have taken their toll on trading volumes, nudging the index into a negative trend over 2018. However, some parts of the market are benefitting from this scenario. Bonds and sukuk (Islamic bonds) have become a more inviting prospect for investors, and the two financial instruments have seen an increase in turnover during 2018. Regulations concerning real estate could also boost the popularity of a new financial instrument. Rising oil prices may prompt a return of more traditional market drivers, possibly reinvigorating the capital market over the coming year. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, Group CEO, Ominvest.
Explore chapterEnergy & Renewables
Buy digital copy of this chapter - £18The steep fall of oil prices in 2014 underlined the extent to which the Algerian economy, already under pressure from growing domestic demand for energy and decreasing output, was dependent on hydrocarbons. Algeria is now facing the challenges of reforming and revitalising this strategic sector and, through state-owned energy company Sonatrach and its SH2030 Leading the Change strategy, is giving shape to long-term developments in offshore and shale. Renewables, meanwhile, are set to become an increasingly prominent component of the energy mix. While diversification will need to remain a top priority to avoid economic crises such as that of the 2015-17 period, energy will remain the most prominent sector for the country in the long run. This chapter contains interviews with Abdelmoumen Ould Kaddour, CEO, Sonatrach; Claudio Descalzi, CEO, Eni; Hesham Mekawi, Regional President, BP North Africa; and Fatma Zohra Zerouati, Minister of Environment and Renewable Energy.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Despite multiple trading platforms, a variety of debt instruments and a range of institutional investors, both domestic and foreign, Nigeria’s capital markets are relatively underdeveloped, accounting for only 11% of GDP in 2017, compared to a global average of 98.5% in 2016. Additionally, the authorities have not yet solved investors’ liquidity challenge and most domestics firms’ difficulties accessing finance. Furthermore, Nigeria wants to use capital markets to raise funds for infrastructure, the need for which is greater than what the federal budget and funding mechanisms are able to provide. Reforms to the sector are expected to play a role in infrastructure development in the near future, as new rules for pension funds are set to allow individual account holders to select risk-based investment approaches. This chapter contains interviews with Oscar N Onyema, CEO, Nigerian Stock Exchange; Ibukun Adebayo, Head of Middle East, Africa and South Asia, International Markets Unit, London Stock Exchange Group; Kayode Akinkugbe, Managing Director and CEO, FBNQuest Merchant Bank; and Chinua Azubike, Managing Director and CEO, InfraCredit.
Explore chapterTransport & Logistics
Situated on the Horn of Africa at the entrance of the Red Sea on the strait of Bab el Mandeb and overlooking routes linking Europe, Africa, the Middle East and Asia, Djibouti aims to further leverage its unique location among important routes of commerce to become an international trade hub. The country is investing in new transport infrastructure, developing ports and airports, extending road networks and easing cargo traffic with neighbouring Ethiopia through a railway connection inaugurated in January 2018. At the same time, increasingly modern facilities are removing bottlenecks and improving Djibouti’s position as a gateway for other landlocked countries in the region. However, maintaining momentum and, more broadly speaking, the economy’s positive performance will also require the diversification of economic partners. This chapter contains an interview with Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority.
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Buy digital copy of this chapter - £18The market entered 2018 on the back of strong performance the previous year, in which the main index followed a broadly positive trajectory that continued into the first quarter. Though the markets saw some fluctuation over the following months, continuing legislative support and positive sector developments suggest a resilience going forward. At the same time, continuing regulatory support and a project pipeline that includes the continued launch of financial derivatives for equities, bonds and currencies, as well as the expansion of commodity derivatives, ensure the market will remain a driver in the region. This chapter contains interviews with Geoffrey Odundo, CEO, Nairobi Securities Exchange; and Geoffrey Gangla, CEO, Genghis Capital.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Economic growth is expected to gather speed in 2018 and 2019, and the Trinidad and Tobago Stock Exchange could benefit through higher share prices and more players becoming involved with the exchange. Even if T&T’s road to economic recovery is long, companies with a healthy cash flow have the option to return a higher percentage of their earnings to shareholders. Increasing dividend pay-out ratios would defend the yields earned by investors in a difficult economic environment. New tax measures may offset incremental economic growth in the near term, however, and affect the earnings of the country’s listed companies. In FY 2018 a change was implemented to the tax regime that subjects companies earning over TT$1m ($148,300) per year to a marginal tax rate of 30%, up from 25%. This increase could deflate the impact of companies on the Composite Index by a few percentage points. This chapter includes an interview with Hadyn Gittens, CEO, Trinidad and Tobago Securities and Exchange Commission; and a viewpoint by Gregory N Hill, Managing Director, ANSA Merchant Bank.
Explore chapterBanking
Buy digital copy of this chapter - £18Papua New Guinea’s banking sector experienced a mixed year in 2017, with commercial bank assets declining after four consecutive years of growth. Total loans to the private sector also fell against a backdrop of subdued economic activity, even as Bank South Pacific, the country’s leading commercial bank, recorded a strong rise in lending and increased profits. Nevertheless, efforts are under way to overcome these challenges, with a focus on modernising existing infrastructure and improving financial inclusion. Under a far-reaching sectoral review, launched with support from the World Bank, the Bank of PNG – the country’s central bank – has made steady progress in upgrading the country’s interbank transfer network to support the development of a national payment system. This chapter contains interviews with Loi Bakani, Governor, Bank of PNG; and Robin Fleming, Group CEO, Bank South Pacific.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Argentina’s historic issuance of $16.5bn worth of bonds in April 2016 marked the country’s return to the international capital markets after effectively being barred for 15 years. Argentina has had a troubling history in global markets, having defaulted on its sovereign debt eight times since 1816, the most significant being the 2001 default on more than $80bn. Since taking office, President Mauricio Macri’s administration has successfully reached an agreement with its holdout creditors and implemented a number of market-friendly reforms, ranging from lifting currency restrictions to abolishing export quotas. While this helped to significantly improve investor confidence in the nation, bolstering its performance across most metrics, some of these gains have been eroded in the early months of 2018, amid creeping inflation and a shift away from emerging market equities among investors. This chapter features an interview with Marcos Ayerra, President, Comisión Nacional de Valores.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Peru has many of the economic ingredients needed for rapid expansion of the capital market, yet the authorities still need to channel efforts into making the Lima Stock Exchange (Bolsa de Valores de Lima, BVL) attractive to both businesses and investors. Since the turn of the new millennium, the number of listed companies has grown from 210 in 2001 to 277 as of June 2018. Of these, manufacturing (16%), finance (14%), public service (9%) and mining (8%) are among the most represented sectors. A handful of firms tend to dominate each of these categories. For example, Southern Copper Corporation, a mining company, comprises almost 25% of the entire exchange’s value at $40.6bn; Credicorp Capital, a local financial services firm, has a market capitalisation of just under $21bn, or 12.7% of the BVL total; and Banco de Crédito, a Peruvian bank, has a market cap of $17.2bn – equal to 10.5% of the total. This chapter features interviews with Marco Antonio Zaldívar, Chairman, Lima Stock Exchange; and Jorge Ramos, General Manager, BBVA Continental Bolsa; and President, Association of Peruvian Brokerage Houses.
Explore chapterBanking
Buy digital copy of this chapter - £18The banking sector experienced mixed results in 2017. Although bank loans and asset quality benefitted from the country’s ongoing economic recovery – with operating profits rising as a result – high provisioning costs and preparations for the new accounting standards that take effect in 2019 saw net profits decline for many larger commercial banks. The sector is resilient, well capitalised and liquid, but non-performing loans remain high, particularly for smaller businesses. According to S&P, 2018 is set to be a turning point for the sector, with macroeconomic expansion, stabilising asset quality and an anticipated increase in public investment likely to end the credit down cycle. Banks will experience gains in earnings as provisioning costs drop and loan growth recovers, with rising infrastructure investment expected to support broader industry expansion. This chapter contains an interview with Prasarn Trairatvorakul, Former Governor, Bank of Thailand; a dialogue with Predee Daochai, Chairman, Thai Bankers’ Association; and President, Kasikornbank; and Piti Tantakasem, CEO, TMB; and an interview with Antoine Gustin, CEO, BNP Paribas Thailand; and Chairman, Association of International Banks.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While corporate bond issuances have only expanded at a moderate rate, Mexico’s sovereign bond market has long been a central component of the bourse’s activity, attracting a growing volume of foreign players. An assortment of new structured products launched over recent years has helped channel market investment towards infrastructure development in areas such as transport and energy. Despite external challenges, the Mexican Stock Exchange has proven effective at introducing innovative products and keeping investors interested in what is on offer. While higher interest rates expected over 2018 and 2019 may make some new products less appealing, the diversification brought about by special purpose acquisition companies, real estate investment trusts, first investment project certificates and development capital certificates is likely to attract new investors and help bridge the gap between capital market utilisation and financing the country’s economic needs. This chapter includes interviews José Oriol Bosch Par, CEO, Mexican Stock Exchange; and Santiago Urquiza Luna-Parra, President, Institutional Stock Exchange.
Explore chapterTrade & Investment
Foreign direct investment in the Philippines hit an all-time high in 2017, bolstered by robust GDP growth, favourable demographics and the manufacturing segment, with inflows from Japan, Europe and China rising steadily in recent years. An ongoing geopolitical shift could have a profound impact on trade and investment in the Philippines, with the government increasingly turning to China as a favoured bilateral partner, and relations with the US, an important historical trade and investment partner, cooling since President Rodrigo Duterte took office in June 2016. The Philippines benefits from a diversified export market, with rising regional trade ties and strong demand from the EU, its second-largest export market, expected to maintain stability even as US investment in the country may ease. This chapter contains a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia; and an interview with Ramon M Lopez, Secretary, Department of Trade and Industry.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Dar es Salaam Stock Exchange (DSE) has evolved impressively since its establishment in 1996, and its recent demutualisation has ushered in a new phase of market development. Updated regulations, products and infrastructure are under way as exchange authorities position the DSE to attract much-needed liquidity. The listing of telecoms and mining companies – the result of new legal requirements – should help to provide a regular schedule of new investment opportunities in the medium term; however, long-term index growth will ultimately depend on the direction of the broader economy, and the impact of ongoing economic reforms. This chapter contains a viewpoint with Moremi Marwa, CEO, Dar es Salaam Stock Exchange.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Sharjah’s tourism sector benefits from a range of attractions, including its year-round warm weather, beaches, museums, proximity to Dubai’s shopping facilities and status as a regional cultural hub. The sector faced something of an oil price-related downturn in 2015 but has been showing signs of resurgent growth and is attracting substantial investment in the form of a range of internationally branded hotel projects in the pipeline. The sector’s development and growth is being guided by Sharjah Tourism Vision 2021, launched in 2015, which aims to attract 10m visitors annually by 2021. This chapter contains an interview with Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority.
Explore chapterBanking
Buy digital copy of this chapter - £18Improving economic growth, an increasingly sophisticated domestic market and regulatory reform are the main factors shaping the Sri Lankan banking sector. Stability has become a watchword following a period of rapid credit growth, as a flourishing private sector boosted the development of a previously underbanked market. Although the sector has a healthy growth outlook, the central bank is keen to keep a lid on credit expansion, while higher regulatory standards may trigger long-awaited consolidation. Sound monetary policymaking has helped rein in credit growth to an extent, though respectable economic growth and increasing demand from small and medium-sized enterprises will ensure the rate remains in the double-digits for the coming years. This chapter contains an interview with Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While Tunisia has faced weak economic growth and high inflation in recent years, the country’s stock market continued to grow over the 2016-17 period, even though its contribution to private investment financing remains relatively modest compared to that of the banking sector. Measures to deepen the market, however, are under way, aiming to attract an increased number of small and medium-sized enterprises to the bourse, while improving its security and transparency standards to entice further institutional and foreign investors to join the currently retail investor-dominated exchange. With economic growth expected to continue to pick up, market observers are cautiously optimistic regarding the development of the country’s capital markets. This chapter contains interviews with Bilel Sahnoun, CEO, Tunis Stock Exchange; and Walid Saibi, General Manager, Tunisie Valeurs.
Explore chapterEnergy
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Dependent on imports and grappling with regional instability and major supply disruptions, Jordan’s energy sector has faced several challenging years. Rapid population growth – with the kingdom seeing an estimated 1.3m Syrian refugees arrive since 2011 – has also exacerbated existing water scarcity, especially in Amman and Jordan’s northern areas. These challenges have prompted the government to pursue new opportunities through private sector development, with private firms set to play an important role in delivering new water, oil shale, nuclear, and renewable energy projects. Indeed, Jordan has risen to become a regional leader and model for solar energy development, while authorities are reporting steady progress in flagship oil shale and nuclear power projects, as well as the Red Sea Dead Sea conveyance project, which should significantly augment water supply and introduce large-scale desalination activities to the water sector for the first time. This chapter contains an interview with Saleh Kharabsheh, Minister of Energy and Mineral Resources.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18Myanmar’s largely unbanked population of over 53m presents vast growth opportunities, and rising demand for the newly emerging financial sector has already led to a sizeable expansion of services and investments. Enthusiasm for the Myanmar market among private domestic and international insurers has been high, as the country promises significant potential returns. With the new Yangon Stock Exchange (YSX) established as recently as October 2015, Myanmar’s capital markets are at a very early stage of development; however, the authorities are embarking upon a series of legislative and regulatory reforms. Notably, this will involve removing some of the main barriers to entry for both domestic and international players. This chapter contains interviews with U Bo Bo Nge, Deputy Governor, Central Bank of Myanmar; Neil Emerson, Senior Vice-President and Managing Director for the Asia-Pacific Region, Diebold Nixdorf; Kamalkant Agarwal, Head of International Banking Business, Siam Commercial Bank; and Daw Sandar Oo, Managing Director, Myanma Insurance; and Chairperson, Myanmar Insurance Association.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Despite a challenging investment environment, Bahrain’s exchange showed a relatively strong performance in 2017, with index gains in most sectors. Macroeconomic challenges remain in 2018, but new investment instruments and some significant changes to the exchange’s infrastructure are helping it to maintain its status as one of the most progressively regulated markets it the region – a key asset in the regional competition for investment capital.
This chapter contains an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse; and Najla M Al Shirawi, CEO, SICO.
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Buy digital copy of this chapter - £18In September 2018 the Bourse Régionale des Valeurs Mobilières (BRVM), which is headquartered in Abidjan, will celebrate its first 20 years in operation. The past decade has seen a significant increase in the volume of listings, liquidity, valuations and the number of market participants. A long-awaited third compartment of the equity market was launched in the final month of 2017, while the BRVM plans to extend the breadth and depth of the market over the medium term. Initial public offerings have been a key driver of the rise in capitalisation on the BRVM equity market, with the exchange having a standout year in 2016, when four firms listed, raising a combined €129m in capital. The following year saw the flotation of two banks, which raised around €201m in total.
This chapter contains interviews with Edoh Kossi Aménounvé, Managing Director, Bourse Régionale des Valeurs Mobilières (BRVM); and Kadi Fadika-Coulibaly, Managing Partner, Hudson & Cie.
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Buy digital copy of this chapter - £18Despite the economic challenges facing the country, 2017 was a positive year for the Egyptian Exchange (EGX), with the main index expanding by approximately 17%. The EGX remains an important component of the economy and thanks to an ongoing process of market development is likely to continue to act as a useful platform for both corporates and small and medium-sized enterprises wishing to raise capital. The ability of the EGX to attract new listings and investors is linked to the wider question of Egypt’s macroeconomic performance. A potential commodities exchange would represent a key structural advance, although a number of important questions regarding its implementation remain to be answered.
This chapter contains interviews with Mohamed Farid Saleh, Chairman, Egyptian Stock Exchange; and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment. The chapter also contains share analyses & data provided by HC Securities & Investment.
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Buy digital copy of this chapter - £18Dubai is home to a domestic stock exchange, an international market with one of the largest concentration of sukuk (Islamic bonds) in the world, as well as equity futures and three derivatives platform operators: the Dubai Gold and Commodities Exchange, Dubai Mercantile Exchange and Nasdaq Dubai. The emirate continues to attract major international sukuk listings and all of its exchanges are in the process of expanding their product offerings, including moves into areas such as index funds and real estate investment trusts, and various new types of derivatives contracts.
This chapter contains interviews with Essa Kazim, Chairman, Dubai Financial Market; Hamed Ali, CEO, Nasdaq Dubai; and Abdulfattah Sharaf, Group General Manager and CEO for the UAE, HSBC Bank Middle East.
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Buy digital copy of this chapter - £18The sultanate is home to a well-developed stock exchange, the Muscat Securities Market, which was founded in 1988. The equity market has seen a decline in initial public offering activity in recent years; however, it witnessed a resurgence in 2017 thanks to government-driven offerings, more of which are set to take place in 2018. On the debt side, there has been a recent uptick in issues and listings, while the sukuk (Islamic bond) market also appears to be developing. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, Group CEO, Ominvest.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18One of the largest capital markets in Africa, Morocco’s bourse, the Casablanca Stock Exchange, has been slow to develop in recent years, with relatively few new listings, limited liquidity and a mixed performance. While initial public offers have been relatively few and far between since 2012, a wide range of recent reforms and more legislation in the pipeline appear could help boost investor interest. These changes should provide a range of new products and allow investors to make a profit during times of both rising and falling share prices. Relaxing listing conditions for smaller firms, which are often in greatest need of capital, will also provide a welcome change for the sector. The market’s strong performance in 2016 and 2017, the continuing development of Casablanca Finance City and efforts to make Morocco a regional financial centre more generally will add further momentum, cementing the kingdom’s status as one of Africa’s most important capital markets.
This chapter contains an interview with Hassan Laaziri, Chairman, Association of Moroccan Capital Investors and CEO, CDG Capital Private Equity.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Ghanaian capital markets showed promising signs of a steady recovery over the course of 2017, as the country saw an improvement in key macroeconomic indicators. Moreover, a return to strong growth, along with the steady issuance of new government bonds, has provided a boost to the Ghana Stock Exchange (GSE). The country’s capital markets are benefitting from a wide range of reforms, including to pensions, which swill help loosen domestic capital and improve liquidity, listings and trading. As the country begins a new cycle of growth and investment, the GSE is likely to play an increasingly important role in financing domestic development.
The chapter contains an interview with Kofi Yamoah, Managing Director, Ghana Stock Exchange; and a viewpoint from Roger Adjovu, General Manager, Liberty Capital.
Explore chapterBanking
Buy digital copy of this chapter - £18Despite the effects of lower international oil prices placing downward pressure on sector profitability, Saudi Arabia’s banks have succeeded in expanding their assets over the past year. While the trend of lower profits is likely to prevail over the medium term, the Kingdom’s banks are well positioned to capitalise on the growth opportunities encompassed in the country’s new economic development strategy. The modern banking landscape emerged from the oil boom that followed the Second World War, a period of economic transformation driven by strong revenue flows from growing hydrocarbons exports. A rapidly expanding money supply and an increasing number of banking institutions called for greater supervision of the market, and in 1952 the Saudi Arabian Monetary Authority was established and tasked with regulating the banking industry.
This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; Rania Nashar, CEO, Samba Financial Group; and Soren Nikolajsen, Managing Director, Alawwal Bank.
Explore chapterEnergy
Buy digital copy of this chapter - £18Production at maturing oil and gas fields is encouraging Algeria to consider new approaches with regards to its hydrocarbons potential. In line with rising demand for electricity, the country has invested significantly in the power sector over the past 10 years. With rising domestic consumption and growing environmental awareness, solar energy has come to occupy a more prominent role in the development of the energy mix.
This chapter contains interviews with Abdelmoumen Ould Kaddour, CEO, Sonatrach; and Tobias Becker, Senior Vice-President and Africa Director, ABB.
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Buy digital copy of this chapter - £18Tightening liquidity conditions and a squeeze on profit growth proved to be the hallmarks for Qatar’s banking sector in 2016, as financial institutions across the Gulf were forced to respond to the effects of weak oil prices on the local economy. Despite tougher operating conditions, however, the sector remains resilient, with strong underlying fundamentals marked by high capital adequacy ratios and one of the world’s highest savings rates. Even though the diplomatic fallout within the GCC had ramifications for the sector in 2017, the authorities are implementing mitigation strategies. Looking ahead, Qatar’s lenders are considering overseas expansion and domestic consolidation as strategies to drive future growth.
This chapter contains an interview with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Ali Ahmed Al Kuwari, CEO, Qatar National Bank; Abdul Hakeem Mostafawi, CEO, HSBC Qatar; and Sheikh Faisal bin Abdulaziz bin Jassem Al Thani, Chairman and Managing Director, Ahli Bank.
Explore chapterEmerging Cities
Buy digital copy of this chapter - £18Given Indonesia’s diversity, the country’s regional policy is crucial to sustainable progress. In the past, under Jakarta- and Java-based regimes, centralisation was seen as the best way forward. The post-Suharto era, however, has seen Indonesia move away from this concentration of power towards an approach that seeks to distribute authority and investment more evenly throughout the country’s many diverse regions. While this policy has not always lived up to expectations, it has seen a greater flow of investment into Indonesia’s second-tier cities, opening up new opportunities for investors.
This chapter contains interviews with Tri Rismaharini, Mayor of Surabaya; and Sri Sultan Hamengku Buwono X, Governor, Yogyakarta Special Region.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Given the difficulties experienced by Nigeria’s economy in 2016, every sector grappled with challenges, and capital markets were no exception. From external pressures such as low oil prices and US interest rate shifts, to internal factors such as depreciation and slowing oil production, investors in Nigeria had to account for a range of risks. These factors had a clear impact on inflows. In 2016 foreign investment in emerging markets fell to its lowest level since the 2008 global financial crisis, with capital flight accelerating in early 2017. However, the slowing of the economy has had some positive consequences. Perhaps equally important, Nigeria’s capital markets are in the midst of a robust reform programme, which should significantly improve the market’s growth and sustainability over the long term.
This chapter contains interviews with Mounir Gwarzo, Director-General, Securities and Exchange Commission; and Kayode Akinkugbe, Managing Director, FBN Merchant Bank.
Explore chapterBanking
Buy digital copy of this chapter - £18Papua New Guinea’s banking sector is sound, stable and profitable. Despite slow economic growth in the country in recent years, institutions have managed their exposures well and entered the current weak patch in a strong position. They are generating good results and investing in future growth. Regulation is solid and improving, with the central bank updating key laws and bringing the sector closer to international standards in terms of anti-money laundering. Innovation is helping to improve customer experience and geographical coverage, while it also promises to revolutionise the way money moves throughout the country. The establishment of Kina Bank in 2015 did not result in a dramatic change in the competitive landscape, but the dynamics of the sector are evolving, with institutions increasingly responsive on price and offering. At the highest levels work on inclusion continues.
This chapter contains interviews with Loi Bakani, Governor, Bank of Papua New Guinea and Mark Baker, Managing Director, ANZ Bank Papua New Guinea.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Like most GCC economies, Kuwait is well known for its buy-side investment activity – a result of its historic ability to transform oil revenues into global investments aimed at securing future economic sustainability. However, as the nation enters a third year of lower oil prices, Kuwait’s attractiveness as a destination for inward investment has come under increasing scrutiny. The government is eyeing global capital flows to support its bold development strategy, and recent years have seen a number of innovations aimed at attracting foreign investment to the country. Challenges remain, however, and Kuwait still has progress to make on international ease of doing business indicators. In the meantime, falling oil revenues have highlighted the nation’s dependence on a single export category, and therefore diversifying its export base and removing barriers to trade have also emerged as central priorities.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Benefitting from an export-oriented, industrialised economy and an ideal geographic position with proximity to Japan, China and high-growth ASEAN members, trade and investment in Thailand has expanded steadily in recent years on the strengths of its agricultural, automotive, electronics and textiles exporters. The country is more economically liberalised than some of its larger ASEAN neighbours, and although foreign direct investment inflows have trended downward after hitting an all-time high in 2013, the government has implemented several reforms reducing taxes and incentivising investment in high-priority industries. These efforts fit into the broader Thailand 4.0 and Cluster Policy economic development strategies, which seek to promote manufacturing along the country’s Eastern Economic Corridor. This chapter contains interviews with Apiradi Tantraporn, Minister of Commerce; Hiroshige Seko, Minister of Economy, Trade and Industry of Japan; Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade); and Kalin Sarasin, Chairman, The Thai Chamber of Commerce and Board of Trade of Thailand.
Explore chapterBanking
Buy digital copy of this chapter - £18Following another positive year of continuing profitability and financial strength in the face of challenges related to a wider economic slowdown, in 2017 Trinidad and Tobago’s banking sector is poised to play a key role in supporting new growth. While the demand for credit has slowed somewhat in light of volatility in oil prices, liquidity in the banking system has remained high. Executives in the sector expect the economy to begin rebounding in late 2017 and into 2018. In the meantime, they are seeking to maintain a competitive edge and increase their readiness to deal with the increasing pace of technological change.
This chapter contains an interview with Anya Schnoor, Managing Director, Scotiabank; and President, Bankers Association of Trinidad and Tobago.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Developments in Colombia’s capital markets in recent years reflect those in the wider economy. The well-established sovereign fixed-income market has seen increased issuance as the government seeks to finance its widening budget deficit while rolling over its existing stock of debt. Increased global economic uncertainty, with bouts of extreme market volatility that particularly impact emerging markets, would suggest that the immediate future for the development of the Colombian derivatives market is bright. While traded volumes are likely to continue to ebb and flow, the overarching trend is likely to continue upwards as the country’s capital markets become increasingly sophisticated and a wider range of derivative products are available. This chapter includes an interview with Juan Pablo Córdoba, President, Colombian Stock Exchange.
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Buy digital copy of this chapter - £18The Peruvian stock exchange, the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), had a boom year in 2016, achieving one of the highest rates of return in the world. The main index, the Standard & Poor’s (S&P)/BVL Perú General, ended the year at 15,567 points, a gain of 58.1% on the previous year, according to the World Federation of Exchanges. This made it the second-best-performing bourse in the world in 2016, after Egypt. BVL share prices are widely expected to see solid growth in 2017, albeit at a somewhat slower pace than in 2016, as a result of less vigorous performance by mining stocks, as well as some doubts over the underlying strength of the economy as it rebalances towards non-primary sector-led growth.
This chapter features an interview with Marco Antonio Zaldívar, President, Bolsa de Valores de Lima.
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Buy digital copy of this chapter - £18Despite undergoing a profitability squeeze in 2016, Abu Dhabi’s banking sector nonetheless demonstrated its ability to expand its asset base during a period of difficult economic conditions. A recovery in deposit growth means that liquidity concerns have abated, while the stabilisation of oil prices and continued expansion of the non-oil economy brought cheer at the outset of 2017. The sector also appears to be on the brink of a long-anticipated phase of consolidation, in which a number of its biggest names are contemplating joining forces and reshaping the local market.
This chapter contains an interview with Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE.
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Buy digital copy of this chapter - £18With strong asset growth, reliable profitability and solid capital adequacy, the Sri Lankan banking sector stands in sound health these days as it looks forward to a period of continued economic stability. Like other sectors, the industry is moving in the direction of greater capital and technological requirements, and continues to undergo a period of consolidation – particularly among its smaller players. In addition, new legislation on microfinance holds promise in seeing banking services spread further beyond the Western Province, with major benefits for companies and individuals outside of the country’s metropolitan centre.
This chapter contains interviews with Indrajith Coomaraswamy, Governor, Central Bank of Sri Lanka; and Jim McCabe, CEO, Standard Chartered Sri Lanka.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Strong macroeconomic expansion, rising consumer incomes and soaring import demand has kept trade volumes in the Philippines on a consistent upwards trajectory over the past decade. The country remains in trade deficit, with exports faltering in recent years as a result of external challenges such as low global commodity prices; softening demand in China, Japan and the US; and uncertainty over trade prospects with the EU in light of the Brexit vote. However, rising investment in manufacturing and industry could see the situation shift to a better balance in the coming years. The administration of President Rodrigo Duterte is explicitly targeting increased foreign direct investment, deploying a multi-pronged strategy to attract new inflows.
This chapter contains interviews with Ramon M Lopez, Secretary, Department of Trade and Industry; and Vivencio B Dizon, President and CEO, Bases Conversion and Development Authority.
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Buy digital copy of this chapter - £18Tunisia’s stock market has seen steady growth in capitalisation in recent years, and while the number of initial public offerings (IPOs) was limited in 2016, the exchange registered a positive performance over the year due to strong results in the industrial, consumer goods and financial sectors. The near-term outlook appears equally encouraging, with several IPOs in the pipeline. The bourse is looking to accelerate that momentum by bringing in new products and calling for supportive measures from the government to further raise its level of development. The extent of economic growth, successful efforts to attract increased financing and investment, and whether or not the government goes ahead with previously suggested listings of major state-owned firms will strongly influence market performance and development going forward.
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Buy digital copy of this chapter - £18The capital markets in Kenya have witnessed many years of sustained and rapid growth. This performance, phrased as one investor as “Africa in fifth gear”, reflects the broader macroeconomic fundamentals of the country’s economy, which is set to strengthen further in 2017 as a result of ongoing government spending on infrastructure and the recovery in tourism. However, short-term hurdles have dampened enthusiasm, such as the global uncertainty resulting from Brexit and the unexpected outcome of the US presidential elections in 2016, and domestic concerns over the national elections in August 2017. Still, while investors at the Nairobi Securities Exchange (NSE) may have been holding back investments to take account of short-term moves, excitement in Kenya’s long-term growth trend has not dimmed, as demonstrated by the ongoing activity in private equity and mergers and acquisitions. Despite the market’s relative sophistication, new initiatives are likely to require years of support by NSE and other market participants before they achieve a meaningful level of liquidity, particularly when spot equities and bonds are slowing down.
This chapter contains an interview with Paul Muthaura, CEO, Capital Markets Authority; and Geoffrey Gangla, CEO, Genghis Capital.
Explore chapterBanking
Buy digital copy of this chapter - £18Robust economic growth, the easing of restrictions on foreign bank ownership and increasing technological sophistication have added to the dynamism of the Vietnamese banking sector in recent years, as the industry puts the mini-crisis of 2012 behind it. Recent years have been characterised by substantial credit growth, as well as ongoing measures to address bad debt. Banking penetration is relatively low – only around 30% of the population have a bank account – providing ample space for growth. Vietnam’s strong GDP growth outlook is the single biggest upside factor for the country’s growing banking sector.
This chapter contains a roundtable with Nghiem Xuan Thanh, Chairman of the Board of Directors, Bank for Foreign Trade of Vietnam; Phan Duc Tu, CEO, Bank for Investment and Development of Vietnam; Natasha Ansell, Country Officer, Citibank Vietnam; and Pham Hong Hai, CEO, HSBC Vietnam.
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Buy digital copy of this chapter - £18Mexico’s capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly among leading parastatal companies, such as the state-owned energy giant Petróleos Mexicanos and the Federal Electricity Commission, as well blue-chip private firms. In light of external and domestic economic and political uncertainties, as well as rising interest levels, the Mexican equity market is expected to tread water in 2017. With the introduction of two new financial products aimed at stimulating infrastructure investment in 2016, namely FIBRA E and CerPIs, 2017 will prove a litmus test of their capacity to impact Mexico’s capital markets in the way that FIBRAs and CKDs have in recent years. Overall, however, the capital markets are likely to continue to see positive growth in the years ahead. This chapter includes an interview with Carlos Rojo Macedo, CEO, Grupo Financiero Interacciones.
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Buy digital copy of this chapter - £18The year 2016 was a difficult one for exchanges across the MENA region, due in large part to persistently low oil prices and political unrest. Egypt’s main index reflected the regional malaise for the first half of 2016, with a currency crisis and seemingly intractable fiscal deficit impacting investor confidence. By the second half of the year, however, the index was climbing once again as negotiations regarding an IMF lending programme were nearing a successful conclusion. While significant challenges remain, not least the direction of Egypt’s economy over the coming years, the Egyptian Exchange (EGX) and its regulator continue to develop one of the region’s most important exchanges. While the ability of the EGX to attract both new listings and investors is tied to the wider question of Egypt’s macroeconomic performance and the vicissitudes of global politics, the exchange is well positioned to grow should circumstances allow.
This chapter contains interviews with Sherif Samy, Chairman, Egyptian Financial Supervisory Authority; Hussein Choucri, Chairman and Managing Director, HC Securities & Investment; and Omar El Maghawry, CEO, FEP Capital.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Sharjah is a key regional destination for family and cultural tourism, attracting visitors particularly from the Gulf, Europe and Asia, and the industry is a substantial contributor to the local economy. Restaurants and hotels contributed Dh2.78bn ($756.7m) to the economy in 2015, up from Dh2.49bn ($677.8m) the previous year, reaching 3.2% of the emirate’s GDP. Sharjah is working to further expand the sector through a wide range of development projects, including efforts to develop niches such as resort, heritage, nature and adventure tourism in both Sharjah city and its environs, as well as the eastern parts of the emirate and Sir Bu Nuair Island.
This chapter contains interviews with Marwan Al Sarkal, CEO, Sharjah Investment and Development Authority (Shurooq); and Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority.
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Buy digital copy of this chapter - £18Côte d’Ivoire’s capital markets are closely linked to the broader fortunes of the eight-state UEMOA of which it is a member. The country is also home to West Africa’s regional stock exchange, the Bourse Régionale des Valeurs Mobilières, one of the fastest-growing stock exchanges on the continent. On the back of strong macroeconomic growth, equity activity has been increasing steadily over the past five years, with a strong rise in the volume of transactions. Nonetheless, the bourse continues to face challenges common to emerging and frontier market exchanges around the world, including liquidity issues. This chapter contains interviews with Edoh Kossi Aménounvé, Managing Director, Bourse Régionale des Valeurs Mobilières; and Kadi Fadika-Coulibaly, Managing Director, Hudson & Cie.
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Buy digital copy of this chapter - £18The region’s exchanges have operated in adverse economic conditions since the decline of oil prices began in the second half of 2014, and the Bahrain Bourse is no exception. However, the apparent stabilisation of global oil prices in 2016 has brought a similar firming of the main index and, after a year of shrinking stock prices, some increasingly attractive valuations. The larger story of 2016, however, has been of some important structural advances, such as the introduction of real estate investment trusts and the emergence of a vibrant secondary debt market. More legislative and infrastructural developments due in 2017 promise to sustain this forward momentum.
This chapter contains an interview with Najla M Al Shirawi, CEO, Securities and Investment Company.
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Buy digital copy of this chapter - £18The securities exchange in Muscat is a vital component of the Omani economy. The bourse serves as a showcase for the sultanate’s large enterprises, but its primary function is to act as an arena in which pooled capital can be distributed to investment sectors. In 2015, for example, the exchange had the capacity to provide OR2.56bn ($6.6bn) in funding. Throughout 2016, however, subdued oil prices and concerns about slow growth in emerging economies have made for a challenging environment, and the task of attracting liquidity to the market has become the key concern facing the authorities and regulator. As of late 2016, procedural and regulatory adjustments were being put into place to address these issues, and were expected to be central to the capital market’s ability to maintain its role in the domestic economy. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, Group CEO, Ominvest.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18In the wake of sweeping reforms undertaken since 2011, Myanmar’s banking sector has been advancing at a rapid pace to become safer, sounder and better regulated. The majority of banking institutions are rising to the challenge by adopting international best practices, especially in terms of accountancy, and investing in systems that promise to transform the way they operate. Until recently banking in Myanmar was a highly controlled, state-centric, ledger-entry affair. However, after undergoing a process of modernisation, it has become an industry of great opportunity. Indeed, thanks to significant expansion into underbanked corners of the economy, growing international interest and a series of large-scale reforms, the sector may also be one of the world’s most promising.
This chapter contains interviews with U Kyaw Kyaw Maung, Governor, Central Bank of Myanmar; U Yin Zaw Myo, Managing Director, Yangon Stock Exchange; Quach Hung Hiep, Senior Executive Vice-President, Bank for Investment and Development of Vietnam; and Simeon Preston, Group COO, AIA Group; as well as a roundtable with Azeem Azimuddin, CFO and Advisor to Chairman, Aya Bank; Antony Picon, Managing Director, Colliers International; Kim Chawsu, Managing Partner, Katalysts Investment Group; and Hal Bosher, CEO, Yoma Bank.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18While it has grown more than five-fold since the 1990s, Algeria’s insurance industry remains small relative to the size of the economy, with low penetration and density ratios. The sector sees more than half of its profits from automotive coverage, though the life segment has grown swiftly in recent years. Improvements to automotive claims processing and determined efforts to resolve the claims backlog should help rehabilitate the insurance sector’s image somewhat in 2017, and relieve it of a long-standing financial burden. This will allow insurers to focus on expanding promising assistance and SME-tailored products, as well as products across the life segment. This chapter contains interviews with Mohamed Loukal, Governor, Bank of Algeria; Adnan Ahmed Yousif, President and CEO, Al Baraka Banking Group; Yazid Benmouhoub, General Manager, Algiers Stock Market; Mohammed Khelfaoui, Managing Director, Tell Markets; and Mokhtar Naouri, CEO, CASH Insurance.
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Buy digital copy of this chapter - £18The Ghanaian capital markets have a long road ahead. Expanding equity listings, promoting the languishing bond market and introducing more sophisticated products will remain as significant challenges in the coming years. Still, Ghana is fortunate to have at its disposal all of the tools necessary to meet these challenges head-on. The question remains, however, whether the country is able to develop a comprehensive strategy and build consensus among all stakeholders to see it through to the end. Should it be successful in creating such a strategy, it will reap the benefits both on the exchange as well as in the wider economy.
This chapter contains viewpoints from Kweku Bedu-Addo, Chairman, Ghana Stock Exchange; and William Adjovu, Managing Director, Liberty Capital.
Explore chapterEnergy
Buy digital copy of this chapter - £18Though it lacks the petroleum resources of many of its Arab neighbours, Jordan’s limited hydrocarbons have helped its energy industry become one of the most progressive and dynamic in the region. Development of renewable and nuclear energy is set to significantly boost domestic capacity and reduce the kingdom’s fuel bill in the coming years. The emphasis on renewables should help Jordan showcase its commitment to a serious climate change policy; it has already committed to reducing greenhouse gas emissions by 14%.
This chapter contains interviews with Ibrahim Saif, Minister of Energy and Mineral Resources; and Adnan Z Amin, Director-General, International Renewable Energy Agency (IRENA).
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Gabon’s banking sector is heavily concentrated – a trait of many of the continent’s financial service industries – with the only privately owned local player in an outsized role. However, African banking groups have been rapidly growing their market share. Pushed down by macroeconomic headwinds, lending fell and distressed debt levels rose in 2015, but the sector showed signs of recovery in early 2016. In the short term the fortunes of the banking sector will remain dependent on the wider economic situation, which is in turn heavily linked to the international price of oil. However, government reform efforts at public banks should help put the industry on a more stable long-term footing, and plans for a new payment incidents registry and credit bureau should also boost the sophistication of payment methods and credit provision in coming years.
This chapter includes a dialogue with Claude Ayo-Iguendha, Director-General, BICIG; and Abdelaziz Yaaqoubi, Director-General, UGB; and an interview with Séverin Anguilé, President, Federation of Gabonese Insurance Companies.
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Buy digital copy of this chapter - £18The past 15 years have seen major advances in capital markets activity in Dubai. The financial sector free zone, the Dubai International Financial Centre (DIFC), has gone from idea to reality, and the emirate recently became the world’s largest market for sukuk (Islamic bonds). However, development has been uneven across types of capital markets offerings based on local demand patterns. New equity and bond offerings remain relatively underdeveloped, as most entrepreneurs in the emirate and the region are already well capitalised thanks to wealth accrued over years of oil exporting. Dubai aims to build on its growing reputation as a regional financial centre, and that has led to continued efforts by the government and major private sector leaders to encourage more breadth and depth in capital markets.
This chapter contains an interview with Essa Kazim, Chairman, Dubai Financial Market (DFM).
Explore chapterBanking
Buy digital copy of this chapter - £18Saudi Arabia’s banking sector is one of the largest and most vibrant in the Middle East, with three of its domestically licensed institutions in the regional top 10 by net assets. Historically the sector has thrived on the rise of high-value lending derived from the government’s infrastructure programmes, but recent years have seen local lenders pursue a growing number of opportunities in the consumer and small and medium-sized enterprise segments. More recently, low oil prices have raised questions about the domestic industry’s ability to maintain its healthy margins, and the sector will likely enter 2017 facing one of the most difficult operating environments in recent times. However, a history of prudent regulation means that the industry has sufficient buffers to ride out this part of the cycle, albeit with a modest softening of performance indicators.
This chapter contains a viewpoint from Ahmed Alkholifey, Governor, Saudi Arabian Monetary Agency; and interviews with Bernd van Linder, CEO, Saudi Hollandi Bank; Abdulaziz A Al Helaissi, CEO, Gulf International Bank; and Steve Bertamini, CEO, Al Rajhi Bank.
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Buy digital copy of this chapter - £18The Casablanca Stock Exchange (CSE) was off to a good start in 2016, and in June saw its largest initial public offering (IPO) in eight years. However, the bourse’s all-share index remains below the levels seen before the global financial crisis, as do IPO and trading activity more generally, and it seems likely to be some time before these return to pre-crisis levels. Nevertheless, the coming months and years will see a wide range of reforms applied across the kingdom’s capital markets, including the launch of new exchanges and a variety of products, all of which should help to boost the CSE’s substantial potential.
This chapter contains interviews with Nezha Hayat, Chairperson, Moroccan Capital Markets Authority; Nikhil Rathi, CEO, London Stock Exchange; and Younes Benjelloun, Partner and CEO, CFG Bank.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18With strong foreign reserves, a rapidly improving investment framework and a major state-led development programme under way, Kuwait is well positioned to attract growing levels of foreign direct investment (FDI) and trade in the coming years. While the government has cut back on current spending recently, capital expenditure has continued apace and is forecast to grow in the coming years. Furthermore, due in part to incentives put in place by the Kuwait Direct Investment Promotion Authority, established in 2013 as part of an ongoing overhaul of the FDI framework, much of this expenditure is expected to come from private firms, either directly or in the form of public-private partnerships. Indeed, in 2015 and early 2016 a handful of multinationals moved to take advantage of Kuwait’s new investment environment, with positive implications for future activity. On the trade front, oil exports are down and a relatively strong Kuwaiti dinar (compared to regional currencies) has limited non-oil export gains in 2015-16, though in the fourth quarter of 2015 these posted an increase for the first time in a year.
This chapter contains an interview with Yousef Mohammed Al Ali, Minister of Commerce and Industry.
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Buy digital copy of this chapter - £18Already home to the second-largest stock exchange in Africa by market capitalisation, the introduction of foreign-exchange futures trading in mid-2016 is a major step towards the market’s goal of offering increasingly sophisticated investment and risk-management products and services. Although there are a handful of potential initial public offerings in the pipeline, 2016 may not be an active year for new listings, but capital markets, through rights offerings, corporate debt issues and other products will remain a key source of new capital for corporations. The next 12-18 months will see a host of new financial products designed to help corporations raise capital, hedge risk and speculate in various markets.
This chapter contains an interview with Oscar Onyema, CEO, Nigerian Stock Exchange; and a viewpoint from Kayode Akinkugbe, Chairman, FBN Capital.
Explore chapterEmerging Cities
Buy digital copy of this chapter - £18During the years of former President Suharto’s rule, Indonesia’s political and economic power was concentrated in Jakarta. But with democratisation has come decentralisation, a trend that has gathered momentum since direct local elections were introduced in 2005, in turn creating a new breed of grassroots politician. After all, it was President Joko Widodo’s success as a mayor, first in Solo and then in Jakarta, that set him on the path towards the presidency. In Indonesia today, local politicians are seen as emblematic of a more localised politics, implementing changes based on the needs of the cities they represent.
This chapter contains a dialogue with Ridwan Kamil, Mayor of Bandung, and Tri Rismaharini, Mayor of Surabaya.
Explore chapterBougainville
Buy digital copy of this chapter - £18Situated at the eastern-most point of the New Guinea islands and in a different time zone from the rest of Papua New Guinea, the Autonomous Region of Bougainville is composed of two large islands, Buka and Bougainville, separated by a narrow tidal channel. Together with 168 smaller islands and countless atolls, it forms an archipelago that is geographically, geologically and culturally closer to the neighbouring Solomon Islands than to PNG, and its population of over 300,000 speak a dozen different languages. Bougainville’s development needs closely echo PNG’s own growth priorities, with infrastructure, improved services, health care and employment all featuring high on the list. Investors will watch with interest to see how the politics of the region develop in the run-up to the referendum, against a backdrop of untapped minerals and an agriculture sector that could prove to be highly lucrative drivers of growth.
This chapter contains interviews with Joe Lera, Minister of Bougainville Affairs; and Brenda Tohiana, Acting Secretary for Finance, Autonomous Bougainville Government.
Explore chapterBanking
Buy digital copy of this chapter - £18After half a decade of strong growth, Qatar’s banking sector is well positioned to weather regional economic volatility in 2016. As of the end of the first half of 2015 the country was home to the third-largest banking industry in the GCC, boasting total assets of $293bn. The sector consists of 18 institutions, including six domestic conventional lenders; Qatar Development Bank, which provides services for small and medium-sized enterprises; four domestic sharia-compliant banks and seven foreign institutions. Banking assets are highly concentrated in the domestic market, with the top five local institutions accounting for more than three-quarters of total sector assets, according to data from Qatar National Bank, the largest bank in the country by a significant percentage, and one of the largest financial institutions in the Middle East.
This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Raghavan Seetharaman, Group CEO, Doha Bank; and Fahad Al Khalifa, Group CEO, Al Khaliji.
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Buy digital copy of this chapter - £18Despite economic growth slowing in 2015 and 2016, Trinidad and Tobago’s banks remain profitable and may even see benefits from the end of a long period of very low interest rates. According to the Central Bank of T&T (CBTT), for the past five years growth in the financial sector (including finance, insurance and real estate) has outpaced economic expansion. In 2015 the nation’s GDP contracted by 2.1%, while the finance sector grew by 1.9%. Meanwhile, the share of GDP accounted for by finance, insurance and real estate has held largely steady at around 11% since the start of the decade. Total assets of the country’s commercial banks inched up by 0.82% in 2015, reach¬ing TT$134.8bn ($20.8bn) at the end of the year, up from TT$133.7bn ($20.6bn) in December 2014. T&T banks had TT$18bn ($2.8bn) worth of cash reserves at the end of 2015, which exceeded the statutory minimum reserve level of TT$13.3bn ($2bn) by a total of TT$4.6bn ($708.4m). This chapter features an interview with Nigel Baptiste, President, Republic Financial Holdings.
Explore chapterEnergy
Buy digital copy of this chapter - £18A powerhouse regional oil and gas producer, Brunei Darussalam has benefited significantly from a long history of hydrocarbons production in partnership with international oil companies. The energy sector continues to dominate the economy today, accounting for the majority of government revenues, GDP and exports. However, the sector is facing a host of concurrent challenges – production at Brunei Darussalam’s mature fields has been in decline for a decade, while oil and gas prices have fallen rapidly since mid-2014 – putting a significant strain on expenditure, investment and economic growth. Although the near-term forecast for energy sector growth is subdued, there have been a number of positive developments in recent years that will support long-term expansion.
Explore chapterSabah
Buy digital copy of this chapter - £18One of the largest of Malaysia’s 13 states, Sabah is banking on an economic development strategy that aims to make the most of its strategic position in the South China Sea, the beauty of its landscape and the riches of its natural environment. The plan centres on the Sabah Development Corridor (SDC), one of five economic development zones established throughout Malaysia and designed to encourage growth by targeting investment in key industries. In Sabah, the corridor covers the entire state and is focused on developing natural resources, especially hydrocarbons, and agriculture – predominantly palm oil, but also including food crops. Sabah is also looking to increase tourism, with Mount Kinabalu (South-east Asia’s tallest mountain), some of the world’s most stunning dive sites, and iconic wildlife, attracting visitors from across the globe. This chapter contains interviews with Musa Aman, Chief Minister, Sabah; Mohd Yaakub Johari, President and CEO, Sabah Economic Development and Investment Authority; Clarence Bongkos Malakun, Chairman, Institute for Development Studies Sabah; and Melvin Disimond, CEO, Kota Kinabalu Industrial Park.
Explore chapterBanking
Buy digital copy of this chapter - £18The Sri Lankan banking sector is well capitalised, well regulated and fast growing. It has faced no collapses in recent years and has benefitted from strong economic growth and relative stability following the end of the civil war in 2009. Financial stability is not seen as a major concern, and any problems related to the health of institutions are regarded as manageable, with the regulators keeping a close watch on the sector. However, Sri Lanka’s banks are more challenged in terms of innovation, efficiency and value added. As strategies to investment shift under the new government, banks will have to adjust, prepare for some instability and take advantage of the opportunities that arise.
This chapter contains interviews with Arjuna Mahedran, Governor, Central Bank of Sri Lanka; and Ajay Kanwal, Regional CEO, ASEAN and South Asia, Standard Chartered.
Explore chapterBanking
Buy digital copy of this chapter - £18With assets of Dh2.47trn ($672.3bn) as of December 2015, the UAE banking system is the largest in the region. These assets are deployed within the federation as well as across the GCC, the traditional destinations of Europe and the US, and the world’s emerging markets. While local lenders remained profitable in 2015, the effects of a sustained drop in oil prices were seen in both balance sheets and income statements. The most significant change was the slowdown in deposit growth as a result of the government drawing down reserves to meet its spending commitments. Meanwhile on July 1, 2015 the central bank introduced a liquid assets ratio as a first step towards its ultimate objective of implementing the liquidity standards of Basel III, with approved banks starting the transition to Basel’s liquidity coverage ratio in January 2016. This chapter contains interviews with Mubarak Rashed Al Mansoori, Governor, Central Bank of the UAE; and Andre Sayegh, CEO, FGB.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Tunisia has an active stock market that has seen a large number of equity listings in recent years. Furthermore, there are regular government and corporate bond issues, though the secondary market is relatively shallow and bond trading activity is minimal. Both markets, and particularly the corporate bond segment, are dominated by the financial sector. Following strong growth in 2014, the country’s all share index, Tunindex, had a good first half of 2015 but lost all of the period’s gains following a terrorist attack in June that dented economic confidence. Industry players are hopeful that the market will perform better in 2016, and the Tunindex’s strong growth prior to the attack, as well its good start to 2016, suggests that such hopes may well be fulfilled, provided the security environment fully establishes. This chapter contains an interview with Bilel Sahnoun, CEO, Tunis Stock Exchange; and a viewpoint from Fadhel Abdelkefi, General Manager, Tunisie Valeurs.
Explore chapterSustainability
Buy digital copy of this chapter - £18In what became known as a foundation speech for the idea of the sufficiency economy, in December 1997, the king said that what was important was not being a “tiger” but having “a sufficient economy” to take care of the whole population. The sufficiency economy places sustainability at the very core of its thinking, advancing a different approach from that of short-term, shareholder value-centred ideas of economic development. The take-up of this philosophy has also placed the country at the forefront of studies in sustainability, while also providing the world with some remarkable blueprints and success stories. This chapter contains a viewpoint from Kasem Watanachai, Privy Counsellor.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18After years of lagging behind its South-east Asian peers, the Philippines is seeing a long-awaited awakening of foreign direct investment (FDI). Although FDI volumes are still smaller than what countries in its peer group attract, the Philippines has been catching up at an impressive pace. Although many of the challenges that impeded investment in the past have yet to be fully overcome, the faster economic growth of recent years and stronger efforts to attract investment have improved perceptions of the country’s prospects. FDI rose from $1.1bn in 2010 to $4.9bn in the first nine months of 2014 as economic growth has accelerated and business policies have improved. This chapter contains an interview with Arthur R Tan, President and CEO, Integrates Micro-electronics; and a dialogue with Edwin CoSeteng, President, First Philippine Industrial Park and Guillermo Luchangco, Chairman and CEO, Science Park of the Philippines.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Thanks to Djibouti’s fortuitous positioning between East Africa and the Middle East, on a key trade route between Asia and Europe, the country has long played a central role in regional trading. This has translated into a dynamic transport sector and significant GDP growth rates since the mid-2000s. In order to take its geographic advantages to the next level; however, Djibouti will need to ensure that large-scale investments to upgrade its transportation networks are implemented adequately. The opening of a new railway and road links to the north of Ethiopia will contribute to exchanges with other landlocked countries in East Africa, as well as new ports and facilities that will bring added capacity to freight handling. Although large-scale investment in port infrastructure will be critical, coordination between the building of new maritime commerce infrastructure, and the rest of the inland road and railway networks will be essential for the Djiboutian transport and logistics sector to function properly as an integrated system. This chapter contains interviews with Moussa Ahmed Hassan, Minister of Equipment and Transport; Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority; and Mario Fulgoni, CEO, Air Djibouti.
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Buy digital copy of this chapter - £18With a total market capitalization of $93.49bn in September 2015, the Bolsa de Valores de Colombia (BVC) is the fourth-largest stock exchange in Latin America, behind those of Brazil, Mexico and Chile but ahead of Peru’s. During the course of 2015 investor nervousness over emerging markets following the end of the commodities boom, coupled with rising US interest rates in December, prompted a flight to quality, especially US high-quality bonds and dollars, resulting in severe declines in share prices and reductions in liquidity and overall trading volumes across the region. The BVC was not immune to this. The Colcap, a Colombian capitalization index, fell 29% during 2015, closing at 1154, driven in large part by the sharp fall in oil prices since mid-2014. Even so, the prospect of a peace settlement in 2016, coupled with Colombia’s strong fundamentals point to a positive outlook for the sector.
This chapter includes an interview with Juan Pablo Córdoba Garcés, President, and Colombian Stock Exchange (BVC).
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Buy digital copy of this chapter - £18As of December 2015, the Bahrain Bourse was home to 46 listed companies distributed across several segments including: commercial banks, investment, services, insurance, industrial, hotels and tourism, closed companies and non-Bahraini companies. While falling oil prices and unrest in the wider Middle East region have continued to pose growth challenges to the Bahrain Bourse, a process of market development continues in the form of technical upgrades, legislative improvements and a steady stream of new investment instruments, including options, exchange-traded funds and real estate investment trusts. Meanwhile, initiatives are under way to increase awareness of the bourse’s offerings and benefits among the local population, including a strengthened social media presence and savings and investment seminars across the country.
This chapter contains a viewpoint from Najla M Al Shirawi, CEO, Securities & Investment Company.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18Since the political reforms of 2011, a number of significant steps towards liberalisation have been taken in the banking sector. The Central Bank of Myanmar has been given much needed autonomy and ATMs are now allowed in the country. Further aiding accessibility, mobile banking services have been introduced. New private banks are being set up and foreign banks have been granted licences to open branches. After years of stop-and-go liberalisation, a critical mass of changes has been instituted that promises to improve sector performance and greatly contribute to the development of the country. This chapter contains interviews with U Kyaw Kyaw Maung, Governor of the Central Bank of Myanmar; Linus Goh, Head of Global Commercial Banking and Executive Vice President, Oversea-Chinese Corporation; and Daw Chawsu, Head of International Banking, Kanbawza Bank; and a viewpoint from Brad Jones, CEO, Wave Money.
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Buy digital copy of this chapter - £18The Lima Stock Exchange (Bolsa de Valores de Lima, BVL) has had a difficult three years in 2013-15, having become somewhat less active and less liquid than its peers. The market capitalisation of listed Peruvian companies was worth 38.9% of GDP in 2014, according to the latest available comparable figures from the World Bank – ahead of Mexico (37.1%) and Colombia (38.8%) but behind Chile (90.4%). However, at only 1.8% of GDP in 2014, the BVL lagged behind in terms of the total value of shares traded, compared to Colombia (5.5%), Mexico (11%) and Chile (10.5%). During 2015, the BVL’s General Index was consistently down on year-earlier levels and by September it had slumped to 10,030, a fall o 38.2% y-o-y. Nonetheless, market players believe conditions point to a recovery in 2016, as the macroeconomic environment improves and investment returns to the region, encouraged by the strength of the US dollar relative to Latin American currencies. This chapter contains an interview with Christian Laub, President, Lima Stock Exchange.
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Buy digital copy of this chapter - £18Although performance has been subdued in 2015 compared to 2014, the market is set to be bolstered by various developments in the sector. Regulatory changes obliging insurance companies to list will add to the offerings pipeline, as should government plans to relax listings requirements. Meanwhile, with the country’s oil revenues down, the government has started to look elsewhere for means of deficit financing, with plans to issue a sharia-compliant bond under way. The country has also seen growing initial public offering (IPO) activity in recent years, spurred in part by regulatory requirements for foreign-backed electricity companies to conduct share offerings. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, CEO, Ominvest.
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Buy digital copy of this chapter - £18It has been an interesting year for the Egyptian Exchange (EGX). In 2015 the main board featured the highest number of listed companies since 2010, while products such as the nation’s first exchange-traded fund (ETF) provided a deeper market and new investment options. After years of crisis management in the wake of the 2011 revolution, the exchange authorities have re-established an outward-looking stance, adopting an aggressive promotional strategy aimed at attracting new, solid companies, as well as institutional and foreign investors. This is a long-term ambition, and the fluctuations of the main index over the year are a reminder of the extent to which regional and global economic conditions weigh on the domestic exchange. Still, with increased economic stability and a government development strategy more ambitious than anything seen in Egypt for decades, the EGX is becoming an increasingly attractive proposition for investors both at home and abroad.
This chapter contains an interview with Mohamed Omran, CEO, Egyptian Exchange (EGX); and a viewpoint with Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.
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Buy digital copy of this chapter - £18The country’s capital markets have seen some bright spots in 2015 amid the broader turbulence affecting emerging markets around the world. The NSE had a total of 64 listings as of late 2015. They were split into 11 categories: agricultural; automobile and accessories; banking; commercial and services; construction and allied; energy and petroleum; insurance; investment; investment services; manufacturing and allied; and telecommunication and technology. Of these, banking had the most listings, with 11. Total market capitalisation stood at KSh1.955trn ($21.5bn) in October 2015. Strong volumes of equity market trading were seen over the first half of 2015, with equity turnover worth KSh107bn ($1.18bn). Full-year equity trading volumes climbed from KSh86bn ($946m) in 2012 to KSh155bn ($1.7bn) in 2013 and KSh215bn ($2.4bn) in 2014.
This chapter contains an interview with Geoffrey Odundo, CEO, Nairobi Securities Exchange.
Explore chapterBanking & Financial Services
Buy digital copy of this chapter - £18Algeria’s banking sector is characterised by low intermediation and penetration rates, although both have increased dramatically in recent years thanks primarily to ample liquidity stemming from abundant hydrocarbons revenues. In light of the rapid decline in hydrocarbons receipts in late 2014, the authorities have accelerated implementation of planned reforms and announced new measures to empower the sector to finance broad-based economic development. In 2015 important steps were taken to integrate the very large informal economy into the formal financial system. Today Algeria’s banks are seeking new revenue streams as they adapt to the demands of an evolving macroeconomic climate. Algeria’s capital markets offer considerable potential in light of the size of the country’s economy, but have historically been fairly shallow. Few corporate stocks and bonds have traded on the market since it opened in 1998, and the last initial public offering (IPO) was in 2013. Trading has been comparatively light in recent years as investors await the listing of several state-owned companies to increase capitalisation and breathe life back in the markets. The insurance sector has grown more than five-fold since the 1990s, but it still remains small relative to the size of the economy. The market is characterised by low penetration and density of coverage, and is dominated by non-life coverage, representing some 93% of premiums, with automotive lines alone accounting for half the sector’s revenues. Better efforts to raise public awareness, coupled with expanding networks of sales channels, can help the industry navigate the expected risks and challenges precipitated by the drop in oil prices and state spending. This chapter contains interviews with Mohammed Laksaci, Governor, Bank of Algeria; Boualem Djebbar, President, Professional Association of Banks and Financial Institutions, and President, Economic Interest Group; Mohamed Krim, Banque de Developpement Local; and Brahim Djamel Kassali, President, Algerian Union of Insurance and Reinsurance Companies; as well as a viewpoint from Adel Si-Bouekaz, Managing Director, Nomad Capital.
Explore chapterEnergy
Buy digital copy of this chapter - £18As Jordan has historically imported the majority of its energy needs, the drop in global oil prices between mid-2014 and early 2015 will have a positive impact on the kingdom’s near term energy bills and on its trade deficit. However, the kingdom is also set to diversify its energy sources moving forward. As part of its National Energy Plan, Jordan hopes to see 29% of total energy needs met by natural gas by 2020, 14% by oil shale and 6% from nuclear energy. The plan also aims to generate more than 15% of total projected energy requirements via renewable resources. Indeed renewable energy activity has seen a sharp uptick in recent years, guided by sector-specific legislation and a raft of new solar and wind projects, with close to 1000 MW of solar and wind projects under development.
This chapter contains an interview with Ibrahim Saif, Minister of Energy and Mineral Resources.
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Buy digital copy of this chapter - £18South Africa’s capital markets are continuing to enjoy relatively healthy growth on the back of improved regulation and supervision. The authorities are working to strengthen the market's regulatory framework, particularly in terms of settlement cycles and systemic risk related to over-the-counter securities. Technical and regulatory improvements at the Johannesburg Stock Exchange (JSE) are continuing apace, with new products, better supervision and a renewed emphasis on cross-border activity at the forefront of market developments. Market players are working to capitalise on growing investor interest in Africa and establish South Africa as a regional epicentre for initial public offerings and derivatives trading. While the market will continue to be buffeted by international headwinds and a weaker global economy, the JSE is set to maintain its reputation as Africa’s soundest capital market.
This chapter contains interviews with Donna Oosthuyse, Director of Capital Markets, Johannesburg Stock Exchange; and Stephen van Coller, Chief Executive of Corporate and Investment Banking, Barclays Africa.
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Buy digital copy of this chapter - £18After rising 71.8% in 2013, Ghana’s stock market had a modest 2014, with the benchmark index up just 5.4% (and most of that rise seen in the beginning of the year following on the 2013 rally). To a great extent, the muted performance reflected external circumstances, namely the drop in commodity prices and the prospect of rising interest rates in the US. Currency depreciation against the US dollar was an issue as well. Nevertheless, Ghana’s markets are developing in spite of the limited trading volumes, with momentum building and a solid foundation being set for future growth. Companies are continuing to list on the Ghana Alternative Exchange (GAX), the depository is installing a new working platform and an electronic bond market is being created. In addition, a new and far-reaching Securities Law is in the works that could result in a wider range of products on the market, better and more effective regulation, and more flexibility for investment funds.
This chapter includes a viewpoint from William Adjovu, CEO, Liberty Capital.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18RAK is home to thriving cement and ceramics industries, and in 2014 manufacturing – the emirate’s main employer – accounted for 25.1% of total GDP. The emirate’s free trade zones have been key to driving this expansion. The FTZs offer international companies 100% ownership and allow them to take full advantage of the GCC’s free trade laws. Meanwhile, the emirate’s retail offering continues to grow as malls press ahead with expansion and upgrade plans.
This chapter contains an interview with Yousef Obaid Al Nuaimi, Chairman, Ras Al Khaimah Chamber of Commerce and Industry.
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Buy digital copy of this chapter - £18Mexico’s stock exchange (Bolsa Mexicana de Valores, BMV) was heavily influenced by global trends during the course of 2014, marked by a high degree of volatility, geopolitical worries, concerns over future interest rate movements, and a somewhat mixed attitude to risk-taking. In Mexico, enthusiasm over the structural reforms was tempered in the fourth quarter of 2014 by worries over the impact of lower international oil prices. The BMV ended 2014 with market capitalisation of $480.2bn, down 8.7% in dollar terms, and remained somewhat subdued in the first quarter of 2015, with total market capitalisation rising about 1.3% in nominal terms to MXN7.1trn. Even so, given political uncertainties in Brazil, Mexico was the most active equity market in Latin America, accounting for around 40% of Latin America’s total trading volume.
This chapter includes an interview with Jaime Ruiz Sacristan, President, Bolsa Mexicana de Valores (BMV).
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18In recent years Kuwait has seen steadily expanding trade activity with neighbouring countries, the broader Middle East and a variety of key partners further afield. Dependence on oil income is one of the nation’s chief challenges: while the country has continued to diversify its economy away from hydrocarbons revenues, oil and other mineral fuels remain the country’s most important export products, accounting for 88.8% of total exports in the first quarter of 2015. Meanwhile, the government’s Foreign Direct Investment (FDI) Law, introduced in June 2013, is expected to boost FDI in coming years, as are alterations to the public-private partnership framework introduced in 2014.
This chapter contains an interview with Yoon Sang-Jick, Korean Minister of Trade, Industry and Energy.
Explore chapterBanking
Buy digital copy of this chapter - £18Having posted another year of positive results, Saudi Arabia’s banking sector is positioning itself to take advantage of the government’s expansionist fiscal policy and the large number of projects this has created. In the meantime, opportunities in other areas of the lending landscape are being explored, most notably among the nation’s smaller businesses. An ongoing process of regulatory reform and intense competition continue to present challenges to the Kingdom’s banks, but the underlying stability of the sector means that they can be tackled from a position of strength.
This chapter contains interviews with Fahad Al Mubarak, Governor, Saudi Arabia Monetary Agency (SAMA); Bernd van Linder, Managing Director, Saudi Hollandi Bank; and Patrice Couvegnes, Managing Director, Banque Saudi Fransi.
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Buy digital copy of this chapter - £18One of the most-developed in Africa, Morocco’s banking sector is home to some of the continent’s largest banks, several of which have become major regional players and continue to expand their African footprint. Penetration is rising rapidly as product offerings continue to evolve, most notably through a banking law passed in early 2015 that has set the stage for fully sharia-compliant banks. As recent improvements in macroeconomic fundamentals have helped resolve liquidity shortages, lending has picked up, growing by about 4% in the year to end-2014 – though, as in many emerging markets, loan books tilt heavily towards the short term.
This chapter contains an interview with Abdellatif Jouahri, Governor, Bank Al Maghrib; and a dialogue with Othman Benjelloun, Chairman and CEO, BMCE Bank of Africa Group; and Mohamed Benchaâboun, CEO, Banque Centrale Populaire.
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Buy digital copy of this chapter - £18The banking sector in Papua New Guinea is sound, growing and remarkably profitable. Its largest and only publicly traded institution, Bank South Pacific, reports return on equity 10 percentage points higher than the large Australian banks, which are among the most profitable in the world. Furthermore, continued expansion is expected. With 80% of the country unbanked, growth is almost assured as inclusiveness rises and more people open accounts. Unlike the various over-banked parts of the West and Asia, PNG’s sector is not saturated and has plenty of room to grow. While the central bank works to make commercial banks more competitive, institutions are pushing to expand into under-served areas. If these efforts are managed well, banks may experience significant growth and find margins largely intact. The increase in competition and the lowering of rates and fees, meanwhile, could have a positive effect on the economy and in turn create more business for the banks.
This chapter contains interviews with Loi Bakani, Governor, Bank of Papua New Guinea (BPNG); and Robin Fleming, CEO, Bank South Pacific.
Explore chapterBanking & Financial Services
Buy digital copy of this chapter - £18Banking growth is expected to be subdued due to the fall in oil prices, though new developments such as the introduction of mobile money services and increased inter-bank cooperation have served the sector in good stead over the long run. Insurance, meanwhile, grew by 3.3% in 2014, mainly due to the uptick in industry and infrastructure activity.
This chapter includes interviews with Edgar Théophile Anon, Managing Director, BGFIBank Gabon; and Bernard Bartoszek, Former President, Federation of Gabonese Insurance Companies.
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Buy digital copy of this chapter - £18The commercial banking sector is one of the many sources of stability in T&T’s economy. With eight long established banks, backed by major international groups or the government, T&T’s banking system is well capitalised, well regulated and conservative in its lending practices. According to the Central Bank of T&T, at the end of October 2014 the eight banks had total assets within the country of $20.2bn, with deposits and lending (except for mortgage loans) growing at single-digit rates. Though the system is awash with liquidity, efforts by the central bank to encourage a reduction in excess reserves have already had an impact in the first half of 2015. At the same time, downward pressure on net interest margins will continue to be an issue, with banks likely to remain focused on boosting fee income and/or controlling costs to maintain growth.
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Buy digital copy of this chapter - £18With a dollarised economy, low inflation and relative political stability, Panama remains a highly attractive regional financial centre. Recording strong performance in 2014, the country’s International Banking Centre, which contributes 7.5% to Panama’s GDP and comprises the national banking system and international banks, is well capitalised with total assets of some $111.4bn as of March 2015. In light of the country’s inclusion in the grey list of the Financial Action Task Force, authorities are currently taking steps to adapt sector legislation to enhance transparency and improve its anti-monetary laundering/counterfinancing of terrorism regime. The banking sector’s outlook is positive, with Panama’s economic environment likely to remain strong with steady growth in loans, deposits and overall assets, while the competitive landscape is likely to see the entrance of new players.
This chapter features interviews with Rolando de León de Alba, General Manager, Banco Nacional de Panamá; and Robert Williams, General Manager, Scotiabank Panama.
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Buy digital copy of this chapter - £18The Indonesian banking sector continues to strengthen after a lengthy period of expansion. Business remains sound with sufficient capital to support credit growth, and the regulatory environment setting up the industry for further expansion. Questions about consolidation and foreign participation remain, and the structure of the sector going forward is a matter of debate. Economic concerns also hang over the banks, but participants are confident the institutions themselves are sound. As long as Indonesia continues to refine its laws to encourage competition, the sector should remain on the course it has charted for a decade and become more inclusive.
This chapter contains interviews with Sumit Dutta, CEO, HSBC Indonesia; Jahja Setiaatmadja, CEO, Bank BCA; and Budi G Sadikin, President-Director, Bank Mandiri.
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Buy digital copy of this chapter - £18Turkey’s banking sector has proved resilient in the face of both the global economic crisis and more recent fluctuations in the economy. Loan growth remains fairly high by developed-market standards but has fallen in recent years, reflecting the market’s increasing maturity as well as regulatory moves to contain credit expansion with an eye on risk profiles. In the medium to long term, the market should benefit from the large population, the scope for growth in a country with moderate levels of banking penetration and the expansion of a diversified economy. The outlook for the longer term remains positive. Turkey is one of the world’s largest emerging economies and has a sizeable and growing population and a diversified economic base. The continued entry of new players to the market is indicative of the sector’s potential.
This chapter contains interviews with Erdem Başçı, Governor, Central Bank of the Republic of Turkey; Ali Fuat Taşkesenlioğlu, CEO, Halkbank; Suat İnce, Deputy Chief Executive, Türkiye İş Bankası; and Hikmet Ersek, President and CEO, Western Union.
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Buy digital copy of this chapter - £18While early 2014 was a time of considerable uncertainty for the banking sector in Mongolia, the year turned out to be much better than expected. No banks failed or faced runs, and the institution that generated the greatest concern – Golomt Bank – fared well in the end. Questions about asset quality persist, and corporate governance may not yet be where it should be. However, with Golomt Bank looking increasing sound, sentiment has turned hopeful. Despite challenges, the sector continues to have good long-term potential as Mongolia’s considerable natural resources and stability promise to continue attracting international investor interest as soon as commodity prices recover.
This chapter contains an interview with N. Zoljargal, Governor, Bank of Mongolia; and a roundtable with G. Ganbold, Former CEO, Golomt Bank; Norihiko Kato, CEO, Khan Bank; D. Batsaikhan, CEO, State Bank; Randolph Koppa, President, Trade and Development Bank; and M. Bold, CEO, XacBank and President, Mongolia Bankers Association.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Following two years of rapid, double-digit gains in its equity market and strong foreign investor appetite in fixed income, Nigeria’s capital markets entered 2014 with the wind at their back, thanks in part to the announcement of a favourable reweighting of the MSCI Frontier Index in 2013. As the portfolio of investable instruments continues to grow with the launch of new platforms, Nigerian authorities are seeking to further deepen Africa’s third-largest financial markets. Indeed, new products, along with more liquidity, will be needed if the Nigerian Stock Exchange is to reach its goal of a $1trn capitalisation by 2016. The Nigeria stock market is poised for stronger growth throughout 2015. The peaceful conclusion to the March 2015 elections should help rebuild investor confidence, both in the stock market and the wider economy, although depressed oil prices continue to be a reason for caution. Ongoing structural reforms are set to foster better capitalised players that will drive the expansion of penetration locally and further attract global frontier market funds.
This chapter contains interviews with Oscar N Onyema, CEO, The Nigerian Stock Exchange (NSE), and Wale Agbeyangi, Managing Director, Cordros Capital.
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As the largest and most liquid bourse in the MENA region, the Saudi Stock Exchange accounts for around 50% of the GCC equity market. Increasing investor appetite, sustained earnings growth by Saudi companies and the relatively robust nature of the Kingdom’s economy make for a positive outlook for the exchange. Although still at a relatively early stage of development, the bourse has begun to expand from its initial role as a single-product equities market to introduce a wider array of financial instruments. Increased use of technology and moves to open up to foreign investors look set to boost the market over the coming months and years. This chapter contains interviews with Adel Al Ghamdi, CEO, Saudi Stock Exchange, and Jamal Al Kishi, CEO, Deutsche Securities Saudi Arabia. Share analysis & data is provided by Deutsche Securities Saudi Arabia.
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Buy digital copy of this chapter - £18An increasingly competitive banking environment has encouraged lenders to seek out revenues in previously underserved sectors. Personal lending, for example, has become more important to the sector: in 2010 it accounted for 19.3% of aggregate bank lending, but by 2013 the segment’s share had grown to 23.6% of the credit mix. Meanwhile, lenders have begun to adopt SME-friendly measures such as dedicated branches and products. This segment of the market is expected to assume a more prominent position within the overall credit mix in coming years. As of January 2015 there were 18 licensed banks operating in Qatar’s banking sector, four of which operate in the sharia-compliant segment. Another 20 banks operate from the Qatar Financial Centre.
This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Ali Ahmed Al Kuwari, Group CEO, QNB; and Abdulla Saleh Al Raisi, CEO, The Commercial Bank of Qatar.
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From large, multinational funds to local Malaysian banks, national and international players have historically been drawn to the state in large part by the opportunities available in financing its substantial oil, gas, timber and palm oil industries. Today, they are being drawn by the state’s major development plan, the Sarawak Corridor of Renewable Energy, and other mega-projects currently being implemented. A huge amount of capital investment will be required for the state to meet its development goals, and it is looking to source this in part by issuing conventional and Islamic bonds. Finance-related activity in Sarawak is likely to grow in importance and intensity over the coming years. While a great deal of work remains to be done in order for Sarawak to make good on its promise of development for everyone in the state, its increased visibility and popularity among investors and financiers, domestic and international, is a sure sign that it is headed in the right direction.
This chapter contains interviews with Wong Soon Koh, Minister of Finance II and Minister of Local Government and Community Development; and Rauf Rashid, Country Managing Partner, EY Malaysia.
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As the largest and most liquid bourse in the MENA region, the Saudi Stock Exchange accounts for around 50% of the GCC equity market. Increasing investor appetite, sustained earnings growth by Saudi companies and the relatively robust nature of the Kingdom’s economy make for a positive outlook for the exchange. Although still at a relatively early stage of development, the bourse has begun to expand from its initial role as a single-product equities market to introduce a wider array of financial instruments. Increased use of technology and moves to open up to foreign investors look set to boost the market over the coming months and years. This chapter contains interviews with Adel Al Ghamdi, CEO, Saudi Stock Exchange, and Jamal Al Kishi, CEO, Deutsche Securities Saudi Arabia. Share analysis & data is provided by Deutsche Securities Saudi Arabia.
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Buy digital copy of this chapter - £18A positive feedback loop is at work in which banks are increasingly driving economic growth, supported by inflows of foreign investment and from Filipinos working abroad, while growing trust in the banking system is drawing greater volumes of savings. With real GDP roughly doubling between 1999 and 2014, bank deposits as a share of GDP also rose, from 40% in 1999 to 52% in 2014, while the number of bank deposit accounts per 1000 adults increased from 356 in 2004 to 542 in 2013. The 2014 reform, which is aimed at preparing for ASEAN banking integration, seeks to revive broader foreign investment in the banking sector by easing other obstacles that have put foreign banks at a disadvantage. Given the amount of ground that Philippine banks have covered in such a short period of time, it is inevitable that the pace of their growth will moderate from here. Still, Philippine banks have much going for them: rapid economic development; a young, consumerist demographic, a largely under-banked population; and a government that is boosting infrastructure spending.
This chapter contains interviews with Amando M Tetango Jr, Governor, Bangko Sentral ng Pilipinas; and Hikmet Ersek, President and CEO, Western Union; and a roundtable with Batara Sianturi, CEO, Citibank Philippines; Wick Veloso, CEO, HSBC Philippines; Herminio Famatigan Jr, President and CEO, Maybank Philippines; and Mahendra Gursahani, former CEO, Standard Chartered Bank Philippines.
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Buy digital copy of this chapter - £18The Abu Dhabi Securities Exchange (ADX) was upgraded to emerging market status in 2014, and with total market capitalisation of more than $126.1bn as of late January 2015, it ranks first among the UAE’s three different exchanges. In addition to this, 2014 witnessed the first listing of a government bond on the ADX and the implementation of new rules guiding the listing of Islamic bonds, while technical upgrades to the exchange saw the introduction of NASDAQ OMX’s X-Stream Trading technology. The expected 2015 launch of Abu Dhabi Global Market, the UAE’s second financial free zone, which will be organised around a separate regulatory structure, an independent companies registrar and a financial services regulator, is expected to boost activity in the sector, helping to further establish the emirate as a centre of global wealth management.
This chapter contains an interview with Ahmed Al Sayegh, Chairman, Abu Dhabi Global Market; and Rashed Al Balooshi, CEO, Abu Dhabi Securities Exchange.
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Buy digital copy of this chapter - £18Host to francophone West Africa’s regional stock exchange, the Bourse Régionale des Valeurs Mobilières (BRVM), Côte d’Ivoire has a more sophisticated financial services industry than most of its peers in the region. The sixth-largest of Africa’s 29 exchanges by capitalisation, the BRVM has seen the market value of its listed equities grow over five-fold from CFA1.02trn (€1.53bn) at its inception in 1998 to CFA6.32trn (€9.48bn) at the end of 2014. Although still marginal to broader economic growth, accounting for 12% of the GDP of the West African Economic and Monetary Union and 38.5% of domestic GDP, the BRVM plans to break into the continent’s top-five exchanges by 2015. Indeed, 2015 will prove dynamic both in terms of initial public offerings (IPOs) and developing secondary trading in bonds – a linchpin of sovereign financing in the region.
This chapter contains an viewpoint from Kadi Fadika-Coulibaly, Managing Director, Hudson & Cie.
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Buy digital copy of this chapter - £18The UAE’s 2014 upgrade from frontier to emerging market status by the MSCI is a major accomplishment for the state and one that has brought both more liquidity and greater international attention. Rules for listings are being relaxed to encourage more private sector companies to join the exchange, particularly SMEs, and a spot gold contract is due to be launched in the near future. In 2013 the emirate announced an ambition to crown itself as the capital of the global Islamic economy, and the Dubai NASDAQ is currently the third-largest market for sukuk worldwide in terms of capitalisation.
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Buy digital copy of this chapter - £18June 2014 marked the 25th anniversary of trading on the bourse, which began operating as the Bahrain Stock Exchange in 1989. The market looks to have recovered from the global financial crisis, and in 2013 posted an 18.9% year-on-year increase in market capitalisation, with the trend continuing into 2014, with a 21.7% rise to BD8.47bn ($22.45bn) at the end of September 2014. The banking sector accounts for the bulk of activity, with commercial banks comprising 69.16% of the value of all shares traded in the first nine months of 2014. In a drive to increase liquidity the Bahrain Bourse has recently extended its trading day, and in July 2014 it upgraded its NASDAQ OMX trading platform from the Horizon platform to the X-stream system. Moreover, positive steps to encourage more trading – particularly within the GCC – have been taken, while discussions are also under way to increase listings, including development of a specific framework under which SMEs might be attracted to trade on the exchange.
This chapter contains an interview with Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse; and a viewpoint from Najla M Al Shirawi, CEO, Securities & Investment Company.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18While Myanmar’s banking sector has much to do in order to catch up to its neighbours, it should remain on track to expand rapidly as the economy grows and penetration deepens. Regulatory reforms will be key to expansion and foreign access. Elsewhere in the financial services sector, Yangon Stock Exchange (YSX) is Myanmar’s fourth try at launching a securities market, but it is by far the most serious project to date. Its formal launch date is set for late 2015, when it will be inaugurated along with a new securities exchange commission. There is extensive support for a local bourse in Myanmar, however it will likely take time to properly ensure that stock is able to trade freely and securely and to solve questions regarding the extent of foreigners’ participation. Meanwhile, the insurance sector, with private insurers just beginning to develop since 2013, is in its early stages after a long period in which the sector was fully nationalised.
This chapter contains interviews with U Win Shein, Minister of Finance; and Lim Cheng Teck, CEO for ASEAN, Standard Chartered; as well as a roundtable with Andrew Geczy, CEO of International and Institutional Banking, ANZ Bank; Chartsiri Sophonpanich, President, Bangkok Bank; and Abdul Farid Alias, Group President and CEO, Maybank.
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Buy digital copy of this chapter - £18Capital markets in Oman continued to post healthy growth over the course of 2013 and 2014 with strong fundamentals, steadily increasing economic diversification and prudent market regulation and oversight driving expansion. In mid-2013 the Capital Market Authority launched the MSM Sharia Index which tracks sharia-compliant stocks, and in August 2014 insurance sector reforms were introduced aimed at encouraging more corporate listings. Government plans to float $517.9m of sukuk will go ahead in 2015 and have the potential to jumpstart further issuances in the sector. Smaller companies look set to benefit from Oman’s growing capital markets as the regulator moves to attract greater SME participation through a range of incentives including the expected introduction of an SME index and the CMA’s roll-out of a comprehensive SME strategy in 2015. This chapter contains interviews with Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority (CMA); and Khalid M Al Zubair, Managing Director, The Zubair Corporation; and Chairman, Ominvest.
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Buy digital copy of this chapter - £18The development of Peru’s capital markets continues apace, driven by the growing number of increasingly sophisticated local institutional investors. Though the Lima Stock Exchange (Bolsa de Valores de Lima, BVL) started 2014 off poorly, with stock prices falling significantly on the gradual withdrawal of monetary stimulus by the US Federal Reserve and the effect of geopolitical tensions surrounding the conflict in the Ukraine, it began showing signs of recovery in the second quarter. The Federal Reserve’s decision to postpone interest rate hikes, along with a further cut to interest rates by the European Central Bank and the announcement of economic stimulus measures by the Peruvian Ministry of Finance, helped produce a rally in the market. Mining, banking and utilities were the strongest performers on the BVL in the first nine months of 2014. The long-awaited IPO of state oil firm Petroperú, expected in 2015, is the big prize financiers are looking for to accelerate the development of the equities market.
This chapter contains interviews with Christian Laub, President, Lima Stock Exchange (BVL) and José Antonio Blanco, CEO, BTG Pactual.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18The banking industry in Algeria is characterised by a high level of stability and ample liquidity, which owe much to the country’s robust hydrocarbons revenues. Lending to the economy has been growing strongly, albeit from a low base, and while intermediation rates are low, plans to relax a government ban on consumer credit and launch a new credit registry in 2015 should help facilitate more lending in the coming years. Algeria’s stock market remains modest in size, with a market capitalisation equivalent to around just 0.1% of GDP – a result in part of the country’s surplus liquidity and accessible bank lending. However, recent years have seen the first equity listings by private sector companies on the exchange, and plans by the government to float stakes in eight state-owned firms should have an enormous impact on capitalisation. A number of proposed reforms, such as plans to remove the requirement for bank guarantees for bond issuers, should help to further boost market activity in coming years. The Algerian insurance market is underdeveloped by regional standards, with penetration particularly low in the life segment; however, the sector has witnessed strong expansion in recent years. State-owned firms still dominate the sector, though private insurers are gradually increasing their market share. Following the successful separation of life and non-life activities, the life insurance segment should continue to see particularly strong growth, albeit from a low base.
This chapter contains viewpoints from Mohammed Laksaci, Governor, Bank of Algeria; and Adel Si-Bouekaz, Managing Director, Nomad Capital. It also contains a dialogue with Youcef Benmicia, CEO, Algerian Insurance Company; and Nacer Sais, CEO, Algerian Insurance Society.
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Buy digital copy of this chapter - £18The trillion-dollar market capitalisation of the Johannesburg Stock Exchange (JSE) makes the country’s bourse the 19th-largest exchange worldwide. South Africa has one of the highest equity capitalisation-to-GDP ratios globally, a unique phenomenon by international standards. The country’s capital markets have performed exceedingly well in recent years, in contrast to broader macroeconomic turbulence. Economic growth for 2013, for example, was 1.9%, compared to an equity market that grew by 21.4%. Despite the challenging economic outlook, the JSE is expected to continue to perform well. Equity markets should receive a boost through infrastructure improvements and market conditions like private equity exits, and private equity is set to see strong growth as institutions have not reached their full investment potential. On the bonds and financial derivatives side, the array of products is set to expand, with Islamic debt having made its debut.
This chapter contains interviews with Nonkululeko Nyembezi-Heita, Chairman, Johannesburg Stock Exchange; Stephen van Coller, Chief Executive of Corporate and Investment Banking, Barclays Africa; and Elias Masilela, Former CEO, Public Investment Corporation.
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Buy digital copy of this chapter - £18After a downturn in the wake of the 2011 revolution, the Egyptian Exchange (EGX) has staged an impressive recovery. Having dealt effectively with the fallout from the broader economic uncertainty, the management of the EGX has now turned its attention to deepening the market and widening its investor base. The EGX is relatively diverse compared to its regional peers, with the largest sector in 2013 being construction and materials (21.37%), followed by telecoms (15.7%), banking (14.3%) and financial services (7.29%), among several other significant sectors. Since 2010 investors have also had the option to direct their capital to a range of small- and mid-cap firms that are listed on a separate board, the Nile Stock Exchange (NILEX). The sub-market has a lower capital requirement of $7.1m and more flexible financial history and disclosure rules. While ratings agencies take a more favourable view of the nation’s economic prospects, significant structural reforms are still necessary to stabilise Egypt’s economy in the longer term.
This chapter contains interviews with Mohamed Omran, CEO, Egyptian Exchange (EGX) and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.
Explore chapterRegional Development
Buy digital copy of this chapter - £18With a wealth of oil and natural gas reserves beneath its territory, Brunei Darussalam has been able to maintain a comfortable trade surplus and ranks among the top-five countries in the world in terms of GDP per capita in spite of producing little else domestically. According to the World Bank, introduction of the ASEAN Economic Community could boost annual income growth by 0.5-1% of GDP and increase foreign direct investment stocks. Negotiations are also taking place on the Regional Comprehensive Economic Partnership, which includes ASEAN members and six regional free trading partners. Beyond the advantages of stronger economic, strategic and logistical ties within the region, an increase of Brunei Darussalam’s manufacturing base will help the country fully capitalise on the advantages afforded by ASEAN membership and other future multilateral FTAs.
This chapter contains interviews with Le Luong Minh, Secretary-General, ASEAN; Pengiran Yura Kesteria PSN Yusuf, Executive Chairman, BIMP-EAGA Business Council; and Secretary Luwalhati R Antonio, Chair, Mindanao Development Authority.
Explore chapterBanking
Buy digital copy of this chapter - £18The banking sector in Kenya is notably diversified, thanks in large part to the country’s efforts to boost financial inclusion. Kenya’s predominant mobile money platform, M-Pesa, is perhaps the best known example, but other elements of the Kenyan system, such as savings and credit associations, microfinance and agency banking, also underscore the diversity and innovation within the sector. The sector appears to have moved past a period of instability. Widespread defaults are no longer common, and capital raising has left lenders with bigger balance sheets and increasingly robust fundamentals as measured by common prudential ratios. The financial sector overall is now the third largest in sub-Saharan Africa, behind those of South Africa and Nigeria. With more banks establishing themselves in multiple countries, Kenya looks to be on the right side of a growing trend. This chapter contains interviews with Njuguna Ndung’u, Governor, Central Bank of Kenya; Razia Khan, Regional Head of Research for Africa, Standard Chartered; and Habil Olaka, CEO, Kenya Bankers Association.
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Buy digital copy of this chapter - £18Headlined by two equities boards and liquid options for bonds both in primary and secondary trading, Kenya’s capital markets stand out for their maturity in comparison to most African markets, although other asset classes are in the early stages of development. The Capital Markets Master Plan (2014-23) outlines a growth programme for the short to medium term, while separately the Nairobi Securities Exchange (NSE) has demutualised and is implementing a strategy that includes self-listing, in keeping with a worldwide trend as bourses seek to evolve to suit changing global market conditions. The year 2014 could prove a pivotal one for the NSE and for Kenya’s capital markets overall. A period of discussion and planning is now poised to end, with the master plan commencing its phased implementation and the NSE completing its plan for demutualisation and listing.
This chapter contains interviews with Peter Mwangi, CEO, Nairobi Securities Exchange (NSE); Paul Muthaura, CEO, Capital Markets Authority (CMA); and a viewpoint from James Mworia, CEO, Centum Investment Company.
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Buy digital copy of this chapter - £18For a frontier market, Ghana’s banking system is very developed. The sector has expanded rapidly over the past 20 years, and a number of new banks have been licensed. Six domestic banks were established in that time, while in the 1990s several foreign entrants moved in. Though most of the fundamentals are healthy, there are still a number of challenges that limit overall efficiency and performance. The sector remains unusually fragmented. On the other end of the spectrum, despite the existence of specialist rural banks and non-bank financial institutions, much of the country remains unbanked. As the sector consolidates, banks will get stronger and will be better able to take on larger deals; as regulations are refined, it will be better able to withstand shocks.
This chapter contains interviews with Kofi Wampah, Governor, Bank of Ghana (BoG); and Archie Hesse, CEO, Ghana Interbank Payment and Settlement Systems (GhIPSS).
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Buy digital copy of this chapter - £18After the turbulence of recent years, indicators are positive for Jordan’s capital markets. The Amman Stock Exchange (ASE) Free Float Index showed a 5% year-on-year increase in 2013, while the value of traded shares reached JD3bn ($4.2bn) in 2013, up from JD2bn ($2.82bn) in 2012. The ASE, with its total of 237 listed companies, reflects the diversity of Jordan’s economy. The recent coordination of the Jordan Securities Commission and the European Bank for Reconstruction and Development in drawing up a list of reforms is seen as a step towards increasing investor confidence and boosting foreign investment. The ASE has also taken other steps to increase foreign investment, most notably with the signing of a memorandum of understanding with the Cyprus Stock Exchange in 2012.
This chapter contains an interview with Tarik Awad, CEO, Capital Investments.
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Buy digital copy of this chapter - £18Efforts to boost trading in Bahrain have been focused on corporate structuring, through a plan that includes overhauled regulation and a restructuring of the Bahrain Bourse to allow it to act with greater speed and flexibility. Initial public offerings are set to increase as moves toward privatisation continue, while small and medium-sized enterprises are on course to benefit from new listing procedures such as increased use of online trading and improved regulation and trading rules for the bourse.
This chapter includes an interview with Fouad Rashid, Director, Bahrain Bourse.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18With a tropical climate and arable land to spare, Gabon has significant potential to expand agriculture, yet the sector remains somewhat overlooked. One-fifth of the country’s total arable land has not been developed for agriculture, and the country remains largely dependent on food imports to meet its consumption requirements.
The sector has shown recent growth, roughly 5% year-on-year from 2010 to 2013, according to the World Bank. If further developed, the agriculture sector could contribute significantly to overall economic diversification and to a more inclusive pattern of economic growth. The mid-year downward revision in the 2014 budget, however, is likely to limit progress on agricultural development targets in the near term. The political will to expand the sector exists, and the potential benefits of agricultural growth are extensive, particularly for improving human development indicators and reducing poverty.
This chapter contains an interview with Jean-Luc Wilain, Chief Operating Officer – Business Development, IBL Group.
Explore chapterBanking
Buy digital copy of this chapter - £18Mongolia’s banking system is relatively young and untested, and, therefore, the Central Bank of Mongolia is facing a range of challenges. One such example is the rapid drop in the tugrik, which lost approximately 20% of its value over the past year, placing pressure on the banking system but also reducing the price of exports. Currently, there are no limitations placed on foreign ownership of banks, nor are there capital controls, and two banks are 100%-owned by foreign companies. The key to the future for the Mongolian banking sector is good corporate governance and sound supervision, while the challenge for the central bank will be to return to a traditional role, draining liquidity from the system, and easing back on policies without compromising the system’s strength. Developing financing for smaller companies will also be key to ensuring Mongolia’s long-term economic growth. This chapter contains interviews with Randolph Koppa, President, Trade and Development Bank; and Ayumi Konishi, Director-General, East Asia Regional Department, Asian Development Bank.
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Accounting for 30.1% of bank lending in the second quarter of 2013, consumer lending has been the key driver of loan growth. Household debt rose from 56% of GDP in 2007 to 77% in 2012. Dominated by Thai lenders, the banking sector remains well-capitalised and liquid. Strong fee-revenue growth is offsetting pressure on net interest margins. Due to increased competition for deposits, net interest margins declined from 3.07% in 2012 to 2.53% in the second quarter of 2013, according to Bank of Thailand data. Although the banking sector is open to majority acquisitions by foreign investors on the finance minister’s approval, Thai-owned lenders dominated the market until 2013. The key to system stability will be for authorities to ensure fair competition between commercial lenders and state-owned institutions. As Thai corporates continue to expand regionally and further afield, Thai banks will face growing competition from their regional peers in ASEAN. Domestically, government spending plans will prove key determinants of the banking sector’s short- to medium-term growth trajectory. This chapter contains interviews with Prasarn Trairatvorakul, Governor, Bank of Thailand; Chartsiri Sophonpanich, President, Bangkok Bank; Frank Krings, Chairman, Association of International Banks, and Chief Country Officer, Deutsche Bank Thailand; Kannikar Chalitaporn, President, Siam Commercial Bank; and Noriaki Goto, CEO and Director, Krungsri (Bank of Ayudhya).
Explore chapterBanking
Buy digital copy of this chapter - £18Banking remains a highly profitable sector in Indonesia despite being limited in its reach. Leading banks’ average profits were the highest amongst major economies in 2012, according to Bloomberg data, a remarkable feat in an era of falling bank profits globally. Credit plays a modest role in the Indonesian economy, with loans amounting to 32.85% of GDP. This is considerably lower than in many neighbouring countries such as Malaysia (113.5%) and China (130%). Total credit has been growing rapidly in recent years, with a 24.4% increase in 2011, 23.9% in 2012 and 20.7% growth in the first half of 2013. Bank profits have remained consistently high, with a return-on-assets ratio of 3.09% by October 2013, which is more than double the regional average. Although rapid growth has put some strain on the banking sector, Indonesian banks continue to be well capitalised, with a capital adequacy ratio of 18.48% in October 2013, well above the central bank’s floor. Following over a decade of high profitability and fragmentation, the banking sector faces the twin challenges of increasing intermediation with the real economy and gradually lowering margins. As larger, more efficient banks capitalise on their positions, smaller lenders will need to innovate and study potential mergers and acquisitions to sustain their positions. Over the medium term, as the banking system faces increased ASEAN-wide competition, Indonesian banks will need to work at improving their efficiency. This chapter contains a banking viewpoint from Agus D W Martowardojo, Governor, Bank Indonesia; and an interview with Alan Richards, CEO, HSBC Indonesia.
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Buy digital copy of this chapter - £18Regional political turbulence since 2011 has resulted in a challenging environment for exchanges across the GCC, but Doha’s relatively young bourse has shown its resilience over 2013. The Qatari bourse grew by 24.2% over 2013, led by a 38.7% expansion in the transportation sector. Even the year’s slowest-growing sectors – insurance and real estate – posted double-digit expansion. It has also continued to implement a strategic development plan that has established new indices and a junior market for small and medium-sized enterprises. GDP growth is expected to continue to grow over the coming years, with fiscal surpluses remaining high. This chapter contains a viewpoint from Adel Abdulaziz Khashabi, Head of QNB Financial Services.
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Buy digital copy of this chapter - £18In 2012 the GDP of Abu Dhabi expanded by 5.6% y-o-y, and the government has forecast annual expansion of 5.7% in the 2013-16 period. With a sustained return to positive territory for its main index and a crucial upgrade to “emerging market” status by Morgan Stanley Capital International (MSCI), Abu Dhabi’s exchange has had a good year. Both developments have generated new optimism regarding the exchange’s ability to attract liquidity, a goal which local and federal authorities have made a strategic priority. Efforts are under way to improve investor relations, with the Securities and Commodities Authority teaming up with both of the UAE’s exchanges, HSBC and the Middle East Investor Relations Society to introduce systemic improvements. This chapter contains an interview with Rashed Al Baloushi, CEO, Abu Dhabi Securities Exchange.
Explore chapterFinancial Services
Buy digital copy of this chapter - £18High economic growth over the past few years has benefitted Panama’s banking sector, which has shown a strong and stable performance. From the third quarter of 2012 to the same period in 2013 there was a 12% increase in total assets, with liquid assets registering the highest growth, at 22%. Assets, deposits and credit continue to grow, although profitability indicators are showing signs of deceleration. With a dollarised economy and free mobility of capital flows, Panama’s highly internationalised capital markets are also showing signs of expansion. In 2013 the traded volume of stocks increased 7% compared to the previous year, reaching $120m. The public sector plays a central role, with a volume of issuance that can make the market vacillate between good and bad years, as happened in 2012-13. Even so, Panama has significant potential to serve as a regional base for international financial institutions operating in global financial markets. This chapter features interviews with Rubens V Amaral Jr, CEO, Banco Latinoamericano de Comercio Exterior; Augusto Restrepo, Vice-President, Bancolombia; and Raúl Alemán, General Manager, Banco General.
Explore chapterBanking & Financial Services
Buy digital copy of this chapter - £18The banking sector is making steady progress as stability improves and economic growth continues. Banking assets grew by 8.6% in 2012 to AD9.78trn (€92.9bn), although branch access remains relatively limited, with only one bank per 28,000 inhabitants compared to one per 12,000 people in Morocco and one per 9000 in Tunisia. After years of high non-performing loan rates, the central bank is gaining a firmer hold on lending, as well as revitalising the leasing segment through new public housing programmes. The capital markets are expected to benefit from a new raft of initial public offerings. Insurers are also expanding the products on offer, with personal health coverage becoming increasingly popular. This chapter contains a viewpoint with Mohammed Laksaci, Governor, Bank of Algeria, and interviews with Abdenour Houaoui, General Manager, Arab Leasing Corporation; and Abdelhakim Berrah, President, Commission for Stock Market Organisation and Supervision.
Explore chapterEnergy
Buy digital copy of this chapter - £18The energy sector is the great, untapped potential on which much of Myanmar’s hopes are pinned. One of the world’s first oil producers, Myanmar is emerging in the 21st century as a key producer of natural gas. The country’s vast rivers are also well suited to hydroelectric dams. The lion’s share of sector investment has been aimed at the export market as low electric tariffs and an inefficient centrally planned gas distribution system limit expansion of the public energy grid. Already the main source of the country’s electric power production, hydropower output has the potential to be boosted 40 times. Myanmar faces challenges, however, with an underpowered and overloaded energy grid. Furthermore, the pace of new supply additions is unlikely to keep pace with rapidly growing domestic and international demand. Over the longer term, offshore gas exploration is set to bear substantial fruit and large hydropower projects are expected to be revived, which will ultimately accelerate industrial development. This chapter contains interviews with U Khin Maung Soe, Union Minister, Ministry of Electric Power; U Zay Yar Aung, Minister of Energy; U Moe Myint, Chairman and CEO, MPRL E&P, and CEO, Myint & Associates; Jean-Marie Guillermou, Senior Vice-President Asia Pacific, Total Exploration & Production; and Ken Tun, CEO, Parami Energy Group of Companies.
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Buy digital copy of this chapter - £18Driven by enhanced liquidity in the banking sector, rising property prices and an overall improvement in the domestic economy, Dubai’s capital markets began 2013 in full recovery mode. The Dubai Financial Market is a largely retail market at present, but it is preparing for a surge in institutional trading activity and an influx of foreign investment as a result of the MSCI index upgrade to “emerging market”. Although the UAE will not officially be included in the MSCI index until May 2014, the news alone put the country’s three equity markets, which have an estimated $7trn in assets under management, on the radar of global institutional investors. This is expected to boost liquidity and broaden the investor base of exchanges.
This chapter contains interviews with Essa Kazim, Chairman, Dubai Financial Market, and Governor, Dubai International Finance Centre; and Gerald Hassell, Chairman and CEO, Bank of New York Mellon.
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Buy digital copy of this chapter - £18Strong growth in both equities and bonds in 2012, driven by foreign portfolio inflows that more than tripled from $5bn in 2011 to $17bn in 2012, according to the World Bank, cast off the long shadow of the 2008 financial downturn. With liquidity returning, authorities are planning to deepen and diversify the markets through reforms and the launch of new products. While Nigeria remains exposed to international investors’ risk-on, risk-off switches, a growing pool of domestic investors is returning to the equity market for the first time since 2008. With relatively new management enacting key structural reforms to deepen the markets, the private sector should find more alternatives to meet its growing need for capital. This chapter contains an interview with Oscar Onyema, CEO, Nigerian Stock Exchange, and a viewpoint from Wale Agbeyangi, Managing Director, Cordros Capital.
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Buy digital copy of this chapter - £18Despite being a stable and growing bourse for a number of years, authorities see a broader, deeper market as a strategic goal to help create economic opportunity. Sustained dedication to that cause has paid off in recent years, chiefly in the form of an increased flow of initial public offerings. The inclusion of sharia-compliant instruments looks set to take off, meaning diversification of the market should continue. This chapter contains an interview with Sheikh Abdullah Al Salmi, Executive President, Capital Markets Authority; and a viewpoint from Shaheen Al Balushi, CEO, Oman Orix.
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Buy digital copy of this chapter - £18While the Lima Stock Exchange (BVL) may have fallen short of expectations in terms of new issuances in 2012, its overall performance was solid, with the General Index up 5.9% over the previous year. Though market capitalisation and negotiated volumes dropped from 2012 to 2013, most analysts are positive in their outlooks for the near future. Private equity is expected to continue to grow in the coming years, given the relative shortage of high-return investment opportunities in the US and Europe. The current trend of Peruvian corporate bond listings abroad seems likely to continue, with demand remaining strong and investment banks maintaining an interest. Expansion and diversification of the BVL are also expected in the coming years as the government implements a series of reforms aimed at increasing listings, facilitating new financing structures and attracting investors. This chapter contains interviews with Francis Stenning, CEO of the BVL, and Luis Valdivieso, President of the Pension Fund Administrators’ Association.
Explore chapterBanking
Buy digital copy of this chapter - £18The Philippines banking sector has strengthened significantly in recent years, tracking general economic trends and benefitting from prudent measures put into place over time to boost capital and improve supervision, corporate governance and transparency. The local institutions that emerged from the late 1990s are stable and more wary of excessive risk and asset-liability imbalances. The challenge now is to build off this foundation and to further develop the sector so it can deal with new risks while funding economic growth. This chapter contains interviews with Amando M Tetangco Jr., Governor, Bangko Sentral ng Pilipinas; and a Roundtable with Nestor Tan, President, Banco de Oro Unibank (BDO); Gilda Pico, President, Landbank of the Philippines; Fabian Dee, President, Metrobank; and Cezar Consing, President, Bank of the Philippine Islands.
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Buy digital copy of this chapter - £18Since the start of the nation’s political transition in 2011, Egypt’s capital markets have faced a number of challenges. Nevertheless, 2012 saw Egypt’s exchange recover the ground it lost in 2011, growing by 51% year-on-year to become one of the fastest expanding in the world. Its path to recovery has been a volatile one, which has demonstrated the influence of political events on market sentiment, but just as importantly, the return to form displayed the bourse’s ability to attract capital when circumstances allow. In 2009 the Cairo and Alexandria Stock Exchange was rebranded as the Egyptian Exchange (EGX). As of June 2012, 212 companies were listed on the exchange, with a nominal capital of LE150.1bn ($21.4bn) and market value capital of LE339.8bn ($48.4bn). Egypt’s ongoing political transition is the single biggest factor affecting the bourse’s performance, and until the prevailing unsettled economic backdrop has stabilised, it is unlikely that the EGX will show the type of sustained growth that its management and regulator have been working assiduously to engender. This chapter contains interviews with Mohamed Omran, Former Chairman, Egyptian Exchange (EGX); and a viewpoint from Hussein Choucri, Chairman and MD, HC Securities & Investments.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18As part of its “20-20” strategy, under which no single sector should account for more than 20% of GDP or 20% of the fiscal surplus, the government is working to diversify the local economy. Growth is expected in the industrial sector in line with efforts to expand downstream capacity, extending production across the supply chain. Improvements to electricity capacity are planned as well, which promise to benefit local manufacturers and enterprises. Tourism is another area of focus, with plans to leverage the emirate’s natural beauty. This chapter contains interviews with: Sanjay Hinduja, Chairman, Gulf Oil International and Yousef Obaid bin Easa Al Neaimi, Chairman, Ras Al Khaimah Chamber.
Explore chapterBanking
Buy digital copy of this chapter - £18While Gabon’s banking sector is one of the more developed in the Economic Community of Central African States, penetration lags behind its sub-Saharan African peers. Banking assets accounted for 21% of GDP in 2012, according to the IMF, while the private sector’s ratio of credit to GDP stood at 11% (19% of non-oil GDP). As of April 2013 there were just over 266,000 accounts for 1.5m people. Yet as banks’ over-liquidity continues to grow, the sector will be looking to expand its intermediation to the real economy. The €25.5bn Emerging Gabon development strategy is expected to create greater demand for long-term funding, and Gabonese banks should have a bigger role to play in this as new regulations aim to encourage local content. This chapter contains a viewpoint from Lucas Abaga Nchama, Governor, Bank of Central African States (BEAC); and an interview with Thierry Tanoh, Group Chief Executive Officer, Ecobank Transnational.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18With the National Development Plan providing a stable foundation for future expansion, the government is working towards revamping legislation in order to allow for some restructuring. There are also efforts under way to diversify the bourse, which will include increasingly popular and varied sharia-compliant financial instruments. As the markets continue to recover, corporate debt issuance is also on the rise. This chapter contains interviews with Saleh Al Falah, Chairman, Kuwait Capital Markets Authority; and Faisal Sarkhou, CEO, KAMCO.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Home to the world’s 19th-largest exchange, South Africa has mature capital markets able to serve not only the domestic economy but also the wider continent. As global risk appetite for emerging market equities returned from mid-September 2012 following concerted interventions by the world’s central banks, South African equities rallied sharply. Bonds also did well in 2012, despite sovereign rating downgrades from two major ratings agencies and macroeconomic imbalances. Its openness nevertheless has also exposed the economy to the volatilities of emerging market portfolio investment. Significant regulatory reform is on the horizon, including the current iteration of the King Code of Governance Principles as well as the “twin peaks” model of oversight. While downside risks remain, the domestic capital markets provide a clear conduit for portfolio investment to Africa and emerging markets. This chapter contains interviews with Dube Tshidi, Executive Officer, Financial Services Board (FSB); and Stephen van Coller, Chief Executive of CIBW, Absa and Barclays Africa.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18After the rough and tumble of the last few years, Jordan’s capital markets are now at a potential turning point. Although the Amman Stock Exchange saw four de-listings in 2012, it is still one of the most populous exchanges in the MENA region, with 243 companies listed. The three-tier market structure has been welcomed by investors for providing clarity on the status of companies. New regulations, including daily limits established on stock price volatility and different trading hours for the third tier of the exchange, are designed to increase stability and investor confidence. Further to this, a US offer to back Jordanian bond issues may help lower the kingdom’s borrowing costs, further boosting confidence in the country’s securities and aiding in reducing the budget deficit. This chapter contains interviews with Adel Kasaji, CEO, AB Invest; and Nader Azar, Acting CEO, Amman Stock Exchange.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Turkish insurance sector is dominated by 25 multinational insurance companies, which held some 52% of the market in 2012. Gross insurance premiums grew 15.5% in nominal lira terms, or 8.8% in real terms, in 2012, and subscriber growth reached 18% that year. Protecting non-vehicular property accounted for 22% of the insurance market in 2012, with the largest segments fire (9%) and earthquake (4%) coverage, which are typically marketed together in “housing packages”. While in previous years the sector had largely followed the fortunes of the wider economy, in 2012 it maintained comparatively high growth rates, even as the overall economy slowed. The pensions segment even accelerated its growth, thanks to the strong performance of the capital markets and a new government incentive to match payments. This chapter contains an interview with Mehmet Bostan, Chairman, Pension Monitoring Centre.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Islamic services have long been a part of the financial mix within Brunei Darussalam. For the past two decades, Islamic banking, takaful (sharia-compliant insurance) and Islamic capital market products have been taking root and growing. These services now compete strongly against their conventional counterparts and continue to capture market share. With the government promoting sharia-compliant products and hoping to position the country as a regional centre for Islamic financial services, it seems that conventional banking and insurance products might find themselves in the minority within the Sultanate in the not too distant future. This chapter contains an interview with Javed Ahmad, Managing Director, Bank Islam Brunei Darussalam.
Explore chapterInsurance
Buy digital copy of this chapter - £18With a domestic penetration rate of around 2.8% and the volume of premiums having grown 9.2% year-on-year in 2011, Morocco’s insurance market is now the second largest on the continent after South Africa and the third largest in the Arab world after Saudi Arabia and the UAE. With 17 insurers in the country, the domestic market is becoming more competitive and local players are now looking to develop products to reach uncovered segments of the population. Priorities include increasing comprehensive coverage, including life, health and property insurance for the self-employed, while the government has also begun promoting agricultural insurance. With the growth of industries such as construction, real estate and manufacturing, the sector is expected to continue expanding in the medium term. This chapter includes interviews with Mohammed El Alaoui El Abdallaoui, General Manager, Moroccan Pension Fund; and Moulay Hafid Elalamy, President, Saham Group, and President, CNIA Saada.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18For the past decade, Saudi Arabia has been at the forefront of development in the Islamic financial services (IFS) sector. The Kingdom, which is home to more than a quarter of the GCC’s Islamic financial assets and a handful of the world’s largest sharia-compliant financial institutions, is currently among the top IFS markets in the world. In 2011-12 the sector continued to expand, buoyed by strong economic fundamentals and the Kingdom’s growing reputation as a centre for innovation in IFS. Of course, the sector does face challenges, including the lack of a large, well-trained national financial workforce. However, the IFS industry as a whole is poised for substantial expansion for years to come. With GDP growth expected to top 6% in 2013, according to IMF forecasts, the government and private sector alike are bullish on growth for the foreseeable future.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18A significant proportion of the UAE’s Islamic financial services sector is based in Abu Dhabi. Home to two of the three largest Islamic banks in the country, three of its most successful takaful (Islamic insurance) firms and a multitude of sharia-compliant investment funds, the emirate is also emerging as an important regional centre of Islamic financing. Moreover, demand for Islamic mutual funds is rising, with sharia-compliant funds accounting for 27% of the UAE’s total of 89. In addition, demand for new investment products has driven a rise in the sukuk (Islamic bond) market. Looking ahead, while Abu Dhabi’s takaful players face potential challenges as a result of regulatory reform, particularly with regard to new solvency standards, a low penetration rate and increasing awareness of insurance products’ utility shows the potential of the domestic takaful market. This chapter includes an interview with Tirad M Mahmoud, CEO, Abu Dhabi Islamic Bank.
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Buy digital copy of this chapter - £18Indonesia’s insurance sector stands out as the fastest growing and most promising in South-east Asia, within a region that’s largely seen as the most attractive for the world’s major underwriters. Supported by rapid economic expansion spurred by domestic consumption in the past decade, the sector has averaged a compound annual growth rate of 20% in gross written premiums and 26% in assets since 2007. Islamic insurance is expanding rapidly, with a 10-fold increase in contributions reported since 2010. Strong regulatory enforcement will be crucial to addressing low-penetration. If the long-awaited consolidation into better-capitalised underwriters is able to aid greater innovation in products and distribution channels, Indonesia’s current rapid growth should rise exponentially. This chapter includes an interview with William Kuan, President Director, Prudential Indonesia.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18With global Islamic financial assets worth some $1.2trn at the end of 2011 and growth of 150% over the previous five years, Dubai has long been eager to take a bigger share of this rapidly expanding market. Indeed, the emirate has long been home to some of the region’s stand-out Islamic banks and insurers, with its sukuk – Islamic bond – market also of highly prominent international standing. Broadly speaking, despite the troubles following the global financial crisis, the largest Islamic banks in Dubai have begun to post solid results. Assets and liabilities continue to improve. In 2012 Islamic banks saw annual growth rates for deposits of around 15%, compared to 5% for conventional banking in the region. The financial picture for Dubai’s takaful companies is one of narrow margins and opportunities for future consolidation, as with the insurance sector. This chapter includes an interview with Adnan Chilwan, Deputy CEO, Dubai Islamic Bank.
Explore chapterBanking
An in-depth look at the Banking sector in India will be included in The Report: India 2013.
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Buy digital copy of this chapter - £18While insurance in Mongolia remains in its nascent stages, important ongoing reforms may yet drive penetration, build local underwriting capacity and develop the first pool of domestic non-bank institutional investors. While the aggregate sums involved remain modest, buoyant growth bodes well for the medium term. The market is dominated by eight firms, which together account for 89% of non-life premiums. Three underwriters alone account for 54% of the market. New entrants are spurring competition with established players, driving innovation in product development and distribution channels. New rules for private insurers will have to be matched by wide-ranging reform of the states social insurance system. Promoting social acceptance of insurance will be crucial for long-term growth, with underwriters still to overcome distrust of private cover. This chapter contains an interview with T. Batzul, CEO, Mongol Daatgal.
Explore chapterInsurance
Buy digital copy of this chapter - £18With participants showing strong growth in a highly competitive market, the sultanate’s insurance sector is experiencing a period of both vertical and horizontal expansion. Stronger regulatory requirements on solvency and governance are also on the way, while a major new element, Islamic insurance – takaful – is also being added to the mix. While the market penetration rate remains low compared to more established markets elsewhere in the region and the world, the sector has seen consistent growth in recent years, with gross premiums up 12.2% between 2010 and 2011. Indeed, the sector is now entering a period of change and future consolidation is expected, with plenty of opportunities for international investors to become involved. Rising per capita income, GDP growth on the back of high energy prices and a changing social profile are all contributing to new approaches and attitudes towards insurance, which are likely to bring about significant sector growth in the years ahead.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Malaysia’s pioneering role in the development of Islamic finance has made it a clear leader in this field, even as oil-rich Gulf countries show increasing interest in sharia-compliant finance. It is the world’s largest sukuk market – a fact underscored by the record $9.9bn offering by highway operator PLUS in January 2012 – and the second-largest takaful market. The industry has been helped by substantial government support, including low taxes on dividends and several sharia-compliant funds for SMEs and entrepreneurs that are financed by the state. The challenge for the sector moving forward is to standardise and internationalise its products, defining clearly the requirements for sharia products and harmonising its offerings with those of other nations like Qatar.
Explore chapterEnergy
Buy digital copy of this chapter - £18Nigeria’s 2011 output level was around 2.45m bpd of oil and condensate, about 2.9% of global production, making it the world’s 12th-largest supplier that year. Estimates of proven reserves for natural gas vary from 180.5 tcf to 187 tcf, but these figures may well underestimate the country’s potential. Indeed Nigeria’s natural gas is even more abundant than its oil, but the country has so far failed to realise more than a fraction of its gas potential. Natural gas exports accounted for 67% of total production, excluding flaring, in 2011. Although an undeniable giant in the energy world, Nigeria faces some challenges in terms of performance and progress of its hydrocarbons sector. These include broad issues like politics and insurgency, in addition to the specifics of regulating a large energy sector. This chapter contains a viewpoint from Diezani Alison Madueke, Minister of Petroleum; and an interview with Ernest Nwapa, Executive Secretary and CEO, Nigerian Content Development and Monitoring Board (NCDMB).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Operational since 1999, the Algerian stock exchange, Bourse d’Alger, is characterised by low levels of activity and liquidity, with just three equities and two corporate bonds currently listed and government bonds accounting for over 90% of trading. The total volume of transactions on the bourse was €36.8m in 2011, down from €47.8m in 2010. Trading of government bonds accounted for €33.7m of this. Authorities are working on a project that will significantly overhaul the framework of the exchange to boost activity. Implementation of the reforms is due to begin in 2013. Plans to establish an exchange for small and medium-sized enterprises (SMEs) are also close to being finalised. If planned reforms go ahead, the market could see a notable expansion in the mutual fund and SME fields in particular. This chapter contains an interview with Mustapha Ferfera, Director, Bourse d’Alger.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18With Qatar’s exchange the best performing in the GCC region for the last two years, the capital markets look set for further development. In comparison to the GCC exchange averages, the Qatar Exchange (QE) scored higher both in terms of price to earnings and price to book value in 2011. In addition, in April 2011, the QE became the first in the region to offer a full delivery-versus-payment (DvP) system, an important step for bringing Qatar in line with international best practices in the arena of settlement services. Going forward, as the country looks to get its new infrastructure development programme under way, the capital markets may play an increasingly vital role in financing these projects. This chapter includes an interview with Emad Mansour, CEO of Qatar First Investment Bank (QFIB). It also includes a viewpoint with Adel Abdulaziz Khashabi, Head of QNB Financial Services.
Explore chapterBanking
Buy digital copy of this chapter - £18In spite of the country’s relatively small population, there are 14 financial institutions, nine of which are banks. Two of these are majority-controlled by the state and the other seven are privately owned. The largest three banks – BGFIBank, BICIG and UGB – are responsible for more than 80% of loans and deposits made in the country. While penetration remains relatively low, Gabon’s expected continued economic development means it will likely increase in the coming years. Given high oil prices, strong economic expansion and planned infrastructure developments under the Emerging Gabon strategy, which are expected to create opportunities for project finance, the future for the banking sector is promising. This chapter contains interviews with Denis Meporewa, National Director, BEAC; and Michaël Adande, President, BDEAC.
Explore chapterInsurance
Buy digital copy of this chapter - £18Insurance penetration is comparatively limited and is estimated to range between 0.7% and 1.2%. The sector has a combined total of 29 firms in life and non-life, with an asset base of roughly $6.71bn. Non-life policies have shown steady growth in recent years, rising from $870m in the 2009/10 fiscal year to $954m in the 2010/11 fiscal year. Motor insurance is compulsory and represents the greatest share of non-life policies, accounting for roughly $234m, followed by fire insurance at $128m. Significant reforms are planned for the pensions system, with plans to shift from defined-contribution to defined-benefit system, with the minimum payout equivalent to 15% of the national average wage. An overhaul of health care coverage is also under consideration, with proposals currently targeting universal care. This chapter features an interview with Abdel Raouf Kotb, Chairman, Insurance Federation of Egypt.
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Buy digital copy of this chapter - £18While the insurance penetration rate in Ghana stands at just 2-3%, authorities are currently in the process of putting into place the institutions necessary to increase awareness of insurance policies and capitalise the market. The sector is made up of 41 insurers, 23 non-life and 18 life. The non-life segment is driven primarily by motor insurance, which is the main source of profit for the government and corporations. The life segment has been expanding in recent years and life premiums are expected to exceed non-life premiums in the next five years, with premium income in the segment having jumped by 52% year-on-year in 2010. This section contains an interview with Richard Kwame Asante, Chairman, National Pensions Regulatory Authority.
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Buy digital copy of this chapter - £18The insurance industry was certainly impacted by the unprecedented flooding damage in the second half of 2011, but the disaster is leading to reform and better approaches to risk management in the public and private sectors. The damage is also expected to increase awareness of the value of insurance and raise Thailand’s below-average insurance penetration. At the same time, increased re-insurance costs have driven non-life premiums up considerably. The government has established a catastrophic risk fund that should mitigate these premium rises and safeguard against future natural disasters. Meanwhile, a new risk-based capital framework is expected to rationalise capital adequacy ratios and spur consolidation in the sector. This section has interviews with Pravej Ongartsittigul, Secretary-General, Office of the Insurance Commission; and Sutti Rajitrangson, President, Thai Life Assurance Association.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Ras Al Khaimah’s construction sector remains a key component of the emirate’s growing economy. Following the 2008-09 economic downturn, the emirate’s construction industry seems in good shape, with a number of notable projects already under way. In particular, the government is expecting to welcome 1.2m visitors in 2012, which is spurring sizeable expansion in the hotel segment. The construction and building sector was worth $620.62m in 2010 – about 10% of RAK’s overall economy, according to the RAK Department of Economic Development. Furthermore, partly as a response to the challenges of the downturn, and to stabilise their economic outlook, construction firms are adopting new strategies, such as diversification, consolidation and expansion. Authorities have also begun pushing for more environmentally friendly building practices, with oversight from the RAK Environmental Protection and Development Authority. This chapter includes an interview with Louis-Armand de Rougé, CEO of RAK Marjan Island Football.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Following four difficult years, 2012 looks set to be a turning point for the stock exchange as institutions and investors ready themselves for a stronger climate of investment and growth. In 2011, Jordan’s capital markets continued to suffer from wider regional and domestic events as investors’ fears were stoked by low economic growth, a tightening of fiscal spending and high interest rates. More positively, the year witnessed an increase in the share of foreign investment, from 49.6% in 2010 to 51.3% in 2011. There is a sense that many of the blue chip stocks with solid results remain undervalued, indicating prices are being affected by low investor confidence rather than fundamental concerns. Exchange regulators, for their part, are looking to encourage the specialisation of investment products and create a more sophisticated investment environment. This chapter includes an interview with Samir Jaradat, CEO of the Securities Depository Centre; and Adel Kasaji, CEO of AB Invest.
Explore chapterBanking
Buy digital copy of this chapter - £18The Turkish banking sector learned hard lessons from the country’s financial crisis in 2001-02, and as a result, it was among the most stable and secure through the global financial crisis of 2008, remaining a safe harbour for foreign and domestic investors alike. The sector is very competitive, and profits declined during 2011 on the back of reduced margins from loans, however the stability of the sector remains one of the key elements driving the nation’s overall economic growth. With the nation rapidly developing, online and mobile services have enabled banks to attract more customers while developing adaptive offerings to utilise funds that are in flux. While tightening monetary policy has posed a distinct challenge to banks, they are readily adaptable, and the nation’s vast infrastructure and energy project pipeline offer significants opportunities for long-term returns. The chapter features interviews with Mehmet Şimşek, the Minister of Finance; Central Bank Governor Erdem Başçı; Adnan Bali, the CEO of Iş Bank; Hüseyin Aydin, the General Manager of Ziraat Bank; and Martin Spurling, the CEO of HSBC Turkey.
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This chapter outlines how South Africa’s well-capitalised banks have weathered the global economic crisis with aplomb, largely thanks to a robust regulatory environment. Rising competition and efforts to engage the large unbanked population have also helped the sector recover from the effects of the global downturn. At the close of 2011, the sector comprised 17 registered banks, two mutual banks, 12 branches of foreign banks and 43 foreign banks operating local representative offices. However, the sector remains dominated by four major banks that together accounted for around 84% of total banking assets at the end of 2011. This chapter contains interviews with Gill Marcus, Governor, South Africa Reserve Bank (SARB); Mike Brown, CEO, Nedbank; and Sim Tshabalala, CEO, Standard Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18With new regulations, the continued implementation of development strategies and the historic opening of the nation’s second exchange holding the interest of market participants, Bahrain’s capital markets have been receiving significant attention from investors. However, a number of challenges have presented themselves. The European debt crisis, local and regional unrest, and the lingering effects of the global economic slowdown have combined to create a difficult environment for exchanges across the Gulf. The market capitalisation of the Bahrain Bourse (BHB) peaked in 2007 at $10.19bn but has since lost value due to political and economic difficulties, ending 2011 at $6.25bn. However, the sector is widely expected to enter a period of expansion, with new products and innovations planned for both of Bahrain’s exchanges in the coming year. These include the introduction of a delivery-versus-payment (DvP) system, whereby delivery of securities is carried out simultaneously with payment. Further regulatory reforms in the pipeline are aimed at creating a more attractive investment environment. This chapter includes an interview with Fouad Rashid, Director, Bahrain Bourse.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Philippines Stock Exchange (PSE) was the best-performing index in Asia in 2011, although it could not match the incredible 37.6% growth it displayed in 2010. Still, the bourse managed to close out the year 4.1% higher, thanks largely to the strong performance of the mining and oil counter. Now managers of the PSE, which is the smallest of South-east Asia’s major stock markets, want to increase the volume and complexity of trading, upgrading technology, allowing shorting, and listing exchange-traded funds. This chapter contains interviews with Hans Sicat, President, PSE; Cecilia Tan, President, BPI Capital Corporation; and Roberto Juanchito T Dispo, President, First Metro Investment Corporation.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Kuwait Stock Exchange (KSE) is one of the oldest in the region and traditionally has been a regional leader in sovereign bond issuance. Following the economic downturn that started in 2008, the KSE has sought to restore confidence and offer a route to renewed growth via a comprehensive package of reforms. The Capital Markets Law, passed in 2010, aims to boost transparency and enhance investor knowledge regarding participation on the bourse. While these measures may depress trading in the short term, better regulation will provide the basis for long-term expansion. This chapter includes an interview with Ziad Hasan Al Qaissi, Executive Vice-President, Investment Advisory and Research Division, KAMCO. It also features a roundtable with Hisham A Al Razzuqi, CEO, Gulf Investment Corporation; Ali Ahmed Al Zubaid, Deputy Chairman and MD, Alimtiaz Investment; and Maha K Al Ghunaim, Chairperson and MD, Global Investment House.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18As one of the markets at the forefront of the South-east Asian growth story, Indonesia is seeing a surge of investment attention from capital managers eager to avoid the malaise lingering in developed economies. Indonesia now has a chance to strengthen its capital markets’ offerings, by broadening the options available, fostering a bigger roster of investors and smoothing operations at the country’s exchanges. The Indonesia Stock Exchange (IDX) teamed up with the Asian Development Bank in 2009 to plan improvements to the bourse. The stock market’s profile has been raised through adjustments to the country’s sovereign debt ratings, which Fitch labelled investment grade in December 2011, with Moody’s and Standard & Poor’s expected to follow suit in 2012. This chapter features an interview with Nurhaida, Chairman, Bapepam.
Explore chapterBanking
An analysis of South Africa's banking sector will be included in the report, featuring in-depth interviews and viewpoints from leading experts.
Explore chapterBanking
Having posted another year of positive results, Saudi Arabia’s banking sector is positioning itself to take advantage of the government’s expansionist fiscal policy and the large number of projects this has created. In the meantime, opportunities in other areas of the lending landscape are being explored, most notably among the nation’s smaller businesses. An ongoing process of regulatory reform and intense competition continue to present challenges to the Kingdom’s banks, but the underlying stability of the sector means that they can be tackled from a position of strength. This chapter contains interviews with Fahad Al Mubarak, Governor, Saudi Arabia Monetary Agency (SAMA); Bernd van Linder, Managing Director, Saudi Hollandi Bank; and Patrice Couvegnes, Managing Director, Banque Saudi Fransi.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £22Strategically positioned as a global centre for culture and tourism, Sharjah is looking to leverage its emerging and established arts, ecotourism, and adventure offerings. Infrastructure expansion projects such as airport upgrades and road projects have attracted investors, and heritage preservation efforts such as the Heart of Sharjah project underscore this commitment. Aligned with the UAE's tourism strategy, Sharjah anticipates sustained growth in the broader GCC tourism market. The Sharjah Commerce and Tourism Development Authority targets a 50% increase in hotel rooms by 2025, enhancing investment opportunities. UNESCO World Heritage sites in Sharjah drive growth and employment, making it appealing for tourists and investors alike. This chapter contains interviews with Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority; Aisha Deemas, Director General, Sharjah Museums Authority; and Saif Mohamed Al Midfa, CEO, Expo Centre Sharjah.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £22Kuwait is one of the largest Islamic finance markets in the world, hosting five Islamic banks and one foreign Islamic bank, eight Islamic investment companies, one Islamic finance company and 14 takaful (Islamic insurance) companies. These segments have seen strong growth since the Covid-19 pandemic and have capitalised on the rapid global expansion of Islamic finance, with sharia-compliant banks growing faster than their conventional counterparts. While sukuk (Islamic bonds) have experienced growth around the world, especially in the green sukuk sector, Kuwait’s domestic market for them has been limited by legislative delays hindering the trading of such bonds on the country’s stock exchange. This chapter contains an interview with Abdulwahab Iesa Al Rushood, Acting Group CEO of Kuwait Finance House.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22Abu Dhabi plays a central role in regional capital markets development, attracting government-owned companies seeking listings and contributing to sustainable asset regulatory frameworks. Amid global economic challenges, Abu Dhabi remains an attractive investment destination, with strong demand for its debt and a robust initial public offering (IPO) pipeline. Forward-looking regulatory measures, including carbon credit trading, are enhancing its appeal as the emirate continues to expand after the Covid-19 pandemic. Abu Dhabi’s economic trajectory, coupled with regulatory foresight, positions it as a promising investment opportunity in a changing global landscape. With fluctuating inflation and slowed productivity growth in developed markets, Abu Dhabi stands out as an attractive investment opportunity. Robust demand for its debt speaks to confidence in its future economic trajectory and its IPO pipeline appears strong. Ratings agencies affirm Abu Dhabi’s fiscal stability, highlighting its ability to maintain surpluses. This chapter features an interview with Maryam Buti Al Suwaidi, CEO, Securities and Commodities Authority.
Explore chapterInsurance
Buy digital copy of this chapter - £22Saudi Arabia's insurance market, driven by mandatory health coverage and robust economic growth, emerged as the Gulf's largest in 2022, with gross written premium of SR53.4bn ($14.2bn). Proactive regulatory measures aim to consolidate the industry, promote international investment and bridge coverage gaps. Vision 2030's Financial Sector Development Programme sets ambitious targets, helping to drive regulatory reform and promote digitalisation. Compulsory insurance and economic diversification are creating new opportunities for insurers. Meanwhile, the transition away from carbon-intensive industries is paving the way for broader coverage and risk-management strategies. The Saudi insurance sector looks set to expand its reach and contribute to the broader financial space in the coming years. This chapter contains an interview with Othman AlKassabi, CEO, Tawuniya.
Explore chapterTrade, Industry & Automotive
Trade has played a significant role in Libya’s economy since the early 2000s, although it faced significant challenges due to economic and trade sanctions imposed by Western governments prior to the revolution. There has been a modest resurgence in trade, particularly as stability has improved with trade partners keen to capitalise on Libya’s strategic location. Misrata’s transit trade endeavours align with Libya’s long-standing objective of diversifying its economy away from hydrocarbons. Libya’s industrial landscape has undergone a significant evolution starting in the 1990s, resulting in manufacturing’s share of the economy increasing considerably. Today, manufacturing is a key driver of the economy in Misrata, with subsectors such as construction materials, plastics, automotive and food processing contributing significantly. Major industrial sectors in the region include manufacturing, port and maritime activities, and oil and gas. Misrata has sought to diversify by attracting investment and fostering growth in targeted sectors. The establishment of the Misurata Free Zone in 2000 has been a major catalyst for industrial development, offering tax incentives and attracting both local and international companies. As capacity expands, continued development of transport networks and power supply will be important growth enablers, as will ensuring reliable access to finance and skilled labour. The automotive industry plays a significant role in the local economy, contributing to employment, trade and economic growth. The industry has experienced periodic disruptions in production and supply chains due to political instability and conflict. However, efforts are being made to revive and strengthen the segment, and stability has been gradually returning. This chapter contains interviews with Abdallah BenNaser, Chairman, Almadina Misurata Paints; Mohamed Al Faqih, Chairman, LISCO and Naohiro Masuda, Managing Director – CEO, Toyota Libya.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22Bahrain’s capital markets are being revitalised as the kingdom and the broader Middle East emerge from the Covid-19 pandemic-induced downturn. New regulations, partnerships with neighbouring countries and a national plan to boost the economy are all set to help drive growth in capital markets. The Central Bank of Bahrain is the single regulator of securities trading in the kingdom, and its Capital Markets Supervision Directorate is responsible for supervising and regulating capital markets. The CBB rulebook includes a separate section that covers the activities undertaken on Bahrain Bourse. Although Bahrain’s capital markets have yet to enjoy the same wave of listings seen on neighbouring exchanges, the bourse has taken steps to update regulations and boost investor confidence. This chapter contains an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22As Djibouti’s demand for energy grows, the country is undergoing a transition towards renewables given its lack of domestic hydrocarbons reserves, while also aiming to reduce its carbon footprint and promote sustainable development more broadly. Various projects are underway to strengthen electricity links with neighbouring countries such as Ethiopia, fostering regional cooperation. Djibouti is also working to reduce its dependence on imported power by investing in domestic production and diversifying its energy mix. The government has ambitious plans to become the first country in Africa to fulfil 100% of its electricity demand from clean energy sources while also extending the power grid to reach 100% of the population. This chapter contains interviews with Dabar Adaweh Ladieh, Director-General, International Hydrocarbons Company of Djibouti; and Yonis Ali Guedi, Minister of Energy and Natural Resources.
Explore chapterInsurance
Buy digital copy of this chapter - £22The insurance sector has only skimmed the surface of what Nigeria’s economic growth could offer. However, raising gross written premium is likely to require a change in the market’s current structure. The large number of competitors – and the limited financial capacity of some of them – has made it difficult for the sector to deepen its penetration. The delay in the implementation of higher minimum capital requirements is likely to further stall consolidation in the short term, but the lingering effects of the Covid-19 pandemic and the reduction in oil output could encourage policymakers to take steps towards fostering stronger insurance providers. Raising the low rate of insurance penetration in the country is tied to efforts to address persistent levels of unemployment and poverty. Better economic conditions are expected to play an important role in supporting the sector’s growth.
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Buy digital copy of this chapter - £22Oman’s capital markets are positioned to play a crucial role in achieving Oman Vision 2040’s objectives, having made great strides in the wake of the Covid-19 pandemic. Oman is currently undergoing a period of wide-ranging reforms and strategic changes designed to accelerate private sector growth and enhance resilience. This has opened up new opportunities in the kingdom’s capital markets, which can be leveraged to finance the development of its economy. Oman has moved swiftly to establish the foundations for rapid capital market development. In recent years it has implemented a series of reforms aimed at facilitating investment, ensuring accountability and aligning local markets with international standards. As recent credit ratings upgrades indicate, investors are poised to build on the robust base in the medium term, furthering the sector’s expansive trend. This chapter contains interviews with Abdulaziz Al Balushi, CEO, OMINVEST; and Abdullah Al Salmi, Executive President, Capital Market Authority.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £22One of the world’s largest Islamic finance markets, Kuwait has a wide range of banking, sukuk (Islamic bonds) and takaful (Islamic insurance) entities and products on offer, with recent headwinds such as the Covid-19 pandemic proving little obstacle to the sharia-compliant sector’s continuing robust growth. Indeed, the country’s Islamic banks have been expanding faster than its conventional ones in recent years, with a new merger making an Islamic banking provider an even bigger player in the local market. At the same time, sukuk issuance continues to bolster the country’s capital markets, while takaful products compete for market share with well-established conventional players. Increasingly, Islamic financial technology is playing a role, with Kuwait home to many innovative fintech outfits benefitting from a central bank-supported drive towards digitalisation. This chapter contains an interview with Abdul Wahab Al Rushood, Acting Group CEO, Kuwait Finance House.
Explore chapterInsurance
Buy digital copy of this chapter - £22Saudi Arabia’s insurance market, the second largest in the Gulf region by gross written premium after the UAE, offers a vibrant and competitive environment. Growth in recent years has been attributed to economic development creating new insurable assets, and new lines of mandatory coverage. Long-term direction is detailed in the country’s Vision 2030 development plan and targets a growing and maturing sector through consolidation, digitalisation and overall capacity building. Like insurers worldwide who responded to the global Covid-19 pandemic by updating their operations and leveraging insurance technology, many Saudi insurance companies have entered a period of rapid digitalisation and modernisation.
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Buy digital copy of this chapter - £22Although the country’s insurance sector is progressing each year and has a substantial direct and indirect impact on the economy and job creation, the penetration rate – measured as premium relative to GDP – remains low. The factors contributing to the low penetration rate include a lack of public awareness and education about the industry as a whole. However, new opportunities are expected to arise due to economic progress and diversification in Côte d’Ivoire and the larger Inter-African Conference on Insurance Markets area. In order to increase the level of trust in the system, insurance companies will need to reassure consumers by upholding their contractual commitments and expediting claims settlement. This chapter contains an interview with Roland Ouedraogo, General Director, Sanlam Assurance Côte d’Ivoire.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22After several years of stasis due to the Covid-19 pandemic, the kingdom’s energy industry is seeing a renewed pace of activity. Though Bahrain does not produce as much oil as its larger neighbours, the energy industry remains a vital part of the national economy. This has been helped by a large-scale oil and gas discovery in 2018 and the upgrade of the country’s main refinery in Sitra. Bahrain is also beginning to ramp up investment in renewables as it works towards its goal of reaching net-zero carbon emissions by 2060. The spike in oil prices in early 2022 could help to finance Bahrain’s efforts to expand its green energy capabilities. This chapter contains interviews with Mark Thomas, CEO, nogaholding; and Bassem Battisha, Country Chairman, Chevron Bahrain.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £22Egypt has made some progress in improving industrial development, but the government is working to focus on specialisation in certain segments – particularly textiles and pharmaceuticals. Indeed, scaling up investment in manufacturing is a policy priority, as the country’s value-added growth in this sector has been sluggish compared to other emerging economies. Namely, the country aims to accelerate industrialisation and shift from low-value-added to high-value-added, technology-intensive manufacturing segments. Nonetheless, despite Covid-19 pandemic-induced economic headwinds, the Egyptian retail sector has made significant progress in recent years, particularly in food retail and e-commerce. These segments saw rapid growth due to lockdowns and rising internet penetration rates. In FY 2019/20 and FY 2020/21 the private sector’s share of total investment in the retail and wholesale sectors amounted to 95% of the total, at $9.5bn and $7.4bn, respectively.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £22Qatar’s Islamic banking industry is one of the world’s largest and most experienced, given than its first entity – Qatar Islamic Bank – was established in 1982. Four decades later, as business confidence and economic growth is returning after two years of slowdown, the sector stands ready for renewed expansion. It can build on the important role it played in response to the virus, when it supported many businesses and individuals navigating the economic fallout. However, the situation of recent years has had an impact on the sector: 2020, in particular, saw assets and profits decline. This came after several years of low oil and gas prices – a factor that constrained economic growth in Qatar and many other countries in the region. As a result, the local Islamic finance sector has followed the global trend of industry mergers, with market consolidation a widespread response to tough conditions. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Khalid Al Subeai, CEO, Dukhan Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £22Ghana is well positioned to develop its insurance sector. According to a 2021 survey conducted by the UN Development Programme, around 70% of Ghanaians do not have access to insurance of any kind, and many of the products available in the market do not respond to the needs of the population. Even so, the sector’s value grew 10-fold between 2011 and 2021. The market has been able to expand its breadth through the introduction of micro-insurance and the digitalisation of services. Moreover, the authorities have worked to overhaul insurance-related legislation through the Insurance Act 2021, which aims to modernise the sector and increase penetration. Much depends on the rollout of reforms implemented in recent years, as well as the sector’s ability to adapt to Ghanaians’ specific needs. This chapter contains an interview with Justice Yaw Ofori, Commissioner, National Insurance Commission.
Explore chapterIndustry
Buy digital copy of this chapter - £22Nigeria has a varied industrial sector, and although the pandemic disrupted international supply chains and local operations, the performance of some industrial segments in Nigeria bucked the trend. Major projects continue to push ahead, such as Nigeria’s first privately owned oil refinery and new cement plants, while government plans to add greater value to agricultural output kicked off with external financing. The construction of new free zones is also ongoing, providing investors with more opportunities close to seaports and in the hinterlands. Other segments such as metal and cement are poised for growth, with producers to benefit from high local demand. Overall, the government sees industry as a way to diversify receipts and cushion the fallout from future oil price declines. This chapter contains an interview with Jean-Marc Ricca, Managing Director of BASF West Africa.
Explore chapterFinancial Services
Buy digital copy of this chapter - £22Sharjah’s financial services sector has grown steadily over the years, due in part to its quick response to changes, including the rapid adoption of international best banking practices. The banking industry has expanded its digital services, particularly in response to the economic disruption caused by the Covid-19 pandemic, putting it in a good position for future growth as the world transitions to a more digital economy. Meanwhile, the government of Sharjah’s acquisition of a majority stake in a local bank in 2019 could set the stage for additional strategic investments to strengthen the financial services sector further. While Sharjah does not have its own capital market, the emirate-level government and many local institutions have become regular issuers of debt and sukuk (Islamic bonds), with a number of sukuk sold in 2020 to raise financial support for the pandemic response. This chapter contains an interview with Ahmad Abu Eideh, CEO, United Arab Bank.
Explore chapterIndustry & Agri-business
Buy digital copy of this chapter - £22Industry has made a sustained contribution to the Philippines’ economy in recent years, accounting for roughly 30% of GDP between 2017 and 2019, with sector growth driven predominately by manufacturing. Expansion was constrained in 2020 as Covid-19 response measures impeded manufacturing activity and reduced the global demand for industrial products. Meanwhile, agriculture comprised 9-10% of GDP from 2017-19 and is a crucial source of employment. Increased emphasis has been placed on transforming traditional farming into a dynamic agri-business sector – which will be key to the country’s economic rebound. After a difficult 2020 it will be necessary to address ongoing challenges – including high production and electricity costs, inadequate infrastructure and limited basic industries – to enable long-term manufacturing growth. Supporting businesses in the adoption of the Fourth Industrial Revolution, or the application of new digital and automated technologies to enhance production processes and service delivery, will further boost resilience. This chapter contains interviews with Ramon M Lopez, Secretary of Trade and Industry; William Dar, Secretary of Agriculture; and Christopher Po, Executive Chairman, Century Pacific Food.
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Buy digital copy of this chapter - £18Papua New Guinea’s insurance market is closely indexed to the country’s economy, which prior to the Covid-19 outbreak in early 2020 had been projected to grow at an average of 3% per year through to 2022. However, the pandemic effectively shuttered PNG for several months, and reduced global demand for the commodities that drive its export earnings. The insurance market therefore faces an uncertain future. On the one hand, the impact of Covid-19 may pose a substantial challenge to the country’s health system and economy in the recovery period, with repercussions for insurers. On the other hand, the economic pressures caused by the crisis may result in healthy restructuring of the industry, particularly as measures to reduce transmission drive the uptake of digital insurance services. The sector’s future will also be contingent on the government’s ability to continue important financial sector reforms, as well as the level of demand for mega-project risk-mitigation services. This chapter contains an interview with Jeremy Norton, General Manager, Tower Insurance.
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Although Egypt’s insurance sector has shown strong growth over the past decade, it faces a challenging period in FY 2020/21. An ongoing process of regulatory reform promises to strengthen the legislative platform that underpins the industry, but it is likely to result in short-term difficulties for some sections of the market, compounded by the disruption caused by Covid-19. Nevertheless, the sector’s fundamentals support a positive outlook for long-term expansion, and Fitch Ratings forecasts that the life and non-life segments will see average annual growth of 5.9% and 9.9% per year, respectively, between 2020 and 2024. Given that premium as a percentage of GDP is less than 1%, the regulatory shift towards greater insurance penetration and wider financial inclusion should support the sector’s development in the coming years. This chapter contains an interview with Mohammed Omran, Chairman of the Financial Regulatory Authority. ¬
Capital Markets
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Abu Dhabi’s capital markets started 2020 on a positive note, bolstered by solid gains on the exchange’s main index in 2019. Similarly, the local debt market ended 2019 favourably, with the UAE ranking as the biggest issuer of fixed-income instruments in the GCC that year. Although much remains to be seen as global markets deal with the twin ramifications of Covid-19 and lower oil prices in early 2020, an increasingly proactive stance to economic diversification and a policy of domestic rationalisation that is creating an added need for debt financing, and which coincides with suppressed rates in global credit markets, bodes well for Abu Dhabi’s capital markets in the medium to long term. Against this backdrop, an ongoing process of reform and the emergence of a new trading platform are set to add further dynamism to the financial markets. This chapter contains an interview with Khalifa Salem Al Mansouri, Chief Executive, Abu Dhabi Securities Exchange.
Fintech
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Indonesia’s financial technology sector is one of the most dynamic and competitive in the world, as evidenced by the emergence of four unicorn companies – start-ups valued at over $1bn – and one decacorn, valued at over $10bn. These new tech giants include one digital payment firm, OVO, while the rest offer a number of integrated payment options in e-commerce, ride hailing and delivery services, and travel bookings. Surrounding them is a fast-growing ecosystem that is helping expand financial inclusion to previously underserved segments of the population. Investment comes from a range of domestic and international sources, both public and private. Global backers, including Google and China’s Ant Financial, have entered into joint ventures in Indonesia. This chapter contains interviews with Reynold Wijaya, CEO and Co-Founder, Modalku; and Vincent Iswara, CEO, DANA.
Insurance
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Premium has risen steadily over recent years, although the level of insurance penetration remains relatively low, at roughly 2% of GDP in 2018, leaving ample room for expansion. Côte d’Ivoire has the largest market share of all 14 members of the Inter-African Conference on Insurance Markets, making the economic capital Abidjan an attractive jumping-off point for businesses looking to expand in the region. Yet, the industry is not without its challenges. New arrivals have contributed to oversupply, resulting in lower-than-average tariffs for insurance products such as auto coverage. This has led to a system whereby some insurers lower their prices to compete and then are unable to fulfil their commitments to customers. Such moves have resulted in a weak financial position for several industry companies and, in some cases, has negatively affected the perception of insurance at a time when the Covid-19 pandemic has weakened global financial markets.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Recent and ongoing reforms of Saudi Arabia’s capital markets have seen the Kingdom gradually liberalise its investment framework and overhaul the operations of the Saudi Stock Exchange (Tadawul) – the largest exchange in the GCC by market capitalisation. Looking to initial public offerings, the state’s privatisation programme – a central component of Saudi Vision 2030 – is likely to generate further activity over the medium term. Targeted sectors include the environment, water and agriculture, transport, energy, housing, education and health. However, the timetable of the privatisation programme, as well as the movement of the Tadawul’s main index, is likely to be adversely impacted by the Covid-19 outbreak that is expected to upend global markets far into 2020. This chapter contains interviews with Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul); and Rajiv Shukla, CEO, HSBC Saudi Arabia.
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Qatari capital markets continue to play a major role in the national economy despite a gradual slowdown brought about by the slowing pace of infrastructure investment in the run-up to the 2022 FIFA World Cup. Nonetheless, the Qatar Stock Exchange enjoyed a strong year in 2019, following on from the previous year, in which it was the best-performing market in the GCC, with returns of around 20%. The global geopolitical context remains an important determinant of Qatari capital markets activity, both in terms of China-US trade tensions, the exit of the UK from the EU and the ongoing spread of the Covid-19 virus. This chapter contains an interview with Rashid bin Ali Al Mansoori, CEO, Qatar Stock Exchange.
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In recent years Morocco’s insurance sector has consolidated its strong position, with the growing middle class, tax advantages and fierce competition between bancassurers giving a notable dynamism to the life insurance segment. Morocco is the second-largest insurance market in Africa in terms of gross premium, and ranks highly for both insurance density and penetration. Furthermore, regulatory reforms are helping to cement the strong financial position of insurance players and broaden the range of obligatory and discretionary insurance products available. As the insurance sector matures, its players are increasingly looking to international markets to grow their businesses. This chapter contains an interview with Ramses Arroub, CEO, Wafa Insurance.
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Trinidad and Tobago’s insurance industry has persevered through recent economic struggles and recession. With GDP forecast to expand in 2020 and 2021 and demand for health and life products rising, T&T’s insurance sector exhibits strong potential and its performance expected to improve further. The proliferation of digital offerings will ensure that a larger customer base receives better service and personalised options. Local insurers report needing more information to make assessments, and as such it will be important to make more data available while respecting privacy concerns. Other challenges include a shortage of foreign exchange, a lack of reliable data and wider macroeconomic pressures. However, consolidation, innovation, the rise of insurance technology and digitalisation are expected to strengthen the sector. This chapter contains an interview with Ravi Tewari, CEO, Guardian Holdings.
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After successfully weathering a period of financial instability stemming from the banking sector, Ghana’s insurance industry is growing in size and sophistication. The coming year, however, will bring a fresh set of challenges as the authorities look to roll out a new legislative framework for the industry in 2020, and as companies seek to meet the 2021 deadline for revised capital requirements. Increasing competition and lower investment returns also mean that underwriting performance is under greater scrutiny than in recent years, especially as consumer complaints against the industry rise. Insurers are responding to less favourable conditions by diversifying their distribution channels and taking advantage of mobile technology to reach previously underserved demographics. This chapter contains an interview with Justice Yaw Ofori, Commissioner, National Insurance Commission.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18As both a regional and global leader in Islamic finance, Bahrain benefits from supportive regulation, capable human resources, and a reputation for diversified and mature offerings. Demonstrating this, the Islamic banking and insurance segments have recorded elevated growth rates compared to their conventional counterparts in recent years, even as the industry faced macroeconomic headwinds. Islamic banks are well positioned to implement new accounting standards despite some anticipated near-term pains. The government’s efforts to promote and expand financial technology could bring additional benefits to Islamic financial services. From a sharia-compliant, blockchain-supported cryptocurrency exchange to open banking initiatives, Islamic offerings will continue to benefit from policies aimed at maintaining Bahrain’s competitiveness.
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The countrywide introduction of mandatory health coverage for private sector workers and their families will offer a considerable boost to Oman’s insurance sector. However, considerable challenges remain, such as the slowing growth of insurance premium. The market also remains crowded, and in some cases the pursuit of premium has cut into underwriting standards and become a hindrance to the long-term sustainability of the market. The Capital Market Authority is introducing new training and regulatory conditions that should make for an even more competitive market and provide a higher level of service. Companies are therefore likely to develop their digital offering as a means of securing a competitive advantage. One bright spot is the takaful (Islamic insurance) segment, which continues to grow at a faster rate than its conventional counterpart.
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Recent years have seen Myanmar’s insurance sector take significant steps forwards, with liberalisation giving rise to a number of foreign insurance companies entering the market. At the same time, the country’s financial sector governance has been strengthened, while the economy has continued to grow. These developments bode well for the industry, with rising per-capita incomes expected to lift premium volumes and improved regulations set to stimulate investment. Indeed, with penetration rates for both life and non-life coverage comparatively very low, and a population of 53.6m as of FY 2018/19, the sector presents significant potential for expansion. Furthermore, the ongoing opening up of the country’s economy and adoption of international best practices is expected to support increased activity and competition. This chapter contains a roundtable with Nhon Luc Ly, CEO, AIA Myanmar; Son Nguyen, Country President, Chubb Life Insurance Myanmar; Zarchi Tin, CEO, Dai-ichi Life Insurance Myanmar; and Asit Rath, CEO, Prudential Myanmar Life Insurance.
Explore chapterIslamic Financial Services
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The status of Dubai as a global financial centre means that it plays a central role in the domestic Islamic financial services sector. Thanks in large part to an ambitious government strategy, the sharia-compliant financial industry has emerged as a globally significant player. The combined assets of the world’s Islamic finance market have surpassed $2trn, and the UAE is home to around $222bn of that total. This establishes the country as the fourth-largest Islamic finance arena in the world, behind Iran, Saudi Arabia and Malaysia. The government has intensified efforts to develop the segment in recent years, aiming to establish Dubai as the epicentre of the Islamic economy.
Explore chapterCapital Markets
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Kuwait’s equity markets have gone through a remarkable series of reforms in recent years, and the state has been rewarded with upgrades by international index compilers and ballooning inflows of foreign investment. Enabling infrastructure and a robust legal framework are in place to ensure continued development, and demand for assets has been proven. Therefore, what is critical going forward is a greater supply of high-quality investable securities, from sovereign bonds to small company equity listings by businesses with solid track records. This chapter contains interviews with Khaldoun Al Tabtabaie, CEO, Kuwait Clearing Company; and Mohamed Al Osaimi, Acting CEO, Boursa Kuwait.
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Although the sector’s medium-term growth is likely to be impeded by weak economic conditions, the Mexican Association of Insurance Companies forecast that total premium would rise by 3.4% in 2019, though downgrades have been made in subsequent forecasts. This is likely to weigh most heavily on the non-life segment due to the impact of fiscal austerity on government spending. The life segment, meanwhile, is expected to continue to perform well, but its expansion will still be constrained by the weaker labour market. In the longer term, economic recovery and increases in real wages are expected to gradually reduce poverty rates and broaden the potential market for both life and non-life plans. With insurance penetration still only around half the level of the more advanced Latin American countries, there is significant scope for growth in the years ahead. This chapter contains an interview with Mario Vela Berrondo, CEO, Prudential Insurance México.
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Buy digital copy of this chapter - £18With a low penetration rate of below 2%, Papua New Guinea’s insurance sector has significant growth potential. The economy is expected to benefit from a range of new extractive projects and this, coupled with growing awareness about the benefits of insurance coverage, is set to increase demand. However, some notable challenges will need to be addressed to ensure the long-term expansion of the industry. While efforts have been undertaken to modernise the sector in recent years, the legislation governing the industry is not fully aligned with international best practices, and uncertainty remains regarding the division of responsibilities between different regulatory authorities. Despite a host of challenges, efforts to expand coverage across PNG to lower-income households are being made, with micro-insurance a key driver of penetration. This chapter also contains an interview with Raho Samuel, Insurance Commissioner.
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Buy digital copy of this chapter - £18Although Tunisia’s insurance market has grown steadily in recent years, it continues to be characterised by low penetration. As such, measures that are expected to promote expansion of the sector are being put in place. A new insurance code will strengthen the financial position of insurers and likely encourage a greater degree of sector consolidation. Furthermore, several segments, including life insurance and takaful (Islamic insurance), continue to show growth potential. In line with this dynamic, Tunisian insurers are increasingly considering new product development and ways to take advantage of the country’s high IT usage, focusing on digital mechanisms that can improve the provision of services and be able to reach new customers. This chapter contains an interview with Habib Ben Hassine, President, Tunisian Federation of Insurance Companies.
Explore chapterBanking
With strong capitalisation and credit growth on the back of robust GDP figures and falling inflation, the Philippine banking sector now faces a year in which consolidation of gains and expansion into new demographics are on the agenda. The country continues to be well served by a variety of lenders, with universal and commercial banks supplemented by a wide array of thrift banks, rural and cooperative banks, and other microfinance institutions. Innovations in financial technology (fintech) are bringing banking to many more Filipinos via technological devices, while acting as a disruptor to traditional banking methods. There is increasing focus placed on smaller lenders as they gradually embrace fintech in a bid to extend their reach to unbanked and underbanked populations. This chapter also contains interviews with Benjamin E Diokno, Governor, Bangko Sentral ng Pilipinas; Nestor Tan, President and CEO, BDO Unibank; and Cezar Consing, President, Bank of the Philippine Islands.
Explore chapterMining
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With broad political support and efforts to improve the licensing process, the mining industry looks set to experience a rebound in 2019. While investments in coal production are unlikely to increase substantially in the coming years, segments such as gold, copper, nickel, emeralds, and other metallic and non-metallic minerals will provide attractive targets for investment. Government efforts to curb illegal operations, formalise small-scale mining and create a more attractive business environment have already begun to yield results, but the success of new and incoming projects will dictate whether the industry’s momentum will continue. This chapter contains an interview with Kelvin Dushnisky, CEO, AngloGold Ashanti.
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The Peruvian insurance market as a whole returned to profitability in 2018, following losses and anaemic expansion over the course of 2016 and 2017. Underwriters enjoyed the most robust returns in the life segment, particularly in personal income annuities, which have come into high demand among new retirees as reinvestment vehicles for pension withdrawals. Furthermore, overall claims fell significantly against indemnities paid out in 2017, when the El Niño climactic phenomenon precipitated widespread damage to residential and agricultural properties in the north of the country. Even as the insurance penetration rate remains low vis-à-vis uptake among Peru’s South American neighbours, the sector is expected to drive growth in the wider economy, as coverage for earthquakes, fires and other accident liabilities grows alongside investments in mining and construction. This chapter contains an interview with Jorge Ramos, CEO, Sura (Peru).
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Buy digital copy of this chapter - £18With the largest population in the Middle East and a relatively established insurance sector, Egypt has long been a promising market for insurers. Domestically licensed companies have shown strong growth in recent years, driven by public expenditure on capital projects and increasing private sector activity. However, the sector’s impact on the lives of ordinary Egyptians has been limited, with 1% of the population covered, compared to a global average of over 6% and an African average of nearly 3%. The low penetration rates highlight considerable potential for further expansion, into which authorities aim to tap and double the market’s premiums by 2024. A new insurance law is expected to function as a legislative platform for future growth.
Explore chapterFintech
Buy digital copy of this chapter - £18An increasingly prominent and disruptive force in the financial services sector, financial technology (fintech) comprises any innovative or technology-based financial service offered to consumers or businesses. Often viewed as a competitor to traditional financial service providers, fintech fills gaps left by the formal sector, offering an important avenue to boost financial inclusion in a country where smartphone and internet penetration rates are rising quickly, even as much of the population remains unbanked. Supported by rapid expansion of e-payment platforms and peer-to-peer (P2P) lending activities, Indonesia’s fintech industry is in the midst of a period of significant growth. P2P lending recorded a triple-digit increase in 2018, while e-payment services have grown more than six-fold since 2012, prompting a surge of new foreign investment into a vibrant and increasingly diverse start-up community. This chapter also contains interviews with Aldi Haryopratomo, CEO, GO-PAY, and Jason Thompson, CEO, OVO.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While primarily an equity exchange, over the past decade the Saudi Stock Exchange (Tadawul) has evolved from its starting point as a single-asset-class platform to include a wider array of financial instruments, starting in 2010 with the addition of an exchange-traded fund. Tadawul entered 2019 on the back of a strong year, in which the main index showed the first solid gain since 2016. A raft of reform measures, inclusion in some of the world’s most influential indices and a lengthy roster of initial public offering prospects emerging from the Kingdom’s Vision 2030 strategy mean that the near term is likely to be another lively period for the market. This chapter contains an interview with Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Qatar Stock Exchange (QSE) has faced considerable challenges in recent years, including a dip in oil prices and the effects of an economic blockade. However, after an initial decline in late 2017, the main index’s performance during 2018 established it as one of the fastest growing in MENA. The QSE has also succeeded in attracting an increasing number of foreign investors – an important development in terms of long-term growth and stability. In addition, exchange authorities have continued to streamline processes and introduce new instruments, including the market’s first exchange-traded funds. With oil prices firming and regulatory changes set to further bolster activity, the short to medium term promises to be interesting time for the market. This chapter contains an interview with Rashid bin Ali Al Mansoori, CEO, Qatar Stock Exchange.
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Buy digital copy of this chapter - £18After a positive second half of 2017 Sri Lanka’s capital markets experienced considerable headwinds in 2018, with a variety of external and internal factors behind the buffeting. The impacts of macroeconomic issues, increasing competition in terms of investment options, political uncertainty, turbulence in global energy prices and moves by the US Federal Reserve could be seen in both equity and bond markets. As 2019 got under way foreign outflows continued, while bond spreads widened – both signs of challenges ahead. This left many key companies undervalued and demand for long-term bonds high, as investors looked for more secure havens in the country’s debt market. As the year progresses, many see prospects for a turnaround, particularly if moves to expand and deepen the market begin to take hold, and the overall economy grows within the government’s structural reform agenda. This chapter contains an interview with Dilshan Wirasekara, CEO, First Capital Holdings.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Abu Dhabi’s capital markets have witnessed rapid expansion since the establishment of the Abu Dhabi Securities Exchange (ADX) in 2000. Prior to the ADX, the sector played a much more limited role in the emirate’s financial services landscape. Historically the region has had a significant amount of capital owing to its oil wealth and, coupled with a relatively robust and liquid banking system, this created little domestic demand for capital markets as means for finance. Nevertheless, the region has long utilised international securities as an investment option, with sovereign wealth funds emerging as major buyers of stocks and bonds. The emirate has successfully worked to expand its securities offering in recent years, demonstrating a commitment to increasing liquidity and overall activity in its capital markets.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Throughout 2018 Dubai continued working towards the goal of establishing itself as the global capital of the Islamic economy. Financial services are a core aspect of that project, and the emirate has taken a leading role in hosting Islamic financial services companies. Its government and government-related entities were early sellers of sukuk (Islamic bonds), and the industry has become one of the world’s most active in takaful (Islamic insurance). Dubai’s market is a two-track one; its onshore oper¬ations are complemented by an offshore element operated by the Dubai International Financial Centre. The free zone is emerging as a global hub for secondary market trading of sukuk, sharia-compliant, risk-management tools and insurance syndicates, and soon its first offshore Islamic bank. This chapter contains an interview with Adnan Chilwan, Group CEO, Dubai Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18Building on several years of sustained growth, Morocco’s insurance sector is implementing a series of significant reforms that appear set to boost future expansion. New rules have changed key aspects of insurance distribution and established a range of new compulsory products that are set to boost the overall issuance of premiums. In addition, these reforms are expected to expand the country’s product offering, including the creation of a takaful (Islamic insurance) segment. Morocco already has one of the best-developed insurance markets in the region and these changes – bolstered by an increase in competition in the life insurance segment – should help to support sustained sectoral performance over the medium and long term. This chapter contains interviews with Hassan Boubrik, President, Supervisory Authority of Insurance and Social Welfare; and Coenraad Vrolijk, Regional CEO, Allianz Africa.
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Buy digital copy of this chapter - £18The insurance industry in Ghana has plenty of reasons for optimism. A favourable economic backdrop and an emerging middle class have helped to boost the sector’s assets, while the World Bank has forecast the continuation of strong economic growth in 2019. Moreover, the country’s insurance penetration rate stands at less than 2%, according to the latest annual report from the National Insurance Commission, which has expressed its determination to capitalise on this latent market potential, targeting a penetration rate of 10% by 2021. The growth of new business lines such as bancassurance, micro-insurance and mobile insurance should help bring this target into reach. This chapter contains an interview with Keli Gadzekpo, CEO, Enterprise Group.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18In light of its history as a regional financial hub, and the presence in the country of several major international Islamic financial institutions and support bodies, Bahrain has a well-developed, sharia-compliant financial services sector. The Islamic banking and takaful (Islamic insurance) segments have been posting healthy growth in recent years, though profit margins in each are under greater pressure than in their conventional counterparts. Both segments are also witnessing a trend towards consolidation, which industry players say should help create stronger institutions better able to invest in expansion and technological development. The kingdom is a major global centre for the Islamic finance segment, and is home to four standard-setting institutions and infrastructure providers.
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Buy digital copy of this chapter - £18Insurance premium rose by almost 40% be¬tween 2013 and 2017 on the back of econom¬ic expansion, and while the main actors have remained the same, the last few years have seen an influx of foreign and local players to the market. Now, new regulations – particularly min¬imum capital requirements – that will begin to be enforced in 2019 are expected to significantly change the sec¬tor’s landscape, leading to market consolidation and improved services in a country where in¬surance penetration is at less than 2% of GDP. This will provide a strategic opportunity for insurers to both increase the confidence of consumers in products and give a much-needed boost to insurance inclusion. This chapter contains an interview with Mohamed Bah, Deputy Director, Sunu Group.
Explore chapterICT
Buy digital copy of this chapter - £18A new wave of digital innovation is reshaping Myanmar’s economy, as a remodelled national strategy and increased competition enhance the performance of the ICT sector. Prior to the liberalisation of Myanmar’s telecommunications industry, SIM cards and mobile phones were a luxury only the wealthy could afford, but they are now becoming much more widespread, though there is still progress to be made in extending the network rollout. On the back of a string of significant investments and major reforms, mobile network coverage has reached the majority of rural, previously underserved, communities. As a result, Myanmar’s cash-dependent society is being exposed to a wide variety of new e-commerce products and an expanding technology start-up scene. This chapter contains interviews with U Khin Maung Soe, Chairman, MyTel; and U Myo Ohn, CEO, Campana Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18Despite difficult economic conditions, insurers have succeeded in posting consistent net profits in recent years. With the economy recovering from the decline in global oil prices starting in mid-2014, the industry is well positioned to take advantage of new opportunities. This is especially true as the government moves to implement mandatory health care coverage for both foreign and domestic employees. The sector is not without its challenges, however. Competition remains intense, and in some cases the pursuit of premium has eroded underwriting standards and become a challenge to the long-term sustainability of the sector. Nevertheless, increasing awareness of offerings, a growing population, new compulsory lines and ongoing market reforms are working in tandem to give the industry notable momentum.
Explore chapterUtilities & Water
Buy digital copy of this chapter - £18Despite being rich in fossil fuels, Algeria faces challenges in its utilities sector in terms of distribution and efficiency. While the provision of electricity is a non-issue – though sustainable generation notably is – the rate of household connections to the natural gas network is in need of improvement, especially outside major cities. Drinking water is largely secure, yet business needs are straining resources, prompting increases in desalination and wastewater treatment. Future investment opportunities in the utilities sector are set to be focused on rural gas needs, green electrification and unconventional water resources. This chapter contains interviews with Mohamed Arkab, CEO, Sonelgaz; and Hocine Necib, Minister of Water Resources.
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Buy digital copy of this chapter - £18With a saturation rate of just 0.5% and a population of almost 200m, Nigeria’s insurance sector is attractive chiefly for its potential. The number of uninsured prospective customers is among the world’s largest within a single market. However, realising that potential has been difficult, with the sector fragmented and in need of consolidation. Although the industry regulator has been working to update and implement a new development plan, insurance companies are increasingly looking to non-traditional products to further boost exposure and overall access to policy coverage in Nigeria. These methods include micro-insurance for the retail market, index insurance for agriculture and new schemes for public health care. This chapter contains interviews with Alhaji Muhammadu Bagudu Hussaini, Managing Director and CEO, Nicon Insurance; and Nick Zaranyika, CEO, Total Health Trust.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Kuwait stock market is undergoing a series of changes, which have the potential to trigger transformations in the market’s daily operations and long-term prospects. This commenced in 2016, with private operator Boursa Kuwait taking over operations of the publicly owned bourse, then known as the Kuwait Stock Exchange. In mid-February 2018 the Capital Markets Authority (CMA) announced it had expanded the team of companies overseeing the exchange’s privatisation, and in April the CMA launched a bidding process for an equity stake in Boursa Kuwait capital stocks of between 26% and 44%, with the initial public offering of the stake set to be launched in early 2019. The offering is expected to enable the implementation of further upgrades and reforms in the future, including new trading and settlement systems and, eventually, the launch of derivatives. This chapter contains an interview with Khaled Abdulrazzaq Al Khaled, CEO, Boursa Kuwait.
Explore chapterEnergy
After being dependent on energy imports to balance its insufficient domestic generation for a long time, Djibouti is now looking to completely transition its electricity production towards domestic renewable energy. Geothermal, wind and solar projects are being implemented, with the goal of reaching 100% renewable energy generation by 2020. Not only would this help diversify the economy by developing a new industry, it will also support the creation of related ones, such as domestic light manufacturing, by providing low-cost energy. However, improvements in energy generation and distribution also need to be framed through the benefits they can bring to domestic businesses. High electricity costs remain one of the barriers most frequently cited by private sector operators, and one that could be addressed through more efficient generation and distribution methods. This chapter contains an interview with Yonis Ali Guedi, Minister of Energy and Natural Resources.
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Buy digital copy of this chapter - £18With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential by developing a micro-insurance framework, increased training for insurance agents and the promotion of technology in transacting insurance business. In the shorter term solid growth forecasts for the Kenyan economy bode well for the prospects of continued premium growth in the sector. This chapter contains an interview with Godfrey K Kiptum, Commissioner of Insurance; and CEO, Insurance Regulatory Authority.
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Buy digital copy of this chapter - £18While an ongoing scarcity of foreign exchange (forex) poses a challenge for the sector, macroeconomic conditions are expected to continue to recover, which bodes well for the industry. Though penetration levels remain low, Trinidad and Tobago exhibits strong growth potential, with a comparatively wealthy population and rising demand for health and life insurance products. Moreover, improvements to the regulatory framework, notably the Insurance Act of 2018, appear set to ease business operations and increase consumer confidence. With recovery setting in, downward pressure on premiums may ease; however, industry stakeholders will need to keep costs down and preserve competitiveness to take full advantage of the opportunities to expand market share. This chapter features an interview with Jacqueline Quamina, Chairman, National Insurance Board.
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Buy digital copy of this chapter - £18The insurance industry of Papua New Guinea holds considerable potential for long-term growth, although insurers and brokers face notable challenges, including a lack of enforcement and compliance regarding financial reporting requirements, limited domestic reinsurance capacity, and the frequent offshoring of major accounts and business. Despite being a country that is susceptible to an array of natural disasters, there continues to be limited insurance awareness and penetration. There is, therefore, significant potential for future growth, particularly in the micro-insurance segment, which expanded rapidly between 2014 and 2018 to become a major industry growth driver. This chapter contains an interview with Keith Land, CEO, Capital Insurance Group.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18After going through a period of recession in 2016, epitomised by a sharp drop in both trade and investment, the new administration’s market-friendly policies have begun to show positive results, with investment returning to 2015 levels, despite the liberalisation of capital controls. While stronger economic growth has seen imports increase, exports have not risen at a commensurate rate, widening the trade deficit. In this context, improving the country’s global competitiveness in exports remains one of the key challenges for the current administration. Argentina’s large internal market, availability of natural resources, agriculture and agro-industrial potential, and strong human capital – combined with market friendly policies and reforms at the administrative level – should provide the necessary impetus to reopen trade to the rest of the world. This chapter includes a dialogue with Daniel Herrero, CEO, Toyota Argentina and Hernán Vázquez, CEO, Volkswagen Argentina; and an interview with Juan Pablo Tripodi, Executive President, Argentina Investment and Trade Promotion Agency.
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Buy digital copy of this chapter - £18The Peruvian insurance sector has experienced its fair share of volatility in recent years. After registering gross premium growth of 17.8% and 24.3% in 2014 and 2015, respectively, 2016 saw the industry contract by around 3.5%, according to a report issued by BMI Research. The sector’s poor performance was due mainly to a reduction in investment across the economy, damage caused by the El Niño weather pattern, weaker private consumption and a new regulation that allowed up to 95% of pension funds to be withdrawn. However, the industry appears to have rebounded somewhat, experiencing moderate growth in 2017 encouraged by rising household incomes and personal savings, continuing growth in the individual life segment, and increasing knowledge and popularity of products among the general public. Additionally, innovative products aimed at attracting previously neglected or underinsured areas should provide significant room for the industry to expand.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Bolstered by improved political stability, positive growth and consumption outlooks, and rising investor confidence, market capitalisation in Thailand rose to pre-1997-98 Asian financial crisis levels for the first time in early 2018 as the Stock Exchange of Thailand (SET) Index hit an all-time high in January. Capital markets authorities have moved to position Thailand as the de facto regional trading centre in ASEAN, enacting reforms to SET’s settlement cycle and encouraging listed companies to register on domestic and international sustainability indices to improve investor confidence. This chapter contains an interview with Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission.
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Buy digital copy of this chapter - £18The stable growth of the Mexican economy and the low level of insurance penetration in the country are likely to continue to drive growth in the sector over 2018 and 2019. In the absence of further natural disasters the loss ratio of insurers, which rose following the 2017 earthquakes, can be expected to stabilise in 2018. Nevertheless, the rise in incidents of car theft will likely require action on the part of insurers, with a more comprehensive product design. However, new regulations and a closer management of risk should support the industry in overcoming these challenges. Incorporating emerging technology into the design and distribution of products will be key for insurance firms to stay competitive. This chapter contains an interview with Manuel Escobedo Conover, President, Mexican Association of Insurance Companies.
Explore chapterBanking
The banking sector in the Philippines is expanding rapidly, hitting double-digit credit growth in four of the five years in the 2013-17 period. In addition, the sector simultaneously recorded notable improve-ments across major stability indicators. The country’s banking sector is highly liquid and well provisioned, and it benefits from robust macroeconomic growth, even as excess liquidity and credit concentration in certain sectors have become a concern. All signs point to continued expansion in 2018, with non-performing loans declining in recent times as credit growth has gained momentum. Furthermore, global rating agencies have projected stable, sustainable expansion, although the sector’s outsized corporate loan portfolio leaves commercial banks – particularly creditors of large conglomerates – exposed to concentration risks. This chapter contains an interview with Nestor A Espenilla Jr, Governor, Bangko Sentral ng Pilipinas; and a roundtable with Aftab Ahmed, Country Officer, Citibank Philippines; Cecilia C Borromeo, CEO, Development Bank of the Philippines; Simoun Ung, President and CEO, OmniPay; and Edwin Bautista, President and CEO, UnionBank of the Philippines.
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Buy digital copy of this chapter - £18While Tanzania’s insurance premiums have increased over the past year, elevated competition has affected underwriting profits. Larger players may welcome an agenda of wholesale regulatory reform as a basis for more sustainable growth, but many insurers with lower levels of capitalisation face an uncertain period, as legislation is given an overhaul and more stringent requirements are established. Nevertheless, the country’s considerable population and low insurance penetration rate make it one of the most promising markets in the region over the long term. This chapter contains a viewpoint with Baghayo Abdallah Saqware, Commissioner, Tanzania Insurance Regulatory Authority.
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Sharjah is home to four local banks and two insurance companies, with a banking market that is characterised by significant minority government ownership stakes in several key players, as well as a tendency for local banks to eschew the retail and small and medium-sized enterprise (SME) markets in favour of larger corporate and government-owned business. The emirate does not host a capital market of its own, but the government and several local entities are already – or are on the road to becoming – regular issuers of debt and sukuk (Islamic bonds). Thus far, the emirate has issued three sukuk, showing its interest in the instrument as a means to diversify funding sources. This chapter contains a roundtable with Varouj Nerguizian, General Manager, Bank of Sharjah; Sami Rashed Farhat, CEO, InvestBank; Ahmed Saad, Deputy CEO, Sharjah Islamic Bank; and Sheikh Mohamed bin Abdulla Al Nuaimi, Acting CEO, United Arab Bank.
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Buy digital copy of this chapter - £18After an uncertain period, the Colombo Stock Exchange (CSE) is back on an upward trajectory, supported by the improving economic climate. The market will see significant reforms in 2018 to strengthen regulation, increase the bourse’s independence and efficiency, and broaden the range of products available. While the CSE has had its ups and downs since the civil war ended, its overall trajectory has been positive. Turbulence in recent years led to improvements in regulation, much to the benefit of market stability and transparency. The implementation of long-awaited reforms is a sign that the authorities are putting an emphasis on capital market development. This suggests that there is the potential for new momentum behind the diversification of product offerings and investment platforms, which should draw more investors to the market. This chapter contains interviews with Ray Abeywardane, Chairman, Colombo Stock Exchange; and Dilshan Wirasekara, Director and CEO, First Capital.
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Buy digital copy of this chapter - £18Despite relatively low penetration, Tunisia’s insurance sector has been growing steadily, with the rapid expansion of existing segments, such as life insurance, and the development of new ones, like takaful (Islamic insurance) and micro-insurance. Among the factors that should contribute to growth in the future are the General Insurance Committee’s ongoing reforms to the regulatory framework, which aim to support the development of new insurance segments and improve customer care. Efforts to raise profitability by investing in risk-management tools are expected to contribute to better pricing and service quality, both seen as essential for boosting the sector’s appeal and penetration. This chapter contains interviews with Hassène Feki, CEO, STAR Assurances; and Lamia Ben Mahmoud, CEO and Chairman, Tunis Re.
Explore chapterTransport
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Greater investment of both time and money into Jordan’s local, regional and international transport networks is expected, with King Abdullah II bin Al Hussein underscoring the importance of building and maintaining effective transit systems. Major public transport projects are currently under way, along with continued expansion of land and sea links. In policy and regulation, new laws are expected to bring some much-needed reform. Meanwhile, the country’s strategic position on historical trade routes continues to give it a great comparative advantage for international transport and logistics outfits. Jordan’s location as a natural conduit for trade with Iraq and – in the future – Syria, place it in good stead to contribute to any major reconstruction efforts in the region. This chapter contains an interview with Kjeld Binger, CEO, Airport International Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The expansion of Myanmar’s telecoms market continues to live up to its early promise, with industry reform viewed as the most significant economic success since the military ceded power in 2011. In the relatively short period of time since, the sector has become an important enabler of socio-economic development, attracting billions of dollars in investment, fostering the emergence of tech start-ups and connecting rural communities to the outside world for the first time. Liberalisation has also seen the IT industry expand at a considerable pace. While it still has a lot of catching up to do with regional peers, local businesses and communities are rapidly adopting new technologies, and the potential for expansion into to new economic segments is clear. This chapter contains interviews with Daniel Michener, CEO, Burst Myanmar; and Liman Zhang, CEO, Huawei Myanmar.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Reduced oil prices and fiscal austerity measures being carried out by governments across the GCC have resulted in a challenging environment for Bahrain’s sharia-compliant financial institutions. The competitive domestic market – home to the largest concentration of Islamic financial institutions in the Middle East – has reacted to adverse conditions, with what appears to be the beginning of a long-awaited period of consolidation: both the banking and takaful (Islamic insurance) segments saw significant merger and acquisition activity over the past year. The sector also received notice in 2017 of a change in the regulatory framework that will usher in a new era of oversight.
This chapter contains an interview with Hassan Jarrar, CEO, Bahrain Islamic Bank.
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Buy digital copy of this chapter - £18The insurance sector has enjoyed a dynamic half-decade. Strong and sustained economic growth since 2012 has made the industry increasingly attractive, prompting the arrival of multiple new competitors aiming to establish a foothold in West Africa’s biggest insurance market. From its low base, insurance penetration should continue to increase, thereby encouraging overall expansion. With stricter regional insurance rules forcing insurers to strengthen their financial positions, non-compliance by providers should be reduced, easing efforts to expand insurance penetration to new pockets of the population.
This chapter contains an interview with Roger Eugène Boa Johnson, President, Association of Insurance Companies of Côte d’Ivoire.
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Buy digital copy of this chapter - £18With the largest population in the Middle East, a relatively developed life insurance industry and a government determined to pursue ambitious infrastructure development, Egypt is a promising market for both domestic and foreign insurers. There are currently 34 insurance and reinsurance companies in Egypt and despite concerns regarding sector privatisation, regulatory changes such as proposed mandatory insurance cover for police and security forces and the government health care provision strategy will drive premium growth. However, a significant currency devaluation and the risk of economic disturbance remain as challenges to growth in the sector.
This chapter includes an interview with Hamed Mabrouk, Head of North Africa, Willis Towers Watson.
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Buy digital copy of this chapter - £18The Omani insurance market has witnessed robust growth in recent years, which has helped gradually boost penetration rates. As in many countries, compulsory motor insurance has long been the leading branch in the sector, but previously underdeveloped segments, including life and health, are now expanding rapidly; the former has seen significant gains as foreign insurers expand their presence, while the latter is set to receive a further boost as the obligation for private companies to provide health coverage for their employees is enforced. Additionally, new regulations have been implemented for companies and brokers, which should contribute to confidence in the sector.
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Buy digital copy of this chapter - £18Already the leading insurance market in North Africa, as well as a major force in the African market, Morocco’s insurance industry continues to see growth and large-scale regulatory reform, with the foundation of an Islamic insurance segment as well as new forms of compulsory insurance. Factors such as the emergence of the kingdom’s middle class, growing awareness of insurance, remote sales of coverage and the imminent launch of takaful (sharia-compliant insurance) firms should help to sustain expansion rates in excess of GDP growth over the medium to long term. Coupled with growing industry interest in building a wider Moroccan presence in the sub-Saharan African market, these developments will assist in raising sector penetration and further consolidate Morocco’s status.
This chapter contains interviews with Ali Harraj, President, Wafa Assurance; and Youssef Fassi Fihri, CEO, Société Centrale de Réassurance.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18A major international centre for Islamic finance, Dubai has more sukuk (Islamic bonds) listings by value than anywhere else in the world. The emirate is also home to Dubai Islamic Bank, the oldest – and third largest – fully fledged Islamic bank. The sector continues to develop rapidly, with local sharia-compliant banks registering faster growth than their conventional counterparts, although expansion could lose momentum in 2018. Efforts are under way to position Dubai as a centre for the halal economy generally and as a leader in the Islamic digital economy.
This chapter contains an interview with Adnan Chilwan, Group CEO, Dubai Islamic Bank.
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Buy digital copy of this chapter - £18The Ghanaian insurance industry has experienced a decade of rapid growth, and the proliferation of private companies and brokers. Government efforts to strengthen the financial sector and new leadership at the National Insurance Commission, the industry regulator, contributed to rising optimism in late 2017. The regulator and the government are aiming to increase insurance penetration to 10% of GDP. The growth of new business lines such as bancassurance, micro-insurance and mobile insurance should help bring this target into reach, although there is still ample progress to be made.
This chapter contains interviews with Justice Yaw Ofori, Commissioner, National Insurance Commission; and Aaron Issa Anafure, Former CEO, SIC Life Insurance.
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Buy digital copy of this chapter - £18Subdued oil prices deflated investor sentiment across the GCC throughout most of 2017. However, mid-2017 brought some encouraging developments: news of a possible MSCI reclassification resulted in a spike in the main index of the Saudi Stock Exchange (Tadawul) in the summer of 2017. In 2016 the government launched the National Transformation Programme 2020, with the goal of turning the economy around and taking steps towards achieving the objectives laid out in Vision 2030, the long-term national plan to become a modern, diversified economy. While the onset of the NTP improved investor sentiment by clarifying the government’s long-term objectives, in September 2017 the NTP was revised, postponing some deadlines and removing other elements from the plan altogether. These changes make future progress towards Vision 2030 less certain, which could have negative effects on investor sentiment. While this may discourage some investment in the short term, an ongoing process of reform carried out by the exchange authorities promises to attract more interest in new market instruments.
This chapter contains interviews with Mohammed El Kuwaiz, Chairman, Capital Markets Authority; Sarah Al Suhaimi, Chair, Saudi Stock Exchange; and Majed Najm, CEO, HSBC Saudi Arabia.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18While the economic contribution of industry is still relatively small, many of the key building blocks for a successful industrial sector are already established, with abundant energy reserves, mineral raw materials and infrastructure. Some segments of agri-business are well developed, and activity in heavy industrial such as steel and cement production is rapidly expanding. As the largest country in Africa, and home to a variety of topographies and geologies, Algeria has substantial mineral reserves. However, these are currently underutilised; the sector has attracted relatively little investment in recent decades, and as much as 60% of the territory has yet to be adequately explored, according to local estimates. While Algeria’s size and the need for infrastructure to exploit large mineral reserves in remote areas present a challenge for development, the government is keen to promote mining as part of broader diversification efforts, and the new mining law should help to attract investment in this regard.
This chapter contains interviews with Philippe Monestes, General Manager, Nestlé Algeria; and Amine Melouk, General Manager, SAREL.
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Buy digital copy of this chapter - £18Following a somewhat muted year for trading in 2016, additional listings and new products helped to boost activity on the Qatar Stock Exchange (QSE) in 2017. Recent and forthcoming measures, including covered short selling, exchange-traded funds and corporate bonds are expected to lift liquidity and further deepen the market, while family-owned firms entering the exchange offer the potential to greatly expand the QSE’s sectoral penetration within the broader economy. Challenges remain, however, with improving market coverage by brokers, researchers and ratings agencies a priority.
Explore chapterBanking
Buy digital copy of this chapter - £18With a population of over 250m and the fourth-largest economy in Asia, Indonesia is one of the world’s biggest potential banking markets. Growth in profitability, loans and assets has been stronger than in other ASEAN countries, although an economic slowdown in 2015 and early 2016 curbed sector growth before an upswing in 2017. The Indonesian market has historically been – and continues to be – highly profitable in comparison to more developed economies. The banking sector still offers plenty of untapped potential and room for competition, leaving opportunities for higher margins and new product development.
This chapter contains interviews with Kartika Wirjoatmodjo, President Director, Bank Mandiri; Jahja Setiaatmadja, President Director, BCA; Suprajarto, President Director, Banks Rakyat Indonesia; and Batara Sianturi, CEO, Citi Indonesia; and Chairman, International Banks Association of Indonesia.
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Buy digital copy of this chapter - £18With many competing firms offering a robust suite of product offerings and related services, the insurance market in Nigeria is vibrant and growing. Like many sectors across Africa, however, domestic insurers often lack the capacity to underwrite the majority of risks stemming from the main drivers of the economy. Nigeria’s primary revenue generators – oil and gas, and the mining sector – require a level of coverage that is currently beyond the capacity of many domestic insures. This is especially true in the reinsurance market, which is dominated by foreign players. As a result, the National Insurance Commission (NAICOM) is seeking ways to increase the capacity of insurers under its purview. Over the course of 2017 NAICOM will institute risk-based supervision across the industry, which is expected to enhance the sector’s ability to effectively assess and manage risk, and encourage firms to significantly raise their capital buffers. Furthermore, Nigeria’s young and growing population will continue to be a force driving foreign investment into the insurance sphere.
This chapter contains an interview with Eguarekhide Longe, CEO, Aiico Pension.
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Buy digital copy of this chapter - £18After a flurry of activity in 2015, including dual-listing initial public offerings, a key stock returning to the exchange after suspension and the writing of a series of major reforms, Papua New Guinea’s capital markets are rebounding. The benchmark stock index started to climb again in 2016 and continued to do so through early 2017, following years of decline since hitting record highs in 2010. The market remains sound, well managed and well prepared for the economic upturn expected with the next large liquefied natural gas investment. Work continues in the background on improvements and upgrades, while expected reforms, which include changes to legislation, structures and governance, should be in place by the end of 2017. Incremental refinements in the bond market, led by the central bank, are ongoing, as are the bank’s efforts to get the attention of international custodians.
This chapter contains an interview with Richard Borysiewicz, General Manager, BSP Capital.
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Buy digital copy of this chapter - £18After a year characterised by low trading volumes and a horizontal main index, the Kuwait Stock Exchange (KSE) opened 2017 as the fastest-growing market in the world. A number of factors combine to make the KSE a destination of interest for investors in 2017, chief among them being new management, which has begun to implement an ambitious reform programme. With the ultimate goal of securing an upgrade for the nation’s bourse from frontier- to emerging-market status, regulatory reform is set to dominate the agenda over 2017 and 2018. This timely overhaul of the exchange’s rules and processes will tackle the KSE’s twin challenges of low liquidity and scant foreign interest head-on.
This chapter contains an interview with Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO, Boursa Kuwait.
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Buy digital copy of this chapter - £18Although stable, liquid and profitable, Thailand’s banking sector saw growth moderate in 2016 as rising defaults in the highly leveraged consumer and small business segments weighed on lending growth. Large corporate lenders have increasingly turned to alternative financing channels, most notably the short-term bond market, further impacting loan growth in 2016. Non-performing loans are expected to peak in 2017, while rising bond yields and regulatory changes to bill of exchange issuance should see larger corporates return to conventional bank financing. Although efforts to digitise the Thai economy will impact fee-based income in the near term, the long-term benefits to the sector and the wider Thai economy should easily offset any losses. As such, the sector’s mid-term outlook remains positive, bolstered by new expansion opportunities in the ASEAN market. This chapter contains interviews with Veerathai Santiprabhob, Governor, Bank of Thailand; Chartsiri Sophonpanich, President, Bangkok Bank; and Darren Buckley, Country Head, Citibank.
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Buy digital copy of this chapter - £18Following the 6% fall of Trinbagonian stocks in 2016, fund managers agreed that 2017 would bring further but more modest losses. Manufacturers and exporters in Trinidad and Tobago that incorporate local materials and have a strong brand could benefit from a weaker T&T dollar in 2017. With the national buy-and-hold mentality enduring, the expected listing of further tranches of First Citizens Bank and National Gas Company subsidiary NGL would bring some welcome trading activity in 2017. Nevertheless, the likelihood of continued high T&T dollar liquidity remains the central challenge to developing deeper and more liquid capital markets.
This chapter contains an interview with Subhas Ramkhelawan, Managing Director, Bourse Securities.
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Buy digital copy of this chapter - £18Colombia is the fifth-largest insurance market in Latin America by premiums collected. However, it features weak penetration and density – measures of premiums compared to the size of the economy and the population, respectively – compared to other large markets in the region. Nonetheless, the fact that the country has been able to weather the recent economic storms better than many in the region, by avoiding an outright recession, for example, leave it well placed to start narrowing the gap over the coming years. Over the longer term, a bigger growth opportunity lies in increasing the penetration rate – currently a little over half the level of that in leading Latin American countries such as Chile – while the eventual ageing of the country’s still relatively young population bodes well for demand for the whole range of insurance products, particularly life and pensions. This chapter contains interviews with John Nelson, Chairman, Lloyd’s; and Gonzalo Pérez, CEO, Suramericana.
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Buy digital copy of this chapter - £18Though recent highs in premium income have made Peru’s insurance market one of the fastest-growing in Latin America, the country remains comparatively underinsured. Taking these two factors into consideration, the sector has been showing strong growth but from a relatively low base, and that awareness of insurance as a way of managing public and private risks is very low. These low levels of insurance penetration are influenced by Peru’s labour market informality rate of 72%, which is significantly higher than in other countries in the region.
This chapter features interviews with Socorro Heysen, Superintendent, Superintendency of Banks, Insurance and Pension Funds Administrators of Peru, and Eduardo Morón, President, the Peruvian Association of Insurance Companies.
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Buy digital copy of this chapter - £18Despite the headwinds of low oil prices and recent regional political turbulence, Abu Dhabi’s stock exchange put in a relatively strong performance in 2016, with the main index posting a 5% gain for the year. A sizeable sovereign bond sale also injected life into the emirate’s nascent debt market, reviving a yield curve that had been interrupted by a seven-year absence of sovereign issuances. The emergence of Abu Dhabi’s new financial free zone, meanwhile, has opened up a range of possibilities for the future expansion of the emirate’s capital markets, both in terms of financial support services and core investment and trading activity.
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Buy digital copy of this chapter - £18A post-war boom has been followed by a mixed few years for Sri Lanka’s capital markets, with a strong performance in 2014 followed by two slower years. The outlook is now brightening again as the Colombo Stock Exchange, the Securities and Exchange Commission, and the Sri Lankan government look to build the bourse’s role in the economy. The bourse’s composition is not particularly representative of the economy as a whole, with financial services companies strongly represented in index weightings, for example. Thus the bourse’s indices do not invariably track that of Sri Lanka’s macroeconomic performance as a whole. Yet in recent years there has been a growing understanding that they can play a leading role in economic development, particularly as the country looks to boost private sector growth and foreign investment.
This chapter contains an interview with Dilshan Wirasekara, CEO, First Capital.
Explore chapterBanking
Buy digital copy of this chapter - £18The Philippine banking system has been performing relatively well in recent years. Given the country’s strong economic growth, the sound regulation of the sector by the central bank and the global push towards increasing capital, the local institutions have been safe, sound and profitable. Major metrics are moving generally in the right direction. While many people in the country remain unbanked, the lack of inclusiveness is seen as providing an opportunity for expansion. The sector is now open to 100% foreign ownership, and international institutions have been entering the market in significant numbers.
This chapter contains interviews with Amando Tetangco, Governor, Bangko Sentral ng Pilipinas; and Alex Buenaventura, President and CEO, Land Bank of the Philippines.
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Buy digital copy of this chapter - £18As one of the most developed markets in North Africa, Tunisia’s insurance sector has seen a steady increase in premiums and penetration in recent years, with life and medical insurance segments in particular experiencing notable growth. On the back of this momentum, the market is turning to diversified insurance products to further increase penetration and profitability. Segments including life insurance, bancassurance, micro-insurance and takaful (Islamic insurance) are all expected to grow rapidly in coming years. Growth in such product lines will help boost overall penetration, but the extent to which the wider sector grows and penetration levels rise will depend in part on trends in investment and the wider economic situation. Efforts to stimulate countrywide investment through measures such as the revised investment code are encouraging in this respect.
This chapter contains an interview with Nejla Harrouch, General Manager, Assurances BIAT.
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Buy digital copy of this chapter - £18In 2016 Kenya was ranked as one of Africa’s most mature insurance markets, with growth forecast at 6% a year, according to EY. While this is slower than some other large African markets, annual premium income was still expected to increase significantly, from $1.8bn in 2014 to $2.2bn by 2018, driven by urbanisation and a strong economy. Though the potential for growth is strong, the market has encountered some problems common to insurance sectors in the emerging world. The sector saw lacklustre performance in 2015 and 2016, which was the result of slow growth amid issues with fraudulent claims, particularly in the medical and motor segments. Insurers are also struggling to expand coverage among a large informal economy and income-sensitive population. However, with a wide array of innovative, local insurance market leaders, the Kenyan insurance landscape has the potential for a sizable expansion of domestic market penetration. The country also presents a solid base for reaching other African markets, which bodes well for drawing further interest from investors.
This chapter contains an interview with Benson Waregi, Group Managing Director, Britam Insurance.
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Buy digital copy of this chapter - £18With economic growth, solid corporate earnings and a rising need for financing among domestic companies boosting stock markets and stimulating private equity activity, Vietnam’s capital markets have grown steadily in recent years. A wave of equitisation of state-owned enterprises is boosting the sector further, while a growing range of indices are broadening options for investors. A new unified index for both of Vietnam’s bourses – the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange – may presage a long-awaited merger, and support further product diversification.
This chapter contains interviews with Vu Bang, Chairman, State Securities Commission; and Trinh Thanh Can, CEO, ACB Securities.
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Buy digital copy of this chapter - £18Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the rising cost burden faced by consumers. A bigger growth opportunity lies in increasing the penetration rate – currently at half the level of leading Latin American countries like Chile – while the eventual ageing of the still relatively young population bodes well for demand for the whole range of products, particularly life insurance and pensions. After a strong performance in 2016, prospects for 2017 look good but are clouded by the uncertain macroeconomic environment. Factors may vary, but what is agreed is that concrete plans are needed in order to boost the overall penetration rate in the country. This chapter contains an interview with Mario Vela Berrondo, President, Mexican Association of Insurance Companies.
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Buy digital copy of this chapter - £18The Egyptian insurance industry, one of the oldest in the region, has shown a welcome degree of resilience in recent years. Despite its long history, however, the market remains at a relatively nascent stage of growth compared to those in more advanced economies, characterised by a low penetration rate and modest insurance density. While this means that growth opportunities abound, questions remain as to how they will be achieved. Despite these obstacles, there is significant potential for development in Egypt’s insurance industry. Oil importing economies in the MENA region, such as Egypt, are likely to see premiums grow in excess of GDP growth where governments are able to maintain their determined development plans.
This chapter contains an interview with Corneille Karekezi, Group CEO, Africa Re.
Explore chapterFinancial Services
Sharjah’s financial services sector has grown at an average rate of 12.7% per year over the past half decade to reach 10.3% of GDP in 2015, in line with the figure for the UAE as a whole. It primarily consists of four locally headquartered banks and two locally based insurance companies, though institutions based in other emirates are also active in the local market. Assets of locally headquartered banks contracted slightly in the first nine months of 2016 as non-performing loans in the small and medium-sized enterprise segment saw banks take provisions and scale back lending, but assets remained well above their 2014 levels, with profits recovering at some institutions that had suffered in 2015. Premiums and profits at locally headquartered insurance firms have meanwhile risen in recent years.
This chapter contains an interview with Ahmad Saad, Deputy CEO, Sharjah Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18The insurance sector in Côte d’Ivoire has been posting solid growth figures for years. The pickup in the country’s economy after 2012 has made the sector increasingly attractive, prompting the arrival of new competitors aiming to establish a foothold in West Africa’s biggest insurance market. The influx of foreign players, coupled with regional regulatory changes, are poised to transform what was previously a highly concentrated sector ¬– a handful of operators command over 80% of the annual volume of premiums – with a large number of providers, including many small and undercapitalised insurers, still competing fiercely for market share. Positive economic developments will continue to drive insurance growth, while recently implemented regulatory changes are sure to lead to market consolidation over the coming years. This chapter contains an interview with Thierry Labbé, Head of Francophone Africa, Gras Savoye Willis Towers Watson.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Bahrain’s sharia-compliant financial institutions enter 2017 after weathering the tumultuous economic environment and changing regulatory landscape of the previous year. Despite the challenges, the kingdom’s Islamic banks continue to expand in the domestic market and beyond, while activity in the newly reinforced sharia-compliant insurance sector is well positioned to continue along a trajectory of premium growth, outstripping that of its conventional counterparts.
This chapter contains an interview with Hisham Al Rayes, CEO, GFH Financial Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18The insurance industry in Oman has grown strongly in recent years and now plays an important role in the domestic economy, rising from 0.9% of GDP in 2008 to 1.6% in 2015. Important regulatory changes made in 2015 and 2016, aimed at strengthening the industry’s capital base, promise to usher in a new era of expansion and to boost the amount of premiums retained within the local market. To grow, however, the nation’s insurers must first adjust to a potentially protracted low-oil-price environment and increasing levels of competition, both of which represent significant challenges.
Explore chapterEnergy
Buy digital copy of this chapter - £18With massive infrastructure upgrades in the works and industrial demand rapidly expanding, the energy market in Myanmar is currently one of the more promising ones in the world. The country is in great need of electricity generation capacity and must completely overhaul its transmission and distribution systems. Investment opportunities are available throughout the energy value chain, and will be for decades to come. Globally, it is an outlier: as other countries slow or cut back on energy investment due to low oil prices and weak economic growth, Myanmar is ramping up its commitment and inviting the world to participate.
This chapter contains interviews with Ken Tun, CEO Parami Energy Group; U Kyaw Kyaw Hlaing, Chairman, SMART Group of Companies; and Billy Harkin, Chairman, Energize Myanmar.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18The largest country in Africa, Algeria remains mainly underexplored as regards non-hydrocarbons mineral deposits, pointing to major potential opportunities in the mining sector. The authorities are keen to develop the industry, not only in order to boost minerals output itself, but also to provide raw materials for a range of emerging industries. The new mining law and the incentives it contains should help to attract additional interest, while new rail connections should ease logistics connections for miners’ output. This chapter contains interviews with Ali Boumediene, CEO, Bomare; and Reda Hechelaf, CEO, SOPI.
Explore chapterInsurance
Buy digital copy of this chapter - £18There is strong potential for growth in the Ghanaian insurance sector. The industry is working to design and market products for uninsured populations, including the emerging middle class and those in the informal sector. For its part, the regulator is making efforts to increase capacity among the more than 50 insurance providers, which would allow underwriters to take on larger, riskier policies. Increasing minimum capital requirements are expected to lead to stronger underwriting capacity across the industry, while the development of microinsurance and m-insurance products for citizens on lower incomes will drive further industry growth.
This chapter contains an interview with Lydia Lariba Bawa, Commissioner, National Insurance Commission.
Explore chapterTransport
Buy digital copy of this chapter - £18Jordan’s rail, road, sea and air transport infrastructure is undergoing a rapid transformation, with opportunities for investment in all segments. These projects seek to capitalise on the kingdom’s growing domestic market, as well as on the geographic location that has long made it a natural transport and logistics corridor for the rest of the region, including Saudi Arabia, Iraq, the West Bank, Israel and Syria. While recent conflicts over several of these borders have led to closures and some challenging times for the sector, transport remains the lifeblood of the economy, particularly in connecting the kingdom’s main port – Aqaba – in the south with the capital and with larger cities in the north.
This chapter contains an interview with Jeppe Jensen, CEO, Aqaba Container Terminal.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18
Much attention is being focused on Gabon’s rural areas and on developing the 5m ha of fertile land it contains. While the country has one of the lowest population densities in sub-Saharan Africa, around 86% of its 1.8m inhabitants have opted to live in the major urban centres. As a result, the rural workforce is lacking and work is being undertaken to tackle this issue through advertising campaigns that convey the image of farmers as entrepreneurs. However, another challenge in terms of developing a rural workforce is a need for training facilities. From a forestry operator’s perspective, the cost of labour is also a key consideration.
This chapter includes a dialogue with Frederic Ober, Director-General, Precious Woods CEB; and Didier Balzaretti, Former Director-General, Rougier Gabon.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While subdued oil prices have had a ripple effect on exchanges across the region, the Saudi Stock Exchange (Tadawul) has forged ahead with a bold strategy of reform. Having opened the door to direct foreign participation for the first time in 2015, in 2016 the exchange authorities and the market regulator are preparing for a new stage of development, which will see the Tadawul integrate further with global capital flows. The inclusion of the exchange on leading emerging market indices is not without obstacles, but the reforms made necessary by the process should leave the Kingdom’s market more transparent and investor-friendly.
This chapter contains interviews with Mohammed Al Jadaan, Former Chairman, Capital Market Authority; and Khalid Al Hussan, CEO, Saudi Stock Exchange.
Explore chapterInsurance
Buy digital copy of this chapter - £18Already the largest and most developed in North Africa, the Moroccan insurance market is currently undergoing a range of reforms aimed at cementing its stability and further boosting premiums growth. While the life segment appears to be growing faster than non-life given its lower penetration rate, auto insurance can expect to see significant expansion as car ownership levels continue to rise. Plans to launch takaful (Islamic insurance) products and relax restrictions on distribution should further support continued growth in the coming years. Moroccan firms’ expansion drive in Africa is also set to continue, cementing the kingdom’s status as one of the continent's major insurance players.
This chapter contains an interview with Hassan Boubrik, Chairman, Supervisory Authority of Insurance and Social Welfare.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18The financial services industry in Dubai is a major economic driver for the emirate, and the Islamic segment is no exception. In addition to the emirate’s Islamic banks and takaful (Islamic insurance) providers, since July 2015 it is also the largest centre for sukuk (Islamic bond) issuance in the world, with $36.7bn in sukuk listed on Dubai’s exchange. The drop in crude oil prices in 2015 may constrain growth, but Dubai is expected to continue adding breadth and depth to its sharia-compliant capital markets, and to carry on its leadership in boosting standards and governance. There is a renewed emphasis on Islamic financial services, as the emirate has ambitions to become the capital of the global Islamic economy, a goal set in 2013. Dubai now produces an annual “State of the Global Islamic Economy Report” and has implemented various initiatives, including new offerings and capacity-development programmes for Islamic financial services.
This chapter contains an interview with Adnan Chilwan, Group CEO, Dubai Islamic Bank (DIB).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18More than six years of strategic planning came to fruition in late April 2016, when Boursa Kuwait Securities Company, a private firm established in 2014, took over management of the Kuwait Stock Exchange. The move was widely understood to indicate the beginning of a new era for Kuwait’s capital market. This shift follows on from a series of major reforms initiated by the passage of the 2010 Capital Markets Law, under which the sector regulator – the Capital Markets Authority – and other state entities have worked to transform the bourse, with the long-term objective of boosting the market’s performance and overall value.
This chapter contains an interview with Nayef Al Hajraf, Chairman and Managing Director, Capital Markets Authority (CMA).
Explore chapterInsurance
Buy digital copy of this chapter - £18In 2015 Nigerian underwriters reported total gross written premiums of nearly N350bn ($1.1bn at the time of printing), according to data released by the Nigerian Insurers Association, an industry group. This figure was up around 19% on the previous year. In light of the pace of expansion, and in addition to Nigeria’s enormous population and low rate of insurance penetration, it is perhaps not surprising that the market has attracted a raft of major foreign insurance players in recent years. However, Nigeria’s insurers have faced a series of challenges. Far-reaching economic volatility, political instability and ongoing structural issues continue to hinder many local players. However, given the market opportunities many underwriters and market watchers are broadly optimistic about the future.
This chapter contains an interview with Mohammed Kari, Commissioner for Insurance, National Insurance Commission.
Explore chapterBanking
Buy digital copy of this chapter - £18With rising levels of public participation, a robust regulatory framework and high profitability at most institutions, Indonesia’s banking sector performed strongly in 2015-16, building on nearly a decade of expansion and rapidly increasing returns. The sector comprises 118 commercial banks and more than 1600 rural regional banks – the latter of which are allowed to operate only in a relatively small, predetermined geographical area. The industry boasted combined assets of Rp6198.15trn ($452.5bn) at the end of January 2016, the majority of which were held in a handful of leading institutions.
This chapter contains interviews with Kartika Wirjoatmodjo, President-Director, Bank Mandiri; Asmawi Syam, President-Director, Bank Rakyat Indonesia; and Batari Sianturi, CEO, Citi Indonesia, and Chairman, International Banks Association of Indonesia.
Explore chapterBanking
Buy digital copy of this chapter - £18Papua New Guinea’s banking sector is adjusting to the slowing of economic growth and to the foreign exchange shortage that is affecting local businesses. However, despite many challenges, the institutions remain well capitalised and highly profitable, and in some cases are maintaining positive profit growth. More than just holding its own, the sector is developing in significant ways that suggest structural shifts and new industry dynamics. Maybank’s local presence was acquired by the Kina Group, bringing a long-sought-after “fourth bank” to the market and promising increased competition, especially in the undeserved mid-market. Other players have been using this time to consolidate their positions, expand their offerings and enter new markets.
This chapter contains an interview with Robin Fleming, CEO, Bank South Pacific; a viewpoint from Garry Tunstall, CEO, Nambawan Superannuation Fund; and an interview with Geoff Toone, Former Managing Director, Westpac Bank Papua New Guinea.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18After a banner year in 2014, Qatar’s capital markets endured a period of volatility in 2015. The Qatar Stock Exchange (QSE) ended 2015 down around 15% on the previous year, according to data from the exchange. Market participants and observers alike attributed the drop to fluctuating investor sentiment linked to the continued decline of energy prices, contracting government spending and tightening banking sector liquidity across the GCC region and further afield. Despite these and other challenges, in 2015 and 2016 thus far Qatar’s capital market has developed rapidly, with the QSE rolling out new products, upgrading trading tools and laying the groundwork for future growth across a range of market segments.
This chapter contains an interview with Abdulla bin Fahad bin Ghorab Al Marri, Chairman, Qatar First Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Trinidad and Tobago’s capital markets have developed against a background of strong energy sector growth. Therefore, the current lower price environment for oil and gas is expected to translate into slower and more modest stock market growth in the near term. A total of 38 stocks were traded in 2015 – 20 recorded advances, 13 experienced declines and five held steady – with share prices remaining broadly flat on the T&T Stock Exchange. Though stock exchange activity has been muted in recent years, some optimistic investors believe this is a good time to start taking positions for an eventual recovery. The government is committed to divesting some state-owned assets, which could lead to new initial public offerings and stimulate the market. In the fixed-income segment, increased levels of activity are expected, with government bond issuance set to grow.
Explore chapterJohor
Buy digital copy of this chapter - £18Home to 3.6m people spread over 19,016 sq km, Malaysia’s most southerly state, Johor, has long played a key political and economic role in the country’s development. On the Strait of Malacca and sharing a border with Singapore, it has the country’s busiest trans-shipment hub and benefits from its position at the crossroads of some of the world’s most important trading routes. Over the past decade much development has focused on the Iskandar Malaysia project, one of five regional growth corridors currently under way in Malaysia, and the most successful in terms of investment committed. The state has improved key roads and other infrastructure as investors have pumped money into education, new industries, tourism and manufacturing. This chapter contains an interview with Ismail Ibrahim, Chief Executive, Iskandar Regional Development Authority.
Explore chapterIndustry
Buy digital copy of this chapter - £18With the recent descent of oil and gas prices on international markets, the role and future direction of the Sultanate’s industrial sector has never been of greater importance to Brunei Darussalam’s economy. Indeed, diversification away from hydrocarbons production is greatly contingent on industry taking a larger share of the country’s GDP. This necessary shift towards more knowledge-based, value-added economic activities has also long been central to the development goals of the government. A series of plans and programmes have thus been launched over the years with this objective in mind. These now add up to a robust framework that provides investors and enterprises with many opportunities and incentives to do business in the Sultanate.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Sri Lankan capital markets are recovering after a period of great change and a measure of controversy. Stocks boomed when the civil war ended, only to fall back as regulation and regulators were unable to keep up with the surge in activity, and manipulation and unfair dealing were alleged. With a new government in power, the apparent wrongs of the past are being addressed and a roadmap for the future is being drawn. Legislation is changing, with rules updated and key market infrastructure under development. At the same time, an overhaul of the exchange and the regulator is under way. These efforts are seen as vital to the future of the country, as efficient, effective and fair capital markets are needed to attract and deploy the capital Sri Lanka needs.
This chapter contains interviews with Rajeeva Bandaranaike, CEO, Colombo Stock Exchange; and Dilshan Wirasekara, CEO, First Capital Holdings.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Abu Dhabi Securities Exchange (ADX) has quickly developed from a fledging investment platform to an institution of global significance. At the end of 2015 a total of 66 public companies were listed on the exchange, with insurance, banking and industry making up the largest subsectors in terms of listings. The government has made moves to expand its debt and bond offerings in recent times, with the emirate’s most recent sovereign issuance, consisting of a five-year $3bn bond in 2009, following on from two similar five-year offerings, which together formed the beginnings of a yield curve by which subsequent corporate offerings might be made. Meanwhile, the development of a new financial centre promises to significantly add to Abu Dhabi’s inward and outward investment activity. Al Maryah Island has been chosen as the location for a new financial free zone in the emirate. This chapter contains an interview with Rashed Al Balooshi, CEO, Abu Dhabi Securities Exchange (ADX).
Explore chapterInsurance
Buy digital copy of this chapter - £18Although insurance penetration levels in Tunisia are low by international standards, overall premiums are growing steadily and the life segment is expanding rapidly, as are new niches such as takaful (Islamic insurance) and micro-insurance. The industry regulator is also working on a number of reforms to bolster sector development, including changes in the rules on pricing mandatory third-party liability vehicle insurance, which is among the largest product lines sold in the country but is also loss-making. While the life market has been growing quickly in recent years, low overall penetration rates present insurance firms with wide-ranging opportunities. As the market expands, reforms should help to boost profitability from vehicle insurance, allowing firms to invest in less developed areas of the industry. This chapter contains an interview with Lassâad Zarrouk, CEO, STAR Assurances.
Explore chapterBanking
Buy digital copy of this chapter - £18Thailand’s banking sector remained resilient in 2015 despite challenging macroeconomic conditions, including slowing demand in China and high levels of consumer debt. Loan growth continued, despite moderating from the double-digit highs of previous years, and loan capital improved even as the non-performing loan (NPL) ratio rose. Operating profits of banks simultaneously grew, although net profits declined due to increased provisioning. As of December 2015 there were 19 commercial banks, 12 full branch foreign banks, two finance companies and three credit foncier companies registered in Thailand. An increase in cross-border transactions has raised the potential for regional expansion of domestic banks, and a number of Thai financial institutions have announced plans to expand operations. This chapter contains interviews with Chartsiri Sophonpanich, President, Bangkok Bank; Teeranun Srihong, President, Kasikorn Bank; and Darren Buckley, Country Head, Citibank.
Explore chapterBanking
Buy digital copy of this chapter - £18As banks expand credit to a traditionally under-banked economy, the sector is enjoying a period of rapid catchup growth. A positive feedback loop is at work in which banks are increasingly driving economic growth, supported by inflows from foreign investment and Filipinos working abroad, while growing trust in the banking system is drawing greater volumes of savings. Although bank lending has risen quickly, to $122bn in September 2014, it was equal to just over 40% of annual GDP. That is about half the level in Thailand and a third of the level in Malaysia, leaving considerable room for further expansion. Indeed, by the time regional integration comes to pass, Philippine banks may be more competitive across South-east Asia than many are expecting. This chapter contains an interview with Amando M Tetangco Jr, Governor, Bangko Sentral ng Pilipinas; and a roundtable with Reynaldo A Maclang, President, Philippine National Bank; Alfonso L Salcedo Jr, President and CEO, Security Bank; and Justo A Ortiz, Chairman and CEO, UnionBank of the Philippines.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although Djibouti benefits from an array of renewable resources, the country was a net energy importer as of early 2016 and has set itself some ambitious goals to improve domestic supplies. The energy sector is a key element of the country’s long-term development plan, known as Djibouti Vision 2035, which identifies energy access and security for its 875,000-strong population as strategic goals, as well as central to expanding manufacturing and industrial activities. The plan sets forth the ambitious target of meeting 100% of Djibouti’s energy demand through renewable sources by 2020. While keeping pace with growing energy needs will remain a key challenge in the years ahead, several factors are likely to prompt a significant redefining of Djibouti’s energy sector over the long term. With considerable renewable energy resources for the size of its economy, there is real potential for Djibouti to reach its goal of self-sufficiency, reducing energy costs for businesses and benefitting the economy as a whole. This chapter contains interviews with Gregory Meneses, Managing Director, Black Rhino; and Houssein Ahmed Houssein, General Manager, Horizon Djibouti Terminals Limited.
Explore chapterInsurance
Buy digital copy of this chapter - £18Colombia’s insurance sector has been enjoying strong growth, supported by the country’s underlying rate of economic expansion, a growing middle class, product development and the entry of new players into the industry, with growth being strongest in the life insurance segment of the market. However, penetration and density rates remain low. According to the Colombian Insurers Association, penetration, or total premiums as a percentage of GDP, is 2.6%, while density, or premiums per capita, currently stands around COP400,000 ($147). Although the country’s general economic growth rate has eased back in 2015, several factors underpin optimism for the insurance sector’s outlook. Low insurance penetration and density rates suggest sufficient room to continue achieving double-digit percentage growth in premiums, while the fourth generation road concession programme is expected to give a boost to general demand.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18As a pioneer in Islamic finance regulations and the home of some of the most important standard- setting institutions in the global sharia-compliant arena, Bahrain is at the forefront of the international Islamic financial services industry. In 2001 Bahrain became the first country in the world to implement regulations specific to Islamic banking. Since then the Central Bank of Bahrain’s rulebook has been widely regarded as the benchmark for sharia-compliant governance. Takaful markets in particular have experienced rapid growth, with takaful firms accounting for around 22% of gross written premiums in 2012, up from 3% in 2001. Meanwhile in March 2015 the Central Bank of Bahrain issued its first one-week Islamic deposit facility based on a wakalah agent contract, by which the regulator invests cash on behalf of the lender.
This chapter contains interviews with Shaikha Hessa bint Khalifa Al Khalifa, Chairperson, Al Salam Bank-Bahrain; and Hassan Jarrar, CEO, Bahrain Islamic Bank.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although it has one of the lowest electrification rates in the world, currently at about 30%, Myanmar is targeting total coverage by 2030. Despite the significant progress needed, the goal is seen as reachable, with Myanmar holding abundant hydro and solar resources, and considerable hydrocarbons potential. The country is also likely to be able to attract the capital to build the much needed generating infrastructure. While Myanmar needs to balance capacity challenges with transparency and environmental protection, it may be forced to make some strategic compromises in order for output to be increased on schedule. This chapter contains a dialogue with Ken Tun, CEO, Parami Energy Group; and Olivier de Langavant, Senior Vice-President Asia Pacific, Total E&P; and an interview with U Myint Zaw, Deputy Minister for Energy.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Peruvian insurance sector has experienced a decade of strong growth, benefitting from sustained economic expansion, a significant reduction in poverty levels and a rising middle class. In the 10 years to 2013, premium income tripled, and according to the Peruvian Insurance Association, net premiums then increased by 5.36% to $3.54bn in 2014. In the first 11 months of 2015 total premiums hit $3.4bn, up by 7.6% year-on-year. In 2013 the largest source of revenue – 40.4% of net premiums – came from general insurance, followed by private pension fund life and accident cover (24.9%), general life (21.2%), and accident and health insurance (13.5%). The penetration of products remains low, meaning there is still significant room for growth. The latest estimates are that total premium income reached 1.85% of GDP in 2014, up from 1.18% in 2007, but still below levels in neighbouring countries, such as Chile. This chapter contains an interview with Daniel Schydlowsky, Former Superintendent, Superintendence of Banks, Insurance and AFPs.
Explore chapterInsurance
Buy digital copy of this chapter - £18Regulatory changes primarily aimed at encouraging consolidation within the insurance sector have recently been introduced by the Omani authorities. Low penetration levels indicate significant room for growth in the sector, with the life segment widely regarded as the most promising area for expansion. Motor coverage still remains the largest insurance line in the sultanate by premium value, taking a 40% market share in 2014, and while the segment continues to see strong growth, competition has driven down premium levels. Elsewhere, the takaful (Islamic insurance) segment continues to expand since its launch in 2014, with some industry players hopeful that the segment could reach as much as 20% of the insurance market in the medium term, which would be roughly in line with other GCC markets. This chapter contains a viewpoint from Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority.
Explore chapterInsurance
Buy digital copy of this chapter - £18Despite political and economic difficulties in the country in the past few years, Egypt has a growing and attractive insurance market. Penetration is low, and people are becoming increasingly aware of the need to cover risk. They are especially positive on insurance given the turmoil of 2011 and the fact that insurers made good on their policies despite the damage caused by the upheaval. The sector is well placed at present and emerged from the events of 2011 in better shape than it went in, having earned the respect and confidence of clients and prospective clients. The sector is fighting headwinds, in terms of the lack of spending power in the country and broader economic pressures, but is being helped considerably. The regulators are working to keep the sector well managed and competitive, and investors are showing an interest.
Explore chapterInsurance
Buy digital copy of this chapter - £18In recent years, insurance penetration and accessibility have been improving steadily in Kenya. The middle class is growing, more Kenyans have disposable income and there is potential for new demand for insurance. There is rapid urbanisation, giant infrastructure projects, new energy schemes and growing industry. In 2013 life insurance penetration stood at 1.2% of GDP and general insurance was about twice that, bringing the total to 3.44%. However, this measure of insurance penetration dropped to 2.93% in 2014 after GDP was rebased with a 25% increase. Life assurance gross premium income was KSh56.5bn ($621.5m) in 2014, up from KSh44.3bn ($487.3m) the previous year, and this growth trend continued into the first quarter of 2015.
This chapter contains an interview with Sammy M Makove, Commissioner of Insurance and CEO, Insurance Regulatory Authority.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Given the Algerian economy’s reliance on the oil and gas sector, manufacturing industries have historically taken a secondary role in the country’s economic development policies. However, since the early 2000s, industry has received renewed interest from authorities, who have been looking to counteract rising demand for imports and revamp new industrial chains as a means to support massive public investment programmes geared towards infrastructure and housing. Following on from the reorganisation of the industrial public sector in February 2015, decisive steps are now being taken to reduce reliance on imports in a number of manufacturing segments, including automotive, fertilisers, petrochemicals and smartphones. Recent years have also seen key steps towards realising Algeria’s mining potential by enacting a new mining law and developing large-scale projects in the areas of phosphates, iron ore, base metals and gold. This chapter contains interviews with Abdesselam Bouchouareb, Minister of Industry and Mining; Sami Mainich, General Manager, Dow Chemical Maghreb; and Guillaume Josselin, Managing Director, Renault Algeria.
Explore chapterTransport
Buy digital copy of this chapter - £18Jordan’s transport sector underwent significant expansion in 2015 with upgrades to road, rail, air and sea links all driving the sector. Indeed, the port of Aqaba has completed much of its expansion work and is now engaged in new phases of re-development and growth. The road network continues to be upgraded in line with the 25-year road improvement programme commenced in 2002, which will see a total of around $1.8bn invested in the kingdom’s roadways. In the aviation segment, the new Queen Alia International Airport received 7.09m passengers in 2014, an increase of 9% year-on-year. Meanwhile, the Aqaba-Ma’an-Amman railway is the cornerstone of a JD2bn ($2.8bn) plan for a rail network announced in April 2015. In addition to improving connectivity, the project is expected to reduce transport costs, making Jordanian exports more competitive and imports cheaper.
This chapter contains an interview with Lina Shbeeb, Former Minister of Transport.
Explore chapterInsurance
Buy digital copy of this chapter - £18The South African insurance market stands as one of the most advanced in the world, with one of the highest premium-to-GDP ratios and a wide cross section of well-regulated and innovative insurers. Although the market is set to become more sophisticated with the introduction of new legislation, much of the country remains unbanked and either uninsured or underinsured. Financial inclusion is still limited, with basic policies like auto or property liability insurance only optional – a rarity in the developing world, both in Africa and beyond. This presents significant opportunities for local and regional players, as they look to develop more inclusive products that meet the needs of low-income customers. In addition to providing much-needed coverage, the segment is expected to unlock substantial growth potential for insurers in the years ahead.
This chapter contains an interview with Thabo Dloti, CEO, Liberty Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18Growing at one of the fastest rates in Africa, Ghana’s insurance sector continues to do well despite the headwinds faced by the overall economy. Analysts and market participants are expecting years of solid performance as awareness, penetration and density increase and converge towards global averages. Companies in the sector are reporting strong profits and good premium growth, while interest is high from international investors, with 2014 and 2015 characterised by a series of major transactions. Insurance in Ghana is set for continued growth, mergers and acquisitions, and improved coverage, and the country is likely to be one of the better performing markets in the region.
This chapter includes an interview with Ivan Avereyireh, President, Ghana Insurance Association (GIA).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Construction remains a key sector in RAK, with the industry driven by a combination of infrastructure, housing and hospitality schemes. The emirate’s role in providing raw materials and manufactured components for mega projects in the UAE and beyond looks set to continue as the region builds up to major events such as the 2022 FIFA World Cup. Strong demand continues to drive new residential development across the emirate, particularly in the case of seaside residential developments. New mortgage regulations introduced by the Central Bank of the UAE and the launch of the federal Al Etihad Credit Bureau are factors expected to reduce risk for lenders moving forward.
This chapter contains an interview with Abdullah Rashed Al Abdooli, Managing Director, Al Marjan Island.
Explore chapterInsurance
Buy digital copy of this chapter - £18Although the pace of expansion has moderated in the past two years, in line with a sluggish economy, Mexico’s insurance industry has been experiencing strong growth. The number of active companies in the sector reached 105 by the end of 2014, up significantly from 70 in 2000. Moreover, total premium income in 2014 reached $24.47bn, or 2.1% of GDP, according to the industry’s main regulatory body, the Insurance and Surety National Commission, while premium income grew by 4.5%, or about 1% in real terms. Meanwhile, the introduction in 2015 of the solvency II capital reserve, governance and transparency standards placed Mexico in the vanguard of insurance industry regulation. With insurance penetration rates still relatively low, the outlook for the sector remains encouraging.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18A series of reforms being implemented by the Capital Markets Authority are expected to benefit the country’s bourse, following on the comprehensive restructuring of the Kuwait Stock Exchange in the years following the 2007-08 economic downturn. In 2009 the Kuwait Stock Exchange introduced a new classification system that organised listed companies into 15 sectors, instead of just eight as under the previous system. The regulator is also moving forward with a plan to privatise the Kuwait Stock Exchange, which was converted to a privately managed company called Bourse Kuwait in April 2015, and eventually to take the bourse public in an IPO. The banking sector currently accounts for 49% of the total Kuwait Stock Exchange value by market capitalisation, followed by telecoms with 11%.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18In June 2015, Saudi Arabia’s stock exchange entered a new era by opening to foreign participation, an event that has one of the most keenly anticipated financial events in the region. Yet this is only the latest step in a longer process of market reform that has seen the exchange evolve from a single-product market to an increasingly diverse investment platform. With a raft of regulatory changes in the pipeline, including alterations to the organisational structure of the exchange and its relationship with the regulator, the coming year promises to be an interesting one for Tadawul’s broadening base of market participants.
This chapter includes interviews with Mohammed Al Jadaan, Chairman, Capital Market Authority (CMA); Adel Al Ghamdi, CEO, Saudi Stock Exchange; and John Sfakianakis, Middle East Director, Ashmore Group.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Of all the subsectors within Papua New Guinea’s financial system, the capital markets are the least mature. The banks are strong, growing and becoming increasingly competitive; the insurance sector has been active for more than a century and is substantial for a developing country; and the superannuation funds are large, stable and vital to PNG society. On the other hand, the stock market has only two brokers, two owners, 18 securities and little liquidity. The lack of capital markets development has not gone unnoticed, and the exchange has been targeted for major upgrades, while the reform of the debt market is being discussed. These efforts have support at the highest levels, with Prime Minister Peter O’Neill backing the transformation of the stock exchange.
This chapter contains a viewpoint from Syd Yates, CEO, Kina Securities; and an interview with Richard Borysiewicz, General Manager, BSP Capital.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18The government is aiming to boost agriculture’s contribution to GDP to 20% by 2025 through partnership with international institutions and private enterprises. It also intends to reduce food imports, which reached €523.8m in 2014. Efforts are under way to ensure that sector management is sustainable.
This chapter includes interviews with Gagan Gupta, Country Head, Olam; and Gert Vandersmissen, Group COO, SIAT.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Conditions in T&T’s capital markets continue to be shaped by the central bank’s tightening of monetary policy. In line with the expectations of the financial sector, the central bank moved ahead with a fifth consecutive increase in its repo rate of 25 basis points to 4% in late May 2015. The increases have begun to have an impact on domestic money market rates, or commercial banks’ prime lending rate, which rose to 8% in May 2015, up from around 7.5% before the repo rate hikes. Activity in the primary and secondary markets was moderate in the first nine months of 2014, with four issuers raising $639.93m through six separate securities in the primary market. In the secondary market, government bonds with a total value of $140.2m were traded. With the exception of government bonds with short to medium tenors, yields generally moved in an upwards direction.
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Buy digital copy of this chapter - £18Panama’s capital markets are highly internationalised, with the financial stability of a dollarised economy helping attract global firms looking to expand their Latin American footprint. Though the country has already established itself as a regional banking hub, Panama’s non-bank financial sector still has room to grow. While insurance sector assets nearly tripled in the decade to 2013, from $704.2m to $2.05bn, their share of GDP remained virtually unchanged, at 5-5.5%. Similarly, the total market capitalisation of the Panama Stock Exchange stood at $13.44bn at end-2013, equivalent to 33.3% of GDP, down from 42.8% in 2005 and 36.3% in 2010, and still below the 46.7% recorded on Brazil’s BOVESPA. Panama’s financial markets are expected to benefit from continued growth in 2015 with reasonably low inflation, as efforts toward greater transparency, efficiency and global integration continue.
This chapter contains interviews with Felipe Chapman, President, Bolsa de Valores de Panamá; and Jorge Vallarino Miranda, Executive Vice-President, Global Bank.
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Buy digital copy of this chapter - £18Turkey’s stock exchange, Borsa Istanbul (BIST), had a bumper year in 2014. It was the fifth-best-performing exchange globally, with the BIST 100 index rising by 26% and closing at a record year-end high. While the early months of 2015 were more muted, the appeal of the exchange and many of its listed stocks to investors is still strong. Turkey’s equity and bond markets felt the impact of cooling investor sentiment and the related fall in the lira in the first few months of 2015. A degree of uncertainty over the fiscal and monetary policy outlook ahead of the election had an effect as well. However, the reforms of the past few years have left the country’s capital markets larger, more liquid, more accessible to foreign capital and all together better-off. Tough as some periods may be, the market’s future is founded on that of its economy, and in this regard Turkey’s large, young populace and diverse economic base are major assets.
This chapter contains interviews with Vahdettin Ertaş, Chairman, Capital Markets Board, and İbrahim Turhan, Former Chairman and CEO, Borsa Istanbul.
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Buy digital copy of this chapter - £18The capital markets in Mongolia have recently benefitted from a series of positive reforms, key hirings and the introduction of new legislation. Together, these measures promise to help breathe life back into the country’s stocks and bonds. After almost four years of declining equity prices, more than half a decade with virtually no initial public offerings (IPOs) and weaker demand for Mongolia’s foreign currency bonds, serious efforts are underway to attract investors. Given Mongolia’s open markets and abundant natural resources, its fundamental value is clear. The sense is that, once key problems are tackled, the country’s capital markets will boom.
This chapter contains an interview with D. Angar, CEO, Mongolian Stock Exchange.
Explore chapterInsurance
Buy digital copy of this chapter - £18With a growing population of 170m and penetration still low, Nigeria’s insurance sector has considerable potential in demographic terms alone. At present, a large number of insurers compete for what business is available, creating a highly fragmented market. Acquisitions are an increasingly common mode of entry for foreign investors – a trend that is likely to continue. In the near term, attempts at better enforcement of laws and regulations are likely, as is the possible scaling-up of microinsurance and the introduction of sharia-compliant products. Despite shortcomings in enforcement and financial reporting, the insurance sector continues to post double-digit growth, with a bright future ahead given demographic trends.
This chapter contains an interview with Fola Daniel, Commissioner for Insurance, National Insurance Commission (NAICOM)
Explore chapterIslamic Financial Services
Long a key participant in the global Islamic finance arena, Saudi Arabia secured its position in 2013 by becoming the largest issuer of sukuks (Islamic bonds) in the region for the second year in a row. The outlook for sukuks is positive, as the short-term nature of most bank lending in the Kingdom (with around 60% of all loans having maturities of less than one year) makes them an attractive alternative for some issuers. Saudi Arabia is also home to a diverse market for sharia-compliant banking products and services, and there are currently four commercial Islamic banks active locally.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Qatar Stock Exchange (QSE) was upgraded to emerging market status in the summer of 2014 and its 18.36% gain for the year ensured the QSE’s performance was the fastest-growing exchange in the region that year. Recent regulatory reforms should ensure the QSE can successfully capitalise on its new status and attract increased foreign investment. In May 2014 the ceiling for foreign ownership of listed firms was raised from 29% to 49%, and the Qatar Financial Markets Authority (QFMA) has taken steps over the past year to improve the deal-making opportunities between the exchange’s listed companies. The recent regulatory changes have also sought to strike a balance between enhancing the integrity of the market and boosting its liquidity as the QFMA looks to ensure a well-regulated market capable of attracting sustained investment.
This chapter contains an interview with Rashid Al Mansoori, CEO, Qatar Stock Exchange.
Explore chapterScore
One of the five regional economic corridors being developed throughout the country, the Sarawak Corridor of Renewable Energy (SCORE) is part of the federal government’s national agenda to propel the country into achieving high-income status by 2020. SCORE’s game plan for transitioning Sarawak into a high-income state is premised on transforming its economic base towards advanced industry by more effectively using and adding value to its vast natural resources. At the same time, clean and affordable power provides a competitive advantage for attracting energy-intensive investment. The impetus now is on the state to ramp up its educational efforts and streamline immigration procedures to ensure that the stock of human capital keeps pace. Port projects are being monitored closely, as not only does capacity need to be expanded, but the construction of purpose-built storage facilities is also required to cater to new materials being produced by companies in SCORE such as aluminium products, pulp and paper, bio-diesel, downstream timber products and agro-produce.
This chapter contains interviews with Wilson Baya Dandot, CEO, Regional Corridor Development Agency (RECODA); Takeo Suzuki, President, Tokuyama Malaysia; and Isaac Lugun, CEO, Samalaju Industries.
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Islamic Financial Services
Long a key participant in the global Islamic finance arena, Saudi Arabia secured its position in 2013 by becoming the largest issuer of sukuks (Islamic bonds) in the region for the second year in a row. The outlook for sukuks is positive, as the short-term nature of most bank lending in the Kingdom (with around 60% of all loans having maturities of less than one year) makes them an attractive alternative for some issuers. Saudi Arabia is also home to a diverse market for sharia-compliant banking products and services, and there are currently four commercial Islamic banks active locally.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Despite having one of the oldest stock exchanges in Asia and a relatively advanced bourse for its level of economic development, the Philippines lags behind the leading South-east Asian exchanges. However, as domestic liquidity surged and foreign investors gradually returned after a general flight from emerging markets in 2013, the country’s capital markets were riding a wave of optimism in 2014 and early 2015. The Philippine market’s strong performance in a weak year for emerging markets bodes well for the capital markets sector and was an important show of confidence by investors in the country’s broader economic prospects. The development of a local corporate bond market is also a promising sign and will reduce the economy’s dependence on banks to finance investment. The expected consolidation of the two major exchanges would be in line with regional and international trends and should make for a stronger and more resilient exchange to compete with regional peers.
This chapter contains interviews with Jose Pardo, Chairman, Philippines Stock Exchange; and Eduardo V Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development Council.
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Buy digital copy of this chapter - £18Demand-driven growth is expected to continue in the Islamic financial services sector, with sharia-compliant assets making up some 21.4% of the UAE’s banking system in 2013, up from 17% in 2012, and crossing the $100bn mark for the first time. Abu Dhabi’s takaful operators are playing their part in the growth of the UAE industry, which has seen the nation become the second-largest provider of takaful contributions in the GCC. Meanwhile, between January 1996 and September 2013, the UAE was the source of some 73 Islamic bond issuances for a total value of $47.9bn – placing it second only to Malaysia in terms of global sukuk activity. Overall, the growth of the UAE’s non-hydrocarbons sector, low interest rates and the firming up of real estate prices have resulted in a positive outlook for the nation’s banking sector, with Abu Dhabi’s sharia-compliant institutions well placed to capitalise on this anticipated expansion.
This chapter contains an interview with Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank.
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Buy digital copy of this chapter - £18Bolstered by the economic rebound since 2012, double-digit growth in Côte d’Ivoire’s insurance sector is attracting new entrants and product innovation. While it is the largest market of the 15-country Inter-African Conference of Insurance Markets, the sector is fragmented for its size. With large-scale public projects expected to generate strong GDP growth in 2014, the priority will be to expand the domestic market’s retention capacity, enhance the domestication of larger risks and improve business conduct to shore up underwriters’ liquidity. Meanwhile, as alternative distribution channels continue to gain traction, the life insurance segment is expected to overtake non-life. Major players and foreign investors are likely to drive consolidation to achieve the scale necessary to boost Côte d’Ivoire’s growth.
This chapter contains an interview with Roger Eugène Johnson Boa, President, Association of Insurance Companies of Côte d’Ivoire.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Islamic finance is a highly competitive market in Dubai and the emirate is angling to become a leading centre for the sector. The UAE’s Islamic banks hold about 7% of global Islamic banking assets and have a market share of roughly 25% locally. The takaful segment has grown steadily since 2009 and this trend looks set to continue: total takaful contributions reached $1.16bn in 2013, up from $1.03bn in 2012. The UAE has been the world’s second-largest issuer of sukuk behind Malaysia, with $47.88bn issued between 1996 and 2013. Dubai has taken on a leadership role in shaping the future of sukuk as a financial instrument. In 2014 the emirate sponsored discussions and roundtables, with an eye to ultimately establishing a globally integrated sukuk market with harmonised structures that are less risky and easier for investors to understand.
This chapter contains an interview with Adnan Chilwan, CEO, Dubai Islamic Bank.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Bahrain remains a world leader in Islamic finance, boasting the highest concentration of Islamic financial institutions globally, with six licensed Islamic retail banks and 18 licensed Islamic wholesale banks. Islamic wholesale banks’ investment portfolios have begun to demonstrate promising diversification in recent times, with a shift away from risky real estate fuelling interest in other sectors. Meanwhile, in 2014 the Central Bank of Bahrain, which regulates the kingdom’s Islamic financial institutions, introduced regulatory changes aimed at ensuring best practice is applied to sharia-compliant transactions, including the issuance of sharia-compliant bonds and the Islamic insurance segment. Today takaful represents one of the fastest-growing segments of Bahrain’s insurance sector, with gross contributions of takaful companies growing 7% from $142.31m in 2012 to $151.58m in 2013, according to the central bank.
This chapter contains a dialogue between Adnan Ahmed Yousif, President and CEO, Al Baraka Banking Group; and Aabed Al-Zeera, CEO, International Investment Banking.
Explore chapterEnergy
Buy digital copy of this chapter - £18Myanmar has already hit its investment target of $4bn-5bn for the 2014/15 fiscal year six months ahead of schedule, thanks in part to the energy sector, which attracted $800m of investment in the first half of the fiscal year. As of December 2014 revenue from foreign investments in the oil and gas sector came to more than $15.1bn, second only to the power sector, which stood at $19.3bn. This represents about 30% of the country’s total foreign investments. As Myanmar works to promote renewable energy to complement its insufficient electricity supply, new opportunities within the sector have opened up for foreign investors who can help to boost the country’s power generation. In the long term a fully developed electrification system, along with offshore gas exploration, look set to accelerate Myanmar’s growth in all aspects of the energy sector. To achieve this growth, the government must keep up the pace of its reform programme, in turn speeding up the country’s integration into the world economy.
This chapter contains interviews with U Zay Aung, Minister of Energy; Ken Tun, CEO of Parami Energy Group; and U Zeya Thura Mon, CEO, Zeya & Associates.
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Buy digital copy of this chapter - £18Oman’s insurance sector has continued to expand and was the second fastest-growing insurance market among GCC countries from 2007 to 2013. Gross written premiums reached $942.5m by year-end 2013, a 10.44% increase year-on-year from 2012, with the motor segment accounting for 41% of this total in both years. In August 2014 the Capital Market Authority (CMA), the industry regulator, introduced a number of amendments to Oman’s insurance law, requiring underwriters to raise their minimum paid-up capital to $25.9m – up from $12.9m previously – and to list a certain percentage of their shares on the Muscat Securities Market (MSM). Legislation passed by the Central Bank of Oman in recent years has paved the way for an increase in sharia-compliant products in the insurance market. This chapter contains an interview with Abduladheem Al Lawati, Chairman, Oman Insurance Association.
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Buy digital copy of this chapter - £18With net insurance premium growth of 16% in 2013, the Peruvian insurance sector continues to outperform regional neighbours such as Mexico (11%) and Colombia (8%). Double-digit growth is expected to continue through 2015, propelled by small businesses and the modernisation of mature industries and infrastructure. However, gross premiums to GDP, which stood at 1.5% at the end of 2012 (half the regional average of 3%) demonstrate the weak penetration in Peruvian market. Following the passage of significant domestic regulatory reforms in 2012, Peru’s insurance industry now faces the challenge of modernising its practices in preparation for the Solvency II standards, while also coming up with novel ways to engage first-time customers.
The sector’s broader economic significance will persist, with insurance companies collectively constituting the second-largest institutional investor in Peru with approximately $9bn in assets under management.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Overreliance on the energy sector in the last three decades has siphoned investment away from manufacturing and left Algeria with high import demand in a number of critical areas, including food supply, machinery, electronics and other consumer goods. However, in the last 10 years, Algeria has focused on developing local manufacturing industries in order to reduce its heavy import spending, boost employment, increase value addition and export revenues, and diversify the economy. Industry’s redevelopment has been somewhat arbitrary in recent years, yet a handful of segments have grown quickly, attracting new sources of foreign direct investment.
In the retail sector, consumption patterns in Algeria are beginning to shift towards modern retail, supported by rising income levels and greater exposure to formal shopping outlets and international brands. Retail sales increased 30% from $28.7bn in 2007 to $37.5bn in 2011, while per-capita spending rose by 22% over the same period, to reach $1023 in 2011. Authorities hope that the rise of modern retail stores, particularly in the grocery segment, will have a positive knock-on effect for locally produced goods.
This chapter contains interviews with Hamoud Tazerouti, CEO, Entreprise Nationale des Véhicules Industriels (SNVI); Amor Habes, Owner and General Manager, Faderco; and Javier Goñi, CEO, Fertiberia Group
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Buy digital copy of this chapter - £18Across the African continent, South Africa accounts for 80% of all insurance premiums. The market is heavily tilted towards life products, which make up four-fifths of the industry’s premiums, with earnings in the segment 10 times that of non-life in 2013. At year-end 2013, South Africa’s life insurance industry had $189.4bn in assets under management, with the segment’s top five firms showing signs of growth across the board that year. Penetration rates continue to rise: the number of formally insured South Africans grew from 6.2m people in 2012 to 7.8m in 2013. While the life insurance segment saw a strong performance in 2013, non-life growth was tempered by high claims. Strong investment market performance in the last two years has boosted insurers, but a stalling economy presents challenges in the near term.
This chapter contains an interview with Barry Scott, CEO, South African Insurance Association.
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Buy digital copy of this chapter - £18The three years since the 2011 revolution have proven to be profitable for most of Egypt’s insurers, making it one of the few sectors to overcome the country’s economic malaise. Insurance companies collected LE13bn ($1.85bn) in premiums in the 2012/13 financial year, an increase of 18% from LE11bn ($1.56bn) in 2011/12. However, by most measures, Egypt’s insurance market remains small relative to those in the developed world and state players continue to dominate the arena. Although the insurance sector has fared better than most others in the turmoil that has engulfed Egypt, and has even seen its profits rise, industry players are hoping a period of greater stability will yield even better results and help to stimulate growth, expansion and profitability.
This chapter contains interviews with Sherif Samy, Chairman, Egyptian Financial Supervisory Authority (EFSA) and Abdel Raouf Kotb, Chairman, Insurance Federation of Egypt.
Explore chapterEnergy
Buy digital copy of this chapter - £18Plans to complement domestic production by undertaking international exploration support the Sultanate’s target of reaching an output of 650,000 barrels of oil equivalent per day by 2035. Downstream, the government is investing in development of its petrochemicals sectors. The country today is primarily an exporter of liquefied natural gas, which is shipped to Japan, South Korea and Malaysia, and is a significant oil supplier to the Asia-Pacific region. Its oil and gas output is likely to stabilise in the near to mid-term as investment in both exploration and the development and refurbishment of older fields has significantly accelerated. In the longer run, the country’s success will largely depend on the size of its deepwater resources and how well the government can rally the resources for their exploration and development.
This chapter contains interviews with Pehin Dato Yasmin Umar, Minister of Energy; and Ken Marnoch, Managing Director, Brunei Shell Petroleum; along with a roundtable with Hj Awang Hj Ali, Executive Chairman, Belait Shipping; Supna Karwanamurthi, Managing Director, FLUX O.S.; Mohd Shafie Mohd Yusof, Managing Director, Petrokon Utama; and Amir Osman, Managing Director, PTAS Group.
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Buy digital copy of this chapter - £18Holding enormous untapped potential, Kenya’s insurance industry has expanded rapidly over the past 10 years, with both the life and non-life segments showing consistent double-digit growth. As of early 2013 there were 47 operating insurance companies in Kenya, including 24 non-life businesses, 11 life insurers and 12 composite firms. Although the sector is still dominated by the short-term motor segment, rapid uptake in life, medical and new micro-insurance products has seen lower-earning Kenyans gain coverage. The industry, however, faces formidable challenges – premium undercutting has put intense pressure on major players, while fraud and low penetration have hurt margins and prevented nationwide expansion of comprehensive coverage. Nevertheless, the market holds considerable promise in the medium and long term. The expansion of coverage to lower-income groups via micro-insurance products also promises new opportunities to expand the market.
This chapter contains an interview with Tom Gichuhi, CEO, Association of Kenyan Insurers (AKI).
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Buy digital copy of this chapter - £18The insurance sector is growing rapidly as a result of reforms, improved regulation and a better understanding of the relevant products on the part of Ghana’s consumers. Business has not only expanded along with the economy, but has outperformed it. The sector saw total premiums growth reach 23% y-o-y in 2013. However, the sector also faces challenges common to many of Africa’s frontier markets. Penetration rates and awareness remain low, and the sector is fragmented at a time when the regulatory framework is robust, but compliance and risk management are still being refined. There is certainly plenty of scope for further growth, even with the high levels of competition in the existing market. For those insurers that are able to expand the client base outside of the corporate, upper and middle-income segments, the likelihood for strong returns is significant.
This chapter contains an interview with Lydia Lariba Bawa, Commissioner, National Insurance Commission.
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Buy digital copy of this chapter - £18The growth of Jordan’s insurance industry reflects the maturation of the nation’s economy since independence in 1946. While the industry showed resilience during the global economic crisis, posting a rise in gross written premiums (GWPs) from 2008-09, competition within the sector is high. With 27 companies currently operating, achieving sustained profitability is a challenge for many of the smaller companies. The sector is dominated by the motor segment which in 2013 made up 40.8% of GWPs. Potential growth areas include the sharia compliant, or takaful, segment which has had considerable success across the GCC but currently accounts for a modest 7.9% of the market in Jordan. Moving forward, the pending dissolution of the Insurance Commission is set to dominate discussion within the industry, given the very central role that regulators play in developing the insurance sector across the region.
Explore chapterBanking & Financial Services
Buy digital copy of this chapter - £18As a bastion of liquidity within the financially turbulent Economic and Monetary Community of Central Africa (Communauté Économique des États de l’Afrique Cen-trale, CEMAC), Gabon competes head-on with the more populous Cameroon for the title of regional banking centre. The regional stock exchange based in Gabon is also beginning to see an uptick in activity and insurance penetration is consistently higher than elsewhere in CEMAC.
In recent months, banks have sustained the double-digit growth of the past three years, albeit at a slightly slower pace, driven by both deposits and lending. The bulk of growth has been due to lending to the public sector for projects laid out under the Emerging Gabon national development plan. Gabon also has a surfeit of liquidity in the banking sector, reducing the need for companies to turn to the capital markets. Since the first listing in 2008, the markets have been dominated by bonds. However, 2013 saw the region’s first initial public offering and subsequent equity listing on the exchange, and, according to local press reports, other companies are likely to follow suit in the medium term. Home to 1.63m people, Gabon has one of the most dynamic insurance markets in Central and West Africa. The local insurance industry is strong compared to other countries in the region due to its high level of industrial contracts. Efforts to increase insurers’ exposure to clients through investment in multiple sales channels, the introduction of new obligatory insurance lines and the implementation of microinsurance products could all help to expand the Gabonese market in 2014.
This chapter contains an interview with Patricia Danielle Manon, Director-General, BGFI Bank Gabon.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18For the Mongolian Stock Exchange (MSE), 2013 was a year of transition. While performance remained weak and trading was exceedingly thin, preparations were being made for a comeback. The hope is that the foundation has been set to make 2014 a year of recovery for the market. Under previous legislation custodian banking was not available; however, under a new law, international investors will not have to worry about the risks associated with investing in a market with no intermediary banking institutions. Despite having 79 registered brokers, only one firm oversees almost all trading on the MSE. In addition, risk management has not been well-developed and understanding of stocks is low among the general public. What is now needed most is for new issues to come to the market, and this will depend on the ability of the regulators to put new laws into practice. This chapter contains an interview with Masa Igata, Founder & CEO, Frontier Securities.
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Buy digital copy of this chapter - £18With the market capitalisation of its bourse at around BT11.97trn ($391.42bn) as of late March 2014, Thailand has relatively deep and liquid capital markets by regional standards. A derivatives market has grown significantly since 2007, with particular interest in index and single stock futures, as well as gold futures. Following the Asian financial crisis, brokers in Thailand have remained more cautious in their leverage, with margin lending in 2013 at $2.6bn, compared to $3.9bn prior to the crisis. The value of outstanding bonds on the Stock Exchange of Thailand has reached $291bn by June 2013, up 11.8% year-on-year. Government bonds are the most widely traded fixed-income securities, accounting for roughly 880% of daily trades. The kingdom’s large domestic investor base, with strong retail participation, is a sound basis for future expansion. Although the growth of corporate earnings will slow from its peak in 2012, the outlook for Thai equities remains strong. This chapter contains interviews with Vorapol Socatiyanurak, Secretary-General, Securities and Exchange Commission, Thailand; Charamporn Jotikasthira, President and CEO, Stock Exchange of Thailand; and Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company.
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Buy digital copy of this chapter - £18Growth in Indonesia’s stock market in recent years has been driven by the steady expansion in the total number of shares listed, which increased from 296 in 2008 to 479 by September 2013. Once dominated by commodities, such as mining, energy and agriculture stocks, the local market is now led by consumer-related shares, such as financial services, infrastructure and utilities. Domestic investors’ share of trading has steadily grown in recent years, climbing from 19% in mid-2007 to 44.2% by August 2013. Encouraging new supply is critical to the bourse’s ambitions of becoming the region’s largest exchange by capitalisation by 2015, when it hopes to reach $750bn. The number of IPOs nearly doubled from 13 in 2009 to 25 in 2012, raising a total of $1bn. Despite the challenges that have been caused by global volatility, most investors have maintained a bullish long-term outlook. Indonesia’s reliance on foreign portfolio investments to finance its current account deficit is a cause for concern. All the same, its consistent growth record, resilient corporate earnings and dynamic private sector highlight its strong prospects for expansion going forward. This chapter contains interviews with Muliaman D Hadad, Chairman, Otoritas Jasa Keuangan; and Eko Yuliantoro, CEO, Bahana Securities.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18The Islamic finance services (IFS) sector in Qatar is one of the most vibrant in the region and incorporates a rapidly expanding sharia-compliant banking segment, an array of financing companies, an insurance market that is well positioned to capitalise on the potential of an underserved market, and an increasingly deep Islamic investment component. Recent regulatory changes suggest that the government’s ambition to establish the nation as a centre for Islamic finance remains undimmed and, as the country gears up for the project pipeline associated with Qatar National Vision 2030 and the 2022 FIFA World Cup, sharia-compliant finance players are expected to reap the rewards of this support. This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.
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Buy digital copy of this chapter - £18Home to some of the UAE’s most prominent Islamic banks and takaful operators, Abu Dhabi has long been a regional centre for Islamic financial services. Global Islamic banking assets are forecast to surpass the $2trn mark by the end of 2014, and Abu Dhabi’s sharia-compliant financers are well positioned to capitalise on this expansion, although a competitive market and the lingering effects of the 2008-09 global economic crisis remain challenges. Potential for takaful growth in Abu Dhabi and the wider UAE is strong, underwritten by high levels of disposable income and the low insurance penetration. This chapter contains an interview with Tirad M Mahmoud, CEO, Abu Dhabi Islamic Bank.
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Buy digital copy of this chapter - £18Following the heavy investment in infrastructure projects of the past few years, the insurance sector has enjoyed a prosperous period. The industry is estimated to be managing assets of around $1.9bn, of which investments comprise $1.3bn, or 70% of the total. As a result of Law 12 of 2012 a new legal framework was created to regulate the sector, bringing it more in line with international standards and offering consumer protection clauses for the first time in Panama. The economy’s recent positive performance has also attracted new insurance companies and reduced the market’s concentration. However, the end of infrastructure projects and uncertainties related to the Panama Canal’s expansion could slow down growth, while strong competition, higher-than average inflation and lower returns on investments are putting downward pressure on insurance companies’ profits. This chapter includes interviews with Dino Mon, Director, MAPFRE-Panama; and Gabriel de Obarrio, CEO, Generali Panama Branch.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Until September 2013 there was only one telecoms provider, which has run the mobile network and backbone gateway for Myanmar since their construction. In 2013, two new international telecoms players entered Myanmar, providing the modern and affordable services necessary to bring the country into the 21st century. With 55m unconnected citizens, these firms have the opportunity to tackle one of the final frontiers for mobile penetration. However, Myanmar’s telecoms sector remains one of the most underdeveloped in the world, and immense challenges lie ahead for the international giants as well as the local government and domestic providers. Meanwhile, the doors have been opened for local and foreign firms to begin expanding the IT space and some 700 companies are now registered with the Myanmar Computer Federation. In 2014 Myanmar’s IT industry will see an explosion of activity that promises to transform almost every other sector of the economy over the coming years. Yet experience and training are severely lacking at present, and education will need to catch up quickly with the rush of technology if the country is to take full advantage of the trend. This chapter contains interviews with U Myat Hein, Minister of Communications and Information Technology; Ross Cormack, CEO, Ooredoo Myanmar; Ren Geng, Managing Director, Huawei; and U Shane Thu Aung, Vice-Chairman, RedLink Communications; and a viewpoint from Eric Schmidt, CEO, Google.
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Buy digital copy of this chapter - £18The Islamic financial services (IFS) industry has grown increasingly popular in recent years, with worldwide assets totalling $1.8trn in 2012 and forecast to top $2trn by the end of 2014. Having already established a reputation as a leading regional financial centre with abundant liquidity, Dubai has emerged as a major beneficiary of the IFS growth story. Sharia-compliant project financing, asset management and pension products are other segments poised for growth in the coming years. To realise the full extent of this potential, developing a solid regulatory framework and pursuing harmonisation of sharia-compliance standards at the national, bilateral and global levels will be key for Dubai.
This chapter contains a roundtable with Adnan Chilwan, CEO, Dubai Islamic Bank; Jamal Saeed bin Ghalaita, CEO, Emirates Islamic; and Hussain Al Qemzi, CEO, Noor Bank.
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Buy digital copy of this chapter - £18With a steady stream of new entrants in the past decade and growth from a small base, Oman’s insurance market is a competitive one. Several factors are boosting the industry, with sharia-compliant lines of insurance looking set to enhance the sector’s potential and automobile coverage boosted by record vehicle sales. Further to this, the sultanate’s infrastructure spending is combining with job growth to present an opportunity significant enough to attract multiple new entrants the market, further adding to competition. However, as the government considers mandating health coverage, there is still potential in the market. This chapter contains an interview with Lloyd East, CEO, Al Ahlia Insurance and Board Member, Oman Insurance
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Buy digital copy of this chapter - £18While the insurance sector has seen sustained growth in premiums over the past several years, rising 10.12% in 2011 and 9.62% in 2012, penetration rates remain among the lowest in the region, with insurance premiums constituting 1.5% of GDP, compared to the regional average of 3%. The government is attempting to address this shortfall through a series of reforms aimed at reducing the cost of insurance and pension fund premiums and commissions. Overall, low market penetration and continued economic growth mean that the insurance industry has a lot of unexploited potential. With the entrance of several new players in 2013, competition is likely to heat up. This increase coupled with stronger regulation and gradual product diversification will help to ensure that citizens benefit the most from international insurers’ newfound interest in the Peruvian market. This chapter includes an interview with Rafael Venegas, CEO of Rimac.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Philippine Stock Exchange had the second-best performance among Asian equity markets in 2013. It hit 38 all-time records during the year, broke 6000 for the first time in January 2013, 6500 in Feruary, and 7000 in April. The challenge is now to build on this strong foundation, further developing the systems, institutions, and regulations that will guarantee the market’s continued success going forward. Efforts to expand the investor base and the instruments on offer should support continued expansion. This chapter contains interviews with Hans Sicat, President, Philippine Stock Exchange; and Eduardo Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development Council.
Explore chapterInsurance
Buy digital copy of this chapter - £18With a total premium value of $1.6bn in 2011, Nigeria’s insurance market is the biggest in West Africa, but in a wider context the market remains relatively undeveloped and coverage in the retail market is mostly limited to motor insurance. Issues including prohibitive costs, inconsistent enforcement of mandatory coverage, fake insurers and policies damaging the sector’s reputation, and a fragmented market of small and undercapitalised providers have presented impediments to the sector’s growth. Although top-line expansion has not fulfilled expectations for the overall value of the market, insurers and the regulator are continuing to explore avenues for growth while removing obstacles. A leap in market size is expected in the current decade thanks to continued policy efforts and steady growth in disposable incomes for middle-class Nigerians. This chapter contains an interview with Fola Daniel, Commissioner for Insurance, National Insurance Commission.
Explore chapterTransport
Buy digital copy of this chapter - £18With $286bn allocated to major infrastructure developments, the government has devised a five-year plan for improving connections, including road networks, ports, urban mass transport and rail lines. Three major highway projects are either under way or in planning, including the East-West Highway, the Hauts Plateau Highway and the North-South Highway. The government is also expanding capacity at existing ports, as well as constructing new ones, and is set to invest more funds in urban transport options. Besides the existing tramline and metro in Algiers, 2013 marked the launch of new tram systems in both Oran and Constantine. A total of 14 other cities currently have above-ground mass transit systems in the planning stage, with the government set to invest a total of $6bn. This chapter contains an interview with Takao Omori, CEO, Portek International.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Egyptian insurance industry is characterised by considerable competition on price, low market penetration and the continued dominance of the state-backed Misr Insurance. Total insurance premiums, including inward reinsurance and direct written premiums, rose to $1.57bn in 2011/12, an 8.7% increase over the previous year. Total investment by insurance firms amounted to $5.5bn in 2011/12, up 9.4% year-on-year, and income from investments rose to $477m. There are 30 companies active in the market. Of these, 18 are property and casualty firms, while 10 are life and personal insurance groups, with the remaining two an export credit guarantee company and a cooperative insurance society. With insurance uptake low even by North African regional standards, there is ample room for growth. This chapter contains an interview with Ashraf Kadry El Sharkawy, Former Chairman, Egyptian Financial Supervisory Authority (EFSA).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In many ways Ras Al Khaimah’s construction sector is the backbone of the local economy, with a number of major infrastructure projects enabling development across a range of sectors. The emirate is home to several major building materials producers, and it is well placed to serve the growing GCC market. Local projects such as the development of Al Marjan Island lend further support to the expansion of the construction sector. RAK’s real estate market remained relatively stable during the global financial crisis relative to other emirates, although the value of some luxury holdings fell. The government has substantially liberalised laws concerning foreign property ownership, allowing foreign nationals to own the freehold of properties in their own name, which looks set to boost foreign investment in the peal estate sector. This chapter contains an interview with Naser Bustami, Group General Manager, Stevin Rock.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Central African Stock Exchange (Bourse Régionale des Valeurs Mobilières d’Afrique Centrale, BVMAC), headquartered in Libreville, is one of two regional bourses – both of which are located in CFA zones – on the African continent. The past few years have seen only occasional activity on the bourse, in spite of the region’s improving headline growth and the sizeable expansion plans of some of its largest firms. In 2011 sovereign debt accounted for 65% of listed instruments on the BVMAC. Regional and international organisations, such as the BDEAC and the International Finance Corporation, made up 11%, while private firms comprised 24%. Efforts to increase the number of companies active on the bourse include offering incentives, such as a 25% reduction in corporate taxes for firms that list 10-15% of their capital. This chapter contains an interview with Pierre Vandebeeck, Chairman and Managing Director, Société d’Investissement pour l’Agriculture Tropicale (Siat).
Explore chapterCountry Profile
Bordered by Burkina Faso to the north, Côte d’Ivoire to the west, Togo to the east and the Atlantic Ocean to the south, Ghana’s total land area is only slightly smaller than that of the UK at 227,540 sq km. With Accra as its capital, the country is divided into 10 administrative regions, which are further divided into a total of 216 districts. Over the past three decades Ghana’s population has more than doubled, growing from 11.6m in 1982 to 24.9m in 2012, according to figures from the World Bank. With more than 100 ethnic groups the population is highly diverse. Though certainly not without its obstacles, which include unemployment and an infrastructure deficit, Ghana continues to serve as a role model for peaceful, democratic rule in West Africa. With macroeconomic progress forecasted to continue, Ghana is in a good position to continue moving along the road of development. This chapter contains a viewpoint from President John Dramani Mahama and interviews with Mark Simmonds, Parliamentary Undersecretary of State, Foreign & Commonwealth Office; Olugbenga Ashiru, Nigerian Minister of Foreign Affairs; and Zafer Çağlayan, Turkish Minister of Economy.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18As the government continues to develop a regulatory framework for the sector, Islamic financial instruments are playing an increasingly prominent role in banking. The country is home to one of the largest and most diverse markets for sharia-compliant instruments, and as of September 2012, a full 42.3% of Kuwait’s total banking assets were Islamic. This chapter contains an interview with Mohammad S Al Omar, CEO, Kuwait Finance House.
Explore chapterInsurance
Buy digital copy of this chapter - £18As the continent’s most developed insurance sector, South Africa accounts for some 52% of African non-life premiums. The short-term insurance market is primarily focused on property and auto products, which together make up almost 75% of short-term gross premiums. Speedy growth in the number of independent insurers has created a robust takeover environment for the major insurers. However, the bulk of the sector is concentrated in the hands of the “big four” insurers. Insurers looking for growth opportunities are increasingly targeting low-income groups through micro-agents and retailers. This chapter contains a roundtable with Bruce Hemphill, CEO, Liberty Group; Nicolaas Kruger, Group CEO, MMI Holdings; Ralph Mupita, CEO, Old Mutual Emerging Markets; and Johan van Zyl, Group CEO, Sanlam.
Explore chapterInsurance
Buy digital copy of this chapter - £18The insurance sector contributed 1.2% of total trade in the first nine months of 2012, down 54% on the same period of 2011, when it stood at 2.6%. While things are looking more positive for the sector in 2013, it nonetheless faces some major challenges, particularly in the dominant motor segment. Regulatory issues have been on insurers’ minds in recent times too, with the industry’s overall profitability and sustainability likely to be affected by the outcome of these structural debates. Changes in the regulatory environment are in the offing, and liberalisation of the sector remains a contentious issue.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Global Islamic banking assets were pegged at about $1.3trn in 2011 but are expected to rise to as much as $1.8trn by the end of 2013. As such, Islamic banks are seeking to diversify the sharia-compliant financial instruments they offer. Leaders throughout the region are starting to look toward sukuk, or Islamic bonds, for infrastructure finance as an aid to development, and while it is currently a less developed segment of Islamic financial services, takaful, or sharia-compliant insurance, is following the general growth pattern being experienced by Islamic banks across the globe. This chapter contains interviews with Mohammed A Rahman Bucheerei, CEO, Ithmaar Bank; and Aabed Al Zeera, CEO, International Investment Bank.
Explore chapterEnergy
Buy digital copy of this chapter - £18The growth of Thailand’s heavy industries, as well as consumption among a burgeoning middle class, is fuelling demand for energy. On the production side, this demand is being partly met by increased lignite and natural gas extraction, while oil output continues to decline. The government is hoping that investment-friendly amendments to its Petroleum Act will help slow or reverse this decline. But natural gas growth is set to peak in 2013, and with domestic production already only responsible for one-third of Thailand’s energy needs, imports are set for a long-term increase. In response, the country is investing in liquefied natural gas import terminals and several pipelines, as well as hiking energy prices and promoting renewables. This section features interviews with Pailin Chuchottaworn, CEO, PTT Group; and Chanin Vongkusolkit, CEO, Banpu.
Explore chapterEnergy
Buy digital copy of this chapter - £18Now ranked the world’s 17th biggest economy with a GDP of nearly $790bn, Turkey, the prime minister claims, will become the 10th largest in 10 years’ time. To fuel that kind of growth, the country needs energy. Situated between the hydrocarbons-rich Middle East and energy-hungry Europe, but with negligible reserves of its own, Turkey has long been viewed as a transit state. While that continues to be part of its strategy, the nation is also hunting for resources to power its own economy, whether it is domestic supplies like coal or renewable energy, oil and gas extracted in foreign fields or new pipeline agreements to ship in fuel. It is also investing in hydroelectric plants, and plans to have eight nuclear reactors on-line by 2022. This chapter contains interviews with Hasan Köktaş, President, Energy Market Regulatory Authority; Rövnag Abdullayev, President, SOCAR; Gülsüm Azerı, CEO, OMV Turkey; and Alexander Medvedev, Director-General of Gazprom Export.
Explore chapterInsurance
Buy digital copy of this chapter - £18The 2006 Insurance Order and Insurance Regulations began a process of sector consolidation by implementing new requirements, such as a higher paid-up capital of $6.2m, up from $778,800. The government’s concerted efforts to reduce overall levels of personal debt in the Sultanate are expected to help the insurance sector grow and develop. Fronting business makes up a large part of activity in the local insurance segment, especially for the major international oil companies operating in the Sultanate. Although growth within the sector is unlikely to be spectacular in the coming years, with prudent management, insurance firms in the country can expect a healthy profit. This chapter contains an interview with Helen Yeo, Chairperson, General Insurance Association of Brunei Darussalam.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18After experiencing a dip in growth from 2008 to 2010, the industrial sector is expanding once again, with government initiatives being put in place to boost value-added sectors such as aeronautics, automotive production and textiles. The industrial sector accounted for 32.3% of GDP and 23.8% of employment in 2011. A new development plan, the National Pact for Industrial Emergence, promises to create 220,000 new jobs in the sector, as well as an €8.44bn increase in exports and a €4.44bn rise in foreign investment. The diverse range of activities, combined with these new initiatives, bode well for growth and employment across the sector. This chapter includes interviews with Saïda Lamrani Karim, Vice-President, Groupe Safari; Guy Hachey, President, Bombardier Aerospace; and Miriem Bensalah Chaqroun, President, General Confederation of Moroccan Enterprises.
Explore chapterInsurance
Buy digital copy of this chapter - £18Over the past decade Saudi Arabia’s insurance industry has become an important contributor to the economy. In 2011 the sector brought in gross written premiums of $4.93bn, up nearly 13% from $4.37bn the previous year. The majority of this expansion took place in the health and general insurance segments, which together account for more than 95% of the total market. Going forward, with the Kingdom’s rapidly growing population becoming increasingly aware of the benefits of coverage, the industry is expected to continue to expand. While insurance penetration remains low compared to more developed markets around the world, most projections show it rising through 2020 as a result of the Kingdom’s strong economic fundamentals. The reinsurance industry has also grown substantially in recent years. This chapter includes an interview with Abdullah Al Sharif, Secretary-General, Council of Cooperative Health Insurance. It also includes a viewpoint with Dr Metaib Al Rawqi, CEO, Weqaya Insurance.
Explore chapterInsurance
Buy digital copy of this chapter - £18Local insurers in Abu Dhabi have weathered a turbulent two years, during which they have been compelled to make the transition from an era of rapid economic expansion to one of more muted growth. Yet the sector has met the challenge of declining investment income while continuing to show healthy profit – a clear indication of the air of optimism that currently prevails within the emirate’s insurance community. A growing population, a relatively low penetration rate and a number of infrastructure developments in the pipeline form the basis of the future growth of the emirate’s insurers. Indeed, a double-digit compound annual growth rate is forecast for the UAE insurance sector until 2015. And although Abu Dhabi’s insurers face a number of challenges, chief among them a difficult investment climate and a wave of regulation that promises to fundamentally alter the way in which they assess their business, the drivers for growth within the domestic market make for a sanguine outlook.
Explore chapterEnergy
Buy digital copy of this chapter - £18Endowed with substantial energy reserves spread across its vast territory, Indonesia has been among the region’s largest producers and exporters of fossil fuels for decades. While this trend shows little sign of changing, the sector is in the midst of a dramatic shift in the composition of its resources. With crude production in decline, natural gas is taking on an increasingly important role in terms of exports and domestic use. Indonesia’s oil and gas sector will remain a strong contributor to the country’s economy in terms of its export revenue through increasing shipments of natural gas as well as domestically through its taxation and production-sharing agreements. This chapter contains an interview with Karen Agustiawen, President Director, Pertamina, and a roundtable with William Lin, President, BP Asia Pacific; Abdul Hamid Batubara, Deputy Managing Director, Chevron Indonesia; Richard Owen, President Director, ExxonMobil Indonesia; Lukman Mahfoedz, President Director, Medco Energi; and Roberto Lorato, President Director, Premier Oil Indonesia.
Explore chapterInsurance
Buy digital copy of this chapter - £18The UAE is one of the largest insurance markets in the Gulf region, and Dubai takes an impressive share of the country’s total premiums. There is still plenty of room for growth in life and general, with the period ahead likely to see more of this potential realised. More specifically, Dubai is moving toward compulsory health insurance, and there are signs that the infrastructure and real estate project pipeline is coming back to life. Demographics are also playing their part, as the emirate’s population swells and awareness of insurance needs grows; the population of the UAE grew by 5.6% in 2011 and is expected to keep increasing as the economy expands, creating a range of new opportunities for insurance companies. Moreover, legislative changes – particularly over health – will likely have a major impact when they are finally implemented, with some fierce future competition for the health segment widely expected.
Explore chapterMining
Buy digital copy of this chapter - £18The mining sector was a key growth driver of GDP in 2011, when the economy expanded 17.3%. Since 2012 there has been a moratorium on new licences, which is officially set to expire at the end of 2012. Although the major projects are not producing as yet, mining is already the country’s most important economic activity, contributing 20.2% of GDP in 2011, according to preliminary estimates. Coal production and exploration have risen annually since 2003, but new laws are allowing the government more influence over foreign investment. The tax burden on mining companies is also likely to rise. Over the long term the logic of establishing Mongolian mining operations is compelling: only about a quarter of the country is thoroughly explored, and most of what is known comes from outdated knowledge from the Soviet period. That means decades of work for mining service companies – just not in 2013 or perhaps in the short-term future, given the ongoing legal uncertainties in the sector. This chapter contains an interview with Cameron McRae, President and CEO, Oyu Tolgoi.
Explore chapterEnergy
Buy digital copy of this chapter - £18Oman may have huge hydrocarbons wealth, but accessing oil and gas supplies has long proved a challenge. More positively, the difficulties associated with exploiting oil and gas reserves – which are dispersed in complex clusters – have made the nation a global leader in advanced hydrocarbons recovery techniques. For international oil companies with the capacity for enhanced oil recovery techniques, Oman therefore remains an attractive destination for investment. This comes as the Ministry of Oil and Gas is redoubling its efforts to maintain and expand crude oil production to meet domestic demand: the expansion of the refining facility at Sohar and the development of a new refinery operation are together set to more than double the output of refined products and open the door to a new export business. This is part of a 10-year plan that outlines spending of $60bn-70bn between 2013 and 2022 on oil exploration and production, and around $40bn on its efforts to exploit gas resources. At the same time, the Sultanate has made an effort to diversify its energy base in recent years, with several new programmes for solar and wind technology in the pipeline. This chapter includes interviews with Harib Al Kitani, CEO, Oman Liquefied Natural Gas (Oman LNG), and Nasser bin Khamis Al Jashmi, Undersecretary for the Ministry of Oil and Gas.
Explore chapterInsurance
Buy digital copy of this chapter - £18Malaysia’s insurance sector, which saw premiums rise by nearly 15% in 2011, is growing in tandem with the country’s economic development. The sector saw a wave of mergers and acquisitions for conventional insurers in recent years as regulators imposed a risk-based capital (RBC) framework. Now, with the application of RBC to takaful firms, the Islamic insurance sector is expected to consolidate as well. Other regulatory changes – the rising cap on motor insurance tariffs, potential liberalisation in the health sector – could boost the sector as well. Overall, Malaysia’s middle-income status and relatively low levels of penetration bode well for insurance growth in the medium to long term. This chapter includes an interview with Hans de Cuyper, Etiqa Insurance & Takaful.
Explore chapterInsurance
Buy digital copy of this chapter - £18Although underdeveloped by both international and regional standards, Algeria’s insurance market has seen rapid growth in recent years. Publicly owned insurance firms dominate the sector and held a market share of 70.2% in the first quarter of 2012. Accounting for 91.4% of the total in 2011, property and casualty products make up the majority of premiums, while the life market share stood at 7.6%. Motor insurance is still the most popular product, accounting for almost 50% of premiums. The sector has recently seen a number of important developments, such as the compulsory separation of life and non-life businesses, which came into force in 2011 and which the government hopes will boost the life segment in the long term. The segment remains small, with just 1% market share in 2011. However, this is expected to grow rapidly. This chapter contains an interview with Jean-Laurent Granier, CEO Mediterranean-Latin American region, Axa Assurances.
Explore chapterUtilities
Buy digital copy of this chapter - £18This chapter looks at Nigeria’s power output and generating capacity, both of which currently sit well below those of neighbouring countries, although work to address this is proceeding. According to figures from a World Bank study, Nigeria produced 124 KWh per year in 2010. Much of Nigeria’s power generation, transmission and distribution capacity is ageing and poorly maintained. At present, around 70% of national capacity, which works on natural gas, has either failed or is proven to be insufficient. Therefore, President Goodluck Jonathan has made the power sector a top priority, initiating a detailed road map for its development. The sector has already attracted interest: Germany-based Siemens recently built the 414-MW Geregu power plant and is engaging in the development of other projects in partnership with international investors. This chapter contains interviews with Sam Amadi, Chairman, Nigeria Energy Regulatory Commission; and John Rice, Vice-Chairman, General Electric.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18With strong banking and financial services segments, combined with an expanding insurance sector and global demand for Islamic bonds, sharia-compliant finance in Qatar is expected to see continued growth in 2013. Indeed, the sharia-compliant segment has recently shown some of the best growth figures in a country where expansion is generally high. In particular, takaful (Islamic insurance) and re-takaful has proved increasingly important to the market, and selling through Islamic banks’ channels remains a significant distribution mechanism for insurance. While insurance penetration is low at present, Qatar’s Islamic insurance sector is expected to expand in the future. This chapter includes an analysis on sukuks, sharia-compliant bonds.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Headquartered in Libreville, the Central African Stock Exchange (BMVAC) is one of only two regional bourses serving the Central African Republic, Cameroon, Chad, Congo, Equatorial Guinea and Gabon. Activity on BMVAC was relatively low in 2011, with just one public offering issued by Chad and limited secondary trading activity. However, the bourse has shown strong progress since its operations began five years ago and continued growth and aggressive outreach strategies by brokers and regulating authorities are likely to promote the expansion of the regional capital markets. This chapter contains an interview with Eric Paget-Blanc, Senior Director, Fitch France.
Explore chapterIndustry
Buy digital copy of this chapter - £18Industrial activity remains an economic mainstay in Egypt, with well-established sectors such as textiles, food processing, consumer staples and automotive assembly. Although 35% of industrial producers suffered significant setbacks in 2011 following the political upheaval, the consumer staples segment fared well throughout the year, and even experienced growth. The shift to modern retailing has only just begun in Egypt. With more than 98% of all commercial interactions taking place informally, modern retailers take a long-term perspective when entering the market. Although the average monthly income per household hovers at $244, Egypt is still considered to have a relatively large middle class, into which 85% of Egyptians fall based on income levels over $2 a day. Global grocery retailers have long eyed the Egyptian market, but in the past, success has been limited at best. Today, a small number of major international grocers are moving in once again. This chapter contains an interview with Osama Kamal, former president, Egyptian Petrochemicals Holding Company (ECHEM).
Explore chapterMining
Buy digital copy of this chapter - £18Mining and quarrying, excluding oil and gas, accounted for 2.7% of Ghana’s real GDP in 2011, having grown 19% that year. The country has been producing higher levels of many minerals, including bauxite, silica, coltan, gold and manganese. Gold in particular has been a major boon to the sector given the investor flight to gold that occurred in the wake of the global financial crisis. Indeed, gold production grew 6.3% in 2011 and many of the country’s producers saw significant increases in profits that year. With mineral exports accounting for nearly 40% of total exports and more than 28% of government revenue, investment in the sector has been increasing and prospects for growth are strong. This chapter contains interviews with Mike Hammah, Minister of Land and Natural Resources; and a dialogue between Peter Anderton, Senior Vice-President, AngloGold Ashanti, and Daniel Owiredu, Senior Vice-President of Operations, Golden Star Resources.
Explore chapterTransport
Buy digital copy of this chapter - £18In recent years an expanding population, a growing industrial base and the increasing number of tourists visiting the emirate have driven RAK’s transport infrastructure growth. Taken together with storage and communications, the transport sector contributed an estimated 6.55%, or about $313.6m, to the economy in 2010. To cater for the 40% increase in the number of registered motor vehicles over two years since 2009, road networks are expanding. New projects, such as the RAK Ring Road, will facilitate more direct travel routes and will serve to alleviate major congestion points. Moreover, the emirate also recently opened its fifth seaport, and work to upgrade the airport and expand air traffic routes is also under way. With the number of tourists visiting RAK widely expected to grow, in April 2012 airport authorities announced plans to increase passenger handling capacity from 500,000 to 2m. This chapter includes an interview with Colin Crookshank, Group General Manager of RAK Ports.
Explore chapterInsurance
Buy digital copy of this chapter - £18The country’s insurance sector is continuing to see steady growth despite difficult economic conditions and the burden of underwriting unprofitable motor insurance. In 2011 demand increased across all segments, particularly medical, fire and life. Indeed, the life insurance segment is seen as having one of the highest potentials for growth, due to its relatively low penetration compared to other products. Takaful uptake is also expected to see expansion, due to increased public interest in sharia-compliant models. However, the market for health insurance has seen lower profits, due to rising costs and increasing competition forcing a reduction in premiums. This chapter includes an interview with Othman M Bdeir, Chairman of the Jordan Insurance Federation.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Late 2011 and early 2012 saw dramatic changes in Turkey’s capital markets, with a rebranding campaign for the Istanbul Stock Exchange – to the Istanbul Bourse (IMKB) – as well as the appointment of new leadership. The IMKB was greatly affected by economic instability elsewhere around the world, because many of the markets key investors are foreigners. Under its new leadership, the bourse is focusing on restructuring – possibly as a private entity – and increasing the range of instruments to be used on the exchange. The IMKB is key to plans to make Istanbul a financial centre for the region, and as a new commercial code goes into effect in July 2012, minority shareholders and private equity traders are expecting to see their needs more readily met on the bourse. The chapter contains interviews with Vedat Akgiray, the President of the Capital Markets Board (SPK); Ibrahim Turhan, the Chairman of the IMKB Borsa Istanbul (IMKB); and Ilhami Koc, the CEO of Is Investment. Share analysis and data in the chapter were provided by OBG’s capital markets partner, Is Investment.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18This section includes information about the Johannesburg Stock Exchange (JSE), which occupies a prominent position in South Africa’s economic landscape. Today the JSE is recognised as one of the world’s leading exchanges connecting buyers and sellers in five different financial markets, namely, equities, equity derivatives, commodity derivatives, currency derivatives and interest rate products. It is ranked the 20th largest stock exchange in the world and has 403 listings and a market capitalisation of R7.27trn ($889.3bn) as of December 2011. Like exchanges around the world, the JSE has faced a challenging environment in the wake of the global credit crisis and is now working to make the market more attractive by incentivising larger currency deals and enhancing trading flexibility for investors. This chapter contains interviews with Nicky Newton-King, CEO, Johannesburg Stock Exchange (JSE); and Stephen van Coller, Chief Executive for Corporate, Investment Banking and Wealth Management, Absa & Barclays in Africa.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18A history of clear regulation and prudent oversight has served the Islamic financial services sector well in the challenging years since the onset of the global economic downturn. It also accounts for the sense of optimism within the sector, despite the challenges that are facing the broader global finance industry. In 2011 the opening of the Bahrain Financial Exchange added new depth to the country’s capital markets and brought with it an Islamic platform, the Bait Al Bursa, which has broken new ground with its sharia-compliant instruments and represents the latest in a long series of sharia-compliant innovations to emerge from Manama. As of April 2012, some 27 Islamic banks had been licensed by the Central Bank of Bahrain to operate in the Kingdom. The presence of such a large number of industry bodies which exert an influence far beyond the borders of Bahrain is one of the reasons why the country will remain a key player in the global Islamic financial service industry. This chapter includes interviews with Mohammed Ebrahim Mohammed, CEO, Bahrain Islamic Bank; and Mohammed Bucheerei, CEO and Member of the Board at Ithmaar Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Philippines insurance industry is poised for strong growth from a low base, being ranked as the third-smallest insurance market in the East Asian region. Penetration levels of just 14% indicate that there is considerable room for expansion. Sectoral figures are lobbying, with some success, to rewrite existing regulations, which they feel impose burdensome tax costs on the industry. Other expected changes include a gradual ramp-up of capital requirements, which should precipitate a wave of consolidation among the Philippines’ many small insurance providers. This chapter features interviews with Emmanuel Dooc, Commissioner, Insurance Commission; and Riza Mantaring, CEO, Sun Life.
Explore chapterIslamic financial services
Buy digital copy of this chapter - £18Sharia-compliant banking represents a large and vibrant market segment in Kuwait, as Islamic banks exhibit a similar profitability trend to their conventional counterparts. Within Kuwait, Islamic banks hold 35% of total banking assets, and it has been estimated that they are growing at a rate of 20% per annum. On the other hand, the 2008 financial crisis brought the sharia-compliant segment slow or stagnant expansion and, in some cases, contraction. This has highlighted the need for a comprehensive regulatory structure to complement the legal framework and the implementation of a new layer of regulations. The government is poised to address this need with new sukuk (sharia-compliant bonds) and trust laws, designed to establish a robust governance framework for sukuk issuance. This chapter includes interviews with Mohammad S Al Omar, CEO, Kuwait Finance House; and Mohammed Jarrah Al Sabah, Chairman, Kuwait International Bank.
Explore chapterCountry Profile
With only 3m inhabitants in an area larger than Western Europe, the country has long been known for its unique nomadic culture. Nearly half of all Mongolians still make their living as herders on the steppe, although many have migrated in recent decades to Ulaanbaatar, which hosts a third of the population. Mongolia became a Soviet Union satellite after its former ruler, the Chinese Qing dynasty, collapsed in 1919. Since the dissolution of the USSR, however, the country has attracted attention from international investors for its copious endowments of minerals — particularly coal, copper and gold. Recent changes to investment laws that allow for foreign ownership have primed Mongolia for massive inflows of foreign direct investment (FDI) and expected GDP growth rates of 15% or more.
Explore chapterInsurance
Buy digital copy of this chapter - £18At 1.7%, Indonesia’s insurance penetration rate is the lowest in the region, compared to 3.7% in Thailand, 5.1% in Malaysia and 11.1% in South Korea. Underwriters hope that as disposable income grows, the middle class – now estimated at up to 40% of the population – will purchase more coverage. In fact, gross premiums have grown an average of 23% annually since 1996, reaching a total of $16.02bn in 2010. This potential has brought foreign insurers into the market, mainly through buying up local players, and opportunities for mergers and acquisitions still remain. Sectors with potential include Islamic insurance, or takaful, which grew 47.6% in 2010. Other areas for growth include microinsurance, which would benefit from the more than 120m Indonesians living on less than $2 per day. This chapter includes an interview with Hotbonar Sinaga, CEO, Jamsostek.
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Explore chapterThe Report: South Africa 2012
Explore chapterCapital Markets
In June 2015, Saudi Arabia’s stock exchange entered a new era by opening to foreign participation, an event that has one of the most keenly anticipated financial events in the region. Yet this is only the latest step in a longer process of market reform that has seen the exchange evolve from a single-product market to an increasingly diverse investment platform. With a raft of regulatory changes in the pipeline, including alterations to the organisational structure of the exchange and its relationship with the regulator, the coming year promises to be an interesting one for Tadawul’s broadening base of market participants. This chapter includes interviews with Mohammed Al Jadaan, Chairman, Capital Market Authority (CMA); Adel Al Ghamdi, CEO, Saudi Stock Exchange; and John Sfakianakis, Middle East Director, Ashmore Group.
Explore chapterFinancial Services
Buy digital copy of this chapter - £22Sharjah's financial services sector features prominent banks and a thriving insurance industry. The financial technology space is also advancing, propelled by national strategies promoting digital finance and Sharjah's commitment to innovation. The sector is subject to Emiratisation policies, with an aim for the sector’s workforce to include 45% Emirati nationals by 2026. Additionally, the UAE's financial landscape is adapting to sustainable finance, evident in Sharjah's issuance of the GCC's first sustainable sovereign bond in 2023. The insurance sector is also undergoing transformation, with the Central Bank of the UAE overseeing its development and adherence to stringent solvency guidelines. The future outlook remains positive, driven by the UAE's economic growth, and initiatives fostering innovation and sustainability. This chapter contains interviews with Khaled Mohamed Balama, Governor, Central Bank of the UAE; Mohamed Khadiri, CEO, Bank of Sharjah; and Ahmad Abu Eideh, CEO, Invest Bank.
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Buy digital copy of this chapter - £22Kuwait’s insurance sector is characterised by the strong presence of several key players and the entry of new competitors in what is seen as a relatively compact market. While the sector has historically maintained a smaller scale than its GCC counterparts, in recent years a new law and several policy amendments have spurred growth in the industry. The introduction of compulsory insurance requirements in the auto sector and for foreigners has encouraged the uptake of a variety of insurance products. While there is room for expansion, the potential for advancement in this area lies in enhanced marketing strategies and increased digitalisation. This chapter contains an interview with Mohammad Al Otaibi, Head of the Insurance Regulatory Unit.
Explore chapterInsurance
Buy digital copy of this chapter - £9Abu Dhabi’s insurance sector has been boosted by post-Covid-19 pandemic recovery and a competitive landscape. Gross written premium and underwriting income continue to rise, particularly for health and medical coverage. Digitalisation, competition and potential market consolidation are expected to shape the sector’s future, and Abu Dhabi-based providers stand well positioned to benefit from ongoing economic growth and a broadening market, especially with the expansion of compulsory medical coverage. Factors like the IFRS 17 transition and post-pandemic medical costs are expected to drive improved financial performance. While the level of competition remains high, companies adapting to regulatory controls and solvency requirements will flourish in the evolving landscape. The growth in the number of active policies issued indicates strong market demand.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Saudi Arabia’s energy strategy revolves around extracting maximum economic benefit from its remaining hydrocarbons reserves while expanding renewable power capacity at home by investing in research, development and innovation activities to develop clean energy solutions, as well as to reduce the environmental impact of fossil fuels. Vision 2030 aims to generate 50% of domestic power from green sources by 2030 and amid global climate change mitigation efforts, the Kingdom anticipates a decline in hydrocarbons demand in the years ahead. The National Renewable Energy Programme is leading the shift to sustainable energy as a key component of economic diversification. The Kingdom anticipates continued profitability from hydrocarbons in the immediate term, with plans to invest this profit into clean and renewable energy projects. This chapter contains an interview with Majid Refae, CEO, Desert Technologies Industries.
Explore chapterEnergy, Construction and Infrastructure
As a member of the Organisation of the Petroleum Exporting Countries and 48.4bn barrels of proven crude oil reserves – the most in Africa – and 1.5trn cu metres of proven natural gas reserves, Libya is a significant player in the regional and global hydrocarbons sector. The state-run National Oil Corporation (NOC) is responsible for exploration and production. By increasing the involvement of IOCs such as TotalEnergies, Eni, ConocoPhillips, OMW, and Repsol, the NOC is seeking to boost production from current assets and finance repairs and upgrades to mid- and downstream infrastructure. The latter is set to expand in Misrata through a potential new hydrocarbons law and a series of regulatory reviews to enhance the industry’s management and structure. Libya’s urban population has been rising rapidly and with the population predicted to increase in the coming years, access to housing, food, clean drinking water and employment opportunities – as well as health care, education and transport – remain essential priorities. Companies from Egypt, Germany, Italy, Tunisia and Turkey are the most likely participants in the reconstruction projects that are set to create job opportunities in a country that will need $134bn over the next 10 years to facilitate its reconstruction. Private investment is expected to drive these developments and account for 60% of project financing, with the remainder coming from the public sector. Driven by these trends, Misrata’s construction sector is poised for significant growth as Libya’s commercial and industrial centre. The infrastructure pillar of Ihya Libya Vision 2030 outlines key objectives that include evaluating existing infrastructure developments to ensure that they align with national priorities. To achieve this, the initiative will establish a national infrastructure fund and strategy, and develop a public-private partnership framework to secure financing that will be allocated based on a merit-based system. In the coming years construction and infrastructure will continue to play a crucial role in Misrata’s economic recovery. Ultimately, planned developments will facilitate the growth of local businesses and make the city more attractive to foreign investors, generating more opportunities for economic growth.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Bahrain, known as the birthplace of the Arabian Peninsula’s oil industry, is navigating the challenges and opportunities of the energy transition. While focusing on renewables production, energy efficiency and sustainability, the kingdom is also leveraging its remaining hydrocarbons resources. The country has made promising hydrocarbons discoveries that indicate the potential for further expansion in the sector. The industry is receiving a boost from downstream developments, including the modernisation of the Sitra refinery, located south of the capital Manama. Bahrain’s utilities segment is driving demand for new infrastructure and investment due in part to renewable energy and efficiency strategies. The government is restructuring its oil and gas holding company, Bapco Energies. This endeavour entails the potential spin-off of significant assets in transport, logistics and infrastructure in the coming years. This chapter contains an interview with Mark Thomas, Group CEO, Bapco Energies.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £22The industrial sector is one of the key targets for the country’s diversification agenda. One potential area for growth is in agri-business, where the demand for palm oil and its derivatives is projected to increase. The development of free zones in Djibouti is unlocking the potential for global trade, attracting foreign investment and facilitating international commerce by harnessing the country’s existing expertise in logistics and port services to boost growth in related sectors. Additionally, the nascent e-commerce segment has promising growth prospects, as more consumers embrace online shopping and digital platforms for retail transactions.
Explore chapterEnergy
Buy digital copy of this chapter - £22With Africa’s second-largest proven crude oil reserves – 36.9bn barrels as of 2021 – Nigeria remains a key global energy player. Despite the rise in crude oil prices resulting from Russia’s invasion of Ukraine, structural challenges facing the industry in Nigeria have constrained its ability to maximise export revenue from hydrocarbons. The country has the potential to benefit significantly from its natural resources by implementing reforms and improving infrastructure. Moreover, with many European countries seeking alternative gas supplies, Nigeria can attract investment to upgrade its energy infrastructure. The successful enactment of the Petroleum Industry Act in 2021 and government initiatives to improve security in the energy sector should play a crucial role in reviving interest in Nigeria's hydrocarbons reserves. This chapter contains an interview with Olumide Adeosun, CEO, Ardova.
Explore chapterEnergy
Buy digital copy of this chapter - £22As Russia’s invasion of Ukraine and climate change continue to disrupt market dynamics, the transition to cleaner sources of energy has never been in sharper focus. Oman’s policy response is guided by Oman Vision 2040, which aims to put the economy on a more diversified and sustainable footing, while protecting the environment and improving livelihoods. Other notable initiatives include the country’s goal of becoming a net-zero economy by 2050, and an international leader in the export and production of hydrogen. This includes adding 25 GW of captive solar and wind capacity to serve green hydrogen projects. Oman has also pledged to reduce its greenhouse gas emissions by 7% compared to the business-as-usual scenario by 2030. Oman’s reserves of natural gas are set to play a leading role in fuelling industrial growth in the coming years, as processes that currently use fossil fuels switch to green hydrogen, allowing Oman to step up exports of its surplus gas as liquefied natural gas. This chapter contains interviews with Talal Al Awfi, CEO, OQ; Hamed Al Naamany, CEO, Oman LNG; Mazin Al Lamki, CEO, Energy Development Oman; and Steve Phimister, Managing Director, Petroleum Development Oman.
Explore chapterInsurance
Buy digital copy of this chapter - £22One of the world’s largest Islamic finance markets, Kuwait has a wide range of banking, sukuk (Islamic bonds) and takaful (Islamic insurance) entities and products on offer, with recent headwinds such as the Covid-19 pandemic proving little obstacle to the sharia-compliant sector’s continuing robust growth. Indeed, the country’s Islamic banks have been expanding faster than its conventional ones in recent years, with a new merger making an Islamic banking provider an even bigger player in the local market. At the same time, sukuk issuance continues to bolster the country’s capital markets, while takaful products compete for market share with well-established conventional players. Increasingly, Islamic financial technology is playing a role, with Kuwait home to many innovative fintech outfits benefitting from a central bank-supported drive towards digitalisation. This chapter contains an interview with Abdul Wahab Al Rushood, Acting Group CEO, Kuwait Finance House.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22As Saudi Arabia moves to diversify its economy and reduce its reliance on oil revenue, the energy sector is set to remain of paramount importance to future development. The Kingdom is positioning itself to increase its oil exports over the coming decade in a move expected to help the country maintain its role as a reliable and versatile global supplier in an increasingly uncertain market. State-owned energy firm Saudi Aramco is currently working to increase maximum production capacity from 12m barrels per day (bpd) to 13m bpd by 2027. This chapter contains interviews with Turki Al Shehri, CEO, Engie Saudi Arabia; and Gregory Fayet, CEO, EDF Renewables Saudi Arabia.
Explore chapterEnergy & Mining
Buy digital copy of this chapter - £22As the country returns to robust economic growth and its population expands, electricity demand is set to rise. At the same time, new offshore discoveries promise a brighter future for the hydrocarbons sector, while the renewables segment will be instrumental in helping Côte d’Ivoire achieve its clean energy goals and improve access in remote areas. Against this backdrop, demand for projects across the sector looks set to continue at a steady pace. Côte d’Ivoire’s mining sector is well positioned to continue its expansion, as a surge in exploration activity is taking place. As only a small fraction of the country’s mining area has been explored to date, there is significant growth potential in the years ahead. The government’s commitment to the sector bodes well for the future, while debate about updating the mining code show a receptiveness to industry and community concerns. Moving forwards, sustainability and awareness of mining’s impact on the environment will remain key priorities. This chapter includes an interview with John van Zuylen, CEO, African Solar Industry Association.
Explore chapterTourism
Buy digital copy of this chapter - £22Bahrain has targeted the tourism sector as a top driver of growth and diversification as the economy recovers from the Covid-19 pandemic. Indeed, as the only island nation in the Middle East and home to large-scale events such as the Formula 1 Bahrain Grand Prix event, the country is well positioned to meet these goals. It has long been a top destination for travellers from Saudi Arabia – attracted by its entertainment, dining and shopping options – with the two countries connected via the King Fahd Causeway. Officials are looking to diversify both source markets and offerings, and have implemented a series of measures and projects aimed at meeting these objectives. This chapter contains an interview with Nasser Ali Qaedi, CEO, Bahrain Tourism and Exhibitions Authority.
Explore chapterICT & Innovation
Buy digital copy of this chapter - £22The development of Egypt’s ICT sector is supported by concerted efforts to diversify and develop a knowledge-based economy. Indeed, ICT’s contribution to GDP steadily rose from $5.1bn in FY 2017/18 to $8bn in FY 2020/21. Moreover, the pandemic saw a swift increase in demand for telecom services. In September 2021 the authorities announced a $360m plan to provide more than 60m people in 4500 villages with fibre-to-the-home internet. Moreover, the establishment of smart cities will also drive the adoption of next-generation technologies such as the cloud computing, artificial intelligence and 5G, with the internet’s contribution to GDP forecast to expand from $15.5bn in 2020 to $26bn in 2025 and $103.3bn in 2050. Finally, the government is working to develop digital payments and online shopping that will help sustain investment as companies adapt to meet new customer demands. This chapter contains an interview with Adel Hamid, CEO, Telecom Egypt.
Explore chapterInsurance
Buy digital copy of this chapter - £22Faced with the changes associated with technological innovation, the global transition towards renewable energy and increasingly unpredictable weather patterns, the dynamics of the global insurance industry are shifting. While Qatar’s insurance market is growing, certain segments remain underdeveloped. The sector has traditionally been hindered by low insurance penetration and therefore has significant room for growth. Insurance products are becoming more popular due to several factors, including growing awareness about the benefits of insurance, the introduction of additional mandatory lines of coverage, a burgeoning financial technology ecosystem that makes products more affordable and accessible, the likelihood of increased inbound tourism and ongoing infrastructure development.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22International oil and gas prices dropped dramatically in early 2020 when countries around the world, including Ghana, enacted measures to curb the spread of Covid-19. Rising oil prices continued into early 2022, engendered in part by geopolitical tensions involving some of the world’s largest producers. The turbulent context poses challenges for Ghana’s hydrocarbons sector, which is still in its infancy. But amid the uncertainty, Ghana looked set to embark on cautious progress. Indeed, prices rebounded in 2021 as economic activity gradually returned to normal. Moreover, the government has set out to transform the country into a regional refining centre, with feasibility studies on the Petroleum Centre Infrastructure Master Plan scheduled for 2022. Ghana is also gearing up to deliver more sustainable energy over the long term, in accordance with goals outlined at the 2021 UN Climate Change Conference. This chapter contains an interview with Rahul Dhir, CEO, Tullow Oil.
Explore chapterAgriculture
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In recent years focus has returned to agriculture as an important source of revenue for a diversified Nigerian economy. But despite the sector’s robust performance, the country remains vulnerable to food insecurity and is unable to meet domestic demand. This is explained by low levels of irrigation and an outdated land tenure system which have kept agricultural productivity low and caused post-harvest losses. Moreover, the Covid-19 pandemic has further exacerbated the challenges that were already present in the sector, as lockdowns and panic-buying not only contributed to a hike in food prices but also disrupted supply chains. Hence, plans to revitalise agriculture are expected to be centred on increasing local production and improving the value chain.
This chapter contains interviews with Mezuo Nwuneli, Managing Partner, Sahel Capital Agribusiness Managers; and Osazuwa Osayi, Co-founder and Co-CEO, Farmforte.
Industry & Energy
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Benefitting from a low cost base, and well-developed and connected infrastructure, Sharjah has become a key industrial player in the region. Indeed, the emirate is a significant contributor to the UAE’s total manufacturing output, accounting for around one-third of the sector. Meanwhile, in recent years the contribution of hydrocarbons production to GDP has remained comparatively small, representing around 4% of the emirate’s total GDP. This is thanks not only to a push to diversify the economy, but also higher levels of investment in and utilisation of renewable energy sources. This trend has enhanced the role that private service providers and independent power and water producers play in the power-generation segment.
This chapter contains interviews with Hussain Al Mahmoudi, CEO, Sharjah Research Technology and Innovation Park; Khaled Al Huraimel, Group CEO, Bee’ah; Hatem Al Mosa, CEO, Sharjah National Oil Corporation; and Abdulwahab Al Sadoun, Secretary-General, Gulf Petrochemicals and Chemicals Association.
Tourism
Buy digital copy of this chapter - £22Tourism played a central role in the Philippines’ economic development in the years leading to 2020, and an increasing emphasis on sustainability underscores the sector’s importance for the coming years. While the popular island of Boracay has long drawn tourists, local authorities continue work to diversify destinations through the creation of tourism enterprise zones. These endeavours, as well as those aimed at widening source markets, have laid the groundwork for an expanded yet more tailored offering. Although the 2020 Covid-19 pandemic heavily impacted tourism, Philippine policymakers and stakeholders are looking to adapt the sector’s offering and prioritise domestic tourism to support the national recovery. Enhanced health and safety measures have been implemented to align hotels, tourism sites and other services with the demands of the new normal. Meanwhile, a shift towards digitalisation and the use of technology to upskill the workforce are readying the sector for the future. This chapter contains an interview with Aileen Clemente, Chairman and President, Rajah Travel.
Explore chapterMining
Buy digital copy of this chapter - £18Alongside the upstream energy sector, mining has long served as the backbone of Papua New Guinea’s economy. In 2019 the mining and quarrying sector accounted for 10.3% of GDP and was a major source of foreign exchange earnings. Like the other extractive industries, mining has emerged as a priority for reform under the administration of Prime Minister James Marape. The country has significant deposits of gold, copper and other precious metals, many of which remain untapped. However, the future of some mining projects in the pipeline remain uncertain, given protracted negotiations between the government and mining companies. Looking further ahead, the government appears keen to rebalance the sector towards greater public ownership of mines, although it is expected that the capital and expertise of private investors drawn to transparent regulations will still be required. This chapter contains an interview with John Lewins, CEO, K92 Mining.
Explore chapterEnergy & Utilities
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Egypt’s energy sector has traditionally been defined by the country’s status as the largest oil producer outside of the Organisation of the Petroleum Exporting Countries and the third-largest producer of dry natural gas in Africa. Its control over the Suez Canal, meanwhile, places it at the centre of the global energy network, safeguarding shipments between the Gulf, Europe and North America. In recent years the government has implemented an energy strategy aimed at eliminating power shortages and harnessing the private sector to broaden the range of energy inputs. The fruits of this effort are a transformation of a power deficit into a power surplus, the revitalisation of Egypt’s liquefied natural gas sector, and the emergence of solar and wind industries that are establishing the country as a leader for renewables.
Islamic Financial Services
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As one of the UAE’s two major financial centres, Abu Dhabi has played a prominent role in the development of the nation’s Islamic financial services (IFS) sector. In January 2020 Islamic banks accounted for about 18% of total banking sector assets in the country, according to the Central Bank of the UAE. In the local capital markets, sovereign and corporate sukuk (Islamic bonds) issuances comprise the bulk of the Islamic offerings, while in the insurance sector takaful (Islamic insurance) companies operate as either standalone entities or as part of larger, conventional banks. Abu Dhabi’s local IFS market features an onshore component, populated by companies transacting directly with the domestic market, and an offshore component, operating within the jurisdiction of the Abu Dhabi Global Market (ADGM), the emirate’s financial free zone that opened in late October 2015. ADGM was home to more than 100 financial service companies as of early 2020.
Capital Markets
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The development of Indonesia’s capital markets has been buoyed by strong investor interest and high, consumption-led economic expansion on the back of a push to boost annual GDP growth. Ongoing reforms hope to liberalise Indonesia’s financial landscape and provide a legal and regulatory basis for product diversification and deeper institutional investment. Nevertheless, slower regional growth as a result of the Covid-19 pandemic looks likely to strain liquidity and test debtors’ ability to repay, while also possibly acting as a barrier to fundraising. In the medium term, the proliferation of digital financial tools will continue to bring new retail players to the market – a move that has encouraged the government to include financial literacy education alongside its reforms to increase the participation of Indonesians in order to deepen the market. This chapter contains interviews with Inarno Djajadi, President Director, Indonesia Stock Exchange; and Jemmy Paul Wawointana, President Director, Sucor Asset Management.
Energy & Mining
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Côte d’Ivoire has traditionally based its energy supply on a combination of gas-fired generation and hydropower, being the first in sub-Saharan Africa to leverage the use of independent power producers for energy generation. However, the need to fulfil rising demand and make up for years of underinvestment in the early 2000s is driving diversification of the energy mix, with a focus on biomass and solar to add to the country’s 2200 MW of installed capacity. Although there is strong potential for renewable energy investment, improving and simplifying the tender process could help attract greater interest. In terms of hydrocarbons, Côte d’Ivoire has a significant amount of unexplored territory in its waters, and adequate investment incentives will play a significant role in precipitating any future discoveries. The country is also working to develop the mining industry and exploit known pockets of key mineral resources, such as gold, bauxite, diamonds and nickel. This chapter contains an interview with Eric Amoussouga, CEO for Francophone Africa, General Electric; and Christine Logbo-Kossi, Executive Director, Chamber of Mines of Côte d’Ivoire.
Explore chapterAlternative Investments
Buy digital copy of this chapter - £18The ongoing liberalisation of capital markets provides a positive long-term outlook for Saudi Arabia’s alternative investment segment. The Kingdom is a regional leader in mutual fund activity, with the deepest and most varied investment pool in the GCC. Nevertheless, some structural hurdles remain to fund expansion in Saudi Arabia. The lack of arrangements for the mutual recognition of fund licences between the GCC states means that regional funds face constraints to distribution. At the same time, early-stage investment – which has traditionally been dominated by government funds and accelerator schemes – is starting to attract regional interest. With markets in turmoil as a result of the spread of Covid-19 in the first half of 2020, alternative assets may prove to be a more resilient part of the investment landscape.
Explore chapterIslamic Financial Services
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Sharia-compliant banks are the dominant players in Qatar’s IFS sector, and the merger between Barwa Bank and International Bank of Qatar is a crucial step in increasing the sector’s share of the country’s overall banking market, which has experienced a decline in recent years. Although conventional players still dominate both the banking and insurance sectors, recent growth figures indicate that there is an increasing appetite for sharia-compliant banking and takaful (Islamic insurance), particularly in the domestic market. Looking ahead, the QCB’s decision to standardise and centralise sharia regulations looks set to boost confidence and encourage growth. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank.
Explore chapterIndustry & Mining
With an increasingly diversified manufacturing base, the industrial sector has become an important component of Morocco’s GDP. The country produces an array of finished products and components for customers not only in traditional markets such those in southern Europe, but also increasingly across Africa, Asia and the Americas. The growing strength of industrial activities is also a reflection of efforts to diversify the economy away from a traditional dependency on agriculture. Home to the world’s largest known reserves of phosphates, mineral resources have traditionally played an important role in the Moroccan economy. The authorities have been able to establish the country as a major exporter of the resource, and are now looking to steer the sector towards other minerals. As Morocco works to diversify its economy, the extraction and processing of a wider variety of its mineral resources has been identified by government officials as a strategic imperative for economic development. This chapter contains an interview with Mohammed Amal Guedira, Founder and CEO, Automotive Moroccan Group Business and Consulting.
Explore chapterRegional Relations
Given its strategic location at the southernmost point of the Caribbean, Trinidad and Tobago serves as a nexus between the island nations to the north and its neighbours on the South American mainland. It has been part of CARICOM since its inception in the 1970s and according to the IMF, the region’s economies are expected to grow by 2% in 2019 and 2020, supported by economic expansion in the US and recovery from the 2017 hurricanes. Improving economic performance, integration and collaboration in sectors such as energy have put the Caribbean in an advantageous stead. Policies that centre around the regional harmonisation of regulatory procedures will likely prove important in reducing barriers to increased social integration and intra-regional trade. This chapter contains an interview with Allen Chastanet, Prime Minister of St Lucia.
Explore chapterEnergy & Utilities
The Ghanaian energy sector has undergone transformative changes in recent decades. When Ghana made its first discovery of deepwater oil and gas in 2007, biomass was the largest component in total energy consumption. The subsequent exploitation of this new hydrocarbons resource, combined with a national drive towards electrification, saw a significant reduction in the importance of biomass as an energy input. Ghana has one of the highest electrification rates in sub-Saharan Africa. A recent drive to develop electricity infrastructure has brought the period of unstable supply and raised installed generation capacity to an end. However, this development brought its own challenges: oversupply in the system resulted in the government paying for power it did not utilise, leading to contract renegotiations with private sector power producers that threaten to undermine investor confidence. This chapter also contains interviews with John Peter Amewu, Minister of Energy; and Kevin Okyere, CEO, Springfield Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18The performance of Bahrain’s insurance sector has reflected national macroeconomic trends in recent years, with premium growth remaining sluggish and, in some cases, declining, even as listed companies’ bottom lines recorded notable growth. Motor and medical insurance dominate the industry, and the recent promulgation of a national health insurance law is set to bring the latter additional growth. With the crowded market ripe for consolidation, digital channels offering customers greater choice among policies and the implementation of mandatory health insurance, the sector could see a return to robust growth in 2020 and beyond, further supported by the government’s infrastructure development agenda and population growth.
Explore chapterEnergy
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The energy sector in Oman has continued to evolve within a context of uncertain economic conditions and a rapidly changing global energy landscape. Becoming a leader in the development of enhanced oil recovery techniques has allowed it to maintain high production rates. At the same time, major gas discoveries and the launch of a series of big-budget projects have significantly raised the country’s profile as a producer and exporter of gas and related products. Notably, government incentives are encouraging industry heavyweights to implement renewable alternatives in the extraction of oil and gas where possible, both to preserve gas stock and reduce the sector’s carbon footprint. This chapter contains interviews with Musab Al Mahruqi, CEO, Oman Oil and Orpic Group; and Mohammed Al Jahwari, CEO, Hydrocarbon Finder.
Explore chapterICT
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The ICT sector is perhaps Myanmar’s most advanced area of the steadily growing economy. Nevertheless, the era of easy growth and customer acquisition for telecommunications players has come to an end, and a new phase of intense competition has ensued. Myanmar has wide-ranging plans to grow its digital economy and is actively engaging in efforts to improve the foundations of its digital ecosystem and convert its smartphone-wielding population into online consumers. However, it will require significant development of a policy framework, as well as investment in digital literacy and ICT skills, to realise the country’s potential. As the ICT sector matures, there is room for companies to grab market share in the country’s nascent but fast-growing digital economy. This chapter contains interviews with U Thant Sin Maung, Minister of Transport and Communications; and Alok Kumar, Group CEO, Oway.
Explore chapterInsurance
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The UAE’s insurance market is the largest in the GCC, and Dubai-based institutions, whether catering to the domestic sphere or serving the region from the emirate’s renowned financial free zone, play a central role in it. Dubai has a growing and multi-tiered insurance sector, with a conventional market as well as an offshore segment that features specialists and reinsurers that cover other markets in the region. A challenging economic environment sparked by low oil prices and an ongoing process of regulatory reform have slowed premium growth over the past year, but an increasingly efficient sector has succeeded in maintaining aggregate profitability levels. Both regulatory reform and market volatility remain factors that will significantly affect growth prospects in 2020.
Explore chapterIslamic Financial Services
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Kuwait’s Islamic financial services sector is well established, with a long history in both Islamic banking and takaful, or Islamic insurance. The segment has expanded in recent years, building upon the country’s reputation as an emerging centre for sharia-compliant banking, insurance and investment products. The government has enacted a series of laws and regulations aimed at further developing Islamic finance, and there remains a strong demand for such products. This is reflected in the country’s increasing world share of sharia-compliant assets, with Kuwait accounting for 6.3% of such products in the second quarter of 2018, up from 6% during the same period of 2017. This chapter contains interviews with Mazin Al Nahedh, CEO, Kuwait Finance House; and Raed Jawad Bukhamseen, Vice-Chairman and CEO, Kuwait International Bank.
Explore chapterEnergy & Utilities
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Mexico’s energy and utilities sector has benefitted from increased openness and competition brought about by the 2013 energy reform. Although recent policy changes have sought to limit the involvement of foreign and private firms, there are still significant opportunities for investment, particularly as the national oil company struggles to reduce its debt. Although political risk and uncertainty are likely to deter investors, private firms are still expected to play an important role in assisting smaller local providers. As demand continues to rise, investment in upstream projects is aiming to solve the problem of dwindling crude oil and natural gas resources, and ensure the country possesses enough resources for the future. In addition, despite the new government cancelling clean energy auctions, private developments and deals in the renewables segment are moving forward, with multiple solar energy projects under way. This chapter contains an interview with Tania Ortiz, CEO, IEnova.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Papua New Guinea has made strides in recent years to expand its capital markets and promote liquidity. However, the performance of the country’s stock exchange – which changed its name to PNGX Markets in July 2019 – has been affected by a series of economic disruptions. The 7.5-magnitude earthquake that struck PNG in February 2018 contributed to a contraction in economic activity for most of the year, following steady growth in 2017. Extractive industries suffered extensive damage, but fears of a recession had dissipated by the end of 2018 as macroeconomic recovery led to an uptick in market activity for the last few months of the year. Political unrest after the resignation of long-serving Prime Minister Peter O’Neill in May 2019 generated concern over future investment. However, the new government, led by Prime Minister James Marape, is now in a position to strengthen the national economy through the capital markets. This chapter also contains an interview with Anthony Smaré, Chairman, Nambawan Super.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Traditionally dominated by textiles, the industrial sector is increasingly attracting investment in higher-value segments such as pharmaceuticals, electronics, automotive and aeronautics as a result of a skilled and competitively salaried workforce. Despite the sector’s strengths, however, progress stagnated following the 2011 revolution. In view of revitalising the broader economy, the 2019-20 economic recovery plan, seeks to boost the competitiveness of the country’s key industries. Tunisia’s retail market remains, however, underdeveloped relative to North African peers, in particular to Morocco and Egypt. This results in a number of significant opportunities that are available for both domestic and international operators, particularly in areas such as e-commerce, among others. Nonetheless, distribution networks continue to improve and expand, while the presence of global brands and franchises is on the rise. This chapter contains interviews with Hichem Elloumi, CEO, COFICAB; and Vice-President, Tunisian Union of Industry, Trade and Handicrafts; and Hosni Boufaden, President, Tunisian Federation of Textiles and Clothing.
Explore chapterCapital Markets
One of the oldest stock exchanges in Asia, the Philippine Stock Exchange (PSE) is delivering robust returns. In the decade leading up to 2018 there were more years of gains than losses, with the 2009-14 period showing six consecutive years of expansion. Reinforcing the underlying trend, during the first few months of 2019 the PSE index began a slow and steady climb, up from 7466.02 points at the end of 2018 to 7859.78 points near the end of August 2019. The period ahead should see more listings on the Philippine Dealing and Exchange as the public infrastructure drive gathers pace, giving investors a comparatively less volatile means of investment in the Philippines’ capital markets. This chapter also contains interviews with Ramon S Monzon, President and CEO, Philippine Stock Exchange; and Lynette Ortiz, CEO, Standard Chartered Bank Philippines.
Explore chapterTransport & Logistics
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Notable progress has been made in expanding the country’s road system, and increasing port and air transport capacity. Furthermore, new projects are set to increase the transit of goods along Colombia’s railways and rivers. Rising investment in these segments has boosted the competitiveness of the country and contributed to growth. Nevertheless, Colombia faces high logistics costs and ongoing bottlenecks to connectivity. The transport infrastructure gap is large and set to grow further as demand rises. Significant investment will be needed across the sector to close this gap and ensure that the country can sustain its economic development. While this presents a challenge, the country stands to benefit from its mature public-private partnership framework and openness to foreign direct investment. Leveraging private sector expertise and investment within the framework of a long-term national strategy presents a promising formula for an integrated transport network. This chapter contains an interview with Ángela María Orozco Gómez, Minister of Transport.
Explore chapterMining
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With a vast wealth and diversity of metals and minerals, Peru is rich in natural resources. Mining plays a significant role in Peru’s non-oil economy, especially in terms of exports and job creation. However, investment in the sector fell in recent years, largely owing to external headwinds such as the drop in commodity prices that begun in 2014. Internal challenges also slowed sector activity, with social conflicts and community protests delaying several projects. The sector’s development will depend on the speed and manner in which these challenges are dealt with, as well as on the reduction of bureaucratic bottlenecks and increases in investment incentives. Given the number of projects set to come on-line in the near future, the production of minerals is expected to return to more stable levels. This chapter contains interviews with Mark Cutifani, Chief Executive, Anglo American; and Nick Holland, CEO and Executive Director, Gold Fields.
Explore chapterEnergy
Buy digital copy of this chapter - £18Aside from the member states of the Organisation of the Petroleum Exporting Coun¬tries, Egypt is Africa’s largest oil producer, as well as its third-largest producer of dry natural gas, according to the US Energy Information Administration. Despite the abundance of its natural resources, how¬ever, the country faced an energy crisis following the 2011 revolution, marked by frequent blackouts and a slowdown of foreign investment from international oil and gas interests. In response, the government has undertaken a wholesale reform of its subsidy system, licensed exploration activities in newly discovered fields and renewed its efforts to pay down its outstanding debt. These changes have permitted natural resource development that is more financially sustainable and attracted foreign direct investment to support the exploration and exploitation of new sources. This chapter contains interviews with Tarek El Molla, Minister of Petroleum and Mineral Resources; and Maria Moraeus Hanssen, CEO and Chairman, DEA Deutsche Erdoel AG.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Indonesia’s capital markets have been on a steady growth path in recent years, with market capitalisation and trading activity showing strong expansion since 2012. Meanwhile, the number of initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX) reached a 26-year high in 2018. Debt markets have been resilient despite widespread global volatility, which prompted significant outflows from emerging markets that year. Nonetheless, some challenges remain for stakeholders: factors such as illiquidity, potential election shocks and stringent regulatory requirements continue to weigh on domestic companies’ market participation. The authorities are seeking to encourage more IPOs and boost broader market liquidity, although regulatory challenges and elevated listing fees continue to impede progress.A planned small and medium-sized enterprise board has yet to be established. New regulations surrounding cryptocurrency trading could also affect plans to diversify IDX product offerings, even as reforms help the sector maintain its upward trajectory in 2019. This chapter also contains an interview with Inarno Djajadi, President Director, Indonesia Stock Exchange.
Explore chapterAlternative Investments
Buy digital copy of this chapter - £18Alternative asset activity in Saudi Arabia is taking place across an increasingly diverse range of investment instruments. The Kingdom is a regional leader in mutual fund activity, with the deepest and most varied investment pool in the GCC. The size of the Kingdom’s fund market means that its key participants are some of the largest and most influential in the wider MENA financial sector. Meanwhile, in the venture capital arena, the domination of state-funded programmes is giving way to private capital, which has until now been largely focused on private equity opportunities. While 2018 was a quiet year for deal-making across the region, the government’s bold programme of economic reform is expected to generate new opportunities over the short to medium term.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Qatar is home to some of the region’s most prominent sharia-compliant institutions. Despite operating in a crowded and competitive arena, over recent decades the country has claimed a significant share of the banking, insurance and investment segments. More recently, Qatar faced the challenges of a sustained dip in oil prices and a regional economic blockade. However, due to a prudent regulatory structure and the government’s ability to support its most important Islamic institutions, the sector remains largely unaffected by economic turbulence, and is well positioned to take advantage of the opportunities emerging from the Qatar National Vision 2030 strategy and preparations for the 2022 FIFA World Cup. This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18Major changes are on the horizon in the Sri Lankan insurance industry, with much of the groundwork laid for future growth in recent years. A government focus on regulatory improvements, the modernisation of processes, consolidation and further investment in human resources point to continued opportunities for expansion in the sector. While the performance of the life insurance segment has been bumpy, the sector as a whole continues to thrive. Double-digit growth is expected for both general and life insurance in the short term as many lines of business expand in a market known for its low penetration rates. Campaigns to promote insurance and build awareness of the benefits of coverage have been rolled out, contributing to the sector’s improved performance. This chapter contains an interview with R Renganathan, Chairman, Ceylinco Life Insurance.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Abu Dhabi is a prominent player in Islamic finance and is active in markets for sharia-compliant debt; deposit, lending and investment schemes; and risk-management through takaful (Islamic insurance). Acting through the Abu Dhabi Global Market, the emirate’s financial free zone, the sector has access to domestic as well as offshore service providers. Together with the six other emirates of the UAE, Abu Dhabi participates in a national level market, which is the world’s fourth-largest in terms of Islamic finance assets, at $203.2bn. The emirate holds just over 9% of the $2.2trn total global sharia-compliant assets, 72% of which is held by banks. This chapter contains an interview with Khamis Mohamed Buharoon, Acting CEO and Vice-Chairman, Abu Dhabi Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18Dubai has a growing and multi-tiered insurance sector, with options including a conventional market as well as an offshore segment that features specialists and reinsurers that cover the region. The sector is part of the larger UAE’s insurance industry, in which federal regulators and laws oversee providers that operate nationwide as well as those created to service specific emirates and market niches. Together, they comprised the largest insurance market on the Arabian Peninsula in 2016, with premiums valued at $216m. Although retail insurance remains a small part of the UAE economy, the crowded and competitive nature of the segment indicates most players anticipate future growth.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Between 1985 and 2016 industry contributed an average of about 19% to GDP, and in 2017 this increased, raising the sector’s contribution to around 25% of GDP. The country’s industrial offering is diverse and includes products in the automotive, electronics, textile, offshoring, pharmaceuticals, aerospace, chemicals and electronics segments. The sector will continue to play an integral role in Morocco’s economy and is set grow an additional 5% by 2022. However, it must first diversify its offering, which could include further shifting to high value-added manufacturing such as aerospace or automotive, and increasing overall exports. The kingdom also has plans to leverage its textile industrial capabilities to become a global sourcing centre for fast fashion and denim. The retail sector in Morocco is expected to continue to grow due to demographic shifts. In addition, higher internet penetration rates and the increasing popularity of online shopping are all levers for sector growth. This chapter contains interviews with Othman El Ferdaous, Secretary of State for Investment, Ministry of Industry, Investment, Trade and Digital Economy; Jean Christophe Quemard, Executive Vice-President for the MENA region, Groupe PSA; Farid Bensaïd, CEO, Ténor Group and President, National Federation of Insurance Agents and Brokers; and Abdellatif Kabbaj, Managing Director, Soft Group.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18The discovery of large offshore oil reserves has had a significant impact on the national balance sheet, with shipments of crude oil representing the second-largest export category in 2017 after gold. Ghana is a relative newcomer to the global hydrocarbons industry, and with proven oil reserves of around 660m barrels and an output of about 126,000 barrels per day, it is a small producer by regional standards, but there is considerable potential for growth. The ongoing expansion of commercial operations into new reserves has led some commentators to identify Ghana as the world’s next oil hotspot, raising hopes that the export of oil and its derivatives can sustain a new era of economic prosperity. Moreover, there are a number of developments to boost the supply of gas feedstock to Ghana’s thermal power stations in the short term, such as the offshore Sankofa field. While these developments are welcome, the principal challenge faced by the sector’s governing bodies is the successful resolution of the payment backlog, which could inhibit much-needed private sector investment. This chapter contains interviews with Paul McDade, CEO, Tullow Oil; and Jonathan Amoako-Baah, CEO, Ghana Grid Company.
Explore chapterInsurance
Buy digital copy of this chapter - £18The growth of new firms and the consolidation of older players are helping the sector advance. With 36 insurance and reinsurance companies in operation as of December 2017, Bahrain’s insurance sector is well developed, particularly when taking into account the size of the economy by both GCC and emerging market standards. The market comprised 14 conventional locally incorporated firms (including two reinsurers), 12 branches of foreign conventional firms (including three reinsurers), and eight takaful (Islamic insurance), firms (including two re-takaful, or Islamic reinsurance, firms). The market also includes 32 insurance brokers and 25 firms licensed to operate outside of Bahrain.
Explore chapterEnergy & Mining
Buy digital copy of this chapter - £18Côte d’Ivoire has made substantial efforts to increase generation capacity, upgrade infrastructure and expand the electricity network, translating into rising investment. The country is also diversifying the energy mix, which tradition¬ally relied on gas-fuelled and hydraulic power plants. The push into renewables could reshape the energy mix and reduce reliance on gas-fired energy. Additionally, a renewed interest for oil and gas exploration could place the country on the map of hydrocarbon producers. With a largely untapped mining potential, Côte d’Ivoire has become an exploration hotspot in West Africa. While gold remains the primary export, accelerated exploration is necessary to sustain growth. Recovering manganese prices are boosting output and the new focus on rare minerals is diversifying revenues. Effective implementation of the mining code will be key for medium-term growth and the continuance of investor confidence. This chapter contains interviews with Marc Alberola, CEO, Eranove; and Jeff Quartermaine, CEO, Perseus Mining.
Explore chapterEnergy
Buy digital copy of this chapter - £18Home to one of the world’s oldest oil and gas industries, the energy sector has long been a key pillar of Myanmar’s economy. While the sector continues to play an essential role in economic output, its true potential has not yet been realised, partly due to a counterproductive fiscal regime and unfavourable market conditions. Despite a number of setbacks, successive governments have made important steps towards unlocking Myanmar’s energy potential. With natural gas reserves of an estimated 16.6trn standard cu feet and some 139m barrels of crude oil reserves, substantial investments in exploration have led to billions of dollars in annual export revenue. This chapter contains interviews with U Win Khaing, Minister of Electricity and Energy; and Javier Rielo, Vice-president, Total Asia Pacific.
Explore chapterEnergy
Buy digital copy of this chapter - £18The oil and gas sector is responsible for much of Oman’s economic growth and government revenue; thus, changes in the industry tend to reflect greatly on the sultanate’s overall development. Although recent years have seen a strategic shift towards economic diversification, activity in the hydrocarbons sector still attracts a large share of domestic and foreign investment, with this pattern likely to continue for some time. While the recent prolonged downturn in global oil and gas prices, coupled with the steady depletion of domestic resources, has given Oman some cause for concern, there are signs that the industry has turned a corner. This chapter contains an interview with Ahmed Saleh Al Jahdhami, CEO, Oman Oil Refineries and Petroleum Industries Company.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18The industrial sector is seen as having potential to drive economic diversification and reduce the import bill. In addition to heavy industrial subsectors such as steel and cement, pharmaceuticals, agri-business and automotive manufacturing hold promise in becoming key exporters. For the sector as a whole, and particularly for small businesses, investment in logistics and transport capacities will be crucial to building a local ecosystem that is robust enough to position industry as a key driver of growth. In addition to its hydrocarbons wealth, Algeria is rich in a variety of minerals, such as phosphate, gold, iron, zinc, lead and others. These ores are still largely untapped, but the diversification drive deployed by the government to reduce the country’s reliance on oil and gas and direct it towards more sustainable growth could lead to greater development of this heretofore marginal industry. This chapter contains an interview with Amara Charaf-Eddine, CEO, Madar Holding.
Explore chapterEnergy
Buy digital copy of this chapter - £18With an abundant supply of natural resources, Nigeria’s oil and gas sector plays a key role in global energy. Its oil deposits have been a major source of crude for decades, while its less developed natural gas fields offer resources that have yet to be fully tapped. In addition to being a traditional heavyweight in terms of output, the energy sector is also notable for its early success in building local content in upstream activity. Policy moves over the past two decades have enabled young firms to acquire and develop oil and gas blocks, build pipelines and distribution networks, and, based on the current project pipeline, refineries as well. However, there is still room for improvement, Nigeria’s midstream infrastructure is lacking, and while this has held back overall development, it affects natural gas resources in particular. This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources; and Tunde Afolabi, Chairman and CEO, Amni International Petroleum Development Company.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Over the course of 2017-18 Kuwait’s Islamic financial services (IFS) industry saw continued growth and ongoing development, shoring up the country’s long-standing reputation as a global centre for sharia-compliant banking, insurance and investment activities. Global IFS assets topped $2trn for the first time in 2017, with Kuwait accounting for 6% of these assets, having an estimated value of $123bn. A key area of potential growth is the sukuk (Islamic bond) market, which is widely expected to benefit from rising demand for sharia-compliant debt from the government and private entities. In addition, takaful (Islamic insurance) providers are also gaining a larger share of the Kuwaiti market. This chapter contains an interview with Mazin Saad Alnahedh, Group CEO, Kuwait Finance House.
Explore chapterIndustry & Retail
Economic activity in the country is dominated by the tertiary sector – representing roughly 80% of GDP – while the primary sector remains underdeveloped due to an unfavourable natural climate and geography. However, while industry accounts for less than one-fifth of GDP, investment in free trade zones and port facilities is expected to lead to more robust growth in the sector in the coming years. Foreign investment, mainly from China, will help expand Djibouti’s redistribution capacity, as will continued partnership with Ethiopia. Over time, these facilities will provide opportunities for increased manufacturing and contribute to economic diversification. As Djibouti’s economy evolves and the number of modern shopping outlets grows, grocers and the distribution channels that supply them have proven to be key drivers of the country’s retail industry. This chapter contains an interview with Youssef Dawaleh, President, Chamber of Commerce of Djibouti.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18After a challenging 2017, the industrial sector has started to show signs of recovery and is expected to perform well in the coming years, as several government initiatives and programmes focus on boosting the manufacturing sector and its contribution to Kenya’s economy. Although official efforts are already under way, implementation of policies concerned with raising local output and lowering production costs could help Kenya on its path to becoming the industrial hub of East Africa. As for the retail sector, with the economy strengthening, foreign investors entering the local retail market and the middle class continuing to grow, prospects remain positive. Conversely, companies that weathered these difficulties are in good shape and, in fact, benefitting from the rebound. This chapter contains interviews with Peter Munya, Cabinet Secretary, Ministry of Industry, Trade and Cooperatives; and Ahmed Rady, General Manager, East Africa Coca-Cola.
Explore chapterRegional Relations
Buy digital copy of this chapter - £18Trinidad and Tobago has played a crucial role in the integration of the Caribbean, particularly among the Anglophone countries of the region, for decades now. A promoter of the Treaty of Chaguaramas in 1973, the first step towards deeper regional integration after the mixed fortunes of the establishment of the short-lived West Indies Federation between 1958 and 1962, T&T subsequently became a founding member of the Caribbean Community (CARICOM). Between 1998 and 2013 T&T’s share of total intra-CARICOM exports rose from 37% to 70%, with Jamaica being the principal importer of T&T exports over this period. Alongside T&T, the international organisation currently has 14 full members, five associate members and eight observers. This chapter contains an interview with William Warren Smith, President, Caribbean Development Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Although small by international standards, Papua New Guinea’s capital markets have performed well in recent years, despite facing notable macroeconomic challenges. Key indices on the Port Moresby Stock Exchange expanded steadily in 2017, supported by robust growth of two of its largest listed companies, Bank South Pacific and Oil Search, and an increase in domestic turnover. A series of regulatory reforms launched in 2015 – including the Capital Markets Act, Securities Commission Act and Central Depositories Act – have started to come into force, laying the foundation for stable growth and market modernisation. Efforts to upgrade the stock exchange were also supported by the launch of a new Nasdaq trading platform in late 2017, and the Bank of PNG, the central bank, is considering the adoption of an electronic bond auction system. This chapter contains an interview with Greg Pawson, CEO, Kina Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18Maintaining robust levels of profitability through the use of financial instruments rather than the development of core competencies, Argentina’s insurance industry has remained relatively stable since 2008. The introduction of more market-friendly regulations since 2015, coupled with improvements across a number of macroeconomic indicators, is expected to have a positive impact on the insurance industry, enabling it to focus more on developing the market as well as take on a more active role in the overall economy. Regulatory reforms are expected to lead to market consolidation as the government seeks to strengthen the industry and attract international players. While penetration rates remain low, the active role of the government in the development of the sector is an encouraging sign for both local and international insurers. This chapter features interviews with Juan Pazo, Superintendent, National Superintendence of Insurance; and Alejandro Simón, CEO, Grupo Sancor Seguros.
Explore chapterMining
Buy digital copy of this chapter - £18Contributing around 10% to GDP in 2017, the mining sector is fundamental to Peru’s economy, accounting for significant levels of foreign exchange and tax revenues, as well as the creation of direct and indirect jobs. Supportive legal and tax regimes, low production costs and an abundance of natural resources all contribute to increasing investor appetite, together with a relatively stable macroeconomic and political environment, which has given rise to favourable mining policies. However, the sector is not without its challenges; growth is only just now returning after a period of low commodities prices, while conflicts in mining regions in some parts of the country have made it clear that mining companies need to work more closely with local communities. Still, the recommencement of key projects, rising mineral prices and the pro-business policies of the new administration of President Martín Vizcarra all bode well for the sector. This chapter contains interviews with Luis Marchese, President, National Society of Mining, Petroleum and Energy; and Country Manager, AngloAmerican; and Mariela García, CEO, Ferreycorp.
Insurance
Buy digital copy of this chapter - £18Steadily improving macroeconomic growth and shifting demographics are creating favourable conditions for the expansion of Thailand’s insurance industry, with reforms aimed at boosting foreign participation supporting a bright outlook for the remainder of 2018. The life insurance segment continues to dominate the country’s insurance landscape, accounting for the bulk of premium and policyholders, benefitting from the ageing population and rising popularity of investment-linked products, which should keep it on a steady growth path in the coming years. The smaller non-life segment is also poised for steady expansion in the short to medium term, with low penetration and density, leaving room for growth. Although the sector remains overcrowded, the industry regulator Office of Insurance Commission (OIC) is increasingly pushing for consolidation. This chapter contains interviews with Vitai Ratanakorn, Secretary-General, Government Pension Fund; and Bryan Smith, President and CEO, Allianz Ayudhya.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18As several important segments of the country’s energy industry open up for competition, widespread energy reform is leading to significant changes that go well beyond the sector. New investments and private operators are helping to change the economic structure of the country, in a sector often highlighted for its significant potential. The energy sector is well positioned to receive additional private investment and technical know-how for its future development, but for ongoing reforms to be successful in the long term, continuity of the regulatory framework will be an essential component. This chapter includes interviews with Carlos Treviño Medina, CEO, Petróleos Mexicanos (Pemex); Ivan Sandrea Silva, CEO, Sierra Oil and Gas; and Miguel Ángel Alonso Rubio, CEO, Acciona Energy.
Explore chapterCapital Markets
Though smaller than some other capital markets in the region, the Philippine Stock Exchange (PSE) reached record highs in 2017 against a backdrop of robust macroeconomic expansion and the sweeping Tax Reform for Acceleration and Inclusion programme, which should support the government’s sizeable infrastructure agenda, Build, Build, Build (BBB). Benefitting from rising levels of trading and liquidity, and rapid growth in fixed income, the PSE is poised for a strong 2018. Efforts to finance the BBB agenda should see a near-term increase in the amount of foreign currency-denominated bonds, with a recent landmark Panda bond issuance – denominated in Chinese renminbi – attracting significant investor participation. This chapter contains an interview with Ramon S Monzon, President and CEO, Philippine Stock Exchange.
Explore chapterEnergy and Mining
Buy digital copy of this chapter - £18Tanzania’s energy sector has shown signals of growth in recent years, with established domestic gas production and ambitious plans to scale up. Offshore gas reserves are sufficient to have prompted a proposal for a two-train liquefied natural gas (LNG) project in Lindi, while there is ample potential onshore around the Rift Valley based on commercial-scale deposits in similar terrain as in neighbouring Uganda and Kenya. Infrastructure is always a challenge for new producing countries, but Tanzania has constructed mid-stream processing plants and pipelines to leverage existing production, and has capacity to spare for new projects. With midstream infrastructure and ample reserves in place, the challenge of attracting larger investment – such as for the Lindi LNG plant – hinges on the ability of the government to maintain a competitive commercial, fiscal, legal and regulatory framework. As the fourth-largest gold producer in Africa and the world’s only source of tanzanite, Tanzania is a major mining destination in the region. It has nine large-scale mines that produce silver, copper, diamonds and coal, as well as major untapped deposits of graphite, uranium and other minerals. The government has begun to review its legislative framework for mining activity as part of efforts to reassess the value of existing projects, increase local revenues and ensure communities benefit from extractive industries. While there is no doubt that tax revenues and licences will be more constricting moving forward, the benefits are likely to include increased revenues for the country and improved governance over the long term. This chapter contains interviews with Kapuulya Musomba, Acting Managing Director, Tanzania Petroleum Development Corporation; and Marc den Hartog, Vice-President East Africa, Shell.
Explore chapterIndustry & Energy
Buy digital copy of this chapter - £18Concentrated in two free zones and 19 industrial zones, Sharjah’s industry and manufacturing sector benefits from the emirate’s low cost base, developed infrastructure and connectivity, and proximity to facilities in Dubai. As a result, Sharjah is one of the most important industrial and manufacturing centres in not only the UAE, but also the wider GCC region. The contribution of the oil and gas sector to Sharjah’s diversified economy is relatively small compared to the rest of the UAE. In terms of meeting its own needs, the emirate is working to secure more reliable energy supplies, while expanding and modernising its electricity generation and water desalination capacities. This chapter contains an interview with Hatem Al Mosa, CEO, Sharjah National Oil Corporation; and Khaled Al Huraimel, Group CEO, Bee’ah.
Explore chapterInsurance
Buy digital copy of this chapter - £18With the economy expected to pick up pace in 2018, and steady expansion forecast over the coming years, the insurance sector is well placed to benefit. Regulatory changes are creating challenges for weaker firms, and encouraging even healthy companies to reconsider their positions, particularly in the non-life segment. This should lead to further consolidation, with the stronger players looking to expand. Major international insurers are already playing a role in this process, and the scope for growing penetration from a low base may see new entrants in the medium term. This chapter contains an interview with Ajith Gunawardena, CEO, Ceylinco General Insurance.
Explore chapterTransport
Buy digital copy of this chapter - £18Leveraging its geographic positioning at the centre of the Mediterranean, Tunisia’s transport sector has been crucial for the country’s economic progress. Well-connected shipping and air transport lines have proven essential to developing the tourism sector and raising commercial trade levels in international markets. Key industrial segments such as aeronautics, automotive components and agro-industrial processing have been built on the premise of efficient transport networks that interlink the country’s production base with international value-chains, such as those in Europe.
Explore chapterAqaba
Buy digital copy of this chapter - £18While most business activity in Jordan is still concentrated in and around Amman, as the only sea¬port city in Jordan, Aqaba plays an important role in the country’s economy. Since the decision to turn the coastal port city and its surroundings into a special economic zone was announced in 2001, it has grown in significance as an economic base and a tourist destination. Aqaba borders both Israel and Saudi Arabia, 360 km to the south of Amman on the Red Sea’s north-eastern tip, and extends to the territorial waters of Egypt. The city has a long tradition of being a regional centre for trade going back to 4000 BCE, with the Aqaba Special Economic Zone (ASEZ) serving as the catalyst for recent large-scale expansion. This chapter contains an interview with Nasser Shraideh, Chief Commissioner, Aqaba Special Economic Zone Authority.
Explore chapterEnergy
Buy digital copy of this chapter - £18Myanmar’s energy sector is set to remain on a steady headline growth trajectory in 2018, with rising domestic electricity and fuel consumption, abundant renewable resources, and a strategic geographic location at the crossroads of India and China continuing to offer opportunities to foreign investors. Although the upstream oil and gas segment’s near-term outlook is subdued given current global oil market conditions, internal conflict and an unattractive fiscal regime, downstream opportunities are plentiful, supported by limited domestic refining capacity, rising vehicle ownership, lack of available imports, storage and distribution infrastructure, and ongoing economic liberalisation measures. Private sector participation has been strong in the power industry, and should remain this way as the government continues to deploy PPPs to boost installed capacity. This chapter contains interviews with U Thein Win Zaw, Chairman, Shwe Byain Phyu; Daw Ei Phyusin Htay, Managing Director, Barons & Fujikura EPC; and Ken Tun, CEO, Parami Energy Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18A low oil price environment has presented a number of challenges for Bahrain’s vibrant and fiercely competitive insurance sector. Downward pressure on premiums and a dearth of underwriting opportunities across the region have negatively affected the bottom lines of most Manama-based insurers. However, new opportunities in areas such as health care insurance and the extension of compulsory cover to more areas of the economy are offering routes to growth during this difficult period.
Explore chapterEnergy
Buy digital copy of this chapter - £18Egypt continues to strive, not just for energy independence, but to return to its status as a regional exporter. With oil and gas fields in the Gulf of Suez, the Mediterranean Sea and the Western Desert, the country has been a site of energy exploration since the early 20th century. With recent discoveries of major natural gas deposits as well as continued exploration announcements, a low-cost operating environment and the anticipation of steady, even rising, global oil prices, Egypt has its sights set on increased petroleum production to meet growing local energy demand, as well as for export growth to acquire much-needed foreign currency.
This chapter contains interviews with Tarek El Molla, Minister of Petroleum and Mineral Resources; Claudio Descalzi, CEO, Eni; Hesham El Amroussy, Chairman and Managing Director, ExxonMobil Egypt; and Walid Sheta, Cluster President for North-east Asia and Levant, Schneider Electric.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Industry has quickly become a critical component of the Ivorian economy. This is due, in large part, to an abundance of highly sought-after natural resources. Despite insufficient levels of investment in previous years, Côte d’Ivoire is slowly trying to reclaim its former position as West Africa’s manufacturing centre. Indeed, the sector’s profile is being raised by the creation of new industrial zones and the renovation of existing ones. With several of the world’s mining operators increasing their commitment to West Africa, Côte d’Ivoire remains one of the least explored countries in the region. Mining activity is set to increase in the coming years; however, further investor confidence will depend on the ongoing implementation and validation of the new mining code over the medium term. Easing operating costs by improving infrastructure and logistics performance, as well as reducing electricity prices, which can account for 27% of production costs for mining companies in Côte d’Ivoire, should galvanise further investment.
This chapter contains an interview with Mark Bristow, CEO, Randgold Resources.
Explore chapterEnergy
Buy digital copy of this chapter - £18The strong headwinds of 2017 in Oman’s oil and gas sector have spurred the authorities to develop new sources of revenue. Despite recovering to 2015 levels of $55 a barrel, the steep fall in prices that saw Omani crude fall from $103 per barrel in 2014 to $40 in 2016 has squeezed state finances and added urgency to diversification efforts. On the back of a drop in crude output – following an agreement with the Organisation of the Petroleum Exporting Countries (OPEC) – overall economic growth in Oman remained flat in 2017, at roughly 0.3%, its weakest performance since 2011. However forecasts suggest growth will recover to 2.8% over the course of 2018, as gas production – particularly at BP’s new Khazzan gas field – expands and the non-oil economy steadies. This chapter contains an interview with Yousuf Al Ojaili, President, BP Oman.
Explore chapterIndustry
Buy digital copy of this chapter - £18The need to diversify production capacity and create jobs has been pushing Morocco to invest in its industrial sector. Industrial activities have traditionally focused on agro-industrial production; however, the kingdom is looking to leverage burgeoning segments such as automotive and aeronautics. Outlining the expansion of manufacturing under a series of government-led programmes, a host of emerging business lines are gradually becoming essential for generating exports. Through the creation of interlinked production clusters, both the government and private investors are setting the stage for industries such as automotive production, agro-industry and aeronautic components manufacturing to become central to the economy.
This chapter contains interviews with Amine Louali, President, Moroccan Steel Industry Association and Deputy CEO, Maghreb Steel; Noureddine Gnaou, CEO, Soremar Group; and Benbrahim El Andaloussi, President, Institut des Métiers de l’Aéronautique.
Explore chapterInsurance
Buy digital copy of this chapter - £18Intense competition, low penetration rates and a strong bias towards non-life products characterises Dubai’s insurance sector, with ratings agencies agreeing that there is robust medium-term growth potential for the emirate’s underwriters. S&P Global ratings predicts 10% per annum growth in gross written premiums for the UAE insurance sector in 2017 and 2018, compared to anticipated GDP growth over the same period of 3-3.5%. AM Best, a US-based ratings agency, noted an improvement in earnings coupled with solid premium growth when it compared the performance of listed companies in 2016 to the previous year. Among the key drivers of premium growth have been new federal regulations on motor insurance, as well as the introduction of compulsory health insurance for all residents of the emirate.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Ghana’s wealth and potential of hydrocarbons resources have helped it leverage a spike in headline GDP growth and inbound investment. However, in recent years the economy has suffered alongside other oil-producing nations, as global prices have declined in tandem with reduced demand. With continued exploration and new projects coming on-line, the country has its eyes on increased oil production for local use and export to jump-start the economy. Accra remains an attractive base of operations for international oil and gas companies given its affordability, security and accessibility. Ghana’s energy consumption continues to expand, underlining the urgency of boosting generation capacity and access to power.
This chapter includes interviews with Jonathan Amoako-Baah, CEO, Ghana Grid Company; and Emmanuel Antwi-Darkwa, Acting CEO, Volta River Authority.
Explore chapterAlternative Investments
Buy digital copy of this chapter - £18Saudi Arabia’s investment environment as a whole is undergoing an overhaul, with Vision 2030 promoting private sector growth, economic diversification, improved infrastructure and a stronger legislative framework for investors. The alternative investment segment in particular should benefit from this, with enhanced rules relating to VC and PE, and a broadening range of targets likely to emerge in the coming years, while greater confidence in the country’s economic future will support fundraising. The government’s involvement through public sector company funds and support for innovation is an important element, and the symbiotic relationships being formed with international investors should benefit local players as well as global targets.
This chapter contains an interview with Khaled Al Aboodi, CEO, Islamic Corporation for the Development of the Private Sector.
Explore chapterAgriculture
Buy digital copy of this chapter - £18As Algeria looks to curb its imports in the face of declining state revenues, the agriculture sector is well placed to contribute. Output improved between 2007 and 2017 thanks to efforts to clear some of the bottlenecks that have traditionally held back the sector’s development, such as legislation, land ownership and financing. Agriculture accounts for around 13% of GDP and employs some 11% of the country’s active population. Foreign investors are helping to speed up the development of large projects in face of population growth and rising demand, and as a way to move away from small-scale farming methods.
This chapter contains interviews with Abdelkader Bouazghi, Minister of Agriculture, Rural Development and Fisheries; and Abdelwahab Ziani, President, Confédération des Industriels et Producteurs Algériens.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18It was more challenging operating environment for the Islamic financial services (IFS) sector in 2016, as the continuing effects of low oil prices fed into the domestic economy, leading to a sizeable decline in government deposits and a tightening of liquid¬ity. Nonetheless, asset growth continued, and as oil prices began to pick up towards the end of the year and into 2017, liquidity conditions improved. How¬ever, with the sharia-compliant market beginning to mature and the cost of borrowing remaining high, there is evidence of key players within IFS looking to domestic consolidation and overseas expansion as part of their future strategies for growth.
This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Already one of the fastest-growing major capital exchanges in the world, Indonesia’s equity and bond markets saw increased activity in late 2016 and early 2017 after a lacklustre performance in 2015. This recent resurgence is based on the country’s strong economic fundamentals and aided by short-term trends which saw a recovery in commodity prices, increased government infrastructure spending and improved liquidity at home as a result of the government’s tax amnesty programme. Consequently, the Indonesia Stock Exchange (IDX) continues to grow more quickly than the majority of markets in developed and developing economies – not just in Asia, but around the world.
This chapter contains an interview with Loh Boon Chye, CEO, Singapore Exchange.
Explore chapterEnergy
Buy digital copy of this chapter - £18As Africa’s largest oil producer, Nigeria is a key member of the Organisation of the Petroleum Exporting Countries (OPEC) and the world’s fourth-largest exporter of liquefied natural gas. Policy moves over the past two decades have enabled young Nigerian companies to acquire and develop oil and gas blocks, build pipelines and distribution networks, and soon, based on the current project pipeline, refineries and power plants as well. There is still ample room for improvement, however. Renewed militant activity in the Niger Delta region – where much of the upstream activity is concentrated – continues to disrupt production, while the country’s regulatory framework is ageing, with a long-awaited overhaul yet to materialise. Nigeria’s energy sector is largely awaiting the passage of the Petroleum Industry Governance Bill – which has been on the cards for roughly a decade – but given the recent momentum in the National Assembly, the next year may finally see that happen, which would bring in significant sector changes.
This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources; Femi Otedola, Chairman, Forte Oil; Mohammad Sanusi Barkindo, Secretary-General, OPEC; and Guido d’Aloisio, Central Africa Regional Manager, Saipem.
Explore chapterInsurance
Buy digital copy of this chapter - £18Insurance in Papua New Guinea remains a sector that offers significant opportunity. With a low penetration rate – estimated at under 2% – and the overall economy set for rapid growth as a result of ExxonMobil’s liquefied natural gas project, demand is projected to increase over time. Other trends and events also suggest good prospects. A new acting insurance commissioner has been appointed and is starting to push for increased and more effective oversight; banks have shown a growing interest in being more active in the sector; and much is being done to develop coverage for people and companies outside of urban centres.
This chapter contains an interview Matthew Kearns, General Manager, QBE Insurance.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Kuwait’s Islamic Financial Services industry is one of the fastest-growing segments of the financial sector, home to an increasing number of sharia- compliant banks and insurance companies. The emergence of these industries over recent decades has brought sharia-compliant capital to account for a significant proportion of total capital domiciled in Kuwait – around 45%, according to the World Bank, which is the second-highest rate in the GCC. Kuwait has also emerged as a player with weight in the global Islamic finance market. According to professional services firm EY, it is one of a core group of nine countries that account for 93% of industry assets, estimated to have exceeded $920bn in 2015. The World Bank reported that Kuwait’s share of global Islamic banking assets in 2016 was around 5.9% of the total, making it the fifth-largest sharia-compliant banking industry in the world that year.
This chapter contains an interview with Mazin Al Nahedh, Group CEO, Kuwait Finance House.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Stock Exchange of Thailand has outperformed its regional peers in liquidity and initial public offering growth in recent years, rising to become the best-performing stock market in the Asia-Pacific region in 2016. The bond market has also been a standout performer, despite concerns over rising numbers of short-term bond defaults, with the segment witnessing an influx of foreign capital during the first months of 2017, following a year marked by significant geopolitical volatility and rising capital outflows. Listed companies remain profitable and derivatives market growth has also been positive, bolstered by rising trade in stock and gold futures. While foreign investment in the securities market is forecast to remain flat in 2017, investment in the bond market should continue to rise, with Thailand increasingly viewed as a safe haven from currency volatility. This chapter contains interviews with Kesara Manchusree, President, The Stock Exchange of Thailand; Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and Pote Harinasuta, CEO, One Asset Management; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company.
Explore chapterInsurance
Buy digital copy of this chapter - £18With a declining economy restricting premium-income growth and bringing rates under sustained pressure, 2016 was a challenging year for Trinidad and Tobago’s insurance sector. The relative scarcity of foreign exchange has also caused some issues with regard to the payment of reinsurers. Penetration remains relatively low, meaning local companies have significant room to expand. Total premiums represent around 2.6% of GDP, while the OECD average is more than three times higher. Barring any similar storms in the upcoming season, the sector will likely benefit from a recovery period. This will be aided by a turnaround in the energy sector, which will be a key driver of financing. While there are challenges ahead, the insurance sector seems set to re-enter a growth environment in the near term.
This chapter contains an interview with Ravi Tewari, Group CEO, Guardian Group.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18The Colombian energy sector can look forward to increased investment in 2017 and 2018. With a crisis in the electricity sector narrowly avoided, the government is reassessing its strategy to improve energy security. In the hydrocarbons segment, 2017 will see major investments in offshore exploration, which represents the best possibility for the country to maintain energy self-sufficiency, especially with an additional 1500 km of barely explored Pacific coastline. A restructured Ecopetrol operating on a more cost-conscious basis will also provide revenues for the Colombian state as it looks to implement its post-conflict energy policies. This chapter includes interviews with Francisco José Lloreda, President, Colombian Petroleum Association; and Bernardo Vargas Gibsone, President, Interconexión Eléctrica (ISA).
Explore chapterMining
Buy digital copy of this chapter - £18The mining sector can be described as one of the main engines of the Peruvian economy as it accounts for 12% of total GDP. It creates direct employment for 174,000 workers and indirectly accounts for another 1.5m jobs. In 2016 mining exports totalled $23.8bn – consisting of 65% of the country’s total merchandise exports. The medium-term outlook is certainly positive, with a range of new mines set to be developed, including Quellaveco in the Moquegua region, where work could start late in 2017. Projects that could come to fruition in 2018 include the Mina Justa and Marcona mines in Ica, the Ollachea gold mine in Puno and expansion works for the Toromocho project in Junín. Work on the Pampa de Pongo iron reserve in Arequipa is expected to start in 2020, and at the Laguna Norte gold mine in La Libertad in 2021.
This chapter contains interviews with Carlos Gálvez Pinillos, Vice-President and CFO, Minas Buenaventura, and Luis Rivera, Vice-President, Gold Fields Las Americas.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Abu Dhabi’s sharia-compliant finance sector, traditionally led by its Islamic banking industry, has expanded to include an increasing array of activities in areas such as insurance offerings and asset management. An environment of low oil prices has put pressure on margins in 2016 but, with nearly a quarter of assets in the UAE held by sharia-compliant institutions, the industry is firmly entrenched and well positioned to take advantage of growth opportunities as they arise.
This chapter contains an interview with Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18These are changing times for Sri Lanka’s insurance sector. Major regulatory moves over the last two years have seen much strengthening and consolidation, with these processes set to continue in the year ahead. Profitability remains high, particularly in the life insurance segment, while in the non-life segment a fiercely competitive environment is driving companies to find ways to differentiate through more innovative and distinctive products and campaigns. Meanwhile, many eyes are focused on Sri Lanka’s macroeconomic conditions. Areas such as medical and health, real estate and project insurance are all tipped to be future growth areas, as the country’s economy cranks up and the middle class expands.
This chapter contains an interview with Hemaka Amarasuriya, Chairman, Sri Lanka Insurance.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18In recent years the Philippine capital markets have performed well. The benchmark index has quadrupled since the global financial crisis in 2008 on a combination of good policy, strong economic growth, healthy inflows of foreign investment and low international interest rates. In 2016, however, market performance was mixed as the country held elections and the new administration settled in. The benchmark index fell, while the number of new initial public offerings was relatively small, with demand on the light side. However, the new administration is expected to be generally supportive of the markets and to push through a handful of major reforms that have been stalled due to bureaucratic disagreements.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Since the 1970s Tunisia has opted for an economic model geared toward exports and industrialisation, sustained by the implementation of investor-friendly legislation, as well as supportive public investment in infrastructure and human capital. The approach has been successful for decades, with manufacturing forming the basis of GDP growth over the last 40 years. However, manufacturing industries experienced a dip in production during the post-revolution years as a result of broader instability, more frequent labour disputes, a slowing of capital spending and heightened international competition. The challenges are far from minor and, in the broader context of the macroeconomic slowdown, industrial producers have some way to go. However, as a whole, the economy benefits from some encouraging fundamental traits, and growth in Tunisia is projected to improve in 2017 and 2018 on the back of new capital spending on transport infrastructure and a new law governing investment, which came into force in 2017, and which is expected to shore up investor confidence and stimulate activity. As in other North African markets, the Tunisian retail sector has been predominantly controlled by a myriad of small shops. However, modern distribution channels have gradually emerged over the past 15 years with the expansion of international supermarket chains and franchises across the country. Despite some economic downturn, the modern distribution sector has continued to thrive, with the expansion of international franchising and supermarket brands, and the proliferation of large retail outlets. During the next few years the sector is expected to keep posting strong growth, driven by a growing population and rising purchasing power. However, from a purchasing power standpoint, retail performance will also be reliant on the country’s capacity to attract foreign tourists, boost the economy and create jobs.
This chapter contains an interview with Habib Fekih, President, Airbus Africa and Middle East.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Under the auspices of the overarching Vision 2030 economic development plan, industrialisation remains a top priority for the Kenyan government, with the sector recording steady growth in 2015 against a backdrop of falling energy and input prices, lending an optimistic outlook for 2017 and beyond. Industrial stakeholders continue to face hurdles, however, and manufacturing’s contribution to GDP has not kept pace with broader macroeconomic growth. Low-cost imports across nearly all segments of the sector have had a negative impact on many local producers, while overlapping and unclear regulatory frameworks have created uncertainty about the role of the country’s export processing zones against a backdrop of planned new special economic zones. Although rising imports, shilling depreciation and unclear legal reforms will continue to challenge Kenyan industrial producers, the sector’s growth outlook for 2017 is positive. The retail sector in Kenya is benefitting from rising middle-class purchasing power, robust macroeconomic growth and a surge of investment in high-end formal retail space, with a host of foreign retailers, brands and producers entering the market. Although well-entrenched local players remain dominant in the supermarket segment, the entrance of France’s Carrefour in 2016 marked an increase in competition between local and foreign outlets for new market share. Kenya’s retail market is expected to record a positive performance in 2017, driven by population growth, positive economic metrics and heightened marketing activities. With urbanisation indicating strong potential for expansion into smaller cities and formal retail space in Nairobi approaching saturation, retailers will be looking to reorganise value chains.
This chapter contains interviews with Chris Kirubi, Chairman, Haco Tiger Brands; and Phyllis Wakiaga, CEO, Kenya Association of Manufacturers.
Explore chapterInsurance
Buy digital copy of this chapter - £18Strong economic growth and demographic change are catalysing the rapid expansion of Vietnam’s insurance sector, with premiums growing at double-digit rates and likely to do so for some years to come. Thanks to successive liberalising reforms since the 1990s, a range of foreign insurers and investors are benefitting from this growth, and competition looks set to grow as new entrants eye the opportunities available. Awareness of the benefits of insurance is growing, particularly for middle-class families acquiring assets and planning for the future.
This chapter contains an interview with Dao Dinh Thi, Chairman, BaoViet Holdings.
Explore chapterEnergy
Buy digital copy of this chapter - £18Mexico’s energy sector has been undergoing a profound paradigm shift since a reform programme, launched in 2013, put an end to state monopolies in most subsectors and began the process of opening the production and distribution of oil, gas, petrochemicals and electricity to private investment. In parallel, the entire legal, regulatory and institutional framework is being transformed to oversee new market mechanisms. The fruits of these efforts became more apparent in 2016 when a number of notable developments took place, including two successful long-term electricity supply auctions and a deepwater oil and gas auction for exploration and production in December 2016. A significant challenge going forward will be to ensure that infrastructure is of sufficient quantity and quality for the entire country to benefit from the reform efforts. While the increase in global oil prices and the decline in value of the Mexican peso in the second half of 2016 and into early 2017 will cause further knock-on increases in prices facing consumers of both combustibles and electricity, the same phenomena should give a boost to the energy sector more generally. This chapter includes interviews with José Antonio González Anaya, CEO, Petróleos Mexicanos; Jaime Hernández Martínez, Director-General, Federal Electricity Commission; and Angélica Ruíz Celis, Director-General, Vestas Latin America.
Explore chapterEnergy
Buy digital copy of this chapter - £18Egypt is one of Africa’s main oil and gas producers, but it is also the continent’s largest consumer of energy. Both oil and gas are found throughout the country in multiple onshore and offshore regions, including the Mediterranean Sea, which is emerging as a major new gas basin. Nevertheless, sourcing enough supply to meet demand is the sector’s central challenge, even as these discoveries are expected to contribute significantly to meeting demand within the next few years. With discoveries in 2016 and the expectation of future upstream findings, Egypt is well on its way to addressing the supply side of its energy provision problem. Managing demand increases through subsidy cuts is a longer-term proposition, and Egypt is working to become a net energy exporter again.
This chapter contains an interview Tarek El Molla, Minister of Petroleum and Mineral Resources.
Explore chapterIndustry & Energy
Buy digital copy of this chapter - £18With limited oil and gas resources by regional standards, Sharjah has had to look to other sectors to build a robust and diversified economy. Chief among these has been industry and manufacturing, and the emirate has emerged as an important centre for industry in the Middle East, with the sector contributing around 17% of its GDP and around one-third of manufacturing activity in the UAE as a whole.
This chapter contains interviews with Abdullah Sultan Al Owais, Chairman, Sharjah Chamber of Commerce and Industry; and Majid Jafar, CEO, Crescent Petroleum.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Once considered West Africa’s industrial powerhouse, Côte d’Ivoire’s manufacturing sector was badly affected by a decade of political unrest that curtailed further expansion. However, this is gradually being reversed as political stability and consecutive years of economic growth are enhancing the environment for industrial development and helping to diversify the country’s production base. Putting the right fiscal and legislative incentives in place will be vital for the authorities as they look to increase local processing. Besides for strengthening traditionally strategic industries, the attention to new sectors, such as mining, are set to help to diversify the economy, create employment and, in the case of mining specifically, channel new development money into communities. This chapter contains interviews with Ramzi Omais, Chairman and CEO, SOTICI; and Kadjo Kouamé, Managing Director, Société d’Etat pour le Développement Minier de Côte d’Ivoire.
Explore chapterInsurance
Buy digital copy of this chapter - £18The wide array of local and international insurance companies that operate out of Manama have flourished in a regulatory environment that has allowed them to serve the small domestic market while simultaneously extending their operations regionally. A history of sound prudential oversight has protected them from the series of economic shocks that have created a challenging economic environment since 2011, during which time they have continued to post year-on-year expansions in written premiums.
While low oil prices mean that adverse conditions are likely to persist in 2017, the promise of new mandatory lines maintains the possibility of renewed growth in the sector.
Explore chapterEnergy
Buy digital copy of this chapter - £18Almost 50 years after it began shipping oil out of the port at Mina Al Fahal, the sultanate’s economy remains closely tied to the fortunes of hydrocarbons, which in 2015 accounted for 33.9% of GDP, 78.7% of state revenues and 59.4% of goods exports. Although 2015 was challenging for the nation’s oil and gas sector, the government is expected to keep crude production near its current level of 1m barrels per day through to at least 2020, and sector activity is thus likely to remain fairly constant despite the downturn. The sultanate’s underexploited offshore areas and attractive business environment meanwhile continue to offer opportunities for international oil and gas firms. This chapter contains an interview with Chris Breeze, Country Chairman, Shell Oman.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The expansion of Myanmar’s telecoms market continues to live up to its early promise, with the reform of the industry viewed as the biggest economic success since the military ceded power in 2011. The dramatic surge in network coverage has empowered local businesses and provided remote villages with the opportunity to connect to the outside world. The country’s IT segment continues to attract investors from around the globe. Driven by the rapid success achieved by international operators in the telecoms sector, foreign sponsors are eager to take part in the country’s evolving tech industry. In a matter of only a few years, the majority of Myanmar’s young population has gone from little or no access to internet services to a breeding ground for tech start-ups.
This chapter contains a roundtable with Takashi Nagashima, CEO, MPT-KSGM Joint Operations; Rene Meza, CEO, Ooredoo Myanmar; and Lars Erik Tellmann, CEO, Telenor Myanmar; and interviews with Michelle Simmons, General Manager of South-east Asia New Markets, Microsoft Asia Pacific; and David Madden, Founder & CEO, Phandeeyar.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Faced with a significant deficit of affordable housing in urban centres, all eyes are on the nation’s housing projects and the authorities’ ability to deliver more than 1.6m housing units by 2019 in spite of the low oil price environment which has had a significant impact on government revenues and budgets. Nevertheless, the real estate sector offers multiple investment opportunities as the country’s retail and tourism sectors continue to develop. Private developers can also play a vital role in helping to meet the continued demand for low-income, quality housing. This chapter contains an interview with Boudjema Talai, Minister of Transport and Public Works.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Ghana’s energy consumption continues to expand, underlining the urgency of boosting generation capacity and improving access to power. While the government is working to further streamline the utilities sector and increase installed capacity to improve efficiency and ensure supply, it is also looking for private partners to assist with securing funding and reforming a number of its core projects and institutions.
This chapter contains interviews with Alexander Mould, Acting CEO, Ghana National Petroleum Corporation; George Yankey, CEO, Ghana National Gas Company; and Kirk Koffi, CEO, Volta River Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With demand for mass housing thriving and transport, energy and other infrastructure projects continuing to roll out, the kingdom’s construction sector faces the challenge of meeting a wide range of demands at a time of economic slowdown. Yet with years of experience working in an often uncertain environment, contractors and developers, planners and materials providers are continuously adjusting to new circumstances. Meanwhile few sectors in Jordan have been more dramatically impacted by recent regional turbulence and uncertainty than housing.
This chapter contains an interview with Sahl Dudin, Managing Director, Ayla Oasis Development Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following the construction surge leading up to the 2012 Africa Cup of Nations, the sector’s focus shifted towards improving infrastructure, roads and housing. However, the economic malaise facing Gabon in light of the domestic debt crisis, coupled with the subsequent reduction in oil prices, has translated into a serious slowdown in the construction sector, which shrunk by 3% in 2015. While the 2017 Africa Cup of Nations will create some construction demand, the main industry drivers are expected to be infrastructure and housing. A network of roads and bridges connecting Libreville to Port-Gentil is slated to open in 2017, which will also drive a reduction in transport costs that should yield both cheaper inputs and construction materials.
This chapter contains an interview with Salim Kaddouri, Director-General, CIMAF Gabon; and Deputy Director-General, Cimgabon.
Explore chapterAlternative Investments
Buy digital copy of this chapter - £18While Saudi Arabia is a regional leader in mutual fund activity and has led the recent GCC expansion of the segment in terms of both fund classes and volumes, growth has been less brisk in areas such as private equity and venture capital. Recent years, however, have seen momentum build, driven by increased private sector interest and the government’s determination to nurture alternative sources of funding for expanding businesses in the Kingdom.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18With a vision to create jobs and spur growth across the economy, the Moroccan government has focused considerable attention on developing the industrial sector in recent years. Under the framework of several government strategies, key manufacturing segments – including automotive and aeronautic components and agro-industry – have seen injections of capital and the rollout of specialised infrastructure, training facilities and fiscal incentives, helping to transform Morocco’s industrial sector over the past decade. Investments continue in the relatively young aeronautics and automotive industries, and in the recently lagging textiles and pharmaceuticals segments. In the phosphates-dominated mining sector, authorities have sought to increase activity in underdeveloped segments, passing a new mining code after the commodity price drop with the aim of attracting foreign investment, boosting capacity and spurring a more diverse range of output. If local operators and foreign players are able to improve their cooperation, further development of the industrial sector is likely to follow.
This chapter contains interviews with Philippe Petitcolin, CEO and Director, Safran; and Ali Bennis, President, Laprophan.
Explore chapterInsurance
Buy digital copy of this chapter - £18Insurance penetration in Dubai is very low and the potential for growth is immense, making the sector competitive and highly oriented toward future expansion. However, the current operating environment is challenging, with companies competing on price to capture market share, scale up customer bases and boost profits. An additional obstacle in the past year has been the decline in oil prices. Though the emirate is not directly exposed – indeed, as a net importer it benefits – the regional focus on crude exports means less liquidity in the economy overall. It also means a drop in valuations for most types of assets, including those insurers who typically hold their investment portfolios, such as equities and real estate. The emirate also hosts an offshore insurance sector in its financial free zone, the Dubai International Financial Centre (DIFC), and the operators housed there have helped create a centre for reinsurance, with specialist providers operating in niche markets. These firms are limited in their ability to service the domestic market and are instead looking at regional, African and Asian markets as a catchment area for customers.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Driven by rising demand for new sources of financing in the face of weak oil prices, Kuwait’s Islamic financial services (IFS) sector is increasingly considered to be a core component of the nation’s development. The industry’s steadily improving profile is largely a result of the government’s efforts to shore up the sector’s reputation over the past decade, most recently by rolling out new sukuk (Islamic bond) regulations in November 2015. As a consequence, local Islamic banks, investment companies and sharia-compliant insurers have gained market share at a rapid pace, in the process turning Kuwait into one of the world’s leading IFS markets.
This chapter contains an interview with Mazin Al Nahedh, CEO, Kuwait Finance House.
Explore chapterEnergy
Buy digital copy of this chapter - £18As Africa’s largest oil producer, Nigeria’s energy sector accounts for 90% of exports and at least 50% of government revenues. The country is second only to Libya on the continent in the size of its reserves, and onshore fields have been productive for decades. Offshore deposits are a frontier that has been massively underexplored, and in recent years international oil companies have started to refocus their efforts there. That has left an opening on land, which local start-ups have filled. New and smaller indigenous companies are buying up onshore blocks from the global giants, investing in fresh capacity, and increasingly shaping the sector and its future. Under the current government, a number of substantial moves have been planned – all of which, if executed, could significantly modernise the hydrocarbons industry for one of the world’s largest producers.
This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources and former Chairman of the Board, Nigerian National Petroleum Corporation; and Mohammed Sanusi Barkindo, Secretary-General, Organisation of the Petroleum Exporting Countries.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While 2015 was widely regarded as a rough patch for Indonesia’s capital markets, on a medium- and long-term basis the market has posted significant growth. From 2005 through to the end of 2015, the Jakarta Composite Index (JCI) – the market benchmark for the Indonesia Stock Exchange – rose around four-fold, or 15% per annum, according to data provided by the exchange. Indeed, over the past decade the MSCI Indonesia has outperformed not only other ASEAN bourses, but emerging markets and MSCI World as well.
This chapter contains interviews with Muliaman Hadad, Chairman, Financial Services Authority; and Tito Sulisito, CEO, Indonesia Stock Exchange.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18After a number of challenging years, Papua New Guinea’s capital markets seem to be finding their footing and may be on the cusp of great and positive change. In 2015 the country had its first initial public offering in three years, and it was a significant listing: a major local financial services group with part ownership of the stock exchange. Also, in 2016 a key stock started trading again after having been suspended in 2014. Significant reforms are being discussed, with Prime Minister Peter O’Neill weighing in, and these could result in much-needed consolidation and modernization of capital markets regulation and oversight.
This chapter contains a viewpoint from Richard Borysiewicz, General Manager, BSP Capital.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18In recent years Qatar’s Islamic financial services (IFS) sector has expanded rapidly, on the back of government support and growing interest among domestic corporations and individuals alike. While tightening liquidity has the potential to result in slightly curtailed growth across the banking sector as a whole in 2016-17, sharia-compliant lenders are widely considered to be in a better position than their conventional counterparts to continue to grow during this slower period. Recent figures reinforce this perception, with Qatar’s four national Islamic banks posting overall asset growth of 17.5% between January 2015 and January 2016, compared with 14.4% growth in the conventional banking segment during the same period, according to the most recent data from the Qatar Central Bank (QCB).
This chapter contains interviews with Khalid Yousef Al Subeai, Acting Group CEO, Barwa Bank; Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank; and Bassel Gamal, Group CEO, Qatar Islamic Bank.
Explore chapterInsurance
Buy digital copy of this chapter - £18While Trinidad and Tobago’s insurance industry was affected by a slower economy in 2015, most of the largest insurers remain prof¬itable. Key metrics suggest the industry is resilient, although companies will have to adapt their business models to keep abreast of market developments. At the end of 2015 there were seven active life insurance companies, 17 active general insurance companies and seven active composite companies. According to figures from the Association of T&T Insurance Companies, which represents most insurance companies operating in the country, gross written premiums received by its general insur¬ance reporting members in 2014 stood at TT$3.58bn ($551.3m), an increase of 7.1% on the preceding year, but still below the TT$3.69bn ($588.3m) registered in 2012. Although T&T’s national economy could be facing difficult headwinds in the coming years, industry experts believe that, overall, the future of the sector looks promising.
This chapter features an interview with Robert Trestrail, Executive Vice-President and General Manager, Sagicor Life.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18With a strong Islamic banking sector, a growing Islamic insurance (takaful) industry and an expanding market for Islamic bonds (sukuk), Brunei Darussalam has recently been drawing much attention internationally as a center for Islamic financial services (IFS). Indeed, Brunei Darusslam is now amongst the nine countries worldwide where Islamic finance has reached systemic importance – places where more than 15% of total domestic banking assets belong to the sector. Located in the heart of a region that contains five of the 10 largest Muslim countries by population, Brunei Darussalam is also well placed to capitalize on the fast-growing role Asian Islamic finance is taking in this robust global industry. With some two-thirds of the world’s Muslims living in Asia, many of them in seriously under-banked markets, such as Indonesia, the region continues to hold strong potential for the industry. This chapter contains an interview with Javed Ahmad, Former Managing Director, and Bank Islam Brunei Darussalam (BIBD).
Explore chapterBanking
Buy digital copy of this chapter - £18The Sultanate’s small but solid banking sector has been going through some significant changes in recent times. Consolidation has led to fewer lenders, a process that is likely to continue, while at the same time those banks that do remain are some of the best resourced in the region. Indeed, Brunei Darussalam’s banks have high levels of liquidity, good capital adequacy ratios and well-managed levels of non-performing loans. The sector includes both Islamic and conventional banks, with the former being dominant – a feature that makes the Sultanate unique in Asian banking. This chapter contains interviews with Yusof bin Haji Abdul Rahman, Managing Director, Autoriti Monetari Brunei Darussalam (AMBD); Pierre Imhof, CEO, Baiduri Bank; and Ajay Kanwal, Regional CEO, ASEAN and South Asia, Standard Chartered.
Explore chapterBanking & IFS
Buy digital copy of this chapter - £18Although funding conditions in Malaysia are tightening due to prudential considerations and heightened macroeconomic risks, the banking system as a whole remains profitable, liquid and well capitalised. The country’s 27 domestic and foreign banking institutions are amongst the most dynamic in the region, serving clients at home as well as the wider South-east Asia region. An early adopter of sharia-compliant financial systems, Malaysia is now reaping the benefits as it continues to consolidate its global lead in Islamic finance. In the 23 years since commercial banks were allowed to offer Islamic banking products, the sector has emerged as a formidable force in providing funding to the Malaysian economy and beyond, creating additional high value at home and abroad. This chapter contains interviews with Nor Shamsiah Mohd Yunus, Deputy Governor, Bank Negara Malaysia; Mahendra Gursahani, Managing Director and CEO, Standard Chartered Malaysia; and Jaseem Ahmed, Secretary-General, Islamic Financial Services Board.
Explore chapterInsurance
Buy digital copy of this chapter - £18As Sri Lanka’s economy has expanded over the past half decade, its insurance industry has grown apace, in the process becoming a vibrant and competitive market in its own right. Some 29 insurance companies were operating in Sri Lanka as of the beginning of 2016, at which point the sector’s total assets were valued at LKR394.2bn ($2.8bn), according to data from the industry regulator. This figure is up slightly from the same period the previous year, although down from an end-2014 total of LKR406.8bn ($2.9bn). Recent short-term fluctuations aside, over the past five years the industry has grown considerably, with total assets nearly doubling over the 2010-14 period. On the back of a raft of recent regulatory improvements and demand-driven uptake, local players expect to see continued expansion for the foreseeable future.
This chapter contains an interview with Damayanthi Fernando, Director General, Insurance Board of Sri Lanka.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18After a robust performance in 2015, the sector has entered 2016 ready to weather the economic challenges presented by a subdued oil price and is well positioned to pursue growth where opportunities arise in the coming years. With total assets estimated at $127bn in 2014, the UAE has one of the largest sharia-compliant banking sectors in the world – the third largest after Saudi Arabia and Malaysia. Beyond the dedicated Islamic banks, the majority of the UAE’s 23 licensed lenders and many of the 26 foreign banks in the country operate sharia windows. Moving forward, Islamic lenders can expect to benefit from domestic economic activity, including the projects attached to Dubai Expo 2020 and the opening up of Iran to increased trade and investment activity. This chapter contains an interview with Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank.
Explore chapterTransport
Buy digital copy of this chapter - £18The instability generated by Tunisia’s 2011 revolution resulted in the delayed roll out of important infrastructural projects and needed maintenance of existing infrastructure. Although Tunisia’s utility infrastructure (water, electricity and gas) ranks strongly by regional standards, its transport-related infrastructure – historically one of the country’s important comparative advantages, with high levels of productivity and reliable performance – has deteriorated in recent years. From 2010 to 2014, the country dropped 49 places on the World Bank’s Logistics Performance Index, falling from 61st to 110th. To reverse the decline of recent years, and in turn improve maintenance, capacity and efficiency, the country is rolling out several initiatives to boost connectivity, in collaboration with external donors and private sector partners. Among the new projects mooted are a new Africa-focused freight carrier, highway upgrades and a pending open skies agreement – all of which, if executed in a timely fashion, should help Tunisia begin to move up the rankings. Policy changes and increasing the private sector’s role through partnerships will serve to encourage further investment. This chapter contains an interview with Sami Battikh, CEO, Office of Merchant Marine and Ports (OMMP).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Thai market consistently outperforms many of its neighbours in terms of trading volumes. In January 2016 over $23bn of shares changed hands on the Stock Exchange of Thailand, compared to some $9bn on Bursa Malaysia, over $4bn on the Indonesia Stock Exchange and $16bn on the Singapore Exchange. Thailand is transforming from a large but secondary player in the region to a market of focus. The high level of turnover and the steady corporate activity are generating considerable interest and the right conditions for rapid development. The country has already become the market of choice for issuers in the Mekong region, and is starting to get noticed by the international investment community as being more than just a small local market. If reforms continue, and if the new government is able to keep the markets open and fair, Thailand may well find itself playing a new and significant role in the development of the ASEAN region’s capital markets. This chapter contains interviews with Kesara Manchsree, President and CEO, the Stock Exchange of Thailand; and Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZIMCO Securities Company.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18As domestic liquidity surged and foreign investors gradually returned after a general flight from emerging markets in 2013, Philippine capital markets were riding a wave of optimism in 2014 and early 2015. The Philippine Stock Exchange’s (PSE) blue-chip index, the PSEI, hit a fresh all-time high in January 2015 and was continuing to rise in February, finally working past the “taper tantrum” that knocked back all major emerging market indices in 2013. The Philippine market’s strong performance in a weak year for emerging markets bodes well for the capital markets sector and was an important show of confidence by investors in the country’s broader economic prospects. In addition, the development of a local corporate bond market is also a promising sign and will reduce the economy’s dependence on banks to finance investment. This chapter contains an interview with Rabboni Francis B Arjonillo, President, First Metro Investment Corporation.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Given Djibouti’s economic reliance on international trade, manufacturing industries have traditionally played a secondary role in the country’s economic development. However, authorities are now looking to drive their expansion as a means to cut unemployment, and foster more sustained and inclusive economic growth. As the gateway to East Africa, Djibouti is well positioned to supply manufactured goods to the surrounding landlocked countries. By encouraging FDI in its free zones, Djibouti has an opportunity to boost manufacturing activities. Meanwhile, there is strong potential for growth in other subsectors, particularly cement and building materials, bolstered by the country’s ongoing infrastructure investments. With fisheries and salt mining pegged to see greater investment due to rising local demand and efforts to strengthen the business climate, there is definite scope for industry to play a larger role in the economy. This chapter contains interviews with Ahmed Osman Guelleh, CEO, GSK Group; and Abdoulkarim Al Gamil, Chairman, Al-Gamil Group.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Over the past decade the oil industry has been at the centre of Colombia’s economic growth. The sector accounted for nearly one-fifth of all foreign direct investment over the past 10 years, approximately half of all export revenues and, through taxes and royalties, provided up to 30% of government income. Consequently, the fall in the oil price from more than $100 per barrel in mid-2014 to less than $30 in early 2016 has had a large impact on the national economy. Major companies have been forced to drastically re-adjust their growth plans and streamline operations. While production has plateaued, exploration work has dropped off sharply. However, promising offshore discoveries, a nascent shale gas segment, and a new, cleaner and more efficient refinery underpin optimism for the long- term future of the industry.
This chapter includes an interview with Francisco José Lloreda, President, Colombian Petroleum Association.
Explore chapterInsurance & Reinsurance
Buy digital copy of this chapter - £18For decades Bahrain has been home to one of the GCC’s most developed insurance sectors, with domestic and international firms taking advantage of the country’s robust yet accommodating regulatory structure to pursue business both locally and in rapidly emerging regional markets. Some 25 locally incorporated insurers operate in Bahrain, with a further 22 locally incorporated firms restricted to pursuing business outside Bahrain. However, a penetration rate of around 2.1% in the local market, compared to rates of around 8% in more developed European markets, suggests that there is still room for further domestic growth. Meanwhile, the number of reinsurance firms licensed to operate from Bahrain has been increasing steadily since 2006, with five conventional players currently established. The segment has also begun to tap into the demand for sharia-compliant cover.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Hailed as the last true telecoms greenfield in Asia, Myanmar’s communications sector has radically evolved in recent years. An impressive number of international companies – a total of 91 – competed for two operating licenses in 2013. Telecommunications development remains a fundamental pillar in the evolution of Myanmar’s economy, and it supports the development of the other sectors, particularly financial services. Network expansion initiatives will remain a dominant force behind foreign investment and job creation for the foreseeable future. Telecoms infrastructure spending is set to increase as border coverage grows and demand continues to rise. The growth of the IT sector has been partly overshadowed by the liberalisation of the telecoms industry. However, the arrival of major international telecoms players has opened up significant new opportunities for Myanmar’s expanding market. Yet this has also put some strain on the country’s internet capacity as a population of more than 51m gradually gains access to the web, mostly for the first time, on their mobile phones. This chapter contains interviews with U Sai Saw Lin Tun, Chairman, Myanmar Post and Telecoms; Liman Zhang, Managing Director, Huawei; and Philippe Luxcey, Managing Director, Apollo Towers Myanmar.
Explore chapterMining
By any measure, Peru is a giant of the global mining industry. Only Chile and China produce more copper and the country is the world’s seventh-largest producer of gold and the third largest of silver. It is unsurprising that Peru’s economic fortunes have been tied to the mineralogy of the Andes Mountains for many centuries. The mining industry has been the driver behind the growth of the Peruvian economy for 10 years, today accounting for about 17.6% of GDP and half of exports. In the first half of 2015 Peru exported just over $9bn of metals, its weakest six-month performance since 2009. However, local miners are well placed to withstand a period of low prices, and the entrance of major new projects means 2016 should be a bumper year for production. A coherent strategy for resolving social conflicts is set to figure among the priorities of future governments. This chapter contains an interview with Rosa Maria Ortiz, Minister of Energy and Mines.
Explore chapterEnergy
Buy digital copy of this chapter - £18Hydrocarbons play a vital role in the Omani economy, comprising almost 50% of GDP and accounting for a large majority of government revenues. In total the government budgeted $3.9bn of spending on investment in oil and gas for 2015, representing an increase of 9.35% on the $3.6bn budgeted for 2014. Although the drop in oil prices has put considerable pressure on government revenues, the price drop has also forced producers to optimize processes. Indeed, Oman has become a testing ground for some of the most advanced extraction techniques currently in use, not to mention a host for new investment in downstream industries. The same commitment to technology should soon see production of natural gas hit new records. This chapter contains an interview with Raoul Restucci, Managing Director, Petroleum Development Oman.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Egypt is one of the oldest energy producers in the Middle East, with a history of commercial oil production dating back more than a century. The country benefits from low production costs and a relatively large volume of both onshore and offshore oil and gas fields. Developed infrastructure has allowed the country in past decades to maintain a sizeable export market, through shipped products and pipelines, as well as a sizeable downstream sector. However, recent years have seen production subject to more external pressures. Declining output from older fields, a traditional lack of investment in downstream sectors and a jump in domestic demand has led to the country wavering between being a net exporter and a net importer, while power plants and large-scale electricity consumers face load-shedding. The Egyptian energy sector is starting to turn the corner. After a number of years of supply and demand imbalances, the market is coming back into line. Egypt is a challenging environment, given the fixed prices, but it is also importantly, a potentially rewarding environment.
This chapter contains interviews with Tarek El Molla, Minister of Petroleum and Mineral Resources; Hesham Mekawi, Regional President, BP North Africa; Khaled Abu Bakr, Executive Chairman, Taqa Arabia; Hesham El Amroussy, Chairman and Managing Director, ExxonMobil Egypt; and Tamer El Mahdi, Deputy CEO, Orascom Telecom Media and Technology Holding (Orascom TMT).
Explore chapterEnergy
Buy digital copy of this chapter - £18An anticipated recovery in the upstream segment in 2017 could spur a new round of investment, and downstream demand is expected to continue rising, particularly as vehicle sales accelerate. While the forecast for 2015 is mixed, the industry’s long-term prospects remain bright, and the sector is likely to be a major economic engine over the next five years. The total volume of petroleum products imported in 2014 rose by 11.7% to 4.46m tonnes, with the petroleum import bill simultaneously increasing by 5.6% to reach KSh333.15bn ($3.7bn), while total domestic demand for petroleum products grew by 5.3% to hit 3.94m tonnes. Building on its sizeable reserves of soda ash, fluorspar and titanium oxide, among other resources, Kenya’s burgeoning mining sector is poised for significant long-term growth. The industry’s potential is thus helping to attract major investments in critical infrastructure.
This chapter contains interviews with Donald Mahaga, Chairman, Kenya Oil and Gas Association; and Tim Carstens, Managing Director, Base Resources.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Algeria’s construction sector remains buoyant despite the impact of the significant drop in global oil prices, with the government continuing its support for the main social programmes and infrastructure projects as a means of diversifying the economy. A new five-year investment plan for the period 2015-19 worth €233.7bn was approved by the government in late 2014 to build upon the achievements of the first plan of this sort for the 2005-09 period, which was worth €178.4bn, and the 2010-14 plan worth €255.1bn. The real estate market has in recent years seen a proliferation of private property developers seeking to tap into growing demand among the upper and middle classes for mid-to-high-end residential property, shopping malls, quality hotels and tourist resorts. However, demand remains highest for low-income units, which the public sector is looking to address. Supply is constrained as a result of the scarcity of land available for new development, dampening interest among private developers and resulting in the government building much of its new social housing stock in greenfield areas. This chapter contains interviews with Abdelmadjid Tebboune, Minister of Housing and Urban Development; and Samer Khoury, President of Engineering and Construction, Consolidated Contractors Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The year 2014 was marked by strong growth in the construction sector and despite regional volatility slowing rollout for tourism projects, new developments in the residential, transport and energy sectors are expected to continue fueling growth. Indeed, credit extended to the construction sector in 2014 totalled $658m, up from $569m in 2013. In terms of real estate, 2014 saw trading continue to grow along with steady rises in property prices, especially in Amman. Although oversupply in the retail, high-end residential and commercial markets has been a cause for concern, the high prices for land are expected to cause a slowdown in development while regional instability will also reinforce Jordan’s safe-haven status as a selling point for international businesses seeking to set up shop in the region, thus keeping up a steady flow of foreign demand.
This chapter contains interviews with Hani Mulki, Chief Commissioner, Aqaba Special Economic Zone Authority; and Taha Al Zboun, CEO, Dead Sea Development Zone.
Explore chapterMining
Buy digital copy of this chapter - £18With an estimated $2.5trn worth of proven mineral reserves, the mining sector accounts for around 8% of South Africa’s GDP and 14% of total employment, making it the second-largest employer in the country. However, the industry’s output and performance have been under pressure in recent years, as bottlenecks in labour relations, uncertainty in policy direction and power shortages have weighed on sector growth. Mining is also subject to global headwinds, as slower economic growth in commodity-consuming nations has driven down commodity prices and weakened export revenue. Financial turbulence and volatility will likely see continued fluctuations in sector share prices and could limit capital investment in the near to medium term. However, as South Africa continues to offer some the best mineral reserves in the world, the efficiencies gained now are expected to translate into greater profitability as global commodity prices recover.
This chapter contains an interview with Norman Mbazima, CEO, Kumba Iron Ore.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Ghana’s energy sector is both young and growing fast, with a second major oil and gas field set to commence production in 2016 and a third to follow soon thereafter. Legal and regulatory regimes are still being established, while improvements are being made to infrastructure to catch up with a rise in demand. This will help to remove obstacles to the use of domestic energy supply to speed up development. In the downstream market, deregulation is likely to be the highlight of 2015, after a decision to end government price setting for main consumer fuels. Increasing oil production, even in a lower price environment, will be particularly valuable at a time when Ghana is grappling with a budget deficit estimated at 7.5% of GDP.
This chapter includes interviews with Joe Mensah, CEO, Kosmos Ghana; William Amuna, CEO, GRIDCo; and Samuel Nana Brew-Butler, Chairman, CenPower Generation.
Explore chapterTransport
Buy digital copy of this chapter - £18RAK’s location on the Strait of Hormuz, its well-developed infrastructure, and the free trade agreements in place within the GCC are some of the key logistical advantages offered to businesses located in the emirate. RAK boasts five ports, each with a clearly defined role, and all of them branded as RAK Ports and managed by the Saqr Port Authority. The 1200-km Etihad Rail Project is being built across the UAE in three stages and will eventually transport both freight and passengers, as well as provide rail links to the proposed GCC network.
This chapter contains an interview with Cliff Brand, General Manager, RAK Ports Group.
Explore chapterEnergy
Buy digital copy of this chapter - £18With more than 6% of GDP coming from oil and gas, and 1.8% from the utilities sector, energy is one of the most important components of the Mexican economy. The country’s oil exports have made up a large part of the public budget for several decades. Nonetheless, the decline in production of Petróleos Mexicanos (Pemex), the state-owned oil company, from a peak of roughly 3.4m barrels per day (bpd) to around 2.5m bpd after 2010, combined with oil price volatility, led to a legislative revision in 2013. The energy reform, which opened up the sector to private investment, is expected to have a profound impact on the sector, though in an initial phase, investment in oil and gas exploration and production is likely to be outrun by advancements downstream. Even so, following reform, Mexico is poised to become one of the most dynamic energy markets in the region.
This chapter includes interviews with Pedro Joaquín Coldwell, Minister of Energy; Emilio Lozoya Austin, CEO, Petróleos Mexicanos (Pemex); and Alberto de la Fuente, Managing Director, Shell Mexico.
Explore chapterAlternative Investments
Buy digital copy of this chapter - £18A growing role for the private sector has brought greater investment opportunities in Saudi Arabia, with both domestic and international players taking a greater interest in the local market. With the stock exchange opening its doors to foreign investors and a recovery in the number of IPOs, significant capital inflows are expected in the short to medium term. A number of corporate and private investors have increasingly started to deploy their assets in venture capital, and several angel investor networks have been established. Foreign interest is also on the rise with international private equity players paying closer attention to the Saudi market, attracted by its size, growth rates and large domestic consumer market. Elsewhere, the government has stepped up its efforts to enhance the level of corporate governance in family-owned businesses, in a bid to further streamline private sector involvement.
Explore chapterInsurance
Buy digital copy of this chapter - £18The second-largest in Africa and 53rd-largest in the world by total premiums, Morocco’s insurance market is dominated by the non-life segment, and in particular by compulsory automobile insurance. Plans to make other forms of insurance mandatory are in the works but have yet to be implemented. Market share is concentrated in the hands of a small number of mostly local firms, although foreign insurance companies are also active in the market and several French firms have gained a substantial portion of local business. Since the insurance sector is one of the kingdom’s largest sectors of institutional investors and is heavily invested in local equities, new solvency rules are being explored to mitigate the risks this poses.
This chapter contains a roundtable with Zouheir Bensaid, CEO, RMA Watanya; Ali Harraj, CEO, Wafa Assurance; and Mehdi Tazi, CEO, Saham Assurance.
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Buy digital copy of this chapter - £18Due to several factors, Papua New Guinea is one of the least insured countries in the world. However, the low take-up of insurance is not, in this case, the result of a lack of experience. PNG has had an insurance sector for more than a century and it was once administered by Australia, an historically insurance-conscious society. The problem is more the result of geography, topography and income. Despite its many challenges, the PNG insurance market is healthy and competitive. PNG has no limits on foreign investment in the sector, and foreign insurers are active as investors and as indirect participants through reinsurance and brokerage. The sector is open, profitable and has great potential. Given the low penetration rate and growing economy, more policies will likely be sold and more risk can be covered. Still, the sector must develop, especially in terms of best practices and pricing.
This chapter contains an interview with Philip Tolley, Managing Director, Capital Insurance.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18With 5% growth in the secondary sector in 2014, Gabon’s industrialisation continues apace under the Emerging Gabon plan, supported by investors in agro-industry, construction materials, forestry and petrochemicals. Special economic zones are being developed to process raw commodities into products with higher value added, fed partly by new projects in the mining sector.
This chapter includes interviews with Christophe Akagha-Mba, Minister of Mines, Industry and Tourism; and Fabrice Nzé-Békalé, CEO, Société Equatoriale des Mines (SEM).
Explore chapterInsurance
Buy digital copy of this chapter - £18In global terms, T&T ranks as a small but well established market for insurance. According to figures from the Association of T&T Insurance Companies, general insurers wrote gross premiums of around $494.1m in 2013, while life and health insurers wrote gross premiums of about $524.3m. Over the previous five years, the general trends in profitability have been favourable. Life insurance companies’ expense ratio declined from 40.6% in 2009 to 36.4% in the period to September 2013, while return on equity for general insurance firms increased from 16.7% to 18.6%. At 3.7% in 2013, insurance penetration in T&T is broadly in line with regional averages, suggesting further room for growth. A new insurance bill set to be passed in the near term will incorporate a minimum continuing capital and surplus requirement regime, and contribute to the strengthening of the industry’s legal framework. This chapter contains an interview with Ravi Tewari, Group CEO, Guardian Holdings.
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Buy digital copy of this chapter - £18In global terms Panama ranks as a small but dynamic national market for insurers. According to the Superintendency of Insurance and Reinsurance of Panama, general insurers wrote gross premiums of $791m in 2014, 6.2% more than in 2013, while life/health insurers wrote gross premiums of $552m, up 10.8%. Total insurance penetration was 3.07% that same year, with total density at $342 per capita. Though these figures are high in the context of Central America, where penetration varies from a low of 1.2% per capita in Guatemala to 2.2% in El Salvador, they remain low by the standards of OECD member states such as Chile (with penetration of 4.2% of GDP and density of $678 per capita), Spain (5.6% and $1591), Portugal (6% and $1716) and the US (11.6% and $5499). With significant room for organic growth, the micro-insurance, health insurance and life insurance markets continue to offer the best opportunities.
This chapter contains an interview with Mauricio de la Guardia, CEO, Internacional de Seguros.
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Buy digital copy of this chapter - £18While the global insurance industry saw growth slow over the course of 2013 and 2014, Turkey’s insurance sector displayed resilience, making the country an attractive market for investment and expansion. Despite fluctuations in other sectors and a depreciation of the local currency, in real terms Turkey’s insurance sector experienced significant growth in both the life and non-life segments. Overall, the expectation is of continued premium growth in 2015, with companies also taking greater control of their technical results, boosting profitability. Pensions will likely continue seeing positive growth as well, although potential uncertainties may impact consumers negatively in the period up to elections in 2015. In addition, the diversity of products on offer is set to expand.
This chapter contains interviews with Mehmet Bostan, General Manager, Vakıf Emeklilik, and M Uğur Erkan, CEO, Anadolu Hayat Emeklilik.
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Buy digital copy of this chapter - £18Recording steady expansion, the Mongolian insurance sector’s prospects are good despite the difficulties faced more generally in the economy. Sector indicators, such as premiums per person, premiums per capita, total capital and total compensation, also suggest that the country’s insurance companies are in relatively good shape and growing fast. As in many developing countries, awareness and penetration are low, so increases come easily. On its own, this has allowed the sector to show resilience in the face of challenges elsewhere in the economy, but growth is also the result of effective strategies, the implementation of best practices and good regulation.
This chapter contains an interview with D. Bolormaa, Former CEO, Bodi Insurance.
Explore chapterEnergy
Buy digital copy of this chapter - £18Still Africa’s largest oil producer, with an industry that in past decades has fuelled the growth of what is now its largest economy, Nigeria has the biggest reserves on the continent. Local operators are expanding their share of production, while domestic services companies are boosting capacity to meet local content requirements. Yet the sector faces steep challenges, from policy uncertainty amid looming legislative reform to output disruptions due to unrest in the Niger Delta, the heart of its producing region. These obstacles have only been exacerbated by falling crude prices, which halved in the second half of 2014. Although oil has traditionally dominated Nigeria’s production mix, natural gas looks set to gain more ground in the coming years, thanks largely to the forecast increase in demand from the recently privatised electricity sector and investments by state-owned Nigerian National Petroleum Corporation (NNPC) in gas aggregation and transport infrastructure, which are strengthening supply links to power plants.
This chapter contains interviews with George Osahon, Director, Department of Petroleum Resources (DPR); Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB); and Adewale Tinubu, Group CEO, Oando.
Explore chapterInsurance
One of the largest in the GCC, Saudi Arabia’s insurance industry is expanding at a rate which some believe will soon see it surpass the UAE to claim the title of regional leader. 33 insurers are currently licensed to operate in the Saudi market, while a further three have been approved for establishment. This makes for a crowded sector, with intense competition played out largely in the arena of premium prices. This chapter contains an interview with Abdullah Al Sharif, Secretary-General, Council of Cooperative Health Insurance (CCHI).
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Qatar has been a prominent player in the region’s Islamic banking sector since the early 1980s, and Islamic banking accounted for roughly 26% of the country’s total banking assets as of March 2015, with growth in the first nine months of 2014 outstripping that of Qatar’s largest banks. Meanwhile, the country was the region’s third-largest issuer of sukuk in both 2013 and 2014, while 6.2% of global sukuk issuance in the first half of 2014 used the Qatari riyal, behind only the Malaysian ringgit, US dollar and Saudi riyal. Elsewhere, the new Islamic stock index, the Al Rayan Islamic Index, offers traders the opportunity to steer capital into a subset of sharia-screened companies with strong fundamentals.
This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.
Explore chapterEnergy & Utilities
Blessed with an abundance of hydro, coal and gas resources that one would be hard pressed to find elsewhere, Sarawak has a comparative advantage that is being leveraged to produce bulk power at competitive prices in order to attract capital-intensive investments in heavy industry. Already a net exporter of liquefied natural gas (LNG), new hydroelectric projects position the state with the potential to become a central provider of power in the proposed ASEAN Power Grid, and supply agreements have already been signed with neighbouring Indonesia, while discussions with Peninsular Malaysia, Sabah and Brunei Darussalam are ongoing. Malaysia’s vision for 2020 calls for Sarawak to attain the status of a high-income state by the turn of the decade via transitioning its production base away from basic commodities into more value-added manufacturing. Further unlocking sustainable and competitively priced energy is critical to achieving this goal.
This chapter contains interviews with Torstein Dale Sjotveit, CEO, Sarawak Energy; and Zulkifle Osman, Managing Director, Sarawak Hidro.
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Insurance
One of the largest in the GCC, Saudi Arabia’s insurance industry is expanding at a rate which some believe will soon see it surpass the UAE to claim the title of regional leader. 33 insurers are currently licensed to operate in the Saudi market, while a further three have been approved for establishment. This makes for a crowded sector, with intense competition played out largely in the arena of premium prices. This chapter contains an interview with Abdullah Al Sharif, Secretary-General, Council of Cooperative Health Insurance (CCHI).
Explore chapterInsurance
Buy digital copy of this chapter - £18Although the industry remains somewhat crowded and highly competitive, a recent push for consolidation, including ongoing hikes in capital requirements, should keep the sector on a strong upwards trajectory in 2015 and beyond. The industry stayed resilient despite the destruction caused by Typhoon Haiyan in November 2013, with double-digit increases in investments and assets in 2014. While the life segment continues to drive growth, the non-life segment holds considerable potential. Meanwhile the industry remains open to foreign investment, despite a high tax burden and rising capital requirements. Recently enacted legislation, though painful for some smaller players, should improve industry stability and spur consolidation in 2015, keeping the industry on a steady long-term growth path.
This chapter contains an interview with Peter G Coyiuto, President & CEO, First Life Financial Company
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Buy digital copy of this chapter - £18The introduction of mandatory health coverage in Abu Dhabi has had a considerable impact on the wider UAE’s insurance and medical market and has helped drive strong expansion in recent times with double-digit growth expected to continue into 2015. Total market premiums stood at $8.03bn in 2013, while industry reports showed the UAE to be one of the largest and most penetrated insurance markets in the region, representing up to 45% of all premiums written in the GCC. A slate of regulatory reforms begun in 2007 aim to further develop the market by encouraging Emiratisation, takaful, bancassurance, consolidation, as well as enhanced codes of conduct. Meanwhile brokerage reforms implemented in February 2014 established a framework that helps boost security and sustainability and promotes consolidation in the market.
This chapter contains an interview with Ebrahim Al Zaabi, Director-General, Insurance Authority.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Côte d’Ivoire’s industrial sector has a long and storied history as one of the most developed in the sub-region, but as with many parts of the economy, it is recovering from the adverse impact of a decade of unrest. Resolution of the political crisis in 2011, and the recovery that it sparked, has started to bring about improvements. As such, the secondary sector increased its contribution to national GDP to 30% in 2011, compared to 27% in 2010, according to figures from the Ministry of Industry and Mines. While rising global prices of natural resources such as oil and gas, which accounted for 21% of the sector in 2011, have been a key factor, an uptick in agro-industrial activity in cocoa, palm oil and rubber has led to higher output in the nation’s processing plants. Other factors were public works and energy, which accounted for 9% and 3%, respectively. While the 2012 Investment Code and the new industrial policy are steps in the right direction, there is scope for more improvement.
This chapter contains interviews with Adham El Khalil, CEO, Eurofind Participation; and Clare Short, Chair of the Board, Extractive Industries Transparency Initiative.
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Buy digital copy of this chapter - £18The introduction of compulsory medical insurance in 2015 will provide universal coverage for all residents of Dubai by 2016, with the health insurance market expected to grow from 1.5m to 4m covered individuals by that time. The UAE’s insurance sector is the largest in the region, accounting for some 45% of all gross written premiums in 2013, but its low penetration rate highlights the market’s potential for further expansion, and indeed the sector continues to outpace the state’s GDP growth. Regulations that took effect in November 2014 raised minimum capital requirements for insurance brokers, from $272,000 to $1.36m and $2.72m for local and international brokers, respectively, with these changes expected to improve market standards going forward.
Explore chapterInsurance
Buy digital copy of this chapter - £18Bahrain boasts the highest insurance penetration rate in the GCC at 2.3% of the population. This is a result of its comparatively long insurance history, the clear regulation in place and the large number of companies involved in the sector. Motor insurance remains the primary source of revenue and claims within the sector, with motor lines representing almost 26% of premiums and contributions written in the market in 2012. A regulatory regime that allows for the free movement of capital and 100% foreign ownership of companies, as well as the availability of a highly skilled workforce has attracted many international insurance providers to set up shop in Bahrain. Moving forward the takaful segment is expected to play an increasingly prominent role in the sector, with new regulations being introduced to govern the framework of the segment and with international trends indicating that takaful’s global value will reach $17bn by 2015.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Myanmar is at the beginning of a telecoms boom, and consumers will soon have access to a plethora of new services that can fully alter the way business, social activities, education, and every aspect of society is run. Myanma SIM cards at one time retailed for $3000 each, severely limiting access, but as of 2014 citizens can connect their phones for just $1.50. The entrance of new players to the sector is expected to create demand for a number of ICT services companies, drawing upon the skills of web designers, network professionals and programmers. However, education and human resources are a major challenge and local talent is hard to find. As the sector develops, access to information will enable the country’s citizens to thrive in areas that have been blocked for decades.
This chapter contains a roundtable with Takashi Nagashima, Managing Director, KSGM; Ross Cormack, CEO, Ooredoo Myanmar; Peter Furberg, CEO, Telenor Myanmar; and U Shane Thu Aung, CEO, Yatanarpon Teleport/Royal Yatanarpon; and an interview with U Thein Oo, Chairman, Myanmar ICT Development Corporation (MIDC).
Explore chapterEnergy
Buy digital copy of this chapter - £18Oil and gas remain key economic contributors in Oman, with hydrocarbons accounting for 85.7% of government revenues in 2013. New partnerships with the private sector have led to some of the most advanced enhanced oil recovery (EOR) projects in the world with the use of solar-fired EOR technologies playing an increasingly important role in the sector. The sultanate is expected to substantially increase its domestic supply of natural gas in the coming years via production at the Khazzan tight gas reserves. Downstream, new refinery and petrochemical developments at Duqm and Sohar will see Oman capitalise on its geographic location. Although falling world oil prices have created a stormier forecast for hydrocarbons export revenues, rising domestic demand, along with targeted economic diversification policies that aim to reduce oil’s share of GDP to 9% by 2020, should ensure that the country avoids the worst of global market shocks over the longer term. This chapter contains interviews with Salim Nasser Said Al Aufi, Undersecretary, Ministry of Oil and Gas; and Harib Al Kitani, CEO, Oman LNG.
Explore chapterEnergy
Buy digital copy of this chapter - £18Peru’s energy sector is undergoing a period of rapid transformation. Ten years ago energy demand was low and the country depended almost entirely on hydroelectric power in addition to petroleum imports to meet its needs. At that time, Peru had limited oil production, no production of natural gas and little to speak of in terms of energy exports. Today, by contrast, the country is among the leading producers of natural gas in the region, an oil production hub and an important target of investment by foreign energy firms. Though oil production in May 2014 stood at 69,000 barrels per day (bpd) – having declined from 87,500 bpd in 2003 – production of natural gas has grown quickly, reaching 430.8bn cubic feet (bcf) in 2013, compared to 17.7 bcf in 2003. The government is now focused on developing the infrastructure that would be needed to add value to hydrocarbons resources through refining and petrochemical manufacturing.
This chapter contains an interview with Eleodoro Mayorga, Minister of Energy and Mines.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Roughly seven years after the discovery of oil, Ghana’s hydrocarbons sector has seen significant growth in terms of both production and infrastructure, yet the industry is still very much a work in progress. New projects are being ramped up to develop the sector, including for the downstream segment. Ghana’s proven crude oil reserves were estimated at 660m barrels as of January 2013, which could be higher as exploration is still ongoing. In the near term, the country has begun to shift to optimising the development of its hydrocarbons in a sustainable manner. It also aims to finalise linkages with associated sectors, including the power industry – an objective that the planned gas processing plant, upon completion in late 2014, should start to fulfil. While financial and technical bottlenecks have hampered the pace of refinery activity and new electricity generation, should these challenges be resolved, the country could emerge as not only an exporter of crude, but also as a downstream petroleum products manufacturer and a provider of surplus electricity to the regional power pool.
This chapter contains interviews with Kwesi Botchwey, Chairman, Ghana National Gas Company; Abdalla Salem El-Badri, Secretary-General, OPEC; and Kirk Koffi, CEO, Volta River Authority.
Explore chapterConstruction and Real Estate
Buy digital copy of this chapter - £18Benefitting from the government’s push for transport infrastructure and public housing, and guided by a new capital-intensive five-year plan, the construction sector has been seeing constant activity. During the 2009-14 five-year period, authorities channelled $286bn to modernise transport infrastructure, expand energy production and improve urban housing. However, while the demand for construction materials and expertise is high, contracts have faced operational constraints. Despite these difficulties, Algeria’s comparative stability in the region continues to garner international interest for a host of development projects that will cover areas such as road and rail construction, energy production and water infrastructure.
As the government channels state funds into its public housing programme, growing private interest is stoking growth in the higher-end residential segment of Algeria’s real estate market along with office and commercial real estate. One positive aspect of the housing programme has been that it has attracted a larger number of foreign contractors to help increase the number of houses Algeria is able to build every year. This chapter contains interviews with Abdelkader Kadi, Minister of Public Works; and Lakhdar Rekhroukh, CEO, Cosider Group.
Explore chapterMining
Buy digital copy of this chapter - £18South Africa’s mining industry is the fifth largest in the world and the country has around 80% of global platinum reserves, 11% of gold reserves, and some of the largest supplies of chrome ore and manganese. The sector’s contribution to GDP has, however, been on a steady decline, falling to just under 5% in 2013 from 11% two decades earlier. Reversing this trend is a top government priority, considering mining’s importance to employment and foreign exchange earnings. Although domestic output is showing signs of a cyclical contraction, with reserves estimated to be worth $2.5trn, there remains plenty of wealth underground to still be reached. Much of this is being unlocked via advanced extraction technologies but is still awaiting new and upgraded transportation and power infrastructure to come on-stream. South Africa should retain its position as a global mining powerhouse, as few can match its sheer size and variety of reserves.
This chapter contains interview with Ngoako Ramatlhodi, Minister of Mineral Resources; and Neal Froneman, CEO, Sibanye Gold.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18The extraction of oil and gas has long played a central role in the Egyptian economy, accounting for 15.3% of the country’s GDP in the 2013/14 financial year. With exploration in the North African nation dating back to the 1880s, the government has a long history of working with private firms to develop and manage its resources. Over the course of 2014 Egypt’s energy sector has seen some welcome developments. The announcement of a debt-repayment programme for funds owed to international oil companies (IOCs) has restored confidence in the upstream segment and brought pledges of increased investment from larger operators such as the UK’s BP. In the meantime, exploration for new resources continues. However, considerable challenges remain to be overcome, and the power outages that Egyptian individuals and businesses faced in 2014 are likely to remain a part of daily life for some time to come.
This chapter contains interviews with Sherif Ismail, Minister of Petroleum and Mineral Resources; Ross Clarkson, CEO, TransGlobe; and Ibrahim Sarhan, Chairman, e-finance.
Explore chapterBanking
Buy digital copy of this chapter - £18Local conventional and Islamic banks as well as international bank groups are all active in the small and competitive Bruneian market. Sector growth has accelerated as authorities have eased up somewhat on restrictive regulations, and banks are looking forward to an improved climate as overall economic growth revives. While the climate for banking remains competitive and the scale of the market is small, credit growth rates in business lending are expected to remain strong as the government leans on local lenders to support development. With investment set to rise in offshore energy, downstream processing and infrastructure, banks could see more their credit portfolios grow.
This chapter contains interviews with Dato Haji Mohd Rosli, Former Managing Director, Autoriti Monetari Brunei Darussalam; and Pierre Imhof, CEO, Baiduri Bank.
Explore chapterEnergy
Along with Tanzania and Uganda, Kenya is emerging as a new destination for oil and gas explorers after several hydrocarbons deposits in commercially viable quantities were found in the East Africa region. The extent of Kenya’s oil and gas reserves is still being determined and estimates vary widely, but some government projections suggest that its reserves could exceed Uganda’s expected reserves by as much as three-fold and rank the country as one of Africa’s most resource-rich nations. The country is also developing its mining sector, which currently contributes less than 1% to GDP but has significant potential to grow. Kenya is working to review and improve its regulatory environment for natural resources. An appealing regulatory environment will help to convince the industry that Kenya is serious about promoting investment in extracting its natural resources. In addition, a commitment to infrastructure development by the authorities should also help to attract the necessary funding and expertise to the country.
This chapter contains interviews with Davis Chirchir, Cabinet Secretary, Ministry of Energy and Petroleum; and Martin Mbogo, Country Manager, Tullow Oil.
Explore chapterEnergy
Buy digital copy of this chapter - £18Population increases and a growing economy look set to intensify demand on energy resources in Jordan over the coming years. In response, the government has put in place an energy plan that will focus on maximising the use of domestic resources, particularly oil shale; encouraging energy conservation and awareness; generating electricity from nuclear energy; and promoting the development of renewable energy projects. While driving diversification and the development of domestic energy sources, the plan will also reduce the kingdom’s reliance on energy imports, which stood at 97% of energy needs in 2011, and allow Jordan to stabilise prices and supply streams in times of regional turbulence.
This chapter contains an interview with Mohammad Hamed, Minister of Energy and Mineral Resources.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport and logistics in Gabon are in the midst of a major transformation. The government is engaged in a multi-year programme to upgrade the country’s infrastructure, with the aim of making it into a logistics centre for the Economic and Monetary Community of Central Africa.
Gabon’s transport infrastructure is set for a radical overhaul in coming years. A major state investment programme for roads will see the total length of paved roads in the country increase six-fold between 2009 and 2025, including a link between Libreville and Port-Gentil. This should help open up the interior of the country and boost socioeconomic development in previously isolated areas. Expansion projects at Owendo port should also help reduce congestion and hence costs for shippers, and airport capacity in the country’s main cities is set to increase dramatically, allowing international flights to operate out of Port-Gentil.
This chapter contains interviews with Takao Omori, CEO, Portek International; and Frank Legré, Managing Director for Africa, Air France.
Explore chapterInsurance
Buy digital copy of this chapter - £18Mongolia’s insurance industry is expected to grow rapidly over the next few years as the economy expands and more firms and individuals become familiar with insurance products and the need to be covered. The market is open – a rarity in Asia – and international investors and strategic partners are taking a close look at potential acquisition targets and partners. With the state controlling the insurance sector until 2003, and the population largely rural, many individuals remain unaware of what insurance is and now it works. However, this is changing, and the arrival of multinational firms has resulted in a rising awareness of insurance products. The prospects for the sector are excellent. If consolidation takes place and if insurance awareness increases as expected, margins will be solid and growth almost certain.
Explore chapterInsurance
Buy digital copy of this chapter - £18Rising disposable incomes, consumption growth and sustained investment are key factors in the sector’s recent continued expansion and future potential growth. While still small compared to its potential, Indonesia’s insurance market is attracting global underwriters and reinsurers. The life segment, which comprised roughly two-thirds of premiums in 2012, is the market’s key growth driver. The segment has seen annual expansion of 25.6% in the decade to 2012. The inflow of foreign direct investment into the Indonesian market, particularly from Japan, has led to a wave of mergers and acquisitions in the insurance sector that can be expected to increase competition. In January 2013, oversight of the sector was handed over to a new independent regulator, the Financial Services Authority, which will work to help institute new regulations for the market. Stricter regulations imposed under a comprehensive framework by the new regulator will bolster underwriters’ financial and technical capacity, while growing affluence, rising awareness of natural disasters, and the need for financial planning will be key drivers of long-term growth. This chapter contains an insurance dialogue between David Beynon, President Director, Tokio Marine Life Insurance Indonesia, and William Kuan, President Director, Prudential Indonesia; and interviews with Elvyn G Masassya, President Director, Social Security Agency; and Tim Shields, President Director, ACE Jaya Proteksi.
Explore chapterInsurance
Buy digital copy of this chapter - £18Qatar’s insurance sector has become the third largest in the GCC region in terms of written premiums. The sector is home to a range of domestic giants and international players that enjoy a choice of regulatory frameworks, and insurers are now gearing up to capitalise on the raft of infrastructure projects expected to arise from the national development strategy and Qatar’s hosting of the FIFA World Cup in 2022. Qatar Central Bank (QCB) stepped up to play a larger part in the governance of the sector and the much-anticipated mandatory health insurance scheme began to be implemented. Both developments have been welcomed by the industry and underpin much of the optimism currently surrounding the sector.
Explore chapterInsurance
Buy digital copy of this chapter - £18In 2012 Abu Dhabi’s insurance sector posted continued growth on the back of increased spending from consumers, corporations and the government. The UAE market overall remains underpenetrated, though total premiums as a percentage of GDP did see a slight increase from 1.9% in 2011 to 2% in 2012. GDP growth and planned government spending on large-scale infrastructure projects will increase the emirate’s stock of insurable assets in the coming year and provide investment opportunities for national and foreign insurers, while improved technical underwriting, increasingly diverse assets and new regulations also signal maturation in the sector.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Growing at double-digit rates in each of the past five years apart from 2009, the transportation and logistics sector contributed 24.1% to GDP in 2012 and is identified as one of four pillars of economic growth in the Strategic Economic Plan 2010-14. To secure the future of the sector the administration is investing $9.6bn, equivalent to 70% of public sector investment, from 2010 to 2014 in infrastructure upgrades. Public spending on infrastructure extends well beyond the flagship $5.25bn Panama Canal expansion and includes construction of the Panama City Metro, an overhaul of the road network and upgrades to maritime and airport infrastructure. With a business-friendly regulatory framework and the canal’s ability to attract global trade, Panama is set to continue developing the transport and logistics hub. This chapter includes interviews with Rafael Barcenas, Director-General, Civil Aviation Authority; Daniel Isaza, President, Logistics Business Council; Roberto Roy, Minister for Canal Affairs, and CEO, Metro de Panamá; and Pedro Heilbron, CEO, Copa Airlines.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Myanmar is being hailed as the next Vietnam, which kicked off a multi-decade construction boom when it opened up to the world in the 1990s. With much of Myanmar’s housing stock in poor shape and cities expected to grow rapidly, demand for middle-class urban apartments will be a powerful driver of growth. And with the country’s limited domestic capacity and wide range of construction needs, there are plentiful opportunities for foreign investors, international construction firms, and sellers of construction equipment materials. The biggest recent legal change for the industry was a reform to the Foreign Investment Law in 2012 that allows foreign investors in real estate to operate without domestic joint venture partners through build-operate-transfer lease agreements with the government. But developers have a long way to go to catch up with demand, and the pace of development is still restrained by the limited availability of prime land and domestic financing. This chapter contains interviews with U Kyaw Lwin, Minister of Construction; and U Aung Zaw Naing, Group CEO, Shwe Taung Development Co.
Explore chapterInsurance
Buy digital copy of this chapter - £18Though overcrowded, the UAE’s insurance market is underpenetrated by Western standards, and there is ample room for growth. Driven by an expanding expatriate population, the market is projected to grow 10% in 2014, and anticipated regulatory changes could further boost premium growth in the medium term. Most notably, a boost is expected to come from the introduction of mandatory medical coverage. The market leaders are the best equipped to capitalise on future demand, but with more prudent regulation, many smaller players in the field may also be able to benefit from premium growth without compromising their profits.
Explore chapterEnergy
Buy digital copy of this chapter - £22Oil and gas still take centre stage in Oman, accounting for more than half of GDP and 85% of government revenues. After a slump in 2000-07 as fields depleted, oil production is once again increasing, boosted by discoveries of new reserves and improved extraction techniques that glean more from old fields. Meanwhile, the government is looking to improve in-country value and the Omanisation of its workforce. This chapter contains interviews with Nabil Al Ghassani, CEO, Takamul Investment Company; and Mulham Al Jarf, Deputy CEO, Oman Oil Company.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Although its resource wealth should help to ensure Peru’s long-term energy security, in the short term surging demand continues to put pressure on the sector. A recent influx of investment in hydroelectric power stations and natural gas-fired thermoelectric facilities should be enough to stave off any bottleneck in electricity generation and avert potential power shortages in 2016 and 2017. Within the hydrocarbons subsector, the commercialisation of the giant Camisea field in 2004 changed the country’s energy mix, sparking an increase in exploratory investment. It is estimated that as much as $25bn could be invested in the hydrocarbons sector from 2011-20. Peru currently relies on a single pipeline to provide the gas used to generate more than 40% of electricity, and more broadly, the lack of infrastructure is the main and most pressing challenge facing the industry in the near term.
Explore chapterInsurance
Buy digital copy of this chapter - £18At the end of 2012, the Philippines was home to 79 non-life insurance companies, 29 life insurers and a single reinsurance firm. With a strong history and few limitations and restrictions on foreign investment, the Philippine insurance industry is open, thriving, growing and competitive; however it is widely acknowledged that the sector should be more inclusive, as it currently serves only a small percentage of the population. This is set to change, however, as financial services inclusiveness is not only seen as important to the individual; it is also regarded as a way to improve economic efficiency and promote long-term sustainable growth. This chapter contains an interview with Yvonne S Yuchengco, President and CEO, Malayan Insurance.
Explore chapterEnergy
Buy digital copy of this chapter - £18In 2011 Nigeria had the world’s 10th-largest oil reserves, at 37.2bn barrels, and the ninth-largest reserves of associated gas, at 182trn standard cu feet. Yet as the country’s proven reserves of both oil and gas start to decline, the imperative will be to clarify the industry’s long-term legal and fiscal outlooks to encourage more investment in exploration and production. Despite legislative delays, Nigeria is making progress in expanding local firms’ share of production and oil services while also catalysing significant investment in gas-to-power projects. The sector’s positive outlook is contingent on progress in the key areas of energy production and the expansion of investment in more sophisticated offshore projects. Alongside implementation of the Gas Master Plan, enacting the long-awaited Petroleum Industry Bill before the 2015 elections would prove a significant help. This chapter contains a viewpoint from Diezani Alison Madueke, Minister of Petroleum, and interviews with Austin Avuru, Managing Director, Seplat Petroleum Development Company; and Emeka Ene, Chairman, Petroleum Technology Association of Nigeria.
Explore chapterBéjaïa
Buy digital copy of this chapter - £18As part of government efforts to diversify the economy, large investments are being made in regional areas outside of the major population centres of Algiers and Oran. As the recipient of one of the largest of these public disbursements, with a package valued at an estimated €4bn over five years, the province (or wilaya) of Béjaïa is set to undergo considerable development. Major transportation infrastructure projects, including new roads, railways and the expansion of the Béjaïa port, promise to secure the province’s position as a trade hub. New industrial facilities are being established to supply the construction efforts, and to take advantage of improved transport links. This chapter contains an interview with Djelloul Achour, General Manager, Entreprise Portuaire Béjaïa.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Long a regional heavyweight, Egypt’s industrial sector boasts a variety of segments that have helped make the country one of Africa’s biggest cement producers and its second-largest steel manufacturer. Still, industry, in particular light manufacturing, has had to grapple with the turmoil that followed the 2011 revolution, in the form of issues such as labour unrest and a deterioration in the security environment. Given its proximity to major export destinations such as Europe and the Middle East, as well as its huge domestic market, the country remains highly competitive in many sectors. Moreover, various trade agreements bolster its attractiveness as an export centre. The outlook for overall industrial performance will depend to a large extent on economic growth in key export markets such as Europe. Despite being home to the largest population in the Arab world, Egypt hosts comparatively few modern large-scale retail supermarkets, hypermarkets and malls – and almost none away from the major cities of Cairo and Alexandria or tourist areas – making for enormous growth potential. In 2011/12 the value of activity in the sector was $23.66bn at current prices, and wholesale and retail trade accounted for 10.6% of GDP by factor costs. Growth in the retail sector has closely mirrored wider economic growth in Egypt in recent years and the development of the sector is likely to depend heavily on broader economic trends. This chapter contains interviews with Mounir Fakhry AbdelNour, Minister of Trade and Industry; Osman Saifullah Khan, CEO, SAIF Group; and Mohamed Farag Amer, Chairman, Faragalla Group.
Explore chapterTransport
Buy digital copy of this chapter - £18Taking advantage of the emirate’s strategic location, several projects aimed at improving transport offerings are now under way. Etihad Rail will link the area to Oman, as well as support several key energy and infrastructure projects. RAK International Airport continues to drive growth in the sector, with revenues rising by 31%in early 2013. There are also plans to construct a 32-km ring road that will allow trucks and other commercial traffic to circumvent urban areas, facilitating industrial trade. This chapter contains an interview with Captain Colin Crookshank, General Manager, RAK Ports Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18As with many of Africa’s emerging markets, a number of challenges face Gabon’s insurance sector, including low insurance awareness, a small domestic client base and declining oil production. And yet the Gabonese market remains one of the largest in the sub-region, and it is set to expand in the coming years as the demand for personal insurance lines increases. Despite its modest size, the local insurance sector is highly competitive, with eight companies vying for market share. Rising industrial and construction activity, coupled with the expansion of the market through newer lines such as life and health coverage, have supported growth in recent years. Government efforts to expand industrial activity across a number of different sectors, including timber processing and mining, stand to increase demand for related lines of insurance in the medium term.
Explore chapterInsurance
Buy digital copy of this chapter - £18While the insurance market has grown steadily over the past decade, market penetration in Kuwait remains limited at 0.58%, the lowest in the GCC region. Encouraged by high growth rates and favourable entry requirements, the sector has grown from six companies in 1999 to 34 today. Despite steadily increasing competition through the first half of the 2000s, the industry as a whole posted solid growth in terms of gross written premiums during this period. Despite challenges, most agree that there is substantial potential for growth in Kuwait’s insurance industry.
Explore chapterCountry Profile
Traditionally one of West Africa’s most dynamic economies due to strong growth and development in the early decades of its independence, Côte d’Ivoire is famous for being the world’s largest producer of cocoa and, less felicitously, its recent history of political instability and civil strife. However, the country, which was divided between a rebel-held north and the government-controlled south, is now reunited and there has been no large-scale violence since a conflict over the 2010 presidential election was brought to an end in April 2011. Côte d’Ivoire also stands out for having some of the best transport infrastructure in West Africa and for its ethnic, religious and linguistic diversity, with over 60 languages and dialects being spoken throughout the country.
Explore chapterMining
Buy digital copy of this chapter - £18The mining industry in South Africa is the fifth largest in the world, and today it accounts for more than 5% of the nation’s GDP. Moreover, the sector remains one of the country’s most important sources of employment, providing 16.2% – or nearly 1.4m – of the total formal non-agricultural jobs. The labour unrest that was seen in 2012 highlighted some of the challenges faced by the sector as it adapts to subdued global markets, ageing mines and overburdened infrastructure. While these challenges are considerable, the nation’s resource base and the rising demand from some of the world’s more buoyant markets offer some promise to the sector. The value of the nation’s non-energy mineral wealth – estimated by Citibank at $2.5trn in 2010 – underwrites the future development of this vital sector. This chapter contains interviews with Simon Scott, Acting CEO, Lonmin; and Sipho Nkosi, Chief Executive, Exxaro Resources.
Explore chapterCountry Profile
A new era of confidence is sweeping Colombia after a history marked by instability, social inequality and counter-insurgency efforts against guerrilla movements. Steady economic progress and increased security have renewed confidence in Colombia, which has sought to further integrate its economy regionally as well as globally through free trade agreements and membership in regional blocs. With foreign and domestic investments beginning to have tangible effects on the economy, the current administration has sought to reduce social inequality with some success. As the 2014 national elections approach, much will depend on the current negotiations with the FARC, which have so far made important concessions to promote dialogue with the government. This chapter contains interviews with President Juan Manuel Santos; María Ángela Holguín Cuéllar, Minister of Foreign Affairs; Juan Carlos Pinzón, Minister of Defence; and a viewpoint from José Manuel García-Margallo, Spanish Foreign Minister.
Explore chapterEnergy
Buy digital copy of this chapter - £18The kingdom is expected to reduce its reliance on energy imports by tapping into domestic oil shale reserves and promoting renewable energy development. The construction of a nuclear power plant and increased use of solar power promise to further help diversify electricity generation in coming years. In addition, discussions are under way to liberalise fuel distribution by removing the set price for petrol that the government controls, allowing competition over prices. This chapter contains an interview with Alaa Batayneh, Former Minister of Energy and Mineral Resources.
Explore chapterInsurance
Buy digital copy of this chapter - £18While motor insurance remains the chief source of revenue and claims, accounting for 25.8% of the total $565.5m in gross premiums recorded in 2011, mandatory medical insurance – which has been on the table for several years and is expected to become a law in the short to medium term – has the potential to provide a new and lucrative line of business. There is also an increasing focus on risk-based underwriting as the highly competitive domestic market seeks to ensure profitability continues. This chapter includes an interview with Zakareya Sultan Al Abbasi, CEO, Social Insurance Organisation.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Accounting for between a quarter and a third of GDP, Turkey’s industrial sector is a global player in areas as diverse as automotive, ready-to-wear, chemicals and retail. A major source of Europe’s industrial imports – as well as a destination for the continent’s exports – Turkey also carried out significant trade in industrial goods with the Middle East, Central Asia and beyond. Despite the global financial crisis that struck in 2008, the contribution of industry’s value added to GDP in the republic managed to surpass that in the euro area in 2010. The next decade will likely see a continuation of the ongoing gradual shift in export markets away from Europe and toward Asia and Africa. At the same time, increased spending on R&D and efforts to meet the goals set for 2023 will be vital if the country is to produce higher-value-added goods, and thus keep ahead of its lower-cost Asian and African rivals. This chapter contains interviews with Mehmet Büyükekşı, Chairman, Turkish Exporters’ Assembly; Ahmet Zorlu, Chairman, Zorlu Holding; Norbert Klein, CEO for Turkey, Middle East, North Africa, Bosch Siemens Home Appliances; and Mehmet Nane, President, Shopping Centres and Retailers Association.
Explore chapterICT
Buy digital copy of this chapter - £18The government has set a goal of raising ICT’s contribution to the economy from 1.6% of GDP in 2010 to 6% by 2015. Brunei Darussalam has certain demographic advantages, including high literacy and relatively strong per capita consumption of electronic goods, which make this a realistic goal. However, the ICT sector is still quite small and additional work is required to provide better access to reliable, high-speed internet connectivity. The country will also need an increase in the number of young professionals armed with the training and experience necessary to boost the private sector. Individual ICT usage is high, reflecting locals’ love for mobile devices, but more innovation will be required to make ICT one of the economy’s foremost sectors. This chapter contains interviews with Haji Sairul Rhymin CA Mohamed, Chief Operations Officer, Telekom Brunei, and a viewpoint from Haji Yahkup, CEO, Authority for the Info-Communications Technology Industry.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As the government evaluates the initial results of the Maroc Numeric 2013 plan, improved access is pushing the sector to expand. Benefitting from steady economic growth as well as a countrywide strategy to increase information technology (IT) usage, Morocco’s IT sector has seen stable expansion. Governmental policy has been framed under the Maroc Numeric 2013 strategy, which has had an immense impact in all areas of communications technology usage and provision. Increased use of mobile phones and improved access to 3G has meant a rise in penetration rates.
Explore chapterMakkah
Buy digital copy of this chapter - £18As Islam’s holiest city, Makkah has an economy that enjoys extraordinarily high demand from the many millions of Muslim pilgrims who visit it each year. With pilgrim numbers expected to nearly double between 2008 and 2019, the real estate, infrastructure, hospitality and retail sectors are among those most likely to benefit. Hotel capacity is set to rise from 50,000 rooms to around 75,000 as several massive developments are completed. Most of these properties will be geared towards the higher end of the market, although there are opportunities in other segments as well. All in all, ongoing developments in Makkah were valued at around $200bn in early 2012, with much of this devoted to redeveloping the centre of the city near the Grand Mosque. This chapter includes an interview with Osama Al Bar, Mayor of Makkah.
Explore chapterEnergy
Buy digital copy of this chapter - £18A string of investments in both conventional and alternative resources is ensuring that Abu Dhabi sits at the very centre of the global energy map. The UAE increased production by approximately 14.2% during 2011 to 3m bpd of crude and condensate, faster than any other country in the GCC region. Yet despite vast reserves promising more than 80 years of production at current rates and conditions, and with some 93% of the UAE’s natural gas reserves located in Abu Dhabi, the government is nevertheless keen to develop the latest in enhanced oil recovery technologies to maximise its onshore and offshore assets. Additionally, the government aims to draw 7% of the emirate’s total generation capacity from renewable sources by 2020, a target that surpasses those of all neighbouring Gulf countries and which is expected to keep up the pressure for large investments in utility-scale projects over the coming years. This chapter includes interviews with Abdulla Nasser Al Suwaidi, Director-General, Abu Dhabi National Oil Company (ADNOC); and Mohamed Al Hammadi, CEO, Emirates Nuclear Energy Corporation (ENEC). It also features a viewpoint with Sultan Al Jaber, CEO, Masdar.
Explore chapterMining
Buy digital copy of this chapter - £18Long a stalwart of Indonesia’s economic development, particularly in terms of exports, the country’s mining and quarrying industry maintains a steady presence despite fluctuations in global commodity prices and domestic mining policies. Claiming some of the world’s most expansive reserves of valuable minerals and largest operational mines, the sector has seen some of the highest levels of investment of any industry in Indonesia’s economy in recent years. Uncertainties regarding legislation, along with the implausibility of the full implementation will likely remain after Indonesian elections in 2014 as the politically and socially sensitive ramifications of these issues give politicians little incentive to reform these policies ahead of a campaign. However, the country’s vast mineral reserves combined with an expected rebound in global demand and commodity prices should help to ensure that the current production downturn proves to be little more than a temporary blip. This chapter contains interviews with Rozik B Soetjipto, President Director, Freeport Indonesia; Alwinsyah Lubis, President Director, Antam; and a viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services and President Arbitration Association Brunei Darussalam.
Explore chapterTransport
Buy digital copy of this chapter - £18The combination of Dubai’s central location and advanced infrastructure have attracted trade operators from around the world, and the emirate continues its legacy as a shipping point between East and West. In 2011 transportation, along with logistics, tourism and trade, accounted for 60% of Dubai’s GDP, the result of a number of recent investments. Authorities have initiated a $523m plan to build a series of interchanges and bridges to help increase traffic flow on Al Khail Road, one of the emirate’s most congested highways, while plans to increase aviation capacity should have a number of positive knock-on effects for other projects, facilities and aviation-related service providers. With major developments such as these – and growing trade volumes to support it – Dubai’s transport sector is set to be on steady footing in coming years. This chapter includes interviews with Mattar Al Tayer, Chairman and Executive Director, Roads and Transport Authority; Mohammed Ahli, Director-General, Dubai Civil Aviation Authority; Tim Clark, President, Emirates; Paul Griffiths, CEO, Dubai Airports; and Jamal bin Thaniah, Vice-Chairman, DP World.
Explore chapterEnergy
Buy digital copy of this chapter - £18Outdated power plants and grids, alongside a legal environment and tariff regime in need of upgrading, has made investment difficult. However, several efforts, focusing on boosting and diversifying supply for electricity and fuels, and establishing a positive track record for Mongolia as a viable destination for private investment in large-scale energy projects, are under way. The good news is that Mongolia does not lack domestic sources of energy. Coal is plentiful and supply is available to meet the needs of electricity production. The country’s first wind farm is due to begin feeding into the central grid in early 2013 and solar power is already leveraged on a small scale. While most energy is still produced by burning coal, growing energy needs could be met by a more diverse mix, including the possibility of hydrocarbons and nuclear energy. The government appears intent on opening electricity generation to private investment. This chapter contains interviews with M. Sonompil, Minister of Energy, and Willem Van Twembeke, CEO and President, GDF SUEZ Energy Asia.
Explore chapterUtilities
Buy digital copy of this chapter - £18Increasing demand for power and water and an expanding role for private sector firms are the two most significant factors currently affecting Oman’s utilities sector. This is motivating the government to expand capacity, which in turn is bringing about a restructuring in the sector, creating new opportunities for private and international firms. Efforts are also under way to encourage energy conservation and develop renewable energy sources and green building practices to increase power and water efficiency. Furthermore, international partners have shown themselves willing to invest in solar energy projects, developing the sector through research and educational institutions. This chapter includes an interview with John Cunneen, Executive Director for the Authority for Electricity Regulation (AER).
Explore chapterEnergy
Buy digital copy of this chapter - £18Oil and gas represent an important but slowly declining source of Malaysia’s exports and government revenues. Projected to become a net importer of both fuels by 2017, Malaysia is seeking to boost both upstream and downstream capacity, develop expertise in oilfield services, and promote renewable energy. The government has offered tax incentives for projects that use enhanced oil recovery (EOR) technology, and is integrating EOR requirements into production contract extensions. Declining oil is also spurring greater investment in new fields like the North Malay Basin. On the gas side, meanwhile, Malaysia is investing in regasification plants, floating LNG terminals, and other infrastructure in order to establish itself as a gas transport and trading centre. This chapter includes an interview with Emir Mavani, CEO, Malaysia Petroleum Resources Corp.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With an extensive array of public works projects stretching across sectors as varied as transport, tourism, construction materials and culture, opportunities are numerous for further exploitation in Algeria’s construction sector. Roads are a priority, and special efforts have been made to develop urban rail systems as an additional measure to help ease congestion. Projecting an estimated value of $21.7bn in 2012, the construction industry will continue to be a primary driver of growth for the medium to long term. In real estate, development remains largely positive, driven by significant government and private sector investments to increase housing availability and realise several major real estate projects. Efforts are also being made to attract foreign investment by offering tax exemptions, new payment methods for raw materials and revisions to the commercial code, among other incentives. This chapter contains an interview with Robert Card, President and CEO, SNC-Lavalin Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18While demographics alone should mean there is plenty of room for growth, the insurance sector’s recent performance has not been sufficient for it to reach the critical mass necessary to improve its image with clients and enhance its capacity to underwrite large risks. According to the Nigerian Insurance Association (NIA), insurance penetration reached 0.6% in 2011, far lower than other African countries, such as Kenya (2.5%) or South Africa (16%). The market at its current size is certainly crowded: there are 30 general firms, 16 life insurers and nine composite underwriters. However, recent divestment and consolidation efforts have already pared the industry down, with further mergers expected to decrease its size even further. This chapter contains an interview with Dave Uduanu, Chairman, Pension Fund Operators Association of Nigeria.
Explore chapterInsurance
Buy digital copy of this chapter - £18A string of global natural disasters in 2011 did have an impact on some of Qatar’s local insurers that have overseas exposure, with the sector overall seeing a general slowdown. Cumulative net profits for the five Qatar Exchange-listed insurers rose 5.17% in 2011, a decline in profit growth from 2010. Yet while penetration rates for insurance products are low, at 0.89%, more than 85% of Qataris are in the 15- to 64-year-old demographic, and there is optimism that growth from this base can be high. Another reason to expect growth is that there are few compulsory insurance rules in Qatar. Third-party motor liability and professional liability for engineers are the only two categories currently obligatory. Given these factors, the sector is expected to remain competitive, within an increasingly regulated market.
Explore chapterInsurance
Buy digital copy of this chapter - £18There are currently eight insurance companies in Gabon, three of which specialise in life insurance. Most are subsidiaries of foreign firms, though locally owned Ogar is the country’s largest insurer. Capital investment of insurance companies has been on the rise, with a total of €142.5m having been invested in 2020, up 3.8% year-on-year. Net incomes in life insurance have also performed well, having increased by 34.5% between 2005 and 2010. Recent reforms should help stem problems with arrears that have traditionally plagued the sector. Insurers in the country are now focusing on strengthening their solvency, increasing penetration and bringing the country in line with regional best practices. This chapter features an interview with Jean-Claude Ngbwa, Secretary-General, Inter-African Conference on Insurance Markets (CIMA).
Explore chapterTransport
Buy digital copy of this chapter - £18The government has invited the Japan International Cooperation Agency to come up with a new master plan for the transport sector. Urban transport, railways and inland waterways have been identified as key areas of improvement. Efforts are under way to upgrade Egypt’s 6700-km rail network. In 2010 the World Bank announced a $330m loan to support the National Railways Restructuring Project, a plan to modernise the rail system with a focus on management, operations and infrastructure. Additionally, in February 2012 the Qatari and Egyptian governments signed an agreement to build new ports in Port Said and in Alexandria. The expansion of Cairo International Airport’s second terminal will double the number of gates in the terminal and increase its capacity to 7.5m passengers per year, boosting the airport’s total annual capacity from 21m to 25m. With an improved infrastructure and regulatory environment, the sector could reach a compound annual growth rate of 12.7% between 2011 and 2015, according to some estimates. This chapter contains an interview with Ahmed Ali Fadel, Former Chairman, Suez Canal Authority (SCA).
Explore chapterEnergy
Buy digital copy of this chapter - £18Since the discovery of offshore oil reserves in 2007, the Ghanaian government has reached a number of important decisions regarding production and distribution, and set the aim of reaching production in just 42 months. Crude oil output accounted for 6.8% of GDP in 2011, the first year of hydrocarbons production, and production is expected to be increased to 120,000 barrels per day by mid-2013. However, more questions are also now being raised regarding the long-term sustainability of oil production, the costs to producers and the best ways to engage with international oil companies. The government and producers alike are now faced with issues of infrastructural development, with the need to maximise the benefit of the industry to local communities and establish gas production and transport facilities being particularly pressing. This chapter contains interviews with Joe Oteng-Adjel, Minister of Energy; and Kwesi Botchwey, Chairman, Ghana National Gas Company.
Explore chapterIndustry
Buy digital copy of this chapter - £18Thailand’s most critical economic sector was hard-hit by flooding in 2011 that inundated industrial estates northeast of Bangkok, but recovery has been faster than anticipated. Moreover, factories resuming production now face a build-up of latent demand that has allowed them to make up lost ground. The industrial sector is led by electronics and electrical manufacturing, which accounts for some 23% of exports, followed by the automotive and petrochemicals industries. Manufacturers who base their production in Thailand benefit from strong cluster effects, inexpensive labour, and attractive investment incentives. Still, Thailand is hoping to shift its economy to more value-added growth, and the government is pushing reforms such as an increase to the minimum wage as a catalyst for this transformation. This chapter has interviews with MR Pongsvas Svasti, Minister of Industry; Boonchai Chokwatana, Chairman, President & CEO, Saha Pathanapibul (Sahapat); and Thapana Sirivadhanabhakdi, President & CEO, Thai Beverage Public Company (ThaiBev).
Explore chapterEnergy
Buy digital copy of this chapter - £18Ras Al Khaimah’s lack of oil and gas resources – relative to other emirates – has encouraged growth in non-hydrocarbons sectors. The most significant of these is industry, which now accounts for around 30% of GDP. However, this high rate of industrial development means that demand for electricity has soared in recent years, becoming the single biggest constraint on expansion in RAK. The government has therefore made power supply a priority in recent years, investing in improvements in generating capacity. Both the federal authorities and the emirate are investing to ensure energy supply in RAK. For example, research is under way in RAK towards developing a smart grid, one that responds to peaks and troughs in demand and compensates accordingly, making the system as a whole more resilient. Furthermore, investments in renewable energy sources – particularly solar and wind – could go a long way toward reducing energy prices and fuelling long-term industrial development. Given the high levels of solar irradiance RAK receives, solar energy is a niche area being explored and has much potential.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector accounts for around 12% of GDP and 10% of the country’s workforce, according to figures cited by the Ministry of Planning and International Cooperation in January 2012. The sector has traditionally been dominated by road infrastructure, with Aqaba’s seaport and air transport also playing an important role. The rail system is less developed, though the government is moving ahead with plans to expand and modernise rail networks. In aviation, extensive improvement plans are under way at two of the major airports. Furthermore, measures are now being taken to update Jordan’s transport legislation. This chapter includes an interview with Ibrahim Naouri, Chairman of the Naouri Group; and Kjeld Binger, CEO of the Airport International Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Insurance chapter examines Turkey’s relatively small insurance market, which has seen steady growth with the expansion of the nation’s GDP. The sector is dominated by banks, which provide the most accessible outlets for customers. The sector is extremely crowded and very competitive, which has made it difficult for insurers to grow their business. Despite the challenges, however, gross written premiums increased some 21.5% in 2011, to TL17.2bn (€7.3bn). The sector is dominated by the non-life business, however, the government has expressed its desire to grow the life segment, encourage savings, and thus create a much-needed pool of institutional money to finance current accounts. This could see important changes in the sector in the coming years.
Explore chapterInsurance
Buy digital copy of this chapter - £18The South African insurance industry is a regional giant, with nearly 80% of all direct premiums in Africa. The market is split into two regulated segments with separate legal frameworks and different representative bodies. The global financial crisis of 2008-09 had a deleterious effect on South African insurers. Both the long- and short-term segments faced internal challenges, such as lower investment yields and higher expenses, and external ones, including an increase in lapsed policies as households struggled with rising food prices and unemployment. The sector is facing new challenges, including shifting market dynamics and an evolving regulatory framework that will likely alter the day-to-day operations of licensed insurers. This chapter contains an interview with Barry Scott, CEO, South African Insurance Association.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Kingdom’s insurance industry has traditionally been strong, regularly posting double-digit year-on-year growth, mirroring the expansion of the wider financial sector. The global financial crisis and recent political unrest, however, have presented the industry with a number of challenges in recent years. For example, the unrest made the implementation of the planned new mandatory health law difficult. Yet despite the global economic downturn, the insurance sector has been able to achieve consistent growth in consolidated gross premiums and total capital resources. Bahrain’s open and diverse economy, a robust yet flexible regulatory framework, a growing awareness of insurance concepts and a significant pipeline of infrastructure development work form the basis of the market’s potential. The industry certainly enjoys a number of opportunities. Life business, in particular, is widely seen as an area with significant growth potential: a growing awareness of the benefits of long-term insurance and an increasingly sophisticated consumer base underlie a growing demand for sophisticated savings schemes.
Explore chapterEnergy
Buy digital copy of this chapter - £18For a country surrounded by so many major oil and gas producers, the Philippines’ output is surprisingly low, suggesting that there are reserves waiting to be exploited. This may happen in the near future, with more than two dozen production blocks being put up for tender. Moreover, there are vast reserves waiting to be exploited in what the government dubs the West Philippine Sea, although these territories are disputed by several other countries. In electricity production, coal dominates, although gas has taken a substantial share, and there are plans to triple the nation’s renewable energy capacity. This section has interviews with Jose Rene D Almendras, Secretary, Department of Energy; Erramon Aboitiz, President and CEO, Aboitiz Power Corporation; and Ramon S Ang, Chairman and CEO, Petron Corporation.
Explore chapterInsurance
Buy digital copy of this chapter - £18The sector is entering a period of transition following its recovery from the global economic downturn. Although penetration rates are low, rapid population growth, rising per capita income levels and regulatory developments like the 2010 privatisation law are driving up demand for insurance products in Kuwait. A number of takaful (sharia-compliant) insurers are successfully emerging, tapping into a market that has traditionally been inaccessible to conventional providers. Insurers are also looking for ways to take advantage of the government’s economic stimulus packages, set to be implemented over the next few years. It has been estimated that government spending alone could produce a 10-20% growth in premium income over the next several years. At the same time, the Kuwait Health Assurance Company is set to make health care mandatory for expatriates in an effort to reduce costs, promote new forms of care and increase privatisation.
Explore chapterInfrastructure
Buy digital copy of this chapter - £18With a population of 245m, including a rapidly growing middle class, the Indonesian market is widely regarded as having huge potential. However, infrastructural deficiencies are threatening to cramp growth. Limited transport infrastructure, from ports to roads and rail, has increased manufacturing costs and shipping times. Indonesia is attempting to address this deficit through public-private partnerships (PPPs), and has projects worth around $115bn planned or under construction. The infrastructure drive will rely on several government bodies, such as the Indonesia Infrastructure Guarantee Fund, which underwrites private investment in infrastructure projects to encourage such financing. This chapter includes an interview with Kuntoro Mangkusubroto, Head, Presidential Delivery Unit (PDU).
Explore chapterAlternative Investments
A growing role for the private sector has brought greater investment opportunities in Saudi Arabia, with both domestic and international players taking a greater interest in the local market. With the stock exchange opening its doors to foreign investors and a recovery in the number of IPOs, significant capital inflows are expected in the short to medium term. A number of corporate and private investors have increasingly started to deploy their assets in venture capital, and several angel investor networks have been established. Foreign interest is also on the rise with international private equity players paying closer attention to the Saudi market, attracted by its size, growth rates and large domestic consumer market. Elsewhere, the government has stepped up its efforts to enhance the level of corporate governance in family-owned businesses, in a bid to further streamline private sector involvement.
Explore chapterEnergy & Green Economy
Buy digital copy of this chapter - £22Sharjah is playing a crucial role in the UAE's drive to achieve net-zero carbon emissions by 2050, leveraging its strategic location. The emirate is emphasising carbon capture and storage, renewable energy sources, waste-to-energy initiatives and sustainable finance to support its green programmes. The energy transition in Sharjah aligns with the UAE Energy Strategy 2050. This framework focuses on creating jobs, attracting investment and increasing the share of clean energy sources to 32% by 2030. Highlighting the integral link between energy and water efficiency, the strategy aims to reduce consumption, addressing water scarcity challenges in the country. Sharjah is also actively participating in international climate efforts, hosting the COP28 UN Conference on Climate Change in 2023 and committing to significant reductions in greenhouse gas emissions. This chapter includes interviews with Hatem Al Mosa, CEO, Sharjah National Oil Corporation; and Khaled Al Huraimel, Group CEO and Vice-Chairman, BEEAH.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22Despite global economic volatility and uncertainty in recent years, Kuwait’s capital markets have demonstrated continued resilience and adaptation. Innovative products are set for launch, along with a new central counterparty system, which should put Kuwait more firmly on global investors’ maps. The central counterparty system will launch alongside a new platform for trading bonds, sukuk (Islamic bonds) and exchange-traded funds. Boursa Kuwait, the country’s oldest stock exchange, continues to provide investors with the expertise of the region’s oldest market, and companies with access to funding in an economy in which investors have deep pockets and policymakers are looking to push forwards with diversification efforts. This chapter contains interviews with Mohammad Saud Al Osaimi, CEO of Boursa Kuwait; and Alex Krunic, former CEO of Kuwait Clearing Company.
Explore chapterEnergy
Buy digital copy of this chapter - £22Abu Dhabi’s ongoing transition from a fossil fuel-dependent economy to one driven by clean energy marks a significant shift. Hosting the Arab world’s first nuclear power plant and the largest single-site solar power plant, the emirate plays a pivotal role in this transition. While hydrocarbons remain integral to the broader UAE’s economy, global energy shifts and geopolitical tensions have increased the importance of natural gas. Despite a potential economic slowdown in 2023-24, the UAE’s hosting of the COP28 UN Conference on Climate Change opens new doors for the energy sector, fostering strategic partnerships and investment. Unconventional gas and blue and green hydrogen are key growth avenues, driving collaboration in production, storage, transport and related technologies for cleaner energy alternatives. This chapter includes an interview with Awaidha Murshed Al Marar, Chairman, Department of Energy.
Explore chapterIndustry
Buy digital copy of this chapter - £22Saudi Arabia’s industrial and mining sectors have long been singled out by the authorities as targets for expansion to support economic diversification. The Kingdom aims to attract international manufacturers, and develop the capacity of industrial small and medium-sized enterprises to strengthen domestic value chains. At the same time, the country is making efforts to upgrade its transport and logistics infrastructure, and investing in enhancing downstream capabilities to better integrate into regional and global supply chains. High oil prices in 2022 positioned Saudi Arabia as the G20's fastest-growing economy, enabling initiatives like the National Industry Strategy and Stimulating Local Industry. With a commitment to local procurement, which could spur foreign investment, the Kingdom is poised for a transformative era of industrial growth. Abundant mineral resources and supportive regulations could position Saudi Arabia as a key player in the global green economy in the years ahead. This chapter contains interviews with Majed Rafed Al Argoubi, CEO, Saudi Authority for Industrial Cities and Technology Zones; Bader Al Reziza, Chairman, Asharqia Chamber; and Khalid Al Salem, President, Royal Commission for Jubail and Yanbu.
Explore chapterICT and Innovation
In an increasingly interconnected world, ICT has become indispensable. Libya’s demographic profile, with a median age of 26.1 as of 2020, creates a conducive environment for digitalisation. By leveraging digital technologies and communications networks, Misrata aims to take advantage of physical infrastructure like road connections, ports and industrial capacity to drive economic growth across sectors. This is visible in the transition of the Misurata Free Zone to fully electronic operational management. The government has recognised the importance of ICT in driving economic growth, enhancing service delivery and improving the quality of life of residents, with policies that outline the vision for digital transformation. They are a foundation for fostering innovation, improving efficiency, and promoting transparency and accountability This chapter contains an interview with Majdi Ashibani, Chairman, Libyan Academy.
Explore chapterTourism
Buy digital copy of this chapter - £22Bahrain is implementing a long-term strategy to transform its tourism sector into a major engine of growth under Bahrain Economic Vision 2030, the kingdom’s blueprint for economic diversification. The country is seeking to leverage its location at a continental crossroads and its unique position as the region’s sole island nation to bolster the sector. The kingdom identified tourism development as key element of the Economic Recovery Plan launched in 2021 to guide its recovery from the economic slowdown brought on by the Covid-19 pandemic. In order to boost the number of tourists, as well as increase daily spending and overall time spent in the country, Bahrain is making targeted efforts to diversify and promote its tourism offerings – both to better serve visitors from the Gulf, and to attract and engage tourists from further afield. This chapter contains an interview with Fatima Jaafar Al Sairafi, Minister of Tourism.
Explore chapterICT
Buy digital copy of this chapter - £22ICT is playing a vital role in Djibouti's development as the country diversifies and its economy becomes increasingly more complex. The country has been investing in cable infrastructure development, improving connectivity and broadband access to make the country the fourth-most-connected in Africa. Privatisation initiatives are being implemented to foster a more inclusive and competitive ICT market, attracting private sector investment and driving innovation. Digitalisation is a key component of Djibouti Vision 2035 objectives, aiming to leverage technology to transform various sectors and enhance efficiency. By harnessing the potential of ICT, Djibouti is paving the way for digital transformation, economic growth and the achievement of its long-term development goals. This chapter contains an interview with Mohamed Assoweh, CEO, Djibouti Telecom.
Explore chapterIndustry
Buy digital copy of this chapter - £22Transitioning from Africa’s largest economy to most industrialised one is contingent on its efforts to boost production, reduce its dependence on imports and drive the export trade. For those changes to materialise, manufacturers need reliable, affordable access to electricity and other vital infrastructure, while potential investors require attractive regulatory frameworks to inspire confidence and encourage market entry. The fact that the country’s top-performing manufacturing subsectors are not operating close to their full potential offers hope that with reformed policies in place, the sector’s untapped capacity can be mobilised and expanded to cater to the large, rapidly expanding consumer market. Developments in the petroleum and agro-production subsectors could also provide a platform for sustained and broad-based growth. This chapter contains an interview with Seleem Adegunwa, Managing Director, Rite Foods.
Explore chapterUtilities
Buy digital copy of this chapter - £22Oman Vision 2040, the national plan to diversify the sultanate’s economy and put it on a more sustainable footing, is the most important driver of change in the utilities sector. In March 2019 the Oman Power and Water Procurement Company forecast the share of renewables in the energy mix would reach 30% by 2030, compared to Vision 2040’s initial projection of 20%. Following the country’s announcement in October 2022 of its goal of reaching net-zero emissions by 2050, the sultanate plans to invest $190bn in climate and energy-transition projects by 2050, including energy efficiency measures and renewable power projects. Oman has been increasingly centralising control of its overall energy policy, including the public provision of power. The Ministry of Energy and Minerals; and the Ministry of Agriculture, Fisheries and Water Resources are responsible for policy decisions regarding power and water, respectively. This chapter contains interviews with Abdullah Al Hashimi, CEO, Marafiq; and Omar Al Wahaibi, Group CEO, Nama Holding.
Explore chapterCapital Markets
Buy digital copy of this chapter - £22While many established global stock markets have seen mixed performance in recent years, Kuwait’s has shown positive gains, highlighting the robust nature of its capital markets. With an economy backed by rising oil prices and a solid, well-capitalised financial sector, the country continues to see international investor interest grow. Indeed, its benchmark indices recorded positive performances throughout 2021 and were among the best-performing markets in the Gulf region. A stronger regulatory framework has been created, while new products and financial technology developments have helped the country’s capital markets recover rapidly from the economic impact of the Covid-19 pandemic. Further regulatory reform, more listings and the expansion of a wider bond and sukuk (Islamic bonds) market are in the pipeline, as the financial sector looks to capitalise on Kuwait’s strong economic performance amid global uncertainties. This chapter contains an interview with Mohamed Al Osaimi, CEO, Boursa Kuwait.
Explore chapterIndustry
Buy digital copy of this chapter - £22The expansion of Saudi Arabia’s industry is a core part of the Kingdom’s Vision 2030 strategy to diversify the economy and reduce reliance on oil revenue. Industry has been targeted as a driver of future non-oil growth and job creation. Expansion plans are under way for the country’s main strategic industrial segments: oil and gas; petrochemicals; and mining, a significant potential contributor to the economy. Petrochemical projects in the pipeline are facilitating significant increases in natural gas production planned for 2030. The Kingdom’s industrial strategy is driven by Vision 2030, Saudi Arabia’s long-term social and economic tansformation plan. This chapter contains interviews with Suliman Almazroua, CEO, National Industrial Development and Logistics Programme; and Robert Wilt, CEO, Ma’aden.
Explore chapterAgriculture
Buy digital copy of this chapter - £22Côte d’Ivoire’s agriculture sector, responsible for approximately one-fifth of GDP and employing two-thirds of the population, is a key part of the economy, as well as the social, cultural and political fabric. As the country begins rolling out the National Development Plan 2021-25 and pursuing environmental and sustainability goals for 2030 and beyond, the agriculture sector will be key to meeting development targets. The policy goals for the coming years include increasing the use of digital solutions, placing greater emphasis on in-country refining and processing of agricultural commodities, and ensuring more equitable distribution of the sector’s rewards. However, with high fertiliser and fuel prices impacting farmers in the first half of 2022, productivity and profitability are likely to face headwinds in the year ahead. This chapter contains an interview with Massogbé Touré, Group Director, Société Ivoirienne de Traitement d’Anacarde.
Explore chapterTransport
Buy digital copy of this chapter - £22Bahrain is an archipelagic nation, with most of its economic activity taking place across its four main interconnected islands: Bahrain, Al Muharraq, Sitra and Umm Al Nasan. In the planning stages as of mid-2022, a number of big-ticket transport infrastructure projects are set to facilitate a better flow of people, goods and services between – and across – the country’s borders. Looking ahead, the transport sector features prominently in the government’s post-pandemic economic recovery and development strategies, which aim to bolster transport infrastructure and transport-related revenue and increase the kingdom’s traversable landmass. This chapter contains an interview with Mohamed Yousif Albinfalah, CEO, Bahrain Airport Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22The government of Egypt has placed a strong emphasis on construction as a key engine of urban growth since the ambitious IMF-backed economic reform programme in 2016. Much of the sector’s underlying demand is a result of the growing population which, in turn, has created a need to develop new cities such as the New Administrative Capital. Overall, such mega-projects look set to drive construction activity from 2022 onwards. While the Covid-19 pandemic put pressure on real estate sales after a partial lockdown in early 2020, the sector has demonstrated resilience over the medium term. The 3.7% expansion of the real estate sector in FY 2020/21 outpaced that of the general economy and helped offset some of the losses seen in tourism and manufacturing. The market is likely to continue its shift towards high-income, mixed-use retail developments in areas such as East Cairo.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Qatar is undertaking a major long-term expansion strategy in the North Field to increase the production of liquefied natural gas (LNG). The project, which involves tens of billions of dollars worth of investment, seeks to boost the country’s LNG capacity by 64% by 2027. The move is in line with the goal to capture greater global market share and is expected to help Qatar consolidate its position as the world’s largest LNG producer amid intensifying competition. Qatar anticipates that natural gas will remain a key part of the global energy mix for decades to come and that it will play a central role in the global transition to a low-carbon energy system.
Explore chapterMining
Buy digital copy of this chapter - £22Mining is a key component of Ghana’s national economy; the country is Africa’s largest gold producer. The Covid-19 pandemic highlighted the mineral’s prominent role, as gold is seen as a safe investment during uncertain times. While the mining sector faces challenges in terms of modernising practices, diversification efforts are forging ahead. Industrial minerals including bauxite and manganese have received significant amounts of foreign investment in recent years. Despite uncertainty over the trajectory of the pandemic, there is widespread hope that 2022 and 2023 will see mining activity pick up, with both supply and demand increasing as the world moves towards a recovery. In particular, demand from countries such as China is likely to keep rising in the years ahead, further supporting expansion. This chapter contains an interview with Douglas MacQuarrie, President and CEO, Asante Gold.
Explore chapterICT
Buy digital copy of this chapter - £22Nigeria is one of Africa’s largest ICT markets in terms of its share of telecoms subscribers and internet users, and this sector is set to grow in 2021, even as other areas of the economy remain constrained by the pandemic. ICT is being prioritised as part of the country’s longer-term goal of developing a digital economy supported by its large, youthful population. Indeed, the government has made progress on removing several barriers faced by telecoms providers and created opportunities for the private sector as it works to boost broadband penetration across the country. In addition to improving the ecosystem for entrepreneurs, infrastructure development and the future deployment of 5G will be crucial to Nigeria reaching its goal of fostering a digital economy. This chapter contains interviews with Isa Ali Ibrahim Pantami, Minister of Communications and Digital Economy; and Olugbenga Agboola, Co-founder and CEO of Flutterwave.
Explore chapterTransport & Logistics
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Sharjah’s strategic location between Europe and southern Asia has enabled the emirate to become a central player in international transport and logistics networks. Its burgeoning manufacturing sector has the potential to increase import and export cargo volumes, leading to the creation of jobs. The importance of this was highlighted in the 2021 launch of the Sharjah Exports Development Centre, aimed at investing in and growing the emirate’s exports operations. Underpinned by several major highways and an expanding international airport, Sharjah has seen rising foreign investment and government spending on infrastructure in recent years, which is central to efforts to strengthen transport networks.
This chapter contains interviews with Yousef Al Mutawa, CEO, Sharjah Sustainable City; Charles Menkhorst, CEO, Gulftainer; and Adel Abdullah Ali, Group CEO, Air Arabia.
Transport & Infrastructure
Buy digital copy of this chapter - £22Transport operations and infrastructure development in the Philippines were acutely impacted by the Covid-19 pandemic as lockdowns stalled construction projects, movement restrictions prohibited travel even within communities, and a ban on international arrivals in March limited aviation services for the rest of 2020. As the country’s response to Covid-19 began to take shape in the first half of 2020, it soon became clear that transport and infrastructure spending would be protected as a key driver of economic continuity and recovery. In an April outline of the socio-economic response, Carlos Dominguez, the secretary of finance, stated that the government would press on with President Rodrigo Duterte’s flagship Build, Build, Build infrastructure programme to generate economic activity and create employment. As early as May 2020 the Department of Transportation announced that, despite ongoing lockdowns in Luzon, it would resume work on 13 big-ticket projects – albeit with certain limitations. This chapter contains interviews with Tony Fernandes, CEO, AirAsia Group; and Rubén Camba, South-east Asia Director, Acciona.
Explore chapterEnergy
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Papua New Guinea’s development has been driven by its resource wealth and, while policymakers are focused on long-term diversification, extractive industries still underpin the economy. Since his election, Prime Minister James Marape has made clear his intention to secure greater revenue for the government from future extractive projects, with the aim of nurturing economic growth and investing in human capital development. As such, his first year in office has seen protracted negotiations on major new liquefied natural gas (LNG) projects, including the $13bn Total-led Papua LNG project and the expansion of the P’nyang gas field. In terms of power, meanwhile, there is political will and international support to help PNG reach its goal of 70% electrification by 2030. However, creativity will be needed to mitigate the challenges presented by the country’s difficult terrain, low population density, complex land rights framework and lack of spending power in rural communities. This chapter contains an interview with Kieran Wulff, Managing Director, Oil Search.
Industry & Retail
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Industry is front and centre of Egypt’s economic growth and diversification plans. The government aims to increase high-technology exports and boost the value of the manufacturing sector. To further enhance output and investment, Egypt continues to implement favourable policies, including the development of industrial zones and special economic zones. Although the sector will face challenges in the short term, a longer-term focus on infrastructure development is expected to soften the trend. Meanwhile, Egypt’s retail industry benefits from a growing population, affluent middle class and openness to new offerings. Although the pandemic is set to result in slower than anticipated growth in the short term, the government has taken steps to offset repercussions on the economy, such as raising online payment limits; increasing tax exemptions; and supporting informal workers. At the same time, customers are increasingly taking advantage of online retail options, which is likely to be a lasting trend in the post-Covid-19 world. This chapter contains interviews with Yehia Zaki, Chairman, Suez Canal Economic Zone; and Ahmed El Sewedy, President and CEO, Elsewedy Electric.
Insurance
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In terms of gross written premium (GWP), the UAE’s insurance market has ranked first within the MENA region since 2008. In 2018 it had the highest insurance penetration and density levels in the GCC, at 2.9% of GDP and $1195, respectively. Abu Dhabi’s insurers play an important role in the sector, but as of 2020 they faced a number of changes to the domestic business environment, including new regulations and accountancy standards considered essential to the industry’s long-term sustainability. Alpen Capital, a prominent financial adviser based in Dubai, forecast a compound annual growth rate of 4.2% between 2019 and 2024 for the country’s insurance market. In terms of potential changes to the composition of GWP in Abu Dhabi and the wider UAE, any notable shifts are likely to be caused by the broadening of compulsory insurance. This chapter contains an interview with Ebrahim Obaid Al Zaabi, Director-General, UAE Insurance Authority.
Insurance
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Indonesia’s insurance sector holds considerable potential, given the country’s current low penetration rate, large domestic population and growing middle class. While the industry suffered a setback in early 2020 when allegations of a “pump-and-dump” scheme involving investment funds managed by two state-owned insurers came to light, the strong and immediate regulatory response should restore confidence in the market. It is also an opportunity for other insurers that have demonstrated sound management of customer premium to differentiate themselves. Meanwhile, rapid advancements in the country’s digital economy are helping to increase financial literacy and provide new distribution channels to reach Indonesia’s fast-growing consumer class.
Agriculture
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Côte d’Ivoire’s agriculture sector is both a key driver of the economy and a primary player in global markets for goods such as cocoa and rubber. Indeed, owing to its fertile land, the West African country has established itself as a major exporter of a wide range of raw agricultural products. At the same time, the government aims to secure the sector’s economic and environmental sustainability through measures such as expanding local processing to capture greater value added and combatting deforestation. Moreover, financing for these initiatives is likely to grow in the medium to long term, building on the sector’s economic potential. These efforts will create opportunities for investors to leverage higher output levels and will help boost the contribution of agriculture to the economy. This chapter contains an interview Françoise Mariame Koné Bédié, CEO, Professional Group of Exporters of Coffee and Cocoa.
Explore chapterInsurance
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The ongoing process of privatisation driven by Vision 2030 is slated to provide opportunities to assess or cover risk, both for the government and investors looking to take on state assets. Furthermore, as Saudi companies and citizens take up more financial tools, the insurance sector is likely to benefit. Coverage of risks in areas such as trade credit and investment in foreign markets have already emerged as more active segments, with new products targeting specific concerns such as seizure of assets by a foreign jurisdiction. However, downside risks remain for the Kingdom’s insurers. Volatile capital markets caused by the economic fallout from the global outbreak of Covid-19 may result in lower returns. As such, the insurance sector may well experience consolidation in the year ahead.
Explore chapterInsurance
Buy digital copy of this chapter - £18It was the domestic oil boom that first gave impetus to the Qatari insurance sector in the 1950s, when protection against risk in such operations became essential. Foreign insurers dominated the landscape in the early years, but the arrival of the first domestic insurer in 1964 heralded a change in direction that saw local providers begin to take control of the market. The future of the sector seems bright, with Alpen Capital estimating that Qatar’s insurance market will expand by a compound annual gross rate (CAGR) of 2.4% from 2019 to 2024. Insurance density, meanwhile, is expected to grow at a CAGR of 2.2% to $1280. Economic advancement, population growth and infrastructure development are all set to drive this expansion.
Explore chapterEnergy & Utilities
The energy sector is poised for promising medium-term growth as it continues to receive significant public and private investment to expand generation capacity and distribution networks. At the same time, efforts to increase the role of renewable resources and natural gas in the country’s energy mix are set to lower the energy import bill and reduce fossil fuel emissions. However, in order to ensure that private investment objectives are met, upgrades to the sector’s regulatory framework will need to be completed. Meanwhile, Morocco has already shown that it can be a reliable partner in the exploration and development of hydrocarbons resources, and the policies it is currently pursuing should help the country reduce its reliance on imports in the years ahead. This chapter contains an interview with Abderrahim El Hafidi, General Director, National Office for Electricity and Drinking Water; and Saïd Mouline, CEO, Moroccan Agency for Energy Efficiency.
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Hydrocarbons have long been the primary driver of Trinidad and Tobago’s economy. Indeed, T&T is the largest oil and gas producing country in the Caribbean, with the energy sector contributing around 45% to GDP, according to the Ministry of Energy and Energy Industries. The new oil and gas discoveries made in 2019, along with new investment pledges by major international operators in the country’s upstream sector, appear set to support a short-term recovery in the energy sector. Furthermore, the country’s scheduled deepwater auction in 2020 is expected to attract investment. Nevertheless, faced with an increasingly competitive international market for its energy commodities, more will need to be done to ensure the continued recovery of the sector. This chapter contains interviews with Claire Fitzpatrick, Regional President, BP Trinidad and Tobago; and Mark Loquan, President, National Gas Company of Trinidad and Tobago.
Explore chapterMining
Rising commodity prices and vast untapped reserves have boosted interest in Ghana’s mining sector. As production continues along an upward trajectory, government policy aims to leverage the mineral wealth by building up refining capacity, introducing new legal frameworks, and attracting private sector partners to support the development of infrastructure and local industry. Mining has grown steadily, driven by stable commodity prices and increased global demand. As output improves, the government looks set to continue attracting private sector partners to build refining capacity for the large bauxite and gold reserves. New legal frameworks and institutions have been set in motion to support the sector and tighter government regulations are boosting revenue. Such initiatives are creating an attractive investment environment, promoting long-term growth and supporting the establishment of value-added industries. This chapter also contains interviews with Sulemanu Koney, CEO, Ghana Chamber of Mines; and Nick Holland, CEO and Executive Director, Gold Fields.
Explore chapterEnergy
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Domestic oil production has declined in recent years, and Bahrain has increased its efforts to accelerate diversification and realign its economy to non-oil growth. However, the oil and gas sector remains its largest economic contributor, benefitting from a growing petrochemicals manufacturing base, rising natural gas production, and a major potential offshore oil and gas discovery in the Khaleej Al Bahrain basin. Despite facing challenging external conditions and declining domestic oil production, Bahrain’s energy sector is positioned for significant mid-term expansion, supported by the Bahrain Petroleum Company Modernisation Programme and its knock-on benefits to downstream and manufacturing industries, ongoing offshore exploration and production activities that could allow authorities to reap considerable long-term economic benefits. This chapter contains an interview with Pete Bartlett, CEO, Bahrain Petroleum Company.
Explore chapterUtilities
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As the sultanate looks to manage its energy transition and inject capital into the fiscal balance, privatisation, sector reorganisation and renewable energy are key topics on the agenda for Oman’s utilities sector. Reducing reliance on natural gas is a top priority, with a number of large-scale projects using solar energy helping the country achieve its goal of 10% renewable energy on the grid by 2025. As several large-scale power and water projects are on the horizon, the utilities sector’s short-term outlook is promising. The shift from conventional to renewable sources is deemed a positive move, yet as the power segment approaches capacity, the water segment is looked to as having more long-term growth potential.
Explore chapterEnergy
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In addition to being crucial to economic activity, Myanmar’s energy and power sector continues to be one of the main drivers of foreign investment as the country looks to develop its national electricity grid. As of October 2019 the value of foreign direct investment approved by the government in the energy sector for that year stood at $43.6bn, representing just over half of total FDI. As demand for electricity continues to rise, the authorities are pursuing new avenues to boost supply. Average household energy consumption is around 435 KWh per month in urban areas, compared to roughly 300 KWh per month in rural areas. Yangon alone accounted for some 42% of electricity consumed in Myanmar in October 2018, down from 50% in 2013. The Ministry of Electricity and Energy announced that 50% of the population was covered by the electricity network in December 2019, up from 43% in 2018. This chapter contains interviews with Ken Tun, CEO, Parami Energy Group of Companies; and Rorce Au-Yeung, Co-CEO, VPower Group.
Explore chapterTransport & Logistics
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While Dubai’s reputation as an important maritime trade and air transport centre is already well established, the emirate is also rapidly emerging as a leader in transport and logistics innovation. Dubai’s transport and logistics sector experienced strong growth in 2019, continuing to underpin the emirate’s wider economy. Much of the current investment activity in the sector is being injected into transport infrastructure projects for Dubai Expo 2020, which is expected to attract over 25m visitors. However, the local government is also considering the long term, and there is a strong pipeline of transport infrastructure projects planned under the Traffic and Transportation Plan 2030, the emirate’s overarching long-term transport development programme, to expand roads, airport capacity and public transport routes.
Explore chapterInsurance
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Kuwait’s insurance sector has expanded rapidly in recent years, with numerous new entrants competing and driving down premium prices. This has led to concerns that companies are booking high profits at the risk of not keeping enough in reserve to meet future payouts on policies. To counter these worries, a new law was passed in July 2019 and it is likely to have a profound impact on the sector by putting the industry on a sustainable long-term trajectory. However, with the law pushing for increased reserves and stricter regulation, flatter profit growth and a major restructuring of the market could be seen over the next two to three years.
Explore chapterAutomotive & Aerospace
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Over the last two decades Mexico has consolidated its position as the leading automotive exporter in Latin America and a major player in the industry worldwide. The country hosts production plants from nine major international automakers, manufacturing passenger vehicles, light and heavy tractors and trucks, in addition to plastic, aluminium and steel component. The country is also steadily emerging as an important regional and international player in the aerospace industry. Demand for commercial aircraft is expected to double globally by 2035, and it is well situated to leverage its position to increase domestic and foreign investment in the industry. Mexico has a specialised and skilled workforce and unparalleled access to the US market. Manufacturers are preparing for the Fourth Industrial Revolution by training workers in new design and production processes. This chapter contains interviews with Steffen Reiche, CEO, Volkswagen de México; and Daniel Parfait, President, Safran México.
Explore chapterMining
Buy digital copy of this chapter - £18The mining industry is one of the main pillars of economic growth in Papua New Guinea. In 2017 the sector accounted for 29% of GDP and generated 86% of export revenue. Gold and copper account for the majority of mining export revenue, respectively comprising 76.8% and 13% of total sector exports in the first five months of 2019. The mining industry also remains an important source of job creation, employing more than 20,000 individuals and indirectly supporting another 45,800 people. Mining in PNG is closely tied to demand from China. Therefore, if China’s imports of key commodities fall in response to its trade war with the US, it will adversely impact mining in PNG. The political environment may also affect sector investment. Prime Minister Marape has signalled a more cautious approach and intends to acquire greater financial benefits for PNG from the extractive industries. This chapter also contains an interview with Jerry Garry, Managing Director, Mineral Resources Authority.
Explore chapterICT & Innovation
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With rising mobile usage rates and ongoing improvements to telecoms infrastructure, the expansion of digital services is opening up new opportunities for Tunisia’s economic growth. In order for the sector to transition from an underserved market to a central driver of socio-economic development, the government has a vital role to play. As the largest customer for e-services, the public sector is responsible for supporting the implementation of new technology on a local level as well as promoting foreign investment. Nonetheless, with promising mobile and internet penetration rates, and steady growth for the three major telecoms providers, the outlook for Tunisia’s ICT sector remains strong over the medium term. This chapter contains interviews with Anouar Maârouf, Minister of Communication Technologies and Digital Economy; Hichem Turki, General Director, Sousse Technology Park; and Anis Sahbani, Founder and CEO, Enova Robotics.
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Insurance
This is an important period of transition for the Philippine insurance sector, as stakeholders attempt to meet a range of new regulatory requirements designed to expand the industry’s depth and reach. There has been strong growth in profitability and gross written premium in recent years, generated by a wide range of insurance types and entities. Indeed, one of the main characteristics of the Philippine market is that it includes not only conventional life and non-life insurance, but also composite companies, pre-need outfits, mutual benefit associations, health maintenance organisations, and micro- and macro-insurers. All segments are likely to benefit from continued efforts to strengthen the market by the sector regulator, the Insurance Commission. Moves towards establishing a more comprehensive disaster and emergency fund are also expected to improve market standing and spread risk in the years ahead. This chapter also contains an interview with Rahul Hora, CEO, AXA Philippines.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As the economy made a recovery in late 2018 it is likely that construction will soon follow suit, with initial estimates for the first quarter of 2019 already showing signs of improvement. Social housing and infrastructure will likely receive the most attention from investors, with both segments addressing crucial deficits in the country. Likewise, the advent of new vehicles to channel private sector funding is expected to continue driving the sector’s growth. Moreover, changes in retail and office management and rising demand for flexible, bespoke industrial spaces are likely to leverage and sustain new trends in the ways that firms physically conduct their business in Colombia. While cross-segment growth may not accelerate significantly in 2019, developers have demonstrated foresight that should help the supply side adjust to ongoing structural changes in the property market. This chapter contains an interview with Roberto Moreno, President, Amarilo.
Explore chapterEnergy
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The development of Peru’s energy market has been rife with challenges and opportunities in recent years. While Peru could once stake a claim to being South America’s largest commercial producer of oil, fuel output has been on a steady decline for more than two decades, the country accounted for 1.8% of regional oil output in 2017. However, the same shifts that have undermined Peruvian petroleum – namely, technological breakthroughs in the extraction and distribution of natural gas, and innovations in renewable energy – have created new markets in a country abounding with natural gas and vast resources in solar, wind and biomass. Policymakers and investors intent on securing Peru’s energy future are looking to split the difference between these trends. Proposed amendments to the hydrocarbons law could double petroleum production and help to make up the shortfall in domestic supply. This chapter contains an interview with Jorge Olazábal, General Manager, Cálidda.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18With a long-established presence of large-scale manufacturing capacity and a rapidly expanding domestic market, Egypt’s industrial sector will remain critical for job creation and regional development. Government strategies to expand production capacity into Upper Egypt are expected to improve employment options, and investment into road and railway links will also be critical to ensure that this manufacturing capacity can be developed with a close connection with logistics networks. Moreover, with a population of nearly 100m, expanding by roughly 2m every year, Egypt remains a sizable market for retailers and fast-moving consumer goods manufacturers. However, economic instability and the devaluation of the pound have brought new challenges and a need for the sector to adapt to remain competitive. Modern retail areas are nevertheless expanding, and customers are increasingly interested in interacting with retailers through new technologies, bringing new opportunities for the sector to expand in order to cater to changing consumer trends. This chapter contains an interview with Tawfeek Laham, CEO, Middle East Glass.
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Buy digital copy of this chapter - £18Indonesia’s insurance sector is crowded, reflective of the country’s sizeable population – the world’s fourth largest, at around 265m – as well as its potential. Some 152 companies vied for premium in 2017, operating in an environment that, although it presents significant opportunity, also comes with a measure of insurable risks, in particular from extreme weather and natural disasters. In the highly competitive life market, agents reach out to consumers by offering unit-linked policies, which combine life coverage and regular investment income. While formal products remain outside the reach of most Indonesians for now, the wealthier segments of the market nonetheless represent an attractive target for insurers. This chapter also contains an interview with Jens Reisch, President Director, Prudential Indonesia.
Explore chapterInsurance
Buy digital copy of this chapter - £18As a result of recent drops in oil prices, Saudi Arabia’s insurers have been operating in a challenging environment. The sector has faced stability issues over the last decade, and smaller players in the market are under increased scrutiny. For the better capitalised insurers, however, the market is a young and increasingly promising one. Insurance penetration in the Kingdom remains low, at approximately 1.7% of GDP according to Fitch credit ratings agency, and business is concentrated in the compulsory segments of motor and health cover. In some areas there have been encouraging signs of growth: data from the Kingdom’s central bank shows that insurance penetration expanded at a compounded annual growth rate of 12% between 2014 and 2019. This chapter contains an interview with Abdulaziz Al Boug, CEO, Tawuniya.
Explore chapterInsurance
Buy digital copy of this chapter - £18Despite a relatively small population of around 2.7m, Qatar accounts for around 5% of insurance premiums in MENA. Nevertheless, relative to the size of its economy, insurance activity remains at a modest level. Annual premiums of around $3bn account for 1.5% of GDP, compared to a global average of more than 6%. The insurance penetration rate, meanwhile, stands at less than 2%, significantly below the OECD average of 8.9%. These market characteristics suggest significant potential for further growth. In the short term, however, much of the industry will be focused on regulatory matters; time is running out for insurers to comply with a new framework introduced in 2016 that aims to align Qatar’s insurers with global best practices.
Explore chapterEnergy
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The energy sector has made noteworthy progress in a number of respects in recent years. Despite political turbulence in Sri Lanka, key strategic measures were enacted in 2018 to encourage growth, including increasing renewable energy generation capacity; opening the hydrocarbons sector to greater overseas investment; and forming joint working groups to expedite the construction of liquefied natural gas power plants following a string of agreements with foreign governments. Given Sri Lanka’s expanding fiscal and trade deficits, developing an efficient energy market has been cited as one of the key factors that could facilitate a stable macroeconomic environment. However, while recent developments signal the intent of policymakers to promote energy security, disagreements between technocrats regarding a long-term generation expansion plan have hindered development. Aside from a collection of small renewable energy initiatives, the country has not commissioned a major power plant since 2014. This chapter contains interviews with Damitha Kumarasinghe, Director-General, Public Utilities Commission of Sri Lanka; and Allard Nooy, CEO, InfraCo Asia.
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Buy digital copy of this chapter - £18In 2017 the UAE was home to the largest and fastest-growing insurance sector in the GCC. The industry has recorded strong compound annual growth rates in both non-life and life segments during the last decade, while takaful (Islamic insurance) products have developed considerably since 2012. This growth has come on the heels of an influx of expatriates, increase in the population of working-age nationals, investment in construction in the run up to Expo 2020 and several legal reforms. The UAE Insurance Authority has recently taken steps to both boost public awareness about the benefits of coverage and to propose reforms that would professionalise industry standards to meet those of more mature, foreign markets.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18As a well-established regional hub for transport and logistics, Dubai is the UAE’s primary transit point for passengers and the main gateway for its non-oil exports and imports. Counting one of the world’s busiest airports and the Middle East’s largest port among its facilities, the transport sector makes a significant contribution to Dubai’s economy as well as that of the wider UAE. In 2017 transport and storage accounted for 11.2% of Dubai’s economy at a value of Dh46.1bn ($12.5bn), second only to wholesale and retail trade, which accounted for 25.8% of the economy. Although the emirate’s economy has had difficulties in recent years due to a series of largely external fac¬tors, the trans¬port and logistics sector has by and large bucked the trend. This chapter contains an interview with Mohammed Al Zarooni, Director-General, Dubai Airport Freezone Authority.
Explore chapterEnergy
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Lacking the hydrocarbons reserves of some of its neighbours, Morocco has had to rely on imports of fossil fuels to develop its economy. This has left the country exposed to fluctuations in global energy prices and has impacted the kingdom’s budgetary position. However, the country has taken measures to reduce dependence on energy imports. Over the last several years the kingdom has been able to develop know-how in the renewable sector, expand its clean energy production capacity, and establish a new industry that is helping to attract investment and create jobs. All this has helped to inject dynamism into the kingdom’s energy sector, and this momentum is likely to continue over the coming years. In order to be able to build on these achievements, however, the sector authorities will need to step up regulatory efforts to properly define market conditions. This chapter contains an interview with Bertrand Piccard, Founder and President, Solar Impulse Foundation, and UN Ambassador.
Explore chapterMining
Buy digital copy of this chapter - £18Ghana is one of the world’s top-10 gold producers and the second largest in Africa. A wave of investments in recent years has boosted production and improved cost efficiency in gold and manganese mining, while the government has acted firmly to improve industry regulation, tackle long-term issues such as illegal activity and environmental damage, and strengthen assaying capacity. Ghana boasts political stability and a strong institutional framework, and these factors are expected to continue to underpin investment in the mining sector in years to come. However, international players will be keen for some clarification with regard to plans to increase state equity stakes in key operating companies. This chapter contains an interview with Eric Asubonteng, President, Ghana Chamber of Mines; and Managing Director, AngloGold Ashanti (Ghana).
Explore chapterEnergy
Buy digital copy of this chapter - £18By utilising technology to maximise value from existing reserves and investing in exploration, Bahrain’s energy sector is working to maintain and even increase levels of oil and gas production. Efforts in this direction have been helped significantly by the recent discovery of a large-scale, unconventional oil and gas reserve, which could substantially boost output over the coming decade. Officials are also moving to upgrade oil refinery and hydrocarbons import infrastructure, as well as expand the use of renewables and energy efficiency initiatives in the utilities sector, in part to free up locally produced gas for industry. This chapter contains interviews with Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil; Pete Bartlett, CEO, Bahrain Petroleum Company; and Sheikh Mohamed bin Khalifa Al Khalifa, CEO, Banagas.
Explore chapterAgriculture
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A number of development strategies estab¬lished by the government, notably the Na¬tional Agricultural Investment Programme, are leading the way for Côte d’Ivoire to increase its production in key subsectors and improve its processing capabilities. In the short term, storage capa¬bilities will be essential to ensuring that agricultural products are maintained at a standard of quality on par with buyers’ expectations. The biggest challenge, how¬ever, remains surpassing current low levels of added value and processing. As a result, efforts to encourage local processing substantially through bonuses and direct payments to processors, as well as with tax incentives and programmes directly tackling constraints to processing will remain a state priority for the years ahead. This chapter contains interviews with Yves Brahima Koné, General Manager, Coffee and Cocoa Council; and Christophe Koreki, Managing Director, Palm-CI.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Since the beginning of Myanmar’s economic and political reform in 2011, the construction industry has experienced mixed fortunes. Although the government has recognised the economic multiplier effects of infrastructure development, some large-scale projects have been held up by bureaucracy and investor scepticism. However, recent efforts suggest cause for optimism, including the large-scale urban development projects planned for Yangon and Mandalay, and the government’s assertion of its commitment to infrastructure development and public-private partnerships under the Myanmar Sustainable Development Plan 2018-30. Meanwhile, large-scale real estate projects – particularly mixed-use developments – are nearing completion, which should improve investor confidence for current and future projects. Nonetheless, after an initial property boom in the first few years after political and economic reforms began in 2011, Myanmar’s real estate sector has faced some challenges recently. This chapter contains interviews with U Han Zaw, Minister of Construction; and Serge Pun, Chairman, Serge Pun & Associates.
Explore chapterUtilities
Buy digital copy of this chapter - £18With the utilities sector continuing its long-term shift towards privatisation, these are changing times for power, water and waste in the sultanate. The year ahead will see further private sector participation in the country’s electricity transmission and distribution networks, while new desalination projects will also come on-line. Oman is keen to secure greater international involvement in all sector plans, with the promotion of foreign direct investment a key part of the sultanate’s overall development strategy. The main goal is diversification away from oil and gas, and utilities are playing an important role as companies turn to renewable energy and even coal. This chapter contains an interview with Yaqoob bin Saif Al Kiyumi, CEO, Oman Power and Water Procurement Company.
Explore chapterAgriculture
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The high food import bill, a growing population and effects from climate change are behind Algeria’s drive to increase local food output. Food production improved between 2007 and 2018 thanks to efforts to clear some of the obstacles that have traditionally hindered the sector’s development, such as financing, legislation, insufficient infrastructure and land ownership. While the record cereals harvest was a highlight of 2018, Algeria is still quite a way off from significantly reducing its import bill for food products. However, great gains wait to be made with the wider application of irrigation and mechanisation, in addition to ensuring underutilised land is reallocated to players who will develop it to its full potential. This chapter contains interviews with Nabil Assaf, Representative, Food and Agriculture Organisation of the UN; and M’hamed Metidji, CEO, Metidji Group, and President, National Interprofessional Council for Cereals.
Explore chapterUtilities
Buy digital copy of this chapter - £18Access to power remains one of Nigeria’s chief economic and social issues, with about 90m citizens lacking access to electricity, while the World Bank estimates per capita usage is lower in just eight other countries. Indeed, as the biggest domestic market in Africa, the country has great potential for manufacturing, but most investment in the sector tends to prioritise a steady and reliable supply of power. The 2017 Power Sector Recovery Programme is providing a series of reforms aimed at prioritising investment, restructuring the sector and re-evaluating problems related to payment and tariffs. Alongside this, the development of new sources of energy, progress of independent power producers, local control of regional grid development, and funding to upgrade and expand the existing network are generating opportunities going forward. This chapter contains an interview with Ladi Sanni, CEO, Viathan Engineering.
Explore chapterInsurance
Buy digital copy of this chapter - £18In 2017 and early 2018 Kuwait’s insurance sector enjoyed growth on the strength of steadily rising premium, regulatory tweaks and forays by individual underwriters into a number of new market segments. Nonetheless, according to many stakeholders, the obsolescence of the country’s insurance law remains a major hurdle to the sector’s future growth. Various iterations of a new insurance law have been circulating among government bodies since at least 2012. The central amendment proposed by these drafts is the establishment of an independent body charged with oversight and enforcement responsibilities, which many local insurers believe is needed to ensure the sector’s stability profitability over the long term.
Explore chapterICT
Although the ICT sector remains largely dominated by the state-run operator, it has nonetheless received sustained investment in mobile networks, submarine cable connections and infrastructural upgrades. This, combined with government efforts to bolster the role of ICT in development plans, provides multiple investment opportunities in the industry. Challenges surrounding coverage in rural areas and high internet connection costs remain; however, it could benefit Djibouti to create a competitive marketplace for service provision, which in turn would lead to more competitive prices and the achievement of sector’s full potential. This chapter contains an interview Mohamed Assoweh, CEO, Djibouti Telecom.
Explore chapterEnergy & Mining
Buy digital copy of this chapter - £18A stable and expanding energy supply is central to Kenya’s ambition to establish itself as an industrialised middle-income country, as set out in its Vision 2030 development strategy. The nation is fortunate in its energy mix: hydro, geothermal, solar and wind energy already play a significant role in power generation, and – particularly in the case of geothermal – there is room for further expansion. Recent oil finds in the South Lokichar Basin may soon feed into the segment and establish Kenya as a hydrocarbons exporter for the first time. For the private sector, the promulgation of the new Energy Bill and Mining Act promise to open up these closely related sectors to increased domestic and foreign investment. If fully implemented, the legislation can be expected to provide the necessary framework to support investment and the expansion of both sectors. This chapter contains interviews with John Munyes, Cabinet Secretary, Ministry of Petroleum and Mining; and Johnson Ole Nchoe, Managing Director and CEO, Geothermal Development Company.
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Buy digital copy of this chapter - £18The oil and gas industry has long been the driver of Trinidad and Tobago’s economy. In 2017 the petroleum sector accounted for 33.7% of GDP, according to the “Review of the Economy 2017” report by the Ministry of Finance. T&T plays an important role as a gas supplier for the Latin American and the Caribbean market, given that Peru is the only other exporter of liquefied natural gas (LNG) in the region. Falling global oil prices and a drop in production have spurred T&T to consider more stable sources of energy to boost its economy. However, despite increasing interest in renewables, the country is still focused on developing its natural gas segment. Upcoming gas projects, including the Dragon gas field deal with Venezula, and recent output figures are encouraging a positive outlook for the sector, with the rebound in gas production levels expected to continue on an upward trajectory. This chapter contains interviews with Franklin Khan, Minister of Energy and Energy Industries; Claire Fitzpatrick, Regional President, BP Trinidad and Tobago; and Mark Loquan, President, National Gas Company of Trinidad and Tobago.
Explore chapterMining
Buy digital copy of this chapter - £18Shaped by shifts in supply and demand, Papua New Guinea’s economy has relied heavily on mineral extraction for most of its modern history. On the back of increased gold, copper, nickel and cobalt production, mining revenue expanded by 18.8% in 2017. As prices rebound, growth in mining activity comes at an important juncture, boosting export and fiscal receipts, as the country grapples with ballooning public debt. While the economy is still highly vulnerable to commodity price shocks, major investments across a number of strategic mining projects are set to bolster economic output. Despite the positive outlook, inadequate infrastructure, landowner identification issues and delayed amendments to the existing mining act continue to hinder the progress of the sector, which by most measures has immense potential. This chapter contains an interview with Craig Lennon, Managing Director and CEO, Highlands Pacific.
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Over the last 20 years the fortune of the Argentine economy has been closely tied to one commodity: natural gas. In the 1990s, the construction of combined-cycle power stations allowed Argentina to produce plentiful and inexpensive energy from its conventional gas fields in the south and east. Industry forecasts were so optimistic that several trans-Andean pipelines to Chile were constructed, but after a brief period as an exporter in the early 2000s, Argentina returned to being a net importer of gas in 2008. Declining domestic production due to a lack of incentives, coupled with rising gas imports from neighbouring countries, placed the energy sector at the centre of Argentina’s economic woes throughout the 2010s; however, the sector could also hold the key to the country’s revival. A stable and attractive regulatory environment, combined with significant potential in the hydrocarbons, renewable energy, and thermal and hydroelectric generation segments, provide ample opportunities and security for global investors. This chapter contains interviews with Alejandro Sruoga, Secretary of Energy Policy, Maurizio Bezzeccheri, CEO, Enel Argentina; and Danny Massacese, Upstream Managing Director, Pan American Energy Group.
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Buy digital copy of this chapter - £18Having 50% of its electricity generated from renewable sources – of which 42.7% comes from hydro – with this projected to reach 60% by 2025, Peru is making on progress on its goal to support the renewable energy segments. At the same time, the country is currently suffering from an oversupply of energy. This can serve as a growth opportunity, but only if the necessary demand can be identified and harnessed. Recognising untapped markets has the potential to make the energy sector more competitive. For example, electricity demand in the mining sector is estimated at 2 GW in 2018. According to 2017 data from the Central Reserve Bank of Peru, metal mining production increased by 4.2% over the course of the year, compared to the 2.4% drop seen in the hydrocarbons sector. The consistent growth of Peru’s energy sector in the past decade is not anticipated to slow in the near future. This chapter includes an interview with Rik de Buyserie, CEO and Country Manager, Engie Peru.
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With roughly 7.1trn cu feet of natural gas at the end of 2017, down from 10.6trn cu feet in 2007, according to the 2018 “BP Statistical Review of World Energy”, Thailand’s reserves of this critical resource are depleting. As a result, the country is working to diversify its power mix with both conventional and alternative sources. The transition is going smoothly, and new technologies are being brought on-line far faster than expected. Scientific advances, supportive and flexible policies, overcapacity in solar manufacturing and gains in efficiency have made the environment for energy diversification and investment exceedingly attractive. The shift to alternative energy sources is happening so quickly that Thailand is becoming a recognised leader in the region, if not globally. This chapter contains interviews with Siri Jirapongphan, Minister of Energy; Piyasvasti Amranand, Former Chairman, PTT; Bundit Sapianchai, President and CEO, BCPG; and Preeyanart Soontornwata, President, B.Grimm Power.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Performance in Mexican industry is heavily dependent on the particular segment in question and its current economic position. The automotive and aeronautics manufacturing sectors, concentrated mostly in the Bajío region of Mexico in the states of Querétaro and Guanajuato, are driving demand for inputs like light-weight polymers, while strong growth in agro-industry across different regions of Mexico is pushing up demand for petrochemicals and chemical fertiliser products. Export growth and the domestic market consolidation of the beer industry are pushing production of barley and malts upwards, contributing to more efficient farming practices and greater agricultural yields. While the mining industry has been suffering from low worldwide commodities prices for over five years, the sector’s growth potential is expected to make a rebound in the coming years. This chapter includes an interview with Guilherme Loureiro, Executive President and CEO, Walmart México.
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Buy digital copy of this chapter - £18The prevailing narrative of the Philippines’ energy sector in recent years has centred around energy security concerns and the challenge of meeting growing demand. Efforts to realign the energy sector were ramped up during 2017 with the launch of reforms targeting investment and the promotion of efficiency. Modifications to the Electric Power Industry Reform Act of 2001 have come at a critical juncture for the Philippines, as robust economic growth has outpaced the sector’s capacity to meet surging demand. Due to the imminent exhaustion of the country’s gas fields, dependence on imports of hydrocarbons has grown, worsening the current account deficit. In addition to falling reserves, the cost of electricity is also a major concern. This chapter contains an interview with Alfonso Cusi, Secretary of Energy.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Industrialisation is set to accelerate in Tanzania, as part of a significant push by the government to sustain economic growth and inclusion, on the back of increased manufacturing output and recent investment in labour-intensive industries. Diversifying the country’s narrow production base and boosting exports of manufactured goods are critical priorities for Tanzania’s mid-term economic development strategy, and the government is moving to attract new investment in value-added manufacturing at export processing zones and special economic zones, offering attractive tax incentives and a simplified regulatory regime. While still in its nascent stages, formal retail development in Tanzania holds considerable potential for long-term expansion, with population growth and rising demand for fast-moving consumer goods slated to support the sector over the next decade. As is the case for formal retailers across the continent, however, there are a number of structural challenges to contend with, such as high distribution costs, rising taxes and inflation, which have driven up overheads and reduced consumer purchasing power. Moreover, limited demand for organised retail space outside of select locations in Dar es Salaam is likely to weigh on near- and mid-term growth. This chapter contains an interview with Charles John Poul Mwijage, Minister of Industry, Trade and Investment.
Explore chapterInfrastructure & Transport
Buy digital copy of this chapter - £18As the only emirate in the UAE to have ports on both the Gulf and the Indian Ocean, Sharjah is uniquely placed to take advantage of the region’s geographic position at the centre of international logistics lines. The emirate has long been a key aviation link for traffic between Europe, MENA and Asia, with the first airport in Sharjah opening in 1932. At the same time, Sharjah is also the land crossroads between the southern, northern, eastern and western emirates, with a string of important highways passing through its territory. These comparative advantages are being leveraged further as the emirate seeks to carve out a unique profile in a region well served by mega-airports, ports and roadways. This chapter contains an interview with Ali Salim Al Midfa, Chairman, Sharjah Airport Authority.
Explore chapterEnergy
Buy digital copy of this chapter - £18Sri Lanka’s energy sector has undergone a significant transformation in recent decades, as growth in the economy and population have eroded the country’s capacity to meet its energy needs via hydropower, strained the national grid and pushed thermal generation to dominate the industry. Although it benefits from an abundant supply of renewable energy, electricity shortages and rising fuel imports have become serious concerns, with the problem expected to intensify as the government advances its sizeable infrastructure development agenda. At the same time, financing shortfalls and rising electricity demand have presented new opportunities for private sector investors, with the government’s Vision 2025 – an economic development plan released in 2017 – emphasising public-private partnerships as a preferred finance mechanism for new projects, including power plants. This chapter contains an interview with Ranjith Siyambalapitiya, Minister of Power and Renewable Energy.
Explore chapterEnergy
Buy digital copy of this chapter - £18Despite its comparably lower volume of hydrocarbons reserves, Tunisia has largely been able to effectively allocate them to meet its development needs. However, as its oil and gas reserves diminish, the long-term energy strategy will increasingly rely on diversified sources. Although an uptake in exploration efforts may yield new exploitable reserves, an acceleration of renewable energy generation will be required to reduce the country’s vulnerability to energy shocks. Equally challenging and necessary will be to continue reducing subsidies and eliminating market distortions. Increasing energy security will likely remain the sector’s primary priority, and drive public and private investment over the medium term. This chapter contains interviews with Nabil Smida, Chairman and CEO, Société Nationale de Distribution des Pétroles AGIL; and Moncef Harrabi, Chairman, Société Tunisienne de l’Electricité et du Gaz.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18While 2016 saw an overall slowdown in growth in Jordan’s construction sector, there is reason to expect more activity in the near future. A number of factors, including the country’s sizable refugee population and the government’s new focus on transport and infra¬structure development, point to a stimulated sector and increased growth. In addition, any easing of geopolitical tensions in the region could see the kingdom become a major base for reconstruction in the Middle East. Meanwhile Jordan’s real estate sector experienced a largely stable 2016-17 period. Rents and sales prices registered marginal increases in the residential market, while there were slight declines in the commercial segment. Much of this was due to the higher growth and rapid development of recent years, which left a good supply of real estate that put a break on upward price movements.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector in Myanmar has experienced some turbulence in recent years. Changes to the regulatory framework and budget deficits have had an impact on the construction of houses, while plans to upgrade the country’s infrastructure have faced economic and political constraints. Nonetheless, the government is determined to move forward with new regulations and secure funding for a series of major infrastructure projects, and players in the sector are generally optimistic about developments ahead in 2018. With the residential and office markets cooling, but the industrial and retail segments buoyant and exhibiting significant long-term growth potential, the period ahead poses both challenges and opportunities for Myanmar’s real estate sector. Establishing a clear regulatory framework is set to play a significant role in the market’s development. This chapter contains interviews with Roongrote Rangsiyopash, CEO and President, SCG; U Kyaw Kyaw Win, Chairman, New Star Light Group; and U Khin Maung Aye, Chairman, Lat War.
Explore chapterEnergy
Buy digital copy of this chapter - £18While Bahrain has pushed successfully to become one of the most diversified economies in the Gulf region, petroleum products still make up a significant share of the country’s total exports: 50% of all exports in 2016, according to data from the UN International Trade Statistics Database and the World Bank. In addition, the drive to establish a flourishing industrial base, coupled with favourable oil and gas subsidies over the years, has put pressure on the kingdom’s ability to meet domestic energy needs with its own supplies of natural gas. The construction of a liquefied natural gas (LNG) terminal, which will start receiving LNG in 2019, as well as reductions in energy subsidies, are likely to help address this shortfall. However, in the long term more will need to be done to raise domestic production or import more oil and gas into the country.
This chapter contains an interview with Abdul Hussain bin Ali Mirza, Minister of Electricity and Water; and Peter Bartlett, CEO, Bahrain Petroleum Company.
Explore chapterEnergy
Buy digital copy of this chapter - £18Greater involvement from private energy companies, especially on the production side, has led to increases in electricity production capacity, which reached 2020 MW in 2017. While gas-fuelled thermal power plants accounted for 80% of production that year, plans to boost hydropower capacity, and upcoming biomass and solar power projects, will be critical to diversifying the energy mix and meeting future demand. Although increasing electricity production capacity is a key part of the government’s energy policy, it also emphasises a continued rise in hydrocarbons output, with the authorities announcing in July 2016 that the goal is to double crude oil and natural gas production by 2020.
This chapter contains interviews with Thierry Tanoh, Minister of Petroleum, Energy and Renewable Energy Development; and Amidou Traoré, Director-General, CI-Energies.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18With a large consumer base, skilled labour force, strategic geographic location and a series of pro-business government efforts to streamline licensing and operations, Egypt’s industrial sector is an attractive proposition. While challenges remain, there are new local and export-focused opportunities for increased investment – particularly with the ongoing construction of a new capital. While economic policies throughout 2017 may have placed a limitation on individual purchasing power in the short term, the expectation that inflation rates will stabilise and investment will increase on the back of business-friendly reforms should see the retail sector maintain a positive growth trajectory in the medium to long term.
This chapter contains an interview with Tarek Kabil, Minister of Industry and Trade.
Explore chapterUtilities
Buy digital copy of this chapter - £18The utilities industry in Oman is going through a transitional period in anticipation of major restructuring and renewal in the water and electricity segments. While large-scale retail competition in electricity is not yet feasible, changes in technology, such as the introduction of cost-reflective tariffs (CRT), are making distributed provision more cost-effective. The most significant development in the electricity sphere is the planned introduction of a spot market to allow generators without long-term contracts to sell power on a half-hourly basis at a market-clearing price. Meanwhile, in terms of water provision, the sultanate’s procurement agency has worked hard to bring considerable new capacity on-line across Oman’s five water zones to address supply shortages during peak demand periods in 2017, particularly in the Muscat region. Oman is also on the verge of a major shift towards renewable energy as the government rolls out regulations and projects to harness power supply from solar plants and wind farms. This chapter contains an interview with Tariq Ali Al Amri, CEO, be’ah; and Omar Al Wahaibi, CEO, Nama Group.
Explore chapterAgriculture
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Agriculture remains a key contributor to Morocco’s economy, accounting for about 15% of GDP in 2016. The sector generates nearly 40% of employment and over 10% of exports, and the industry’s development plan has benefitted both agricultural productivity and resiliency. Numerous initiatives, such as incentives and measures to ease access to land, improve irrigation systems and contribute to segment-specific growth, should bolster prospects in the medium to long term. However, adding value to agricultural products remains an area for further progress. A public programme is seeking to incentivise the enhancement of production capacity, the development of exports, and the modernisation of marketing and distribution. The kingdom is also set to continue playing a key role in supporting growth of agricultural yields and battling the effects of climate change.
This chapter contains an interview with Hassan Sentissi, President, National Federation of Seafood Processing and Development Industries.
Explore chapterInnovation & Investment
Buy digital copy of this chapter - £18Building on its reputation as a global city, regional financial centre and showcase of smart technology, Dubai is forging an economic future based on investment in forward-thinking ideas. As part of this strategy, the emirate is set to welcome millions of visitors to Expo 2020, which is aimed at creating an international platform to foster creative thinking on development goals for the MENA region and South-east Asia. The emirate’s leaders are already looking beyond the horizon at the impact modern science and technology can play in the UAE Centennial 2071 objectives, which offer an outlook for the long-term work planned to solidify the country’s reputation as a world leader.
This chapter contains an interview with Yousuf Al Shaibani, Director-General, Mohammed bin Rashid Space Centre.
Explore chapterMining
Buy digital copy of this chapter - £18For more than 150 years the mining industry has been one of the key pillars of the Ghanaian economy. While it contributes a modest and – as a result of rising oil, gas and agricultural production – declining proportion of GDP, it remains a major source of government revenue, through taxation and royalty payments, and an indispensable driver of employment and infrastructure development. Following several years of weak commodity markets, the rebound in global prices has resulted in bigger profit margins for miners, while upgrades in key projects have helped boost production. Moreover, expansion projects and continued exploration activities indicate that Ghana’s history of large-scale gold mining will continue for many years to come.
Explore chapterInsurance
Buy digital copy of this chapter - £18These have been profitable times for the Saudi insurance sector, although bumpy ground in the economy overall has made the growth of premiums more challenging. The sector is undergoing a significant overhaul as a stronger regulatory framework is progressively implemented and enforced, and moves to consolidate the market are in progress. Developments in the health segment continue to look promising after a recent expansion of compulsory health insurance while further widening to include more of the domestic population in obligatory schemes was witnessed 2017.
This chapter contains an interview with Abdulaziz Al Boug, CEO, Tawuniya.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Major projects in transport and housing are in the pipeline, though a flatter rate of expansion and an increased focus on priority projects are expected due to investment cutbacks. Affordable pricing is of the utmost importance. In late 2017 the government stressed that housing and infrastructure development are key priorities, and the 2018 budget will see an 8% rise from 2017 in funding allocated to social transfers, including social housing. Thriving revenues from hydrocarbons led to a period of widespread residential building in Algeria, with the housing segment leading the construction sector as the largest market in 2011-15, accounting for 41% of the total. Sustained growth is forecast until 2020, driven by an urbanisation expansion rate of 2.7% and a rising population.
This chapter contains interviews with Abdelghani Zalene, Minister of Public Works and Transport; and Rabah Guessoum, CEO, Algerian Industrial Cement Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18For several years the insurance sector has undergone major regulatory changes, as the industry positions itself in alignment with international best practices. The sector has been expanding considerably in recent years, often with double-digit growth. Furthermore, penetration rates are still relatively low, meaning there is plenty of room for new products, services and customers. However, recent economic slowdowns have made the business environment more competitive, causing companies to put a greater focus on lowering costs. At the same time, the maturation of a number of large construction projects has prompted a redeployment of resources by many companies towards operational and liability coverage, which is likely to continue throughout 2018. An expected expansion in health care lines should help offset this, alongside the construction and property segments, which continue to grow in the run-up to the 2022 FIFA World Cup.
Explore chapterInsurance
Buy digital copy of this chapter - £18Indonesia’s economy and, with it, the financial services sector, has experienced growth since 2015, spurring demand for a diverse portfolio of insurance products. Life insurance is the dominant segment, accounting for nearly two-thirds of the sector, but demand for general insurance products has risen in recent years. Growing interest has been driven by a number of factors, including successful education efforts by the public and private sector, leading to rising awareness of insurance products among different demographics. Prudent investment practices, the overall strength of the national economy and more robust reinsurance coverage has also led to a trend of increased uptake.
This chapter contains interviews with Ben Ng, President Director, AIA Financial Indonesia; and Jens Reisch, President Director, Prudential Indonesia.
Explore chapterUtilities
Buy digital copy of this chapter - £18As Africa’s largest oil producer, Nigeria is a key member of the Organisation of the Petroleum Exporting Countries (OPEC) and the world’s fourth-largest exporter of liquefied natural gas. Policy moves over the past two decades have enabled young Nigerian companies to acquire and develop oil and gas blocks, build pipelines and distribution networks, and soon, based on the current project pipeline, refineries and power plants as well. There is still ample room for improvement, however. Renewed militant activity in the Niger Delta region – where much of the upstream activity is concentrated – continues to disrupt production, while the country’s regulatory framework is ageing, with a long-awaited overhaul yet to materialise. Nigeria’s energy sector is largely awaiting the passage of the Petroleum Industry Governance Bill – which has been on the cards for roughly a decade – but given the recent momentum in the National Assembly, the next year may finally see that happen, which would bring in significant sector changes. This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources; Femi Otedola, Chairman, Forte Oil; Mohammad Sanusi Barkindo, Secretary-General, OPEC; and Guido d’Aloisio, Central Africa Regional Manager, Saipem.
Explore chapterEnergy
Buy digital copy of this chapter - £18Low global oil and gas prices have left Trinidad and Tobago’s energy sector with challenges, and underinvestment in upstream exploration has resulted in declining production and gas availability, leading to downstream industries operating below capacity. Still, the country continues to attract strong investment from oil majors and independent producers. With the government and sector players committed to crafting an equitable new fiscal regime, a strong energy services industry and a new frontier in deepwater exploration, there is good reason to expect the sector to bounce back over the medium term. This chapter contains interviews with Derek Hudson, Vice-President, Shell Trinidad and Tobago; Mark Loquan, President, The National Gas Company of Trinidad and Tobago; and Vincent Pereira, President, BHP Trinidad and Tobago & Chairman, Energy Chamber of T&T.
Explore chapterMining
Buy digital copy of this chapter - £18Commodity price fluctuations have rendered sporadic development across Papua New Guinea’s mining sector in recent years. Nevertheless, a diverse basket of minerals continues to attract international investors, who remain eager to unearth the nation’s resources, which have fuelled economic expansion. However, a lack of hard infrastructure and challenging natural conditions continue to escalate operating costs, which hampers revenue streams across the industry. Despite infrastructure drawbacks, mining continues to play a crucial role in the economy, contributing more than 34% of export revenues, according to figures from the Mineral Resources Authority. The sector registered impressive production numbers throughout 2016, following a weaker performance in 2015, which was characterised by a depressed commodities market and a temporary closure of one major mine.
This chapter contains an interview Peter Graham, Managing Director and CEO, Ok Tedi Mining and Chairman, Kumul Minerals Holdings.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Kuwait insurance industry entered 2017 after a challenging period, which saw premium growth maintained but profitability declining year-on-year. High levels of competition and low oil prices make a reversal of this trend in the short term a daunting prospect. However, a number of developments in the pipeline – including a new legislative framework and the introduction of mandatory health coverage for expatriates – have the potential to provide a timely boost to Kuwait’s insurers. There is clearly scope for the expansion of insurance activity in the Kuwaiti market. The domestic industry plays a relatively small role in the economy, with banks and investment companies accounting for 94% of the financial system as of December 2015, according to the Central Bank of Kuwait. Insurance density in Kuwait, which stands at around 0.9% of GDP, is low even by regional standards.
Explore chapterInsurance
Buy digital copy of this chapter - £18Given its low penetration rates, ageing society and the trend towards increased liberalisation, the Thai insurance sector has significant potential and growth is expected to be steady in the coming years. Thais are becoming more interested in savings and wealth-related products, and over time it is also likely that they will have a better understanding of the need to cover risks. Together, these factors could mark a tipping point for the industry. Still, balancing the positive trends are several factors weighing on the sector. The nation’s relatively weak economy, which has made insurance less affordable, is leading to lower than normal premium growth. The sector is also somewhat mature in certain segments. Over the next decade, the Thai insurance market is expected to grow at a slower pace than in the past, but the rate is still comparatively high. This chapter contains interviews with Suthiphon Thaveechaiyagarn, Secretary-General, Office of Insurance Commission; and Michael Plaxton, CEO, FWD Life Insurance.
Explore chapterMining
Buy digital copy of this chapter - £18For a country with three Andean mountain chains and a history of gold and silver production, mining has remained a relatively small contributor to the modern Colombian economy. Between 2012 and 2015 the sector contributed around 2% to GDP and 20% of exports, with the vast majority coming from two giant coal projects: the Cerrejón mine in La Guajira department and La Loma mine in César department. Between 2013 and 2016 the sector experienced a slump as low commodity prices and bureaucratic obstacles saw exploration and development dry up. However, in 2017 stronger global coal and gold prices, the successful construction of a new gold mine and the licensing of three others signal that the country could be on the cusp of a new phase in the industry’s development.
Explore chapterEnergy
Buy digital copy of this chapter - £18The advent of plentiful natural gas has led to an evolution of the energy sector. Among President Pedro Pablo Kuczynski’s key pledges in the 2016 election campaign was the “massification of natural gas” to serve residents and industrial users across southern Peru. Another feature of Peru’s policy focus is to diversify gas exports, including the potential renegotiation of the country’s liquefied natural gas contract with Mexico. The government’s plan to use the country’s reserves to provide cheap fuel to both underserved citizens and industrial concerns should serve the economy well. Further infrastructure investment, to the tune of some $30bn, will be needed if the country is to reach its ambitious goals going forward, however, these plans are viable.
This chapter contains interviews with Gonzalo Tamayo, Minister of Energy and Mines, and Carlos Temboury, Director and Chairman, Enel Generación.
Explore chapterInsurance
Buy digital copy of this chapter - £18As the first emirate in the UAE to roll out mandatory health coverage, Abu Dhabi’s insurance sector has benefitted from over a decade of strong growth in both the life and general lines, with the UAE home to the region’s largest and most mature insurance market. Still, 2015 was a difficult year for the industry, as underwriters struggled with prevailing low global oil prices, increasing market competition, and sweeping regulatory reforms requiring many to realign internal process and restructure operations to meet rising national standards. Although the sector returned to profitability in 2016, strong competition continues to weigh on loss and retention ratios. Insurers are set to remain profitable in 2017, as mandatory health schemes continue to expand, while technical capacity and underwriting performance should continue to improve under the recent reforms’ rolling deadlines.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Sri Lanka’s commitment to being conducive to private-sector business development is reflected in its marked orientation towards trade and investor-friendly encouragement of foreign direct investment. Building on its strategic location at the gateway to India and between the Middle East, Africa and South-east Asia, the government of Sri Lanka is pushing an agenda of open and free-market economic policy to promote and expand trade and economic links, with the ultimate goal of becoming a regional trade centre. An up-and-coming middle class with disposable income and a preference for spending over saving, in addition to a strong economy with mounting tourism receipts and few restrictions on foreign investment, make Sri Lanka a favourable destination for retail investors of all stripes.
This chapter contains interviews with Indira Malwatte, Chairwoman, Sri Lanka Export Development Board; Ashok Pathirage, Chairman and Managing Director, Softlogic Group; and Dilith Jayaweera, Chairman, George Steuart Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18The Philippines’ insurance sector has been exhibiting strong growth in recent years. While it did experience a slowdown in 2014, and then again in early 2016 ahead of the election, the trend overall has been positive, and its strong performance is likely to continue. Although premium growth remained flat in 2016, insurers are forecast to collect a combined P500bn ($10.6bn) in premiums by 2019, double the amount in 2015. By then, around half the country’s population will be insured, more than triple the percentage in 2009. The push for inclusiveness is adding to new business coming from individuals seeking to build wealth and protect their assets.
This chapter contains an interview with Peter Grimes, President and CEO, FWD Philippines.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The Tunisian telecommunications market is seeing large increases in mobile phone plans over fixed-line subscriptions, as smartphones continue to offer voice-over-IP services and messaging applications that enable consumers to call and text via mobile internet. Though the sector has been liberalised for many years, Tunisie Telecom remains the dominant operator; however, competing operators Ooredoo Tunisie and Orange Tunisie have gained market share in recent years. The determining element that sets operators apart will now likely be the speed with which they roll out their 4G coverage nationwide. With the progressive deployment of 4G services, as well as the expected arrival of Virgin Mobile to the market and the growing presence of Lycamobile, it is likely that competition for users will grow even fiercer. Over the years Tunisia has become a regional hub for ICT thanks to a strong array of comparative advantages: a well-educated and competitive IT workforce, relatively low operating costs, close proximity to Europe, and a strong network of IT and telecoms infrastructure. With the country facing increasing competition from neighbouring Morocco and more anglophone-focused markets due to growing demand for English in offshoring activities, the Tunisian government is looking to implement policies designed to cement its population as a competitive and attractive IT-oriented market. However, obstacles to the sector’s growth remain. In order for Tunisia’s IT sector to unlock its full potential, the public and private sectors must work together to upgrade existing technoparks and IT infrastructure, as well as open additional digital centres to enable young entrepreneurs to create.
This chapter contains an interview with Nizar Bouguila, CEO, Tunisie Telecom.
Explore chapterEnergy & Mining
Buy digital copy of this chapter - £18With commercial-scale resource discoveries in Kenya in recent years – of both oil and solid minerals – the country’s energy and mining sectors are expanding. Kenya is now poised to join the ranks of commodity exporters, which is a significant reversal from the country’s historic dependency on imports. Authorities are currently overhauling related regulatory frameworks and working on large-scale infrastructure projects to help solicit investment in upstream extractive industries, with an eye to boost both exports and domestic sales. The need for new infrastructure is largely based on the expectation that Kenyans – and East Africans overall – will trade up from burning biomass to consuming modern fuels as disposable incomes rise across the board. Demand could be met with local oil if the state elects to rehabilitate its old refinery or build a new one, or Kenya could equally choose to export its crude oil and import finished products. For now, however, the government is primarily focused on upstream production and improving its regional distribution capacity.
This chapter contains interviews with Dan Kazungu, Cabinet Secretary, Ministry of Mining; and John Ngumi, Chairman, Kenya Pipeline Company.
Explore chapterTourism
Buy digital copy of this chapter - £18Offering 3200 km of coastline and spectacular white sand beaches, mountainous highlands popular with adventure tourists and a vast array of cultural, historic and culinary attractions, Vietnam has seen its tourism sector become a major economic growth driver in recent years. The sector has recorded positive performances across the board, including international arrivals, domestic tourists, revenues, spending and investment, leading the government to increase earlier growth targets in 2016 as foreign arrivals reached record levels. Although a restrictive visa scheme continues to prevent Vietnam from reaching the same visitor numbers as its fellow ASEAN tourism competitors, government moves to add a growing number of countries to the visa waiver list could see the country catch up with – and even surpass – markets such as Thailand and Malaysia in the coming years.
Explore chapterEnergy
Buy digital copy of this chapter - £18Substantial hydrocarbons and hydropower resources have allowed Vietnam to be largely energy self-sufficient and supported rapid economic growth. Exploitation of its coal and the harnessing of rivers for hydropower has helped Vietnam meet double-digit growth in demand for power, providing almost universal electricity access to its people. Development of the country’s oil and gas reserves has seen it become a net crude oil exporter and meet its gas demand in full. High annual GDP growth – at an average of 7-8% over the past 20 years – and increased affluence among a growing population have led to soaring demand for energy.
This chapter contains interviews with Duong Quang Thanh, Chairman, Vietnam Electricity; and Bui Ngoc Bao, Chairman, Vietnam National Petroleum Group.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18In 2016 the Mexican manufacturing sector achieved annual growth of 1.3%, as many other sectors of the economy experienced a slowdown. Accounting for 16.8% of GDP, the manufacturing sector is the largest contributor to the national economy. Given the sector’s economic weight, the November 2016 election of US President Donald Trump has created a shadow of uncertainty over the Mexican economy. However, such is the dependence of US industry on Mexican imports that drastic measures look unlikely. Whether through a refocus on the domestic market or a diversification of export destinations, Mexican industry has preserved the fundamentals on which it can continue to prosper. Additionally, Mexico has long been a global presence in the mining industry, but since 2012 falling commodity prices, coupled with increased royalty payments, have led to stagnation of both production and investment. In early 2017, however, the recovery of metals prices saw a rise in merger and acquisitions in the global mining industry, and a growing belief that a new bull market could be on the horizon. With huge exploration potential, Mexican mining could soon be back after a hiatus. This chapter includes an interview with Alexander W Wehr, President and CEO, BMW Mexico, Latin America and the Caribbean.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18With a market of 92m consumers and growing, Egypt is a natural fit for manufacturing industries. The sector spans a diverse range of activities, largely led by the private sector, that range from building materials and downstream processing, to long-running textile factories, as well as competitive food and fast-moving consumer goods segments. Yet the government hopes to further expand, and its goals for the sector are ambitious. Manufacturing accounted for approximately 16.6% of the country’s GDP in 2015, with medium-term plans to create 3m jobs and increase its share to 25% by 2020, in part through the development of new industrial zones. Egypt’s industrial sector features substantial attractions for long-term investment, including a large consumer base, low labour costs and a potential gateway to the growing African middle class. Short-term obstacles remain, however, starting with the Egyptian pound’s struggle to stabilise against major international currencies and continued instability in gas supply; yet the goal of long-term growth remains the key priority. Egypt’s retail market is competitive and highly fragmented. The maturing formal retail sector features a range of shopping malls, supermarkets, hypermarkets and smaller franchised competitors, as well as the more informal options that have traditionally served Egypt’s shopping needs, such as souqs, street vendors, independent high-street shops and neighbourhood corner stores.
This chapter contains interviews with Mohamed Zaki El Sewedy, Chairman, Federation of Egyptian Industries; and Hassan Nouh, Managing Director, Ezz Steel.
Explore chapterInfrastructure & Transport
Buy digital copy of this chapter - £18As both a national and regional transport and logistics centre, Sharjah benefits from advantages such as strong connectivity to other emirates and the wider world. The only member of the UAE federation to border all other emirates, it has the UAE’s only container port located outside the Straits of Hormuz. The importance of this facility and the emirate’s transport and logistics industry as a whole could be boosted in the long term by plans to develop a regional rail network, while its airport continues to see rapid growth, boosted by its status as the main hub for the region’s largest low-cost airline.
This chapter contains interviews with Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development, and Chairman, Federal Transport Authority; Adel Ali, CEO, Air Arabia; and Badr Jafar, CEO, Crescent Enterprises and Executive Chairman, Gulftainer.
Explore chapterEnergy
Buy digital copy of this chapter - £18With growing demand for electricity both at home and abroad, Côte d’Ivoire’s energy network is in need of diversification and further initiatives to expand power production. With the Council of Ministers adopting six decrees aimed at liberalising the electricity sector in October 2016, the government is counting on private investment to reach its goals. The push for oil exploration and production, coupled with recent discoveries, is attracting renewed investment into Côte d’Ivoire’s energy sector and is likely to contribute to growth in oil production on many levels. The sizeable domestic gas deficit is also stimulating investment in gas exploration and transportation infrastructure.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although its revenues from oil and gas have fallen, the government of Bahrain is ploughing new investment into the kingdom’s energy sector in the hopes that the broader economy will reap the benefits in the years to come. This counter-cyclical spending is designed to allow a significant increase in refinery capacity and a more secure supply of fuel for the country’s aluminium smelters, petrochemical factories, power stations and desalination plants. At the same time, the government has taken historic steps to reduce subsidies on fuel, food and utilities that have reduced its expenditure but increased the cost of living for its citizens. Bahrain, which has been a net importer of crude oil for many years, is reshaping the unspoken social contract between monarchs and citizens that characterises the economies of its oil-exporting GCC neighbours. The country’s natural resources may help fuel industries that employ many Bahrainis, but the trickle-down effect of oil wealth will no longer manifest itself in highly subsidised petrol, groceries or utility bills.
This chapter contains an interview with Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil.
Explore chapterUtilities
Buy digital copy of this chapter - £18Driven by rapid industrialisation, a growing population base and state-funded investments in major infrastructure projects, demand for electricity and water has surged in Oman over the past decade. Peak power demand on Oman’s Main Integrated System has more than doubled since 2006, and water demand has almost tripled. Growth forecasts for each range from 6% to 10% over the coming years. The need to increase power and potable water capacity should insulate planned projects from austerity cuts, and ambitious government-driven procurement strategies will provide a host of opportunities for private sector investors seeking solid returns from a single-buyer system. With detailed strategies in place, strong demand growth and a robust regulatory framework supporting private investment in power and water, Oman’s utilities industry is poised to see continued growth.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction industry is set to become a major growth driver of Myanmar’s economy, as investors look to capitalise on economic liberalisation and a major public infrastructure programme. Residential real estate, particularly affordable housing, will remain the chief engine of growth over the medium term, though a large infrastructure deficit and rising congestion in Yangon should see public works comprise a growing portion of activity. Although the outlook for the office and residential segments remains subdued as a result of rising new supply, the real estate sector is expected to maintain steady momentum in the coming years, on the back of further economic liberalisation and new opportunities in the retail, non-serviced apartment and affordable housing segments.
This chapter contains a viewpoint from U Win Khaing, Minister of Construction; and interviews with Wong Heang Fine, Group CEO, Surbana Jurong; and Omar Shahzad, Group CEO, Meinhardt Group.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport infrastructure in Algeria, which is the largest country in Africa, has been going through a process of transformation since the early 2000s, with tens of billions of euros channelled into infrastructure projects. In recent years, despite the pressures exerted on government spending as a consequence of declining hydrocarbons revenues, transport networks have remained an investment priority, as Algeria targets boosting domestic production and developing its non-oil economy. Numerous projects already under way are set to bring about major improvements in both domestic and international transport and logistics infrastructure, helping to boost the development of the wider economy, while potential new financing models may provide opportunities to further develop the sector in the coming years. This chapter contains interviews with Michael Hamelink, CEO, Aigle Azur; and Rachid Ghezlaoui, CEO, Transrafa.
Explore chapterMining
Buy digital copy of this chapter - £18With prices on stronger ground in global markets, mining companies are starting to display renewed interest in gold projects. In Ghana this precious metal represents more than 80% of mining activities, and an uptick in gold prices has led to a flurry of activity, with companies signing agreements, initiating production and seeking land for exploration. While a raft of fiscal changes aimed at increasing mining tax revenue have been introduced in recent years, the government has also sought to address sector challenges and ensure attractive investment conditions while promoting the development of sustainable mining. The implementation of the Minerals and Mining Policy will be key to strengthening the sector’s role in the economy.
This chapter contains an interview with Sulemanu Koney, CEO, Ghana Chamber of Mines.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Jordan’s industrial sector continues to grow, with phosphates and potash, chemicals and pharmaceuticals, and textiles and garments all seeing expansion in both net profits and volume in 2015. That these segments have grown in the face of global economic headwinds and in a region directly affected by major geopolitical tensions demonstrates the sector’s resilience and ability to adapt. The government, which sees the sector as vital to the kingdom’s long-term development plans, has also been actively helping manufacturers and heavy industry through incentives and promotional campaigns, support that looks set to continue strengthening. Meanwhile the retail sector has shown consistent growth in recent years, with its contribution to GDP reaching JD1.13bn ($1.6bn) in 2015, up from JD11.4bn ($15.5bn) in the previous year, or around 10% of the total.
Explore chapterTransport
Buy digital copy of this chapter - £18As part of Gabon’s economic growth strategy, the authorities have been looking to accelerate the development of transport infrastructure in recent years as a means to improve national logistics competitiveness and boost development in remote areas of the country. All of the state’s planned infrastructure development projects – road, railway, shipping and aviation – have been outlined in the National Programme of Infrastructure Development, which was set out by the government in 2012. In recent years, authorities have heavily invested in transportation development as a means to improve Gabon’s logistic competitiveness and bolster economic diversification in remote areas. Although transport infrastructure is set to continue expanding, the lack of financial resources is expected to slow the pace of project developments. Since the drop in oil prices in 2014, the government’s budget has shrunk and debt has risen. As such, the development of new economic segments should serve as the primary drivers of growth for the sector in coming years.
This chapter contains an interview with Tsuyoshi Kamihira, CEO, Portek Group.
Explore chapterInsurance
Buy digital copy of this chapter - £18Collectively, the Saudi Arabian insurance industry has seen five years of double-digit growth in both revenue and net profit. However, the positive performance of a few of the Kingdom’s largest insurers masks more modest results from many of its smaller firms, some of which have accumulated debts over many years. Although industry experts believe the overall outlook is positive for a country with a low insurance penetration by regional standards, conditions for some companies are expected to remain challenging in a crowded marketplace dominated by medical and motor coverage. Clearly defined and supervised insurance activity is in its second decade in the Kingdom and so is relatively new to Saudi Arabia, but the government has recognised that the industry can be a cornerstone of the financial services sector by promoting long-term savings and allowing policyholder funds to be channelled into investment opportunities.
This chapter contains an interview with Raeed Al Tamimi, CEO, Tawuniya.
Explore chapterTransport
Buy digital copy of this chapter - £18Capitalising on its strategic location and promising economic environment, the Moroccan transport sector has made significant strides in recent years. A range of major upgrades and expansions to roads, ports, railways and airports have continued to press forward, despite challenges such as the eurozone debt crisis, regional political instability and a tightening of the state budget. Looking ahead, the private sector is set to play an increasing role in financing and managing transport infrastructure. Significant investment in road construction has improved connections between newly developed industrial areas and port infrastructure, and the benefits of lower distribution costs are beginning to appear. Improvements to urban transport, particularly in Casablanca, will help further improve connectivity and reduce congestion, while ambitious plans to expand aviation and maritime infrastructure will ensure a gradual rise in capacity.
This chapter contains interviews with Aziz Rabbah, Minister of Equipment, Transport and Logistics; and Mohamed Benouda, CEO, SNTL Group.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18With major expansions across land, sea and air connections currently under way, Dubai’s transport sector continues to drive much of the emirate’s economic and international success. The government is fully committed to the continuous improvement of this infrastructure, with new rules for public-private partnerships aiming to enhance delivery in the sector. Meanwhile, Dubai finds itself in an increasingly competitive regional economic environment. The current slowdown in global growth, falling oil and gas prices, regional uncertainties and a strengthening dollar are also all affecting the emirate and its transport sector. Yet Dubai finds itself uniquely placed to face these challenges, with confidence high that it will continue to be the region’s pre-eminent transportation hub.
This chapter contains an interview with Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors, Roads and Transport Authority.
Explore chapterInsurance
Buy digital copy of this chapter - £18Despite the slowing regional economy and strong competition among local players, Kuwait’s insurance sector has seen steady growth in recent years, due in large part to rising demand for non-life products and increased activity in the takaful (Islamic insurance) segment. In 2015 the industry brought in an estimated KD315m ($1.04bn) in total gross written premiums (GWPs), up 4.3% from KD302m ($998.9m) in 2014. Continued uptake of new insurance policies in Kuwait is in line with regional insurance trends. Between 2006 and the end of 2014 the GCC insurance industry more than tripled its overall premiums, with total GWPs growing from $6.4bn to $22.2bn, yielding a compound annual growth rate of 6.4%.
Explore chapterUtilities
Buy digital copy of this chapter - £18A shortage of electricity is among Nigeria’s greatest obstacles to growth. Chronic shortages affect all consumers, due to a legacy of underinvestment in maintenance and new facilities. The system typically functions at less than half of its installed capacity of around 12,000 MW. Successive administrations have made sector reform a priority, with partial privatisation of the national grid being a key pillar. After years of delays, there have recently been some key investments made, and Nigeria has emerged as a test case for how development finance institutions can help catalyse investment in power across the continent. Although meeting Nigeria’s massive and expanding electricity needs will require the development of its major offshore gas fields, in the short term the combination of reforms and local involvement continues to provide opportunities for investors willing to risk capital on the new, and as yet untested, systems now in place.
This chapter contains interviews with Babatunde Fashola, Minister of Power, Works and Housing; and Jay Ireland, CEO, GE Africa.
Explore chapterInsurance
Buy digital copy of this chapter - £18With strong premiums growth in recent years, a liberal investment environment and a low penetration rate, Indonesia’s insurance sector is poised for a period of rapid expansion. A slight market slowdown in 2013-14 – due in large part to regional economic volatility – appears to have reversed course in the first half of 2016, with positive implications for the country’s insurers, particularly its major players. As of June 2015 – the most recent date for which data was available – Indonesia was home to 129 policy underwriters, including 50 life insurers and 79 non-life insurers. Additionally, at this time the market was made up of five reinsurance companies, 161 insurance brokers and 35 reinsurance brokers.
This chapter contains an interview with Yasril Rasyid, President-Director, Reasuransi MAIPARK Indonesia; and Chairman, Indonesian General Insurance Association.
Explore chapterInsurance
Buy digital copy of this chapter - £18In Papua New Guinea insurance makes up a small part of the economy by international standards, with the penetration rate at less than 2% of GDP compared to a global average of 7.5%, according to the UN Development Programme. Insurance in the country is also a sector of great opportunity. Access is straightforward given the regulations and low capital requirements, so international participation is high and newcomers are relatively free to enter. In addition, because penetration is low, the market is well placed to grow.
This chapter contains a round-table with Salamo Elema, Acting Insurance Commissioner; Wayne Dorgan, Managing Director, Pacific MMI Insurance; and Philip Tolley, Managing Director, Capital Insurance
Explore chapterInsurance
Buy digital copy of this chapter - £18In recent years Qatar’s insurance sector has expanded swiftly on the back of government spending, economic development and a steadily increasing awareness of the benefits of coverage. Between 2005 and the end of 2015 the industry posted a compound annual growth rate (CAGR) of 21%, according to data from Moody’s. By the end of 2014 Qatar was the third-largest insurance market in the region, accounting for around 10% of premiums written in the GCC. Given that insurance growth tends to track overall economic growth and that Qatar’s economy is largely driven by the state, the recent jump in insurance activity will likely continue at least until 2022, when Qatar is scheduled to host the FIFA World Cup. Indeed, according to forecasts by Alpen Capital, the market is expected to increase at a CAGR of 17.8% from 2014 to 2020, which would make it the fastest-growing insurance sector in the GCC by current estimates.
Explore chapterEnergy
Buy digital copy of this chapter - £18For the past four decades the energy sector has been the backbone of Trinidad and Tobago’s economy. On average, the industry’s contribution to national GDP has been around 40%, although this has ranged from a high of 50.8% in 2008 to a low of 32.1% in 2015. In the fourth quarter of 2015 GDP was down 3% year-on-year, reflecting a 5% contraction in the energy sector. In addition to lower prices, the sector was affected by dwindling output from mature oil fields and plant shutdowns for maintenance and infrastructure work. Results in the downstream sector were more mixed. LNG output fell in the second half of 2015, although refinery output increased after the completion of upgrades at the state-owned Petrotrin plant, and ammonia and urea production was up from a relatively low base in 2014.
This chapter contains interviews with Andrew Jupiter, Chairman, Petrotrin; Norman Christie, Regional President, BP Trinidad and Tobago; and Gerry Brooks, Chairman, National Gas Company of Trinidad and Tobago (NGC).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Amidst a mixed earnings performance around the world in 2015, Malaysia’s capital market posted modest growth over the course of the year. The sector grew by 2.1% in 2015, according to the Securities Commission Malaysia, the capital market regulator, to reach RM2.82trn ($698bn) by the end of the year, which was 2.5 times the size of the economy. Bursa Malaysia, the nation’s stock exchange, accounted for roughly 60% of this total, with a year-end market capitalisation of RM1.7trn ($420.8bn), while outstanding debt issuances made up the remaining RM1.12trn ($277.2bn). This follows on from half a decade of steady growth in the total value of Malaysia’s capital market. In recent years the country has emerged as a substantial player in a number of areas including fund management, sharia-compliant finance and debt issuance. This chapter contains interviews with Foo Su Yin, CEO, RAM Ratings; and Shahril Ridzuan, CEO, Employees Provident Fund.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Buoyed by its powerhouse apparel, tea, coconut, rubber and gemstone segments, Sri Lanka’s industrial sector has recorded significant expansion in export volumes and earnings in recent years. Although rubber and tea have been affected by falling global commodities prices and volatility in key export markets, rising demand for value-added products, a specialty of the sector, is expected to offset any near-term losses, while growing opportunities for foreign direct investment demonstrate the country’s positive long-term growth prospects. Investment in transportation and increasingly pro-business policies are also expected to help the sector maintain its upwards trajectory, as will a spate of planned free trade agreements and the reinstatement of key trade concessions with the critical markets of the US and the EU.
This chapter contains an interview with Mahesh Amalean, Chairman, MAS Holdings.
Explore chapterInsurance
Buy digital copy of this chapter - £18With a total of 60 insurers in the UAE, including 34 locally incorporated companies and 26 foreign branches, federal authorities have increasingly sought to promote consolidation in the nation’s growing insurance market. According to the Statistics Centre – Abu Dhabi, financial and insurance activities were a significant contributor to the emirate’s economic growth in 2014, expanding by 27.1%. Takaful represented a particular growth driver not just in the UAE but across the region, with gross written premiums in the GCC’s takaful market growing at an 11.8% compound annual growth rate between 2010 and 2014 to reach $8.9bn. Meanwhile, there were 3.3m active health insurance members in Abu Dhabi in 2013 according to Health Authority - Abu Dhabi, more than the entire population, meaning that the emirate has achieved its goal of universal coverage.
Explore chapterEnergy
Buy digital copy of this chapter - £18Tunisia’s energy balance shifted from surplus to deficit in 2000, and the country has since remained a net importer of energy. With domestic production falling and demand rising, Tunisia is looking to diversify its energy mix through renewables, higher imports and by promoting energy efficiency through a gradual scaling back of subsidies. Overall, attempts to promote efficiency and alternative energies have moved slowly in Tunisia, in part due to the post-revolution uncertainty of recent years, a reflection of the a high degree of state intervention in the energy sector. Despite challenges, Tunisia’s efforts to establish a more efficient, diversified energy portfolio could move forward in 2016. The split, in January 2016, of Tunisia’s Ministry of Industry, Energy and Mines, and the subsequent formation of the Ministry of Energy, could serve to refocus attention, previously shared with industry and mining, back on the energy sector. It is also true that if the new ministry is able to deliver a more cohesive sector strategy, as called for by industry players, this could help reduce the country’s reliance on imports and allow it to tap into the underutilized potential of its hydrocarbons and renewable resources.
Explore chapterInsurance
Buy digital copy of this chapter - £18After a short-lived slowdown related to political uncertainty, economic weakness and the ending of a first-time car-buyer scheme, the insurance sector in Thailand is beginning to grow again at a healthy pace. Given the relatively low penetration rate, the increasing incomes in the country and the ageing population, it is expected that the sector will soon expand again at or near its historically fast rate. Regulatory changes are helping to improve the safety and soundness of the sector, and slowly allowing for more foreign participation. However, high household debt remains a concern and could stand in the way of a rapid recovery, while consolidation remains a work in progress. Some regulatory fixes and additional liberalisations are needed if the number of insurers is to be reduced. This chapter contains an interview with David Korunic, CEO, Krungthai-AXA Life Insurance.
Explore chapterInsurance
Buy digital copy of this chapter - £18With development dating back nearly 200 years, the Philippine insurance sector is among the region’s most mature and competitive, expanding steadily in recent years despite serious challenges in 2014. The nation remains prone to natural disasters, as evidenced by Typhoon Haiyan, a category-five storm that caused billions in damage when it struck in November 2013. It cost the sector millions and dampened industry growth the following year. The industry stayed resilient, however, with continuing growth in investment and assets in 2014. Meanwhile, the sector remains open to foreign investment, despite a high tax burden and rising capital requirements. Indeed, recently enacted legislation, though painful for some smaller players, should improve industry stability and spur consolidation in 2015, keeping the industry on a steady long-term growth path. This chapter contains an interview with Lorenzo Chan Jr, President, Pioneer Life & Retail Organisation Head, Pioneer Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Djibouti has witnessed a steady expansion in opportunities for telecommunications investment, mostly due to increasing consumption and regional demand for high-bandwidth international connectivity. Over the past two years more than $100m has been invested in gateway connections, with the country now linked to six submarine data cables. These capital expenditures are in line with government efforts to strengthen the role of telecommunications and IT in national development, and to increase the role the sector plays regionally. Given the rapid development of Djibouti’s IT sector, the country possesses significant potential in terms of data provision for the wider region. Challenges nonetheless remain in terms of ensuring the affordability of tariffs and in building a competitive market for the future. This chapter contains an interview with Mohamed Assoweh Bouh, Director-General, Djibouti Telecom.
Explore chapterMining
Buy digital copy of this chapter - £18Colombia’s mining industry continues to feel the effects of the recent drop in commodity prices, particularly of gold. Gold production remains high, having risen by 7.7% to 519,472 oz in the third quarter of 2015, according to the National Mining Agency. Moreover, two new major gold projects received environmental permits in 2015 and are expected to add 60,000 oz and 450,000 oz, respectively, to current production levels. Meanwhile, with gold prices dropping to $1100 per oz at the end of 2015, from over $1900 per oz in the second half of 2011, export revenues have continued to decline. It is not all bad news for Colombia, however. The country could be one of the first to benefit from an expected rebound in the price of coal. The strong devaluation of the peso has given Colombia a cost advantage over many of its competitors, and the idle capacity at some of its mines means that production could be ramped up relatively quickly given the right conditions.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although the global drop in crude oil prices is a concern, the early adoption of economic diversification efforts has created positive growth trajectories in non-oil sectors in Bahrain, such as construction and transport. Hydrocarbons continue to form the bulk of government revenues in Bahrain, with oil and gas accounting for 24.1% of Bahrain’s GDP in 2014. Neighbouring Saudi Arabia remains a vital energy partner for the kingdom, and recent Saudi investments in its Eastern Province have benefitted both countries in terms of hydrocarbons processing. Meanwhile in June 2014 Bahrain opened its first solar energy facility in the town of Awali. The 5-MW facility relies on the concept of a smart grid that harvests energy through photo-votaic panels dispersed around the city.
This chapter contains an interview with Abdul Hussain bin Ali Mirza, Minister of Energy.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Myanmar’s construction industry has expanded rapidly in recent years. The sector’s GDP growth amounted to 7.7% in fiscal year 2014/15 and is expected to grow to 8.3% in 2015/16. Despite political risks, Myanmar’s development needs remain significant, particularly in infrastructure. With the victory of the National League for Democracy in November 2015, it is expected that 2016 will see an ongoing commitment to updating essential services, such as water supply and sewerage, upgrading airports and roads, and building better housing. With some 125,000 sq metres of retail space due to open over the next four years, Yangon is set to see more franchises and mid-tier brands establish themselves in the city. There is also potential for more affordable and mid-range housing projects due to Myanmar’s growing population, which is expected to increase by about 50% through to 2040. This chapter contains interviews with Ang Wee Gee, CEO, Keppel Land; and U Win Khaing, President, Myanmar Engineering Society.
Explore chapterEnergy
Buy digital copy of this chapter - £18By harnessing its hydro and gas resources, Peru has developed a robust and diversified energy mix. Cheap and plentiful power is one of the key comparative advantages for the country’s mining and industrial sectors. However, falling commodity prices coupled with anti-mining protests have led to the delay of major copper and gold projects in 2016. As a result, demand for energy has not reached previously forecast levels. Several major generation projects are set to come on-line in 2016 and 2017. As such, the country faces a period of oversupply estimated to last until at least 2021. In 2016 the push to facilitate the export of electricity should open up plans for major transmission projects and provide a new source of revenue for Peru. Meanwhile, at prices under $38 a barrel, appetite for oil exploration in the country’s remote regions has dwindled. This chapter contains an interview with Luis Ortigas, Former President, Perupetro.
Explore chapterUtilities
Buy digital copy of this chapter - £18With Oman’s economic development plan focused on further industrial expansion, and with the sultanate’s population growing, Oman’s utilities sector is looking to keep pace with growing demand. Market reforms stretching back almost two decades have ensured the power sector is well positioned to deal with this higher demand, ramping up production in line with growth. Current priorities for the sector include completing an ambitious waste management investment program, encouraging the growth of renewable energy and further honing the regulatory environment. Indeed, a number of significant regulatory changes are set to come into effect over the next two years, foremost of which is the introduction of cost-reflective tariffs for large-scale, non-residential consumers, due to enter into force in January 2016. This chapter contains an interview with Qais Saud Al Zakwani, Executive Director, Authority for Electricity Regulation.
Explore chapterIndustry
Buy digital copy of this chapter - £18In the years since the 2011 revolution, the industrial sector has been put at the forefront of government plans for economic growth. New industrial zones, substantive training programmes and development plans along the Suez Canal corridor have all been committed to paper as part of a strategy to boost the manufacturing sector’s contribution to economic output over the next decade. The proposals and initiatives are of considerable value, particularly given that Egypt’s industries have had to face headwinds over the past few years, both globally and domestically. In the shorter term, industrial growth is likely to be constrained by electricity and dollar shortages, but the government is working to address these issues and conditions should ease over the medium term. This would clear the way for more robust industrial expansion, as the growing population and rising incomes ensure that demand in segments from building materials to FMCGs remains strong. This will, in turn, result in significant opportunities for growth over the next decade.
This chapter contains interviews with Ahmed Abou Hashima, Chairman and CEO, Egyptian Steel; and Hani Berzi, Chairman, Edita Food Industries.
Explore chapterUtilities
Buy digital copy of this chapter - £18By 2017 the country has an ambitious target of adding 5000 MW to the national grid. Of this, the government plans to include 1600 MW from geothermal sources, 1920 MW from coal-powered plants, 420 MW from hydro and 650 MW from wind. The government has outlined a significant role for the private sector in these projects, and recent legislative reforms should see the number of independent power plants in the country continue to increase. Investors are expected to move to capitalise on the huge potential for future expansion despite the high initial input costs and an infrastructure deficit that could delay projects.
This chapter contains interviews with: Albert Mugo, Managing Director and CEO, Kenya Electricity Generating Company; and Andrew Herscowitz, US Coordinator, Power Africa
Explore chapterTransport
Buy digital copy of this chapter - £18New capital projects, from upgraded port facilities to multi-lane motorways and underground metros, have been a hallmark of Algeria’s transport sector in recent years. While bottlenecks persist – including an over-reliance on road transport and limited rail connectivity – generous public spending on transport infrastructure, largely funded by oil and gas revenues, has ensured continuous development in the sector since the early 2000s. Private investment has taken a leading role in the transport and communications sectors, accounting for 83.5% of total spending in 2014 and contributing €14.2bn to GDP, up from €8.6bn in 2010 and €7.6bn in 2008. While the sharp decline in hydrocarbons revenues since 2014 is leading the government to re-evaluate spending priorities, it appears to remain committed to maintaining capital investment in transport. The government’s latest five-year plan, which accounts for the 2015-19 period, allocates AD832.7bn (€7.7bn) to the transport sector, ensuring significant continued development of transportation networks in the coming years. This chapter contains interviews with Boudjema Talai, Minister of Transport; and Yacine Bendjaballah, CEO, National Company for Rail Transport.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Jordan’s industrial sector remains a central pillar of the kingdom’s economy with manufacturing contributing $6bn to the country’s estimated nominal GDP of $35.7bn in 2014. Meanwhile the country’s large mining industry – particularly of potash and phosphate – have fueled the rise of major chemicals and fertiliser industries in the kingdom while the country’s robust building materials sector has benefitted from the GCC construction boom, with worked monumental and building stone exports growing from $21m in 2013 to $50m in 2014. The kingdom’s organised retail segment has witnessed steady expansion over the last few years, with retail sales overall averaging 7.8% growth during the 2011-14 period. Meanwhile the e-retail segment is also on the rise, with Jordan-based online retailers taking advantage of the country’s central location to ship goods to customers in the region, as well as domestic clients.
This chapter contains an interview with Brent Heimann, CEO, Arab Potash Company.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18One of the top manufacturing powerhouses on the continent, South Africa has a strong industrial tradition dating back 150 years. The past few decades, however, have posed challenges to the industry, with external and domestic factors weighing on sector growth. To help revitalise the industry, the government and industry leaders have been working to stoke growth and develop value-added industries. By autumn of 2015, some industry pressures were showing signs of easing, with industrial action coming to an end, and new power and water infrastructure coming on-stream. While some structural issues remain, particularly in the realm of labour legislation and education, the government’s industrial strategy has allowed the sector to maintain momentum, with investment incentives and close cooperation with investors helping to offset downside risks to a degree. Over the longer term, manufacturing will be buoyed by growth across Africa, which should support higher sales. South Africa also has a well-developed retail sector ¬– one of Africa’s largest and most affluent markets – with a sizeable portfolio of major domestic players. While recent macroeconomic difficulties have affected certain segments of the market, the retail sector has continued to grow, drawing in a number of new international brands looking for an entry point to the rest of the continent. Their arrival underscores the sector’s sound fundamentals, and the market looks set to remain highly competitive and active in the coming years.
This chapter contains an interview with Andre de Ruyter, CEO, Nampak.
Explore chapterMining
Buy digital copy of this chapter - £18Once known as the Gold Coast, Ghana is a key player in the international gold market and Africa’s second-largest producer. In 2013, 86.6% of export revenues from the mining sector came from gold, making the metal the top export and source of foreign currency. Gold generated $4.2bn in 2013, compared with $3.2bn from oil and $1.3bn from cocoa. Growth has been hampered in recent years by external factors such as lower metal prices and internal ones like the rising cost of electricity and illegal mining. These difficulties have combined to boost costs and lower profit margins in the sector, and legal and regulatory changes are in the works. For now, exploration activity is minimal, but authorities hope that when global conditions for mining improve a boost in activity will follow.
This chapter contains an interview with Sulemanu Koney, CEO, Ghana Chamber of Mines.
Explore chapterEnergy
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The energy mix in RAK is currently led by government-owned operators RAK Petroleum and RAK Gas, both of which are involved in exploration and operation activities internationally. The fall in global oil prices in mid-2014 is already being felt in RAK, with RAK Petroleum recording its first year of losses since 2007 in 2014. Despite this, falling oil prices are set to benefit RAK Gas’s major industrial customers and should improve the availability of affordable fuel necessary for ongoing industrial expansion. With population and business growth set to boost demand for energy in the emirate, the government has started pursuing renewable power options, with a number of international players putting forward bids for tenders to build desalinisation plants and develop renewable power capacity in the emirate.
This chapter contains an interview with Richard Menezes, Managing Director, UTICO.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Since the early years of the maquiladora concept, a cross-border manufacturing government programme, the Mexican manufacturing sector has evolved significantly. Today, the well-established and globalised Mexican industrial sector is a much more specialised and nuanced market, with a stronger regulatory framework. In 2014 the sector saw its GDP increase by 4.22%, according to the National Council of the Maquiladora Industry, with clothing, paper, transport equipment, and machinery and equipment among the best performing sub-sectors. Meanwhile, contributing around 5% to the country’s total GDP in 2013, Mexico’s mining sector is among the top 10 world producers for at least 16 minerals. Though challenges remain, including stagnant local consumption, with a stronger regulatory framework the country is set to strengthen its position as a global player in manufacturing clusters, ranging from the well-established automotive industry to the rapidly developing aerospace manufacturing sector.
This chapter includes interviews with Manuel Herrera Vega, President, Concamin.
Explore chapterInsurance
Buy digital copy of this chapter - £18Kuwait’s insurance sector has posted solid expansion in recent years on the back of growth in a handful of key areas including takaful (Islamic insurance) and other non-life segments, with the industry as a whole bringing in $1.04bn in gross written premiums (GWPs) in 2014. The industry is a crowded one in Kuwait, with the top five insurers controlling around 60% of revenues at the end of 2013. The takaful segment has been active in the country since the early 1990s, and the most recent figures show that Kuwait’s 11 Islamic insurers brought in 18.7% of total GWPs in 2012. Meanwhile, the new health care system includes plans to cover expatriates, which accounted for an estimated 69% of the population as of the end of 2014.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Over the past decade Kuwait has worked to shore up its longstanding reputation as a centre for Islamic financial services, leading to the rapid expansion of sharia-compliant banks and investment companies in recent years. Islamic banking assets, at just over 20% of the total in 2005, grew to around 45% by the end of 2013, and an IMF report released in December 2014 showed Kuwait’s sharia-compliant banking sector is the fifth largest in the world, with more than $68.9bn in assets. Moving forward, the bond market appears poised for a resurgence, with a variety of private and state-owned firms recently announcing plans to issue sukuk, or sharia-compliant bonds. The government has also been preparing to introduce a new, independent insurance regulator since 2012, with draft legislation reportedly including a separate set of rules and regulations for providers of takaful, or Islamic insurance.
Explore chapterInsurance
Buy digital copy of this chapter - £18The regulatory intervention that followed intense price competition in 2013 has enabled Saudi Arabia’s insurance market to return to a trajectory of sustainable growth over the course of 2014. Competition in the sector is still stiff, however, with 35 insurance and re-insurance companies in operation as of December 2014. In 2006 the authorities enacted the Health Insurance Law, which initially required all expatriates working in the Kingdom to have private insurance and in early 2011 was extended to cover all private employees. Meanwhile, the cooperative insurance model, a variation on sharia-compliant takaful insurance, continues to grow in the Kingdom, and in 2014 Saudi Arabia accounted for an estimated 48% of global takaful contributions. Elsewhere, local players can expect to benefit from new protocols and regulations that will enable domestic insurers to compete for upcoming mega-projects in the future.
This chapter contains an interview with Ali Al Ayed, General Director, Insurance Control Department, Saudi Arabian Monetary Agency (SAMA).
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Signs of recovery have lately emerged in Morocco’s industrial sector, which has been affected by a slowdown in trade in recent years – growth in value-added processing (excluding oil and refining) rose from 0.8% in 2013 to 1.8% in 2014. While subsectors like aeronautics and automotive have made big strides over the past decade, others like textiles and pharmaceuticals have lagged behind, spurring the government to introduce its Industrial Acceleration Plan 2014-20, which aims to raise the sector’s contribution to GDP from its current 14% to 23% by 2020 and create half a million new jobs. Mining in Morocco has traditionally centred on phosphates – of which the country has around 77% of global known reserves – but a new mining code adopted in February 2015 should also help draw activity into less-developed segments such as barite, fluorspar, cobalt, antimony, lead, nickel and silver.
This chapter contains an interview with El Mostafa Sajid, President, Moroccan Association of Textile and Clothing Industries.
Explore chapterEnergy
Buy digital copy of this chapter - £18The long wait for the Papua New Guinea liquefied natural gas (LNG) project is now over, and the energy sector is transforming from a major investment vehicle into a primary revenue generator for the economy. In fact, the project is expected to have so much of an impact during its first full year of LNG exports that PNG was projected to lead all Asian economies in GDP growth in 2015, at nearly 15%, with the Asian Development Bank forecasting an equally robust expansion. While the government has had to revise its budgetary forecast for GDP growth from 15% to 6.9% due to the decline in oil prices, the optimism generated by the PNG LNG project has encouraged further investment. PNG’s plentiful untapped reserves and resolve to become a major regional gas exporter look to provide ample incentive and means to move forward with at least one additional LNG project.
This chapter contains interviews with Grant Christie, Vice-President and Country Manager, Talisman Energy, Repsol Group; Philippe Blanchard, Managing Director, Total PNG; Brent Emmett, CEO, Horizon Oil; and Lesieli Taviri, General Manager, Origin Energy.
Explore chapterTransport
Buy digital copy of this chapter - £18With improvements to the road, rail, shipping and aviation networks a key goal, Gabon’s transport sector is undergoing a major transformation. While population pressure is modest, existing links are limited: the two largest cities, Libreville and Port-Gentil, had, until work began on one recently, no road connection. Beyond improving internal connectivity and expanding capacity at international gateways such as the Port of Owendo and Libreville’s airport, the projects are also part of the Emerging Gabon Strategic Plan, which aims to boost activity in the industrial and services sectors. The government’s focus will bring increasing opportunities for private sector involvement, in part due to budgetary constraints following the drop in oil prices.
This chapter includes interviews with Rigobert Ikambouayat Ndeka, Managing Director, Office of Ports and Harbours of Gabon (OPRAG); and Patrick Claes, Managing Director, Setrag.
Explore chapterTourism
Buy digital copy of this chapter - £18Though tourism plays a significant role in T&T’s economy, unlike other Caribbean economies, it is not the most important sector. Its total contribution to GDP in 2013 was $1.26bn, or 3.1%, and the industry directly and indirectly employed 27,500 people, or 4.5%. In the past decade, arrivals have fluctuated between a low of 388,000 in 2010, reflecting the global slump in 2008-09, and a high of just over 460,000, achieved in 2004-05, before the financial crisis. In 2014 a total of 461,267 visitors came to T&T, down 1.2% from the previous year. Even so, tourism remains the top services sector revenue earner, generating $1.29bn worth of receipts in 2013, equivalent to 4.8% of total exports. In the light of the recent rapprochement between the US and Cuba, the larger Caribbean tourism industry could be set to see some realignment in the coming years. This chapter contains an interview with Keith Chin, CEO, Tourism Development Company (TDC).
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Making up 18.5% of Panama’s GDP at a value of $6.6bn in 2014, the transport, storage and communications sector has historically been a pillar of Panama’s growth. The solid performance of the transport and logistics sector, which grew more than 17% annually between 2007 and 2014, is set to continue, driven in large part by planned substantial public investment. According to the Strategic Government Plan 2015-19, investment in transport and logistics will total some $6.5bn in that period, with $3.28bn earmarked for logistics projects and $3.21bn for urban transport. The $2bn second metro line in Panama City is one of the plan’s flagship projects for the sector. Beyond the opportunities that this will generate for private players, the increased investment is expected to enable Panama to maintain regional leadership in the highly competitive sector.
This chapter contains an interview with Aitor Ibarreche, CEO, Panama Ports Company.
Explore chapterEnergy
Buy digital copy of this chapter - £18After years of treading water, Indonesia’s energy sector is finding new optimism in the fresh faces being appointed to key government positions by the new president, Joko Widodo, with the hope that they will be able to renew investor interest in the industry and spur a wave of development. The changes at the top come at a critical time, as myriad factors continue to buffet the sector in Indonesia, which ranked among the world’s top-five liquid natural gas (LNG) exporters in 2013 and remains Asia’s second-largest natural gas producer despite continuing production declines. After years of halting progress in the power sector, the new energy strategy has the potential to add much-needed capacity to the domestic market, provided that policymakers can avoid some of the pitfalls that have affected similar rapid development programmes in the past. A concentration on building coal-fired power plants, designed to run on inexpensive, domestically produced coal, should help smooth out the process. In the meantime, the strategy’s emphasis on boosting efficiency and reducing Indonesia’s high energy intensity levels should also help to rein in the country’s domestic consumption.
This chapter contains an interview with Dwi Soetjipto, President-Director, Pertamina; and an Energy roundtable with Lukman Mahfoedz, President-Director and CEO, PT Medco Energi Internasional; Roberto Lorato, President, Premier Oil Indonesia; Craig Stewart, President, Indonesian Petroleum Association and President, Salamander Energy; and Hardy Pramono, President-Director, Total E&P Indonesia.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Turkey’s industrial sector includes a wide variety of manufacturers, primary producers and traders, responsible between them for a sizeable share of the country’s GDP. Steel, chemicals, pharmaceuticals, electrical and electronic equipment, building materials, cars, jewellery and clothing are all major export earners and magnets for international investors. All have benefitted from – and, indeed, driven – much of the country’s recent economic growth, with goods bearing the “Made in Turkey” label now more prevalent than ever in world markets. With the size of the retail market widely expected to double over the next decade, Turkey represents a major opportunity for retailers. Yet recent years have seen big internationals pulling out or downsizing their involvement, and as the pace of economic growth slows, consumer confidence is weakening and some challenges do remain. For foreign investors, the lesson would appear to be that retail businesses still need a strong dose of local knowledge. Good geographical positioning and local partnerships may therefore be the way forward.
This chapter contains interviews with Bora Yalınay, CFO, Ülker; Sadettin Korkut, General Manager, Petkim Petrokimya Holding; and Muharrem Dörtkaşlı, CEO, Turkish Aerospace Industries.
Explore chapterMining
Buy digital copy of this chapter - £18With a focus on curbing political risk to encourage new investment, Mongolian authorities are striving to build a competitive industry to develop the country’s abundant natural resources. Copper regained its place as Mongolia’s top export in 2014, and is the primary focus of new exploration alongside gold and niche minerals such as fluorspar and rare earth metals. While the coalition government has toned down its rhetoric of resource nationalisation, the challenge will be in implementing regulations and the treatment of existing disputes. Achieving a delicate balance between participating in projects and enabling private investment will be integral to commercialising strategic deposits, as well as building much-needed infrastructure. Despite recent delays, the government has made concerted efforts to rebuild investor confidence and expedite development of large projects, to the benefit of both the sector and the wider economy.
This chapter contains interviews with G. Batsukh, Chairman, Oyu Tolgoi; and George Lloyd, Managing Director, Xanadu Mines.
Explore chapterUtilities
Buy digital copy of this chapter - £18The lack of power has been among the biggest obstacles to economic growth, and Nigeria is in the midst of a long and complex effort to increase electricity supply by more than fivefold by 2020, from the current level of about 3400 MW to 20,000 MW. The immediate result of this is a spike in demand for capital to rehabilitate existing capacity and add new supply, making foreign investment – through tenders and ancillary initiatives like the US Power Africa programme – crucial to the success of this reform effort. As of early 2015, the market had entered into what the road map calls a “transitional electricity market”. Over the next several years, two government-owned firms will act as intermediaries for transactions in the marketplace. Both bodies are temporary actors in the market and will be closed once the electricity sector can stand on its own. For now, their presence is deemed necessary to facilitate the signing of long-term contractual relationships between parties along the value chain, and to limit defaults and volatility.
This chapter contains interviews with Chinedu Nebo, Minister of Power, and Paul Hinks, CEO, Symbion Power
Explore chapterMakkah
As both the number of pilgrims and the number of residents in Islam’s holiest city continue to rise, the development and expansion of infrastructure is the main theme in Makkah at present. Investing in the necessary facilities to accommodate visitors, boosting the number of available hotel rooms and building more affordable housing for residents will all be major focuses going forward. This chapter contains an interview with Osama Al Bar, Mayor of Makkah.
Explore chapterInsurance
Buy digital copy of this chapter - £18Insurers in Qatar once again showed strong financial performance in 2014, and with the supply of large projects generated by the nation’s hosting of the 2022 FIFA World Cup, the industry is well positioned to make further gains. In the meantime, a process of reform that aims to streamline the regulatory regime continues apace, with the 2012 Regulation of Financial Institutions Law establishing the Qatar Central Bank as the regulator for the entire financial services industry, including banks, financial services firms, insurers and the stock exchange. Elsewhere, the ongoing implementation of a new health insurance scheme for nationals and expatriates marks another important milestone that is likely to impact premium growth in the sector going forward.
This chapter contains an interview with Ali Saleh Al Fadala, Senior Deputy Group President and CEO, Qatar Insurance Group.
Explore chapterIndustry & Retail
Manufacturing accounts for 27.4% of Sarawak’s economy and employs about 11.2% of the workforce. The sector is expected to grow 5% per annum until 2030. Endowed with forests and vast plantation resources that are at risk of being depleted in the long term, the state is aiming to transition its production base away from basic resources and commodities extraction into value-added manufacturing as part of Malaysia’s Vision 2020 mandate to attain high income status by the turn of the decade. With an abundant and cost-competitive energy mix, proximity to key Asian markets, and a proactive local government that offers attractive incentive packages to investors, Sarawak possesses the key ingredients to become a significant industrial player.
This chapter contains interviews with Paul Koon, Group CEO, Press Metal; Aaron Toh Chee Ching, Group Managing Director and CEO, Sarawak Cable Toh, Sarawak Cable Berhard; and Sarudu Hoklai, General Manager, Sarawak Timber Industry Development Corporation.
Explore chapter
Makkah
As both the number of pilgrims and the number of residents in Islam’s holiest city continue to rise, the development and expansion of infrastructure is the main theme in Makkah at present. Investing in the necessary facilities to accommodate visitors, boosting the number of available hotel rooms and building more affordable housing for residents will all be major focuses going forward. This chapter contains an interview with Osama Al Bar, Mayor of Makkah.
Explore chapterEnergy
Buy digital copy of this chapter - £18With large, easily accessible oil and gas discoveries long since picked over, a continued decline in petroleum production has encouraged a heavy reliance on foreign imports. While new exploration blocks offered up in 2013 could provide potential for more technically challenging opportunities in the coming years, the majority of the coveted offshore areas remain off-limited due to acrimonious territorial disputes. Exploration in new, primarily frontier areas could mitigate the country’s increasing reliance on foreign energy sources to some degree. As the Philippines, along with the rest of the global energy market as a whole, shifts its energy priorities away from crude oil and towards cleaner, more plentiful natural gas, the Department of Energy has set out a road map to establish a new network of gas pipelines to transport gas around Luzon from 2017 to 2022.
This chapter contains interviews with Edgar O Chua, Country Chairman, Shell Companies in the Philippines; and Francis Giles B Puno, President & COO, First Gen Corporation.
Explore chapterEnergy
Buy digital copy of this chapter - £18The oil and gas sector accounts for 80% of the UAE government’s revenues and although current oil prices are a concern, the emirate’s focus on increasing production should ensure stable growth moving forward. While exploration is still a major activity, the emirate has increasingly focused on enhanced oil recovery (EOR) technology to recover heavier and harder to reach oil. The emirate has also seen an increase in the development of its sour gas reserves, which, although costly and difficult to extract, present many benefits in terms of boosting gas supply and supporting EOR operations. Meanwhile growing domestic demand has prompted the need to build additional refining capacity, with the energy sector’s downstream segment earmarked as an area for future expansion as a result.
This chapter contains an interview with Abdulla Nasser Al Suwaidi, Director-General, Abu Dhabi National Oil Company.
Explore chapterEnergy
Buy digital copy of this chapter - £18With the recent economic growth spurt serving as a testament to Côte d’Ivoire’s recovery, the subsequent increase in energy consumption has also highlighted gaps in provision. Under pressure to satisfy growing domestic demand and to consolidate its position as a regional energy supplier, the power segment is currently going through an ambitious expansion exercise. Meanwhile, in the upstream oil and gas segment, operators are ramping up exploration and production activity in a bid to feed the country’s predominantly gas-fired thermal power plants. Such efforts should drive generating capacity to 3000 MW by 2020, up from 1600 MW in 2014 – an ambitious target alongside equally bold objectives of doubling production of natural gas and increasing oil output five-fold to 200,000 barrels per day (bpd). As the slate of ongoing projects in the power segment demonstrates, a guaranteed market and the commitment of the government to enable returns on investment, including by sharing the financial burden, has made for an attractive investment environment.
This chapter contains an interview with Izak Elyashiv, CEO, Telemenia.
Explore chapterMaritime Industry
Buy digital copy of this chapter - £18Dubai’s maritime industry adds $3.92bn in economic value annually and the emirate’s government has placed a strong emphasis on the sector in the last decade. Long-term goals include implementing smart technology, maintaining high-quality infrastructure and developing local human capital. In the first initiative of its kind in the Middle East, the Emirates Maritime Arbitration Centre in Dubai will provide dispute resolution and deliberation based on a legal regime drawing from global best practices. It is designed to give parties access to a range of maritime regulatory guidelines and standards and to boost the emirate’s ambition of becoming a leading global maritime cluster.
This chapter contains an interview with Sultan Ahmed bin Sulayem, Chairman, Ports, Customs and Free Zone Corporation; and President, Dubai Maritime City Authority (DMCA).
Explore chapterEnergy
Buy digital copy of this chapter - £18Oil and gas remain key to Bahrain’s economy, with 87% of government revenues generated from hydrocarbons in 2012 and the oil sector growing robustly in 2013, posting 15% real GDP growth. While falling oil prices are a concern in the short term, the kingdom is looking to boost oil production in the medium term. Efforts are under way to double the output of the Bahrain field by 2020 through the use of enhanced oil recovery techniques while a new round of offshore exploration drilling is expected in 2015. Meanwhile plans were announced in 2014 for the kingdom’s first liquefied natural gas (LNG) terminal, with the LNG regasification facility expected to import 3m tonnes per annum. Elsewhere, a major upgrade to the kingdom’s oil refinery on Sitra Island will ensure Bahrain remains competitive at a time when a number of similar expansions are taking place in the region.
This chapter contains interviews with Abdul Hussain bin Ali Mirza, Minister of Energy; and Pete Bartlett, CEO, Bahrain Petroleum Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The opening of Myanmar’s economy has led to a proliferation of mega-projects in the past four years, including the upgrade of infrastructure and the expansion of utilities. The government has embarked on projects to upgrade, broaden and build a long list of facilities, ranging from roads to bridges, seaports to airports, hotels to malls, high rises to apartments and hydroelectric dams to electric plants. Evidence of the construction boom is visible throughout Myanmar, especially in Yangon, an old capital that is on an express track to becoming a modern city. The influx of foreign firms has caused a shortage of office and commercial space. With rental rates rapidly rising, a number of new projects are being launched that will market to international customers. Despite the rapid growth of the economy overall, the construction sector may see a slight slowdown as investors adopt a wait-and-see approach pending general elections in November 2015, after which Myanmar is likely to see a catch up period of intense investment in a wide range of projects.
This chapter contains interviews with Dr Khin Shwe, Chairman, Zaykabar; and Stephen Suen, Marga Group.
Explore chapterUtilities
Buy digital copy of this chapter - £18As rapid industrialisation continues in the sultanate, the utilities sector looks set to be a growth driver in terms of both construction contracts and private investment. In 2013 the Authority for Electricity Regulation reported that operators approved 276 projects worth $357.34m, and the numerous water and power plant projects in the pipeline bode well for future investors. Of particular interest is the renewable segment where progressive policies are in place to drive future growth and reduce dependence on hydrocarbons. The sultanate is capitalising on its high solar densities with solar energy currently being used in enhanced oil recovery schemes, while a funding grant from the Oman Research Council has enabled research into the use of concentrated solar power in desalination plants, with plans in place to develop an operational system by the end of 2015. This chapter contains interviews with Hassan Ali AbdulHussein, CEO, Haya Water; and Omar Al Wahaibi, CEO, Electricity Holding Company.
Explore chapterMining
Buy digital copy of this chapter - £18The growth of the mining sector, driven by a sharp rise in commodity prices, spurred Peru’s economy to the fastest sustained growth rate in Latin America during much of the past decade. The recent fall in commodity prices, however, has led to a significant drop in the value of Peru’s mining exports, and consequently, a slowing of GDP growth in 2014. The central bank lowered its outlook on mining growth for 2015 from an estimate of 9% to 6.5%. The sector is not expected to get an immediate boost in the form of rising production or commodity prices; however, in 2016 and beyond, several large-scale copper projects are expected to come on-line that could double Peru’s production of the mineral and add as much as 1-2% to the country’s GDP growth. The sector is also set to get a boost from zinc, silver and tin, other metals of which Peru has substantial reserves and for which global demand is expected to grow.
This chapter contains an interview with José Picasso, Chairman, Volcan Compañía Minera.
Explore chapterTransport
Buy digital copy of this chapter - £18As a result of high oil revenues over the past decade, Algeria’s transport infrastructure has been significantly overhauled, benefitting from generous public sector spending. During the 2010-14 period, the government allocated €30.1bn to be used for road expansion and maintenance, as well as improvements in port infrastructure, with an extra €27.2bn invested in the railway sector and air transport infrastructure. This sort of capital-intensive spending is likely to continue, even as the state sees a drop in oil revenues, its primary income. More crucially, the government is gradually shifting attention to soft infrastructure to ensure that processes and execution keep pace with capacity upgrades.
This chapter contains an interview with Amar Ghoul, Minister of Transport.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Manufacturing constitutes South Africa’s second-largest economic sector and currently accounts for 15.2% of GDP, as well as being responsible for the creation of roughly 1.7m jobs. It also ranks among the top three sectors in terms of multiplier effect. The sector’s contribution to GDP has, however, been steadily declining over the past three decades, having accounted for 19% of GDP in 1990 and 21.8% in 1980. Indeed, this is part of a broader shift with the tertiary sector. While the industrial sector has navigated through the global slowdown, it remains under duress. Many of the constraints plaguing the sector are not unique to the country, and are even more pronounced elsewhere on the continent.
Home to one of the continent’s most sophisticated retail markets, South Africa boasts a wide variety of retail formats and distribution channels to match the diversity of the country itself. The retail sector has played an important role in helping South Africa rebound from the 2008-09 financial crisis relatively unscathed, as social grants, increases in public sector employment and rising real wages contributed to higher household disposable incomes and encouraged spending. However, recent years have proven somewhat more difficult, with retail sales over the course of 2014 increasing by around 2% over the same period a year prior, compared with year-on-year increases that averaged over 5% between 2004 and the end of 2013. Nevertheless, a number of the largest local retail groups have a footprint that extends well outside of the country to markets in West and East Africa, as well as closer to home – which is helping to buffer balance sheets against the slowdown in domestic sales.
This chapter contains interviews with Johan van Zyl, CEO, Toyota Africa; and Gareth Ackerman, Chairman, Pick n Pay.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The manufacturing industry is a central part of Egypt’s economic engine, producing goods for the huge domestic market and for export across the world. Manufacturing industries accounted for 15.6% of GDP in the fiscal year 2013 (July 2012-June 2013). The sector was affected by the difficult post-revolution period, but as of 2014 the outlook seemed more positive. The sector’s recovery has been supported by a more favourable global economic climate, as well as by a return to greater stability following the presidential elections in early 2014. While the domestic market is the primary focus for many investors, Egypt’s relatively low costs, decades of experience in many sectors and skills base all make it an attractive location for production for export. Egypt has benefitted from particularly strong trade ties with Europe and the Middle East, but is now also turning its attention to Africa and Asia. Egypt’s retail market has continued to expand despite the economic and political challenges of the past few years, though consumer spending patterns have shifted in some areas towards lower-cost goods. Household retail spending was worth about $90.3bn in 2013, according to the General Authority for Investment and Free Zones, and is expected to keep rising at a steady clip over the next few years. Modern retail outlets are taking an increasing share of the market, benefitting from an expansion in dedicated commercial space, although traditional retailers – and indeed the informal sector – will continue to account for a large portion of Egyptians’ spending.
This chapter contains interviews with Mounir Fakhry Abdel Nour, Minister of Industry; Raouf Ghabbour, Chairman and CEO, Ghabbour Auto; Mark Duffelen, Regional General Manager, Xerox Middle East and Africa; and Basil El Baz, Chairman and CEO, Carbon Holdings.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18Islamic banking and insurance, or takaful, are becoming the dominant forms of banking and insurance, and inbound foreign investments are increasingly channelled into Islamic markets. The Sultanate’s largest bank is an Islamic lender, dominating the domestic market as well as developing into an international player in Islamic finance. The rise of takaful has been aided by strong support from the government and close relationships with local Islamic banks.
This chapter contains an interview with Javed Ahmad, Managing Director, Bank Islam Brunei Darussalam.
Explore chapterUtilities
Buy digital copy of this chapter - £18As with a number of African markets, expanding the capacity of Kenya’s utilities sector is a key part of the government’s blueprint for development. On the power side, the government aims to add 5000 MW of generation capacity to the existing 1672 MW by 2017. Down the road, the government intends to further expand capacity to meet the 17,000 MW of demand anticipated by 2030. Renewables such as geothermal energy and wind are also key to this plan. The water and sanitation sectors are lagging, but upcoming regulation promises to clarify roles and facilitate private sector investment. The goal that is laid out in the Vision 2030 master plan is to extend universal access to safe water by 2030. Nairobi alone requires $1.9bn in infrastructure upgrades to meet this goal. All sectors within the utilities umbrella promise to grow and have strong support from the national government.
This chapter contains interviews with Jay Ireland, President and CEO, General Electric Africa; and Ben Chumo, Managing Director and CEO, Kenya Power.
Explore chapterMining
Buy digital copy of this chapter - £18Mining and quarrying contributed 9.8% of Ghana’s GDP in 2013, up from 9.5% in 2012, according to the Ghana Chamber of Mines (GCM), the main industry association. Nevertheless, the sector had a subdued year in 2013 and was affected by a range of factors that hit the industry globally. So important is mining to Ghana’s economy that its slower performance fed through to lower GDP growth. Total revenue from minerals slid 12% to $4.79bn in 2013 from $5.45bn in 2012, led by the biggest slump in the price of Ghanaian gold in 30 years, according to the GCM. Although Ghana faces increasing competition from other countries in the region, its long history of mining, abundant resources, and security and stability remain significant competitive advantages.
This chapter contains interviews with Nii Osah Mills, Minister of Lands and Natural Resources; and Johan Ferreira, Regional Senior Vice-President and Head, Newmont Africa, and President, Ghana Chamber of Mines.
Explore chapterTransport
Buy digital copy of this chapter - £18Jordan’s transport sector remains a major source of employment, currently providing jobs for approximately 10% of the county’s workforce. While the volatility of energy supplies, particularly natural gas from Egypt since 2011, continues to pose a challenge to the sector, plans for a new national rail network, including a line connecting Iraq with the Port of Aqaba, hope to address this. Moreover, the national railway project will allow Jordan to remain competitive in Iraqi transport markets while also boosting tourism to the kingdom. King Hussein International Airport in Aqaba recently unveiled a new arrivals wing which, along with the port complex, is part of a wider tourism push that is driving local economic activity.
This chapter contains an interview with Kjeld Binger, CEO, Airport International Group.
Explore chapterConstruction & Real Estate
Gabon has concentrated funding on infrastructure in recent years, not only in advance of the Africa Cup of Nations, but also as part of the government’s broader push to diversify the economy through its primary development strategy, Emerging Gabon.
The construction sector – supported by the Infrastructure Master Plan, which includes 114 projects in education, housing and transport – is thus expected to see annual growth of 4.7% from 2013 to 2016, providing for a better long-term outlook. The state continues to play a central role, predominantly through the National Public Works Agency, and publicly funded developments account for a large percentage of ongoing construction activity. Looking ahead, Gabon’s construction sector has plenty of work to carry out. Following the initial slowdown after the Africa Cup of Nations, the sector’s focus has shifted towards infrastructure projects in transport, industry and housing. Despite the fact that Gabon is a middle-income country, inadequate housing in slums is not uncommon, particularly in the capital city, Libreville, where more than half of the population is concentrated. Extensive government reforms have sought to improve clarity on urban planning, access to land, zoning and procurement issues, as well as construction permits.
This chapter contains interviews with Mauricio Toledano, CEO, Eurofinsa; and Luis Castilla, CEO, ACCIONA Infrastructure, Water and Services.
Explore chapterMining
Buy digital copy of this chapter - £18The mining sector is a major contributor to the local economy, accounting for 22% of GDP, 61% of industrial value-added, 94% of exports by value and 85% of foreign direct investment in 2012, according to figures from the National Statistics Office. Mongolia’s main proven reserves include coal, copper, hard-rock and placer gold, silver, iron ore, molybdenum, fluorspar, zinc, tungsten, lead, tin, uranium and rare earths. Key challenges include inadequate rail infrastructure connecting mines to target markets, a shortage of processing facilities and the fact that the majority of exported coal is semi-soft. While ebbs and flows in the regulatory framework have caused concern over the authorities’ respect for contract sanctity, in 2013 the government appeared intent on clarifying the long-term framework in an effort to restart investment. While global commodities markets are set to remain challenging in 2014, Mongolia’s strong natural fundamentals and location near major demand centres are set to continue attracting investors. This chapter contains interviews with Jean-Sébastien Jacques, Chief Executive of Copper, Rio Tinto; Ya. Batsurri, CEO, Erdenes Tavan Tolgoi; and D. Dumba, President, Mongolian National Mining Association.
Explore chapterEnergy
Buy digital copy of this chapter - £18For many years Thailand has focused on increasing energy generation so that it could power its industrial growth and meet the energy needs of an increasingly prosperous society. Achieving this objective was a requirement in terms of sustaining economic growth and, so far, the country’s energy production has succeeded at keeping pace. Thailand has one of the highest electrification rates in South-east Asia. As a percentage of total generating capacity, the share claimed by hydropower has dropped considerably, from 21.8% in 1986 to 3.1% in 2013. Demand for natural gas has recently outstripped Thailand’s supply of dry gas, forcing the country to increasingly rely on imports of more expensive liquefied natural gas (LNG). Capacity will grow, but renewables, LNG, imports and conservation will play a greater role in helping the country meet its energy needs. Overall, the sector may become more interesting, as new solutions will be required to sustain ongoing economic growth, while at the same time appeasing the environmental demands of the people. This chapter contains interviews with Pailin Chuchottaworn, CEO, PTT Group; Veerasak Kositpaisal, CEO and President, Thai Oil; and Wandee Khunchornyakong, CEO and President, SPCG.
Explore chapterEnergy
Buy digital copy of this chapter - £18The nation’s vast territorial expanse and established presence of experienced, well-financed international and domestic oil firms has led to the discovery and exploitation of a succession of sizeable oil and gas projects across the country for more than 125 years. As of 2013, Indonesia’s total hydrocarbons reserves reportedly included 3.7bn barrels of oil and 103.3trn cu ft of natural gas. In 2012, 96 new exploratory wells were drilled across the country – 55 onshore and 41 offshore – up from 81 exploratory wells drilled in 2011. Indonesia ranked fifth in the world in terms of total liquefied natural gas exports, behind Qatar, Malaysia, Australia and Nigeria. The growing shortage of domestic petrol production capacity will see Indonesia surpass the US as the world’s largest importer of petrol by 2018. Exploring and exploiting new oil and gas fields – including more expensive plays such as shale gas, deepwater and frontier resources – will be increasingly important for both exports and the growing domestic market as maturing legacy fields continue to decline in productivity. The success of these efforts relies not only on the technical capabilities of the oil and gas operators in the country, but also on the creation of a stable regulatory framework to support investor confidence. This chapter contains interviews with Karen Agustiawan, President Director, Pertamina; and Nur Pamudji, President Director, Perusahaan Listrik Negara; and an energy roundtable with Andhika Anindyaguna, CEO, Sugih Energy; Jon M Gibbs, President, ExxonMobil Indonesia; Lukman Mahfoedz, President, IPA and President Director, Medco Energi; Roberto Lorato, President Director, Premier Oil Industries Indonesia; and Hardy Pramono, President and General Manager, Total E&P Indonesia.
Explore chapterEnergy
Buy digital copy of this chapter - £18Oil and gas accounted for around 51.5% of Qatar’s economic output in 2013, and investments in upstream and downstream capacity are set to ensure future growth. Qatar is working with international partners to build three new petrochemicals facilities, which will help to expand domestic output. Further, the government is also investing in research and development programmes, as well as looking abroad. QP International leads global investments, and the state has also announced the formation of Nebras, a $1bn fund to invest in electricity and water projects overseas, which will be managed by the Qatar Electricity and Water Company. Qatar is also looking to the possibility of reforming the sector in a bid to strengthen QP and to expand globally, developments that are likely to secure Qatar’s energy industry moving forward. This chapter contains interviews with Mohamed bin Saleh Al Sada, Minister of Energy and Industry; Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas; Hamad Rashid Al Mohannadi, CEO, RasGas; and Wael Sawan, Managing Director and Chairman, Qatar Shell Companies.
Explore chapterEnergy
Buy digital copy of this chapter - £18As a close-out agreement was signed for long-held concessions in early 2014 and the government is looking for potential new partners for the development of its oil and gas fields, 2014 is expected to see a shake-up of Abu Dhabi’s hydrocarbons industry. The government is keen to boost gas production, requiring investment in the emirate’s challenging sour gas reservoirs. This means opportunities in the upstream sector for everyone from oil majors to engineering, procurement and construction (EPC) contractors. There are also likely to be opportunities for independents and smaller players as Abu Dhabi National Oil Company (ADNOC) looks to diversify and broaden the potential of the sector to maximise the emirate’s vast hydrocarbons wealth. This chapter contains interviews with Abdulla Nasser Al Suwaidi, Director-General, ADNOC; and Khadem Al Qubaisi, Managing Director, International Petroleum Investment Company; as well as a viewpoint from Sultan Ahmed Al Jaber, UAE Minister of State, and CEO, Masdar.
Explore chapterRetail & Distribution
Buy digital copy of this chapter - £18Double-digit GDP growth for four of the past seven years, moderate inflation and high employment have had a positive impact on Panama’s retail sector. According to the National Institute of Statistics and Census, retail revenues increased 19.1% between 2011 and 2012, outpacing those of other service segments, and attracting growing interest from potential foreign entrants, particularly from the US. The sector has been an essential economic contributor, accounting for 14% of GDP in 2012. However, developing new facilities will be crucial for the country to compete with regional shopping destinations. While a gradual reduction in infrastructure investment and salary growth is likely to ease the retail boom of the past three years, sound economic growth is likely to sustain the continued expansion of both purchasing power and retail revenues. This chapter includes an interview with Leopoldo Benedetti, General Manager, Colón Free Trade Zone.
Explore chapterAgriculture
Buy digital copy of this chapter - £18While estimates may vary, the sector contributes 43% to GDP and employs 70% of the working population, according to the World Bank. Almost everything can be grown in Myanmar, from tropical fruits and vegetables to rice and pulses. It is sometimes said to have the most fertile soil in Asia. The country is known for its rice, teak and mangoes, but it also produces rubber, oil seeds, cotton, corn, chillies and pulses, with a total of 60 crops grown. If the country manages to avoid the pitfalls of agriculture that have challenged other countries in the region and works to best practices, success will build on success and a healthy agricultural market will be restored. This chapter contains an interview with U Ye Min Aung, Secretary General, Myanmar Rice Federation (MRF) and Managing Director, Myanmar Agribusiness Public Corporation (MAPCO).
Explore chapterTransport
Buy digital copy of this chapter - £18With the population forecast to grow to 3m by 2020 and 25m attendees expected for World Expo 2020, the emirate is focusing on boosting transport options. Aviation and public transit are due for major expansion: the metro is set to increase to more than 422 km by 2030, a tramline is due to begin initial operations in late 2014, and airlines are also dominating the sector as Dubai’s ideal location for transit of passengers is further exploited by both Dubai International and Al Maktoum International Airport. The performance of Jebel Ali Port, the ninth-biggest container terminal in the world, continues to impress, and its ability to handle ships of any size, whether in existence or on the order book, will ensure its continuing ability.
This chapter contains interviews with: Sultan Ahmed bin Sulayem, Chairman, DP World and Ports, Customs and Freezone Corporation; Mattar Al Tayer, Chairman and Executive Director, Roads and Transport Authority; and Ghaith Al Ghaith, CEO, flydubai.
Explore chapterUtilities
Buy digital copy of this chapter - £18The country’s water and power sectors have undergone a steady liberalisation process since legislation outlining privatisation was passed in 2004, and this has generally been considered as a success. As one of the most open in the region to foreign investment and private ownership of assets, Oman’s utilities sector is expanding strongly to meet growing demand for power and water. There are some major schemes in the pipeline at various stages of planning and construction. Opportunities for generation continue, and more may also open up in the downstream power sector if the government pushes ahead with liberalisation.
Explore chapterMining
Buy digital copy of this chapter - £18The mining sector has seen its revenues increase significantly as Peru continues to ride the wave of a commodities “super-cycle”, bringing foreign reserves to an all-time high and sparking large-scale transportation and energy projects as production increases. As of June 2013, the Ministry of Energy and Mines reported an investment portfolio of $57.4bn. With the rich, polymetallic Andes as a source, Peru has an abundance of copper, gold, silver, tin, and zinc, among other deposits. Copper has attracted the majority of new investment in the sector, at some $36.37bn, or 63.36% of the country’s investment portfolio. Gold came a distant second at $7.18bn, or 12.51%, with iron ore close behind at $7.06bn. Long-term sustainable growth will depend on the stability of global commodity prices as well as the effectiveness of government strategies to address social conflict surround mining projects, illegal mining and a large infrastructure gap. This chapter contains an interview with Oscar Gonzalez Rocha, President and CEO of the Southern Copper Corporation.
Explore chapterEnergy
Buy digital copy of this chapter - £18The emergence of new hydrocarbons fields has helped the Philippine energy sector make up for declining output starting in the mid-1990s. While primary energy demand continues to outstrip diminishing domestic production, output from relatively recently exploited reserves are offsetting maturing blocks as the sector looks to implement a strategy of efficiency, diversification and further exploration and development. This chapter contains interviews with Jericho L Petilla, Secretary, Department of Energy; and Oscar Reyes, President and CEO, Manila Electric Company.
Explore chapterUtilities
Buy digital copy of this chapter - £18Electricity is regularly cited as Nigeria’s chief obstacle to economic growth, but 2013 may mark a turning point for what is often referred to as the country’s Achilles heel. For more than a decade, the lack of reliable power has cut into profit margins and increased operating overheads. Under-investment and mismanagement are generally accepted as being among several primary causes of the power problem. The leadership hopes a privatisation process – now under way for power generation and distribution companies – will remove these obstacles. Despite some last-minute hiccups in the privatisation schedule and challenges still to come, Nigeria’s business community is convinced that a tipping point has been reached in the sector’s reform process, and that the privatisation effort will pay off. This chapter contains interviews with Chinedu Nebo, Minister of Power; and Ute Menikheim, CEO for Africa, Siemens Energy.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Improving economic conditions are leading to strong domestic demand for products, which is in turn spurring growth in Algeria’s manufacturing and retail sectors. However, industry’s contribution to GDP decreased from 18% in the 1980s to around 5% in 2013 due to the growing role of hydrocarbons production and under-investment in the country’s manufacturing facilities. Recent government efforts, such as a number of tax incentives aimed at foreign investors, hope to reverse this trend. To help ensure that manufacturers have sufficient access to suitable industrial real estate, the government is also establishing an additional 42 industrial zones, distributed throughout the country. This chapter contains interviews with Abderrahmane Benhamadi, Chairman, Condor; and Jean-Pierre Raffarin, Former French Prime Minister and Special French Envoy for Franco-Algerian Affairs.
Explore chapterTransport
Buy digital copy of this chapter - £18Egypt has long served as one of the world’s oldest transport hubs. For millennia, its position, straddling major trade routes between Asia, Africa and Europe, has made the country a commercial and cultural crossroads, and since 1879 it has been home to the Suez Canal, through which 10% of the world’s total trade volume passes. Thanks largely to the canal, the transport sector has helped to buffer the country from worst-case scenarios amidst recent political upheaval. However, investment was down in early 2013 at $647m, 35% lower than the same period of 2012. While the transport sector in Egypt continues to suffer from the cumulative effects of years of underinvestment, there is a new awareness of its importance to the rest of the economy and a keenness to incorporate more private investment to the sector’s development. This chapter contains an interview with Simon Brown, Managing Director, Maersk Line Egypt.
Explore chapterEconomy
Buy digital copy of this chapter - £18It is amazing the difference a few years can make. Over the course of 2012, Côte d’Ivoire has seen a significant improvement in both its current performance and its outlook for short-, medium- and long-term growth. While there remains plenty to be done, the improvement marks something of a return to form for the world’s largest cocoa producer.
Explore chapterEnergy
Buy digital copy of this chapter - £18With strong industrial growth and demand for electricity on the rise, Ras Al Khaimah’s energy needs are expanding. This is being met by broadening the number of players in the sector. Aside from the Federal Electricity and Water Authority, several international firms have become major players in the emirate’s energy sector. RAK is working to ensure greater energy independence by boosting access to alternative sources for generating electricity as well as desalinating water. This work is covering areas such as clean-coal technology and other alternative sources of energy. As a result, RAK is becoming a centre for renewables research and development and projects that are in progress related to this could position the emirate as a leader in this field. This chapter includes an interview with Anil Sardana, Managing Director, Tata Power.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18Gabon aims to significantly increase its domestic food security by 2020, while also working to expand its cash crop exports. An integral part of efforts to diversify the economy away from dependence on oil, successful implementation of its agricultural strategy will have a major impact on its balance of payments and generate significant employment growth. The government has initiated a wide-ranging agricultural development policy aimed at boosting the sector’s weight to around 15% of GDP, and attaining self-sufficiency in subsistence crops, fisheries and meat. Major investments in oil palm, rubber, sugar, coffee, cocoa, maize and soya will boost exports and meet domestic demand in the next seven years. This chapter contains an interview with Sunny Verghese, Group Managing Director and CEO, Olam International.
Explore chapterEnergy
Buy digital copy of this chapter - £18Hydrocarbons wealth has been the central pillar of Kuwait’s economy for nearly a century, and the nation’s proven oil reserves of around 101bn barrels underwrite its future economic wellbeing. However, the supply of non-associated natural gas, which the country discovered in 2006, has fallen behind demand, as domestic electricity generation infrastructure struggles to keep pace. Still, Kuwait has many options when it comes to resolving the challenges facing its energy sector: new fields and new technologies. This chapter contains interviews with Farouq Al Zanki, Former CEO, Kuwait Petroleum Corporation; and Sara Akbar, CEO, Kuwait Energy.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industrial activity plays a central role in the South African economy, accounting for around 31.6% of GDP in 2011, and employing a large portion of the population in labour-intensive processes. Like many comparable economies, recent decades have seen the nation’s economic activity tilt away from traditional industry towards a more service-based economy. However, various plans are in place for sector expansion, aimed at the twin goals of national economic expansion and job creation. South Africa’s retail sector runs the spectrum of mercantile activity – from large chains with a multinational footprint to the informal spaza shops that provide household items to their neighbourhoods. The well-established trend of retail expansion in South Africa is expected to be maintained on the back of GDP growth that the IMF has forecast will average 3.6% between 2012 and 2016. However, some factors such as rising energy costs and consumer debt may act as a brake on the market. This chapter contains interviews with Geoffrey Qhena, CEO, Industrial Development Corporation (IDC); Raman Dhawan, Managing Director, Tata Africa; and Grant Pattison, Chief Executive Officer, Massmart Holdings.
Explore chapterEconomy
Buy digital copy of this chapter - £18Consistent macroeconomic growth in the past decade, averaging 4.5% from 2002 to 2012, has renewed investment confidence in Colombia. Strong economic performance is expected to continue with the IMF anticipating GDP growth of around 4.1% in 2013. With a liberal legislative framework for free trade zones and high investor protection, Colombia attracted the second-highest investment flows in the region as a percentage of GDP in 2012, at 26.2%. Five key engines for growth – mining, innovation, housing, infrastructure and agribusiness – are all set to receive a major boost as part of the government’s National Development Plan. This chapter contains interviews with Juan Pablo Rivera, President, Bogotá Free Trade Zone; Sergio Díaz-Granados Guida, Minister of Commerce, Industry and Tourism; Karel De Gucht, EU Trade Commissioner; Gerardo Hernández Correa, Superintendent, Financial Superintendence of Colombia; Rubens V. Amaral Jr, CEO, Banco Latinoamericano de Comercio Exterior; Jim O’Neill, Chairman, Goldman Sachs Asset Management; and a viewpoint from Douglas L Peterson, President, Standard & Poor’s Rating Services.
Explore chapterTransport
Buy digital copy of this chapter - £18Access to the Red Sea via the expanding port of Aqaba and proximity to emerging markets in the region, like Saudi Arabia and Iraq, has encouraged Jordan to strengthen its transport offerings and enabled it to support several key infrastructure and real estate projects. While fuel costs remain high, a $1.8bn investment programme to boost the road network, in addition to aviation, rail and maritime upgrades, stands to aid the sector in the medium to long term. Railway capacity is set to rise with the $2.43bn Jordan National Railway project. This chapter contains an interview with Søren Hansen, CEO, Aqaba Container Terminal.
Explore chapterEnergy
Buy digital copy of this chapter - £18The hydrocarbons industry is a key contributor to the economy, accounting for around 22% of GDP in 2012 as well as some 75% of government revenues. Efforts to boost production are expected to see output reach 100,000 barrels per day by 2020. The government has pledged to invest $15bn in the hydrocarbons sector over the next 30 years, with energy diversification and a growing focus on solar and wind power set to lessen the kingdom’s dependence on natural gas. Despite current energy production outpacing peak demand, the government is working to encourage reduced power and water consumption through a public awareness campaign, while increasing power production capacity. This chapter includes interviews with Adel Khalil Al Moayyed, Chairman, BAPCO; and Abdul Hussain bin Ali Mirza, Minister of State for Electricity and Water Affairs.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector is riding high on the back of a raft of major infrastructure projects, particularly in road and bridge development, and an ongoing urban regeneration plan that will see one-third of the country’s houses torn down and rebuilt. After shrinking in 2009 as the result of a financial crisis, the sector helped lead the economic recovery by growing by 18.3% and 11.5% in 2010 and 2011. Although the market is still susceptible to a temporary slowdown in light of the recent global economic crisis, which moderated growth for 2012, long-term trends favour continued growth. The coming challenge will be to align public and private incentives and ensure that haphazard planning does not derail a promising decade. This chapter contains interviews with Başar Arıoğlu, Managing Director, Yapı Merkezi, and Ahmet Haluk Karabel, President, Housing Development Administration of Turkey, as well as a viewpoint from Mehmet Ali Neyzi, CEO, STFA.
Explore chapterTransport
Buy digital copy of this chapter - £18Despite having sufficient capacity at its Muara Port, Brunei Darussalam has carried out several upgrades and built three inland container depots that offer improved Customs processing and better refrigeration. While Brunei Darussalam’s infrastructure is modern, it is comparatively basic. The country’s ambition to serve as a centre for regional trade, however, is now motivating a number of investments and long-term strategic planning. Carefully planned investments can serve to make Brunei Darussalam’s transport sector, if not the catalyst of economic transformation, at least an enabling factor. This chapter contains interviews with Dato Abdullah Bakar, Minister of Communications; Pengiran Zain, Acting Director of Ports; and Dermot Mannion
Explore chapterTransport
Buy digital copy of this chapter - £18Under the previous and current five-year plans of 2005-09 and 2010-14, a major government objective has been the modernisation and expansion of Algeria’s transport networks. With some €229bn having been allocated to the development of railways, airports, public transport, roadways and ports, major public works projects are under way to facilitate mobility, reduce congestion and encourage the use of more environmentally friendly transport. The country has seen a sizeable expansion of air transit in recent years, in both the passenger and cargo segments. In terms of the rail segment, some 2000 km of projects are now under way, while studies are looking at another 5000 km of potential rail links. As these projects take shape, international firms will play a key role in the development and management of transport systems. This chapter contains an interview with Jean-Marc Janaillac, Chairman of the Management Board, RATP Dev.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite its relative stability, the kingdom’s tourism sector experienced a number of difficulties over the past two years as the region has struggled with political unrest. However, its strength and speedy recovery has shown just how important tourism is to the Moroccan economy, with the country attracting 9.38m visitors in 2012. Oversight of the sector is set to be reorganised, with management increasingly devolved to regional authorities. Plans to focus on niche segments such as ecotourism and adventure tourism, as well as continued investment for beach resorts as part of Plan Azur, should help develop rural parts of the country and will diversify the sector’s offerings. This chapter includes interviews with Lahcen Haddad, Minister of Tourism; and Yann Caillère, President and COO, Accor Group.
Explore chapterJeddah
Buy digital copy of this chapter - £18While Jeddah bears evidence of several decades of rapid, poorly-managed expansion, the city is now gearing itself to attract further private investment in a range of economic activities, with tourism and retail in particular well positioned for growth. The first phase of upgrades to Jeddah’s cornice, for example, was completed in December 2012 and includes new parks and outdoor leisure facilities for the city’s residents. Furthermore, rejuvenation plans are in the pipeline for the city centre, including the Heart of Jeddah project, which will incorporate elements such as a metro system, a traditional market, a convention centre and related hospitality venues. These developments could transform the city into a regional coastal resort hotspot. As for the city’s industrial sector, the government hopes that major transportation upgrades will help the region to better compete internationally. This chapter includes an interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry; and Hani Mohammed Aburas, Jeddah Municipality Mayor.
Explore chapterUtilities
Buy digital copy of this chapter - £18With rapid population growth and an increasingly diverse economy, demand for utilities – including electricity, water and wastewater services – has grown considerably in recent years. The sector will need to continue expanding at around 6-10% to meet growing water and electricity demand, meaning that utilities provision remains a top priority. Furthermore, while the vast majority of Abu Dhabi’s electricity today is generated by gas-fired power plants, the government remains committed to the development of renewable energy sources; the emirate plans to have 7% of its electricity-generating capacity sourced from renewables by 2020, with solar power featuring prominently in the mix. In addition to these developments, Abu Dhabi is taking steps to encourage a reduction in consumption, with energy conservation an increasingly high priority. This chapter includes interviews with Abdulla Saif Al Nuaimi, Director-General, Abu Dhabi Water and Electricity Authority (ADWEA); and Nicholas Carter, Director-General, Regulation and Supervision Bureau.
Explore chapterIndustry
Buy digital copy of this chapter - £18The economy is surging ahead and, as it expands, authorities are seeking to make the transition from low-cost production and supplying raw materials to more advanced nations to a high-value-added manufacturing industry. Low tariffs have led to more non-tariff barriers in the form of export bans and other incentives to encourage domestic industry. The government is pursuing initiatives to move up the value chain by emphasising higher-value-added products, such as green cars and design. The biggest challenge facing the sector is how best to manage the transition from low- to high-value-added production. Striking a balance between the needs of sunset industries and emerging ones will be tricky, but strong growth is almost guaranteed in the short to medium term for industry in Indonesia. Most of the proposed manufacturing investments should happen, and the simple maths of an expanding economy lead to an expanding industrial base. This chapter contains interviews with Purnomo Yusgiantoro, Minister of Defence; Johnny Darmawan, President Director, Toyota Astra Motor; and Vismay Sharma, President Director, L’Oreal Indonesia.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Dubai’s real estate market is poised for improvement in 2013, as the emirate works to regain its reputation as a leading regional destination for investment. Recovering from the losses suffered in the aftermath of the 2008-09 global economic downturn - when property prices fell by as much as 50-60% - the residential real estate market is now forecast to greatly benefit from rapid population growth. One indication of a resurgence in activity is the price of building materials, including steel and cement, which has markedly increased in recent years. Additionally, market maturation has led to expansion in the residential segment in recent years. Local developers are steadily adopting a more long-term investment mentality, both as a result of straightforward market forces and a series of new government regulations aimed at improving transparency. The chapter includes interviews with Sultan bin Mejren, Director-General, Dubai Land Department; and Hussain Sajwani, Chairman, DAMAC.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Its sparse population, landlocked location and extreme climate make developing Mongolia’s transportation and logistics infrastructure a challenge. The government is tapping into international markets to address its transportation and infrastructure issues, and in late November 2012 the country raised $1.5bn in a two-part bond offering. Diverse efforts are under way to improve transportation and logistics via roads, sea, and sky. Plans for a new airport are on the nation’s agenda, as an increase in air traffic is anticipated. Perhaps the most notable development, however, is the total of 5683.5 km of new railroads set to be built in three phases. These rail lines will link to existing tracks in eastern Russia, providing access to a key Pacific Ocean port. Enhancing rail transport capacity is vital to realising economic potential, both to facilitate exports of minerals and to import other goods. This chapter contains an interview with A. Gansukh, Minister of Roads and Transport.
Explore chapterConstruction
Buy digital copy of this chapter - £18A range of construction projects lies at the heart of Oman’s growing economic development. The construction sector contributed more than OR307m ($800m) to the economy during the first quarter of 2012, showing growth of almost 4% when compared to the same period in 2011. While many projects in Muscat are focused on increasing the city’s tourism appeal, construction related to industrial and transport expansion is growing substantially in cities such as Sohar, Salalah and Duqm. The development of new road networks and upgrades to existing routes is also planned, and other infrastructure projects involve upgrading the seaports. However, as the construction sector expands, challenges remain. Perhaps foremost of these is the relatively high level of competition of both local and foreign bidders. This chapter includes an interview with Sultan bin Hamdoon Al Harthi, Chairman of the Muscat Municipality.
Explore chapterTransport
Buy digital copy of this chapter - £18Having already developed a comprehensive transportation and logistics network across key economic regions, Malaysia is focused on improving access to rural areas and decreasing congestion in cities. The government’s biggest project is the Klang Valley Mass Rapid Transit system, which kicked off construction in 2012 on the first line, with two more to come by 2018. Other plans in the works include the extension of KL’s Light Rail Transit and a potential high-speed rail link to Singapore. New highways are also being planned in both Peninsular and Eastern Malaysia, with the latter aimed at improving logistics and facilitating access to the hinterlands. Finally, Kuala Lumpur International Airport is set for a massive new low-cost carrier terminal, which will feed the expansionary appetite of Air Asia and Malaysia’s other budget operators. This chapter includes interviews with Syed Hamid Syed Jaafar Albar, Chairman, Land Public Transport Commission (SPAD); and Bashir Ahmad, Managing Director, Malaysia Airports Holdings Berhad (MAHB).
Explore chapterTransport
Buy digital copy of this chapter - £18There is no single answer for bringing the transport sector up to speed to meet the needs of the economy and population, and any approach to overhauling it must be comprehensive. The government, through its National Transport Policy (NTP), recognises that lifting barriers to private enterprise is a vital element of any comprehensive plan for the sector. The NTP calls for initiatives to modernise roads, bridges, rails, ports, urban transport and other areas vital to commercial activity. Where the government has chosen not to undertake transport projects, it has entered into public-private partnerships (PPPs). For instance, the completion of a port at Lekki, in Lagos State, in 2015 is expected to take some pressure off Lagos Port Complex and Tin Can Island Port. This chapter contains an interview with Martin Wittig, CEO, Roland Berger Strategy Consultants.
Explore chapterEnergy
Buy digital copy of this chapter - £18Having gone from being a minor actor on the world energy stage to a pivotal player in less than a decade as part of an expansive strategy, Qatar has tapped its vast gas reserves by engaging international oil companies and building a comprehensive infrastructure network. This approach has allowed Qatar to become the largest liquefied natural gas (LNG) exporter in the world. The state has also pushed its crude oil production levels upwards: production stood at 742,000 bpd in January 2012, up from 732,000 bpd a year earlier. However, the government is also looking to the long-term future of energy security, as there is a strong opportunity cost associated with solar energy providing savings on natural gas usage in the domestic market. This development is an indicator of the growing confidence and maturity of the sector. This chapter includes interviews with Mohammed bin Saleh Al Sada, Minister of Energy and Industry; Christophe de Margerie, CEO of TOTAL; and Wael Sawan, Executive Vice-President and Chairman of Qatar Shell and Managing Director of Pearl GTL.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Industrial activity in Gabon is still at an early stage, with the limited size of the local market and high costs of industrial activities posing major challenges to the development of the sector – indeed, industry accounted for just 7.7% of GDP in 2011. However, major strides have been made in recent years to promote investment and development in industry, including the Industrial Gabon programme, which aims to promote the local processing of raw materials into high-value-added exports. New special economic zones and public-private partnerships, as well as projects to increase palm oil, rubber and fertiliser production, are expected to contribute to the growth of the sector. The government is also eager to increase mining’s contribution to GDP. With production of manganese having reached record levels in 2011, accounting for 14% of global exports, and a number of investors expressing interest in the sector, mining revenues are expected to increase. This chapter contains interviews with Régis Immongault Tatagani, Minister of Industry and Mining; and Fabrice Nze-Bekale, CEO, Société Equatoriale des Mines.
Explore chapterTourism
Buy digital copy of this chapter - £18With more than 1.4m people directly employed by the sector and 4m indirectly, tourism is a key income generator for the nation. In 2010 the sector accounted for 12% of GDP and brought in an estimated $12.5bn. Russia accounts for the most visitors to Egypt, with a total of 1.8m visitors travelling to the country in 2011. Another promising source market is the Gulf, whence an increasing number of tourists originate. Ranking Egypt 75th out of 139 countries in terms of travel and tourism competitiveness, the World Economic Forum’s list of areas in need of improvement include tourism, ground transport, and information and communications technology infrastructure. Despite the current difficult circumstances, the Ministry of Tourism is targeting 25m visitors by 2020. Areas for development include retirement tourism, adventure activities and attracting high-end tourists. This chapter contains an interview with Mounir Fakhri AbdelNour, Former Minister of Tourism.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18As one of the most modern and efficient shipping centres in the region, the transport and logistics facilities on Bahrain’s Muharraq Island continued to draw business to the Kingdom throughout 2011. The Khalifa Bin Salman Port (KBSP), which opened in 2009, showcases the government’s dedication to further developing the country’s transport offerings, which it sees as integral to its diversification push. On the roads, although traffic in Bahrain has increased and can be acute at rush hour and on weekends, a variety of upgrades are planned or are under way which should substantially alleviate existing congestion problems. The Ministry of Works (MoW), which oversees road design and construction projects, is in the process of implementing a comprehensive plan for the nation’s road and highway system. This chapter includes an interview with Hassan Ali Al Majed, Director-General, General Organisation of Sea Ports.
Explore chapterAgriculture
Buy digital copy of this chapter - £18As the country’s largest employer, the agriculture sector accounts for 28.3% of GDP and produces cereals, grains, fruits, vegetables, shea nuts, starchy staple crops and cotton, among other plants. Cultivated in six of the country’s 10 regions, cocoa is Ghana’s top agricultural export, rising to a value of $1.42bn in 2009. Indeed, having produced a record 1m tonnes in 2011, Ghana is the world’s second-largest cocoa producer, behind only its neighbour, Cote d’Ivoire. Recent years have brought greater numbers of private-sector players, including a number of foreign investors, who are investing in crops like palm oil and facilitating the logistics in creating local processing facilities and enabling value-added activities. This section includes an interview with Anthony Fofie, CEO, Ghana Cocoa Board.
Explore chapterTransport
Buy digital copy of this chapter - £18Years of a governmental stalemate on transport investment appear to be over, after a decision by Prime Minister Yingluck Shinawatra to approve borrowing of more than $51bn for infrastructure. High-speed rail will be one major focus: plans call for four lines of several thousand kilometres total, although the project must still be approved by Parliament and pass through environmental impact assessment. Other investments include expansions of Bangkok’s Suvarnabhumi Airport and the deep-water port at Laem Chabang. The airport expansion will not come a moment too soon for Thailand’s crowded airspace, which has forced authorities to divert low-cost carriers to secondary airports.
Explore chapterHealth
Buy digital copy of this chapter - £18As demand for medical treatment rises, the health care sector in RAK has to meet new demands and challenges. Population growth, which climbed to 8% between 2008 and 2010, has necessitated more health care investment and infrastructure upgrades. Indeed, health sector costs in the UAE have tripled in the past decade and, as RAK’s citizens have free access to medical care at public institutions, the government is paying for the bulk of this rise. Yet RAK is meeting these challenges, opening two new hospitals and implementing a number of health care facility upgrades. Moreover, RAK is positioning itself as a medical tourism centre. Hospitality and good care with low prices are key components. For example, a nationwide mandatory insurance programme is expected to take effect, redistributing health-related costs between the government and citizens. Steps are also being taken to increase the number of Emirati students studying medicine and nursing to reduce the labour shortage, and awareness campaigns are promoting the long-term benefits of a healthy lifestyle.
Explore chapterCountry Profile.
This chapter focuses on PNG’s rich natural resources, its ethnic diversity and relations with regional neighbours, with a specific focus on trade between mineral-rich PNG and resource-hungry China. This chapter includes viewpoints from Prime Minister Peter O’Neill; Julie Bishop, Australia’s Shadow Minister for Foreign Affairs and Deputy Leader of the Opposition; and William Hague, UK Secretary of State for Foreign and Commonwealth Affairs.
Explore chapterEnergy
Buy digital copy of this chapter - £18Unlike many of its neighbours, Jordan does not benefit from large hydrocarbons reserves. Consequently, around 96% of Jordan’s energy is imported, which costs as much as 20% of GDP on an annual basis. Spending on oil imports increased by 80% in January 2012 year-on-year, and this follows a 58% increase in spending between 2010 and 2011. To reduce dependence on foreign imports, policy makers are continuing to pursue an energy diversification strategy as a matter of urgency, focusing on new sources of natural gas in the short term, as new private-sector proposals in oil shale, nuclear and renewables come to fruition. This chapter includes interviews with Qutaibah Abu Qura, Minister of Energy and Mineral Resources; Mike Weightman, Chairman of the Regulatory Cooperation Forum; and Christopher Morgan, Chairman of Karak International Oil.
Explore chapterEnergy
Buy digital copy of this chapter - £18While the country has been poor in many energy resources, Turkey’s geography has been central to its economic success. To better leverage this advantage, the government is working with the private sector to make Turkey central to the transit and storage of natural gas and petroleum resources. Electricity demand steadily increased at about 8% per annum, and this is driving the formulation of policies that will see Turkey increase production from renewable resources. As energy resources constitute a significant portion of total imports, driving up the current account deficit, the government is also launching efforts to see domestic resources become a greater share of the energy mix. The Energy chapter contains interviews with Taner Yıldız, the Minister of Energy; Alexander Medvedev, the Director General of Gazprom Export; Tony Hayward, the CEO of Genel Energy; and Rovnag Abdullayev, the President and CEO of SOCAR.
Explore chapterMining
Buy digital copy of this chapter - £18The mining industry has long been a driving force behind South Africa’s economic growth. In 2010 it contributed 18% of GDP, and the country’s total reserves, while diminished, remain some of the world’s most valuable, with an estimated worth of $2.5trn. South Africa is perhaps best known for its gold, diamond and platinum riches but its wealth in other metals and minerals have also helped support industry as new economic sectors have developed. However, the industry is widely perceived to have experienced an extended period of decline. Significant steps forward will be required in infrastructure provision, the development of a market-friendly mining policy, human resources improvement and the encouragement of major investment in the industry. This chapter contains interviews with Susan Shabangu, Minister of Mineral Resources; Bheki Sibiya, CEO, Chamber of Mines; Godfrey Gomwe, Executive Director, Anglo American South Africa; Nick Holland, CEO, Gold Fields; and Andile Sangqu, Executive Director, Xstrata South Africa.
Explore chapterEnergy
Buy digital copy of this chapter - £18As the first GCC country to discover hydrocarbons, Bahrain is now moving into a new period in its history where more complex techniques are required to extract its oil and natural gas deposits. Given that high oil prices have helped sustain the oil sector’s export earnings and contribution to the economy, the Kingdom has undertaken a renewed effort to increase its crude oil output. The country plans to invest more than $20bn in the energy sector over the next two decades. Some $10bn-15bn is earmarked for upstream exploration and increased production from onshore and offshore fields, while $5.7bn will be used to modernise and upgrade the country’s refinery at Sitra. The Kingdom is also planning a new LNG import terminal, which will give Bahrain the option to secure foreign sources of gas. However, with the output of hydrocarbons steadily falling since the 1970s, greater use of renewable energy in power generation projects is expected in the near future, with a host of solar and wind energy projects already in the pipeline. This chapter includes an interview with Abdul Hussain bin Ali Mirza, Minister of Energy.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18The Philippines has lagged behind its neighbours in developing trade ties, with only 32% of its GDP coming from exports. Exports fell in 2011 as well, although investment in manufacturing over the past two years may reverse this trend in the medium term. Electronics are a major production category, accounting for 51% of exports, with automobiles another strong sector. The Philippines is also looking to grow as a manufacturer of solar panels and components. Major challenges to boosting industry include corruption and infrastructure issues, including high energy prices. This chapter includes interviews with Gregory L Domingo, Secretary, Department of Trade and Industry (DTI); and Lilia de Lima, Director-General, Philippine Economic Zone Authority (PEZA).
Explore chapterEnergy
Buy digital copy of this chapter - £18With oil still very much the backbone of its economy, Kuwait is looking to expand production. State-owned Kuwait Petroleum Corporation (KPC) has approved $90bn worth of spending on the oil and gas industry up to 2015. Indeed, gas has sizeable potential, since Kuwait currently produces less than 1% of its proven reserves of natural gas. Increasing this amount will translate into both financial and environmental benefits, reducing dependence on more costly liquid fuels. Diversification is another key domestic policy; plans have been announced to build four 1000-MW nuclear reactors by 2022, and Kuwait has signed cooperation agreements with a number of countries. Solar power is also being examined to increase electricity generation capacity, both as part of Kuwait’s diversification strategy and to meet rapidly rising demand for electricity. This chapter includes an interview with Farouk Al Zanki, CEO, KPC.
Explore chapterPolitics
Buy digital copy of this chapter - £18Mongolia’s political history is dominated by its relationships with its only two neighbors: China and Russia. Although in the 13th century, Genghis Khan conquered lands as far away as eastern Europe and established one of the largest empires in history, Mongolia fell under Chinese dominion by the 17th century. The fall of the Qing Dynasty in 1919 paved the way for Bolshevik Russia to turn Mongolia into a satellite state. With the dissolution of the USSR, Mongolia entered the multiparty era and now boasts relative political stability and a fledgling democracy. It strives to maintain good relations with China and Russia, but the country also hopes to develop relationships with the US, Japan and other nations through its “third neighbour” policy. This chapter features interviews with President Ts. Elbegdorj; Sukhbaatar Batbold, Prime Minister of Mongolia; and Gombojav Zandanshatar, the Minister of Foreign Affairs and Trade. Angela Merkel, the Chancellor of Germany, and Joe Biden, Vice-President of the US, provide viewpoints.
Explore chapterEnergy
Buy digital copy of this chapter - £18Indonesia is at a turning point in its energy development. The country is looking to reverse years of declining production and investment in the oil and gas sector through new exploration contracts, the development of potentially vast offshore reserves, and acquisitions. Dozens of new contracts have been signed since 2008, however, including 11 new production-sharing contracts in November 2011 worth over $200m. Several new working areas have also been approved, with a number of the fields primarily containing natural gas. In the electricity sector, demand is increasing due to a growing, ever-wealthier population. With electrification rates at only 67% and the replacement of biomass with electric energy sources, the country is looking at nearly 10% annual growth. Indonesia will look to meet this demand by deploying a number of cheap coal-fired power plants, which will draw on vast domestic supplies. This chapter contains interviews with Evita Legowo, Director-General, Oil and Gas Directorate, Ministry of Energy and Mineral Resources; Karen Agustiawan, President Director, Pertamina; and a roundtable with Jim Taylor, President Director, ConocoPhillips; Sammy Hamzah, CEO, Ephindo; Terry McPhail, President & General Manager, ExxonMobil; and Hilmi Panigoro, President Commissioner, Medco.
Explore chapterInsurance
The regulatory intervention that followed intense price competition in 2013 has enabled Saudi Arabia’s insurance market to return to a trajectory of sustainable growth over the course of 2014. Competition in the sector is still stiff, however, with 35 insurance and re-insurance companies in operation as of December 2014. In 2006 the authorities enacted the Health Insurance Law, which initially required all expatriates working in the Kingdom to have private insurance and in early 2011 was extended to cover all private employees. Meanwhile, the cooperative insurance model, a variation on sharia-compliant takaful insurance, continues to grow in the Kingdom, and in 2014 Saudi Arabia accounted for an estimated 48% of global takaful contributions. Elsewhere, local players can expect to benefit from new protocols and regulations that will enable domestic insurers to compete for upcoming mega-projects in the future. This chapter contains an interview with Ali Al Ayed, General Director, Insurance Control Department, Saudi Arabian Monetary Agency (SAMA).
Explore chapterIndustry
Buy digital copy of this chapter - £22Sharjah has a diverse and flourishing economy, primarily driven by small and medium-sized enterprises. However, larger corporations are also attracted to the emirate due to its financial incentives. Sharjah's commitment to industrial development is evident in its tailored policies and legislation, as well as its numerous free zones and initiatives like Operation 300bn, aimed at boosting the sector's contribution to the UAE's GDP. The success of these endeavours is reflected in the issuance of industrial licences, the redirection of funds into the economy and the sector's substantial contribution to the GDP. With ongoing programmes, Sharjah aims to enhance its competitiveness, diversify its economy, and promote sustainability through high-tech and advanced industries, making it a key player in the UAE's industrial landscape. This chapter contains an interview with Badr Jafar, CEO, Crescent Enterprises.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Kuwait’s upstream oil activities and crude oil exports are the central pillars of the country’s economy. In recent years the government has embarked upon an economic diversification drive to reduce vulnerability to oil price volatility and generate sustainable long-term growth. Renewable energy production is also targeted for expansion as Kuwait works towards fulfilling its climate commitments, while natural gas reserves are being harnessed to a greater extent and will play a central role in the national energy transition. Opportunities for foreign investment are present throughout the energy sector, with both public-private partnerships and 100% foreign business ownership offered in selected areas. This chapter contains an interview with Ahmed Jaber Al Eidan, CEO of Kuwait Oil Company.
Explore chapterUtilities
Buy digital copy of this chapter - £22Abu Dhabi’s ambitious energy transition, accelerated by the Barakah Nuclear Energy Plant’s commercial operations, aligns with the UAE Energy Strategy 2050. This strategy aims to balance energy sources, targeting 44% clean energy, 38% natural gas, 12% clean coal and 6% nuclear. Amid efforts to catalyse substantial investment in clean and renewable energy, Abu Dhabi is expected to play a leading role. The emirate prioritises upgrading utilities infrastructure with sustainability in mind, inviting partners in areas such as smart grids, renewable power, water infrastructure and energy efficiency. Nuclear and thermal power stakeholders are also finding opportunities as Abu Dhabi seeks to meet the demands of a growing population. The sector’s consolidation under major players is simplifying project implementation, with foreign companies competing for operations contracts under the build-own-operate-transfer model. This chapter contains interviews with Jasim Husain Thabet, Group CEO and Managing Director, Abu Dhabi National Energy Company; and Khalid Al Marzooqi, CEO, Tabreed.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £22Saudi Arabia allocated 7.4% of its GDP to defence expenditure in 2022, making it the world's second-highest spender relative to GDP. Amid escalating global tensions and heightened military spending worldwide, Saudi Arabia emerged as a major player, ranking fifth in global defence spending in value terms, at $75bn. The Kingdom's commitment to reinforcing national security and enhancing defence capabilities aligns with Vision 2030's diversification and reform agenda. Efforts include the development of a thriving domestic defence manufacturing industry, with the aim of reducing reliance on foreign suppliers. Significant investment in advanced defence technology, local military procurement, workforce development, and high-tech security and aerospace segments are in progress, underscoring the Kingdom's strategic vision. This chapter contains an interview with Simon Barnes, CEO, BAE Systems.
Explore chapterAgriculture and Food Industry
While Misrata has traditionally relied on industries such as manufacturing and trade, the agriculture sector and food segment have been quietly gaining momentum in recent years. Misrata’s relatively favourable climate and fertile land have fostered the growth of various crops, including olives, citrus fruits and grains, while proximity to the city’s trade infrastructure has assisted with access and distribution to domestic markets. These agricultural endeavours have an important bearing on Libya’s economy, employing approximately 5% of the labour force and constituting nearly 9% of GDP as of 2019. The sector has provided a crucial avenue for diversification beyond traditional industries by creating employment opportunities, fostering entrepreneurship and attracting investment. The implementation of desert-based irrigation and digital farming techniques is bolstering the production of critical crops and increasing recognition of the sector’s untapped potential. This chapter contains an interview with Mohamed Al Za’louk, Chairman, Bladi Al Khair Company.
Explore chapterTransport
Buy digital copy of this chapter - £22With Bahrain’s 780-sq-km landmass stretching across 33 islands, efficient transport connectivity between the country’s four main islands – Bahrain Island, Al Muharraq Island, Sitra Island and Umm Al Nasan Island – is integral to economic development. National strategy has focused on establishing Bahrain as an international tourism destination and logistics centre. That drive has resulted in significant government investment in general and commercial transport infrastructure, with a new port, a high-capacity causeway connecting Bahrain with Saudi Arabia and a new airport all launched over the last 15 years. The positive socio-economic impact of those projects has encouraged additional enhancements, with stronger multi-modal linkages with the broader Gulf region a central goal of the next wave of strategic developments. This chapter contains interviews with Mohamed bin Thamer Al Kaabi, Minister of Transportation and Telecommunications, and Mohamed Yousif Al Binfalah, CEO, Bahrain Airport Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22In light of its infrastructure push, construction is among the most dynamic sectors of Djibouti’s economy. Railways and road development have strengthened connectivity with East African neighbours, fostering regional trade and economic integration. The country's strategic port infrastructure leverages its advantageous position along major trade routes, attracting investment and driving economic growth. In the real estate sector, efforts are underway to improve housing availability through financing initiatives, addressing the growing demand for residential properties. Additionally, Djibouti's capital city is witnessing an expansion of hotel offerings, catering to the increasing influx of business travellers and tourists. This chapter contains interviews with Habon Abdillahi, COO, Habone Construction; and Amina Abdi Aden, Minister of City, Urban Planning and Housing.
Explore chapterMining
Buy digital copy of this chapter - £22With greater government support and a growing role as a generator of export earnings, Nigeria’s mining sector is poised to maximise its considerable potential in precious metals and gems. Total revenue from the sector is expected to rise by 25% to N3.6bn ($8.5m) in 2023, reflecting its resilience, as well as continued federal and state support. The implementation of new mining regulations is expected to help reorganise, decentralise and localise production, while efforts to combat illegal mining and the resulting environmental and social damage are progressing. Re-investing new wealth into infrastructure development is crucial, given that mining is a power-intensive industry that requires modern equipment, as well as reliable transport and logistics infrastructure. This chapter contains an interview with Bose Owolabi, Managing Director, Dukia Gold & Precious Metals Refining Company.
Explore chapterICT
Buy digital copy of this chapter - £22Broad digital transformation is at the heart of Oman Vision 2040, the government’s long-term economic development blueprint. In the years leading to the Covid-19 pandemic the sector’s governance structures were overhauled to improve efficiency, while private investment in ICT activities had already been growing. To support this, the authorities have prioritised deepening the local tech talent pool, and enhancing the sultanate’s ecosystem of start-ups and small and medium-sized enterprises. The swift shift to online education, work and commerce during the pandemic necessitated further development of local digital skill and service bases. To this end, government entities have been teaming up with local and international players to enhance such capacities. Meanwhile, in order to keep abreast of an increasingly complex global digital landscape, the country has introduced new laws and regulations to address issues such as cybersecurity and data protection, while also enhancing national capabilities in related areas. This chapter contains interviews with Talal Al Mamari, CEO, Omantel; Said Abdullah Al Mandhari, CEO, ITHCA Group; Ali Al Shidhani, Undersecretary for Communications and IT; and Bader Al Zaidi, CEO, Vodafone Oman.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £22Kuwait is largely reliant on oil for exports, government revenue and GDP contribution. The country is therefore particularly sensitive to fluctuating global hydrocarbons prices and the long-term financial risks associated with the global shift towards lower-carbon sources of energy. Transitioning towards a more diversified and sustainable energy mix is an ongoing challenge for the country, as for much of the region, in light of the industry’s long-standing history and key contributions to the economy. A raft of ongoing energy projects seek to promote progress towards Kuwait’s goal of enhanced in-country value addition, as well as economic diversification and resilience to turbulent hydrocarbons prices, while also aligning the country with the international sustainability agenda. Increasing non-associated gas production, heavy oil production and crude oil processing are particularly compelling opportunities to meet Kuwait’s energy needs and align the country’s development with long-term goals.
This chapter contains an interview with Sheikh Nawaf Al Sabah, CEO, Kuwait Petroleum Corporation.
Security, Aerospace & Defence
Buy digital copy of this chapter - £22Saudi Arabia’s defence expenditure was the sixth highest worldwide in 2021, behind the US, China, India, Russia and the UK. The localisation of industry, and enhanced research and development are core to Vision 2030, the government’s long-term blueprint for development. Given the defence sector’s traditional prominence in the annual budget, it is among the areas targeted to propel the upskilling of the national workforce and create more jobs. Defence-related business forms a key component of Saudi Arabia’s close economic relationship with the US. While more deals have been signed recently between the two nations, the Kingdom’s drive to expand the industry has led it to broaden its portfolio of strategic partnerships and attract international security, aerospace and defence manufacturing entities to establish operations on Saudi soil.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £22By investing heavily in the development of the industrial sector and making national policy more favourable for private investment, the government has helped accelerate the growth of industry. Traditional sectors such as agriculture are being transformed as processing capabilities expand through the development of new industrial zones, adding greater value to the sector. Furthermore, international investment in the oil and gas industry, expected to grow substantially over the next decade, will be complemented by the ongoing development of the renewable energy sector. The country’s retail sector has expanded significantly in recent years, attracting foreign brands and seeing the emergence of a number of national retail companies. Greater formalisation could fuel retail sector growth as urbanisation encourages consumers to spend in supermarkets and shopping malls. However, much of the retail market remains informal, with low interest in formalising due to the high costs. This chapter includes interviews with Christian Schindler, Director-General, International Textile Manufacturers Federation; and Pascal Bordeaux, General Manager, CFAO Retail - Carrefour Côte d’Ivoire.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22The construction and real estate sectors are important contributors to Bahrain’s GDP, yet in the years preceding the pandemic both sectors displayed erratic growth due partly to oil price instability and the government’s fiscal consolidation programme. However, recent legislative amendments and strategic announcements are expected to reinvigorate the closely linked sectors and support the central goals of Bahrain Economic Vision 2030, the overarching policy framework guiding the country’s development through to the end of the decade. A major infrastructure development drive, which includes a plan to expand Bahrain’s land mass by as much as 60%, alongside ongoing and recently announced upgrades to the industrial base, should drive construction and real estate growth. This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22While the 2020-22 period saw supply-chain disruptions, the high number of transport projects under development has helped to bolster Egypt’s transport and logistics prospects. Indeed, 30,000 km of new roads are set to be completed by the end of 2024, and in May 2021 the government signed a memorandum of understanding to begin the development of the Bus Rapid Transit project on the Cairo Ring Road. These efforts will also integrate Egypt more fully into global value chains, a long-standing priority given the country’s advantageous position between Europe, the Middle East and Africa. However, financing remains a hurdle. To solve this, the government has continued to liberalise market access to attract private capital and close the funding gap. This chapter contains an interview with Ramy Salah Eldeen, Managing Director, Alstom Egypt.
Explore chapterIndustry
Buy digital copy of this chapter - £22The beginning of the 21st century heralded a period of rapid industrial growth for Qatar, fuelled by its abundant oil and gas wealth. The country is vying with the US for the position of the world’s largest producer and exporter of liquefied natural gas. Gas resources have been harnessed to develop strong downstream industries and related exports, but the instability in oil and gas prices since 2014 has highlighted the need for further diversification. With a relatively small domestic market, the expansion of exports will be crucial to economic growth. To this end, the establishment of industrial parks, free zones and port facilities encircling Doha and stretching along Qatar’s eastern coast has supported the development of the manufacturing and logistics ecosystem.
Explore chapterAgriculture
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With an estimated 44.7% of the workforce employed in the agriculture sector, farming, forestry and fisheries are not only central activities to Ghana’s economy but are key components of society. However, the strengthening of the sector was brought into stark relief by the Covid-19 pandemic, during which local food prices increased in some parts of the country. While the country is a key producer of cocoa, the development of value-added activities related to processing agricultural commodities remains nascent. Other challenges include climate change, deforestation, lack of mechanisation and the difficulty smallholder farmers to reach economies of scale. Overall, performance in the next few years strongly depends on the ability to create new methods for financing within the sector.
Retail
Buy digital copy of this chapter - £22The Nigerian retail market remains fragmented and dependent on informal sales channels such as neighbourhood markets and kiosks, which account for 90% of retail activity. As in most emerging markets, the bulk of household expenditure in Nigeria is directed towards food. But with traditional in-person shopping limited by lockdowns, and many households facing tighter budgets, the sector contracted by 8.49% over the course of 2020. Nonetheless, retail activity showed signs of recovery by the end of that year. Nigeria remains attractive for investors and retailers that apply growth strategies tailored to specific consumer preferences. While macroeconomic headwinds and currency volatility have weighed on consumer spending power in recent years, price sensitivity is leading to new opportunities for smaller packaging, localised retail developments and the sale of essential goods. This chapter contains an interview with Juliet Anammah, Chairwoman, Jumia Nigeria; and Chief Sustainability Officer, Jumia Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Sharjah has worked to brand itself as a unique location within the UAE and the wider GCC, which has resulted in an uptick in work for contractors as they try to close the gap in supply and demand for real estate, especially in the residential segment and for other family-friendly infrastructure. Although the Covid-19 pandemic temporarily disrupted the market, mixed-use developments that incorporate residential units, schools and retail outlets – along with leisure activities and green spaces – have been emerging to meet high demand. Unlike in years past, when demand largely came from those seeking more affordable alternatives to neighbouring emirates, much of the interest is coming from individuals and families who are drawn to Sharjah’s laid-back and authentic Arab culture. This chapter contains interviews with Ahmed Alkhoshaibi, CEO, Arada; and George Khouzami, COO, Al Thuriah Group.
Explore chapterConstruction & Real Estate
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While Covid-19 has thrown the Philippines’ economy into flux, early indications suggest that construction and real estate is one of the most resilient sectors and could provide a platform for national recovery. However, with construction projects delayed by lockdowns during the second quarter of 2020, and demand for office space and high-end residential developments weakened by mobility restrictions, the sector still faces headwinds. At the same time, the disruption of the pandemic is giving rise to new opportunities. For instance, with the pandemic inducing a significant shift towards working from home as companies adhere to social-distancing measures, co-working spaces are emerging as a solution for firms seeking to decentralise while ensuring a sound operating environment for employees. Agile real estate developers have the chance to establish a first-mover advantage and capitalise on emerging opportunities as tenants and buyers seek projects that meet the demands of the new normal. This chapter contains an interview with Jose E B Antonio, Executive Chairman, Century Properties Group.
Transport & Logistics
Buy digital copy of this chapter - £18Papua New Guinea’s topography is characterised by mountainous terrain, rivers and around 600 islands. Travelling by road can be complicated and expensive, with many routes in need of maintenance; as a result, the transport of people and goods often relies on sea and air networks, which incur high costs for businesses operating in PNG. The ripple effects of improved transport infrastructure are vast – not only because the easier movement of goods and people can benefit the high-potential agriculture and tourism sectors, but also since improved connectivity will facilitate greater development opportunities for rural communities. While the full impact of Covid-19 on the sector remains to be seen, developing transport infrastructure is integral to the country’s medium- and long-term goals, and a vital stepping stone to economic diversification. Better connections and improved integration between different modes of transport will lower the cost of doing business and make the country a more attractive destination for investment. This chapter contains interviews with Robert Howden, Managing Director, Express Freight Management; and Rupert Bray, COO, Steamships Trading Company.
Explore chapterICT & Innovation
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Economic diversification has been a boon to Egypt’s digital transformation in recent years. The government aims to develop the country into a regional and global centre for ICT, and efforts are being made to strengthen the regulatory framework, reduce the risk of cyberthreats and expand the telecommunications network. In particular, the rollout of 4G has led to a rise in data consumption and provided an opportunity for operators to develop new products. The introduction of 5G in the coming years will continue this trend and is set to play a key role in the country’s future, especially as it opens the New Administrative Capital, Egypt’s first smart city. Meanwhile, the start-up ecosystem is increasingly dynamic, supported by initiatives aimed at widening access to financing. The Covid-19 pandemic has made the sector even more central to economic development, with the impact of the virus accelerating the digitalisation of government entities and businesses. This chapter contains an interview with Adel Hamed, CEO, Telecom Egypt.
Energy
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Home to approximately 95% of the UAE’s total oil reserves and 92% of its natural gas, Abu Dhabi is one of the world’s leading hydrocarbons producers. The main player in Abu Dhabi’s oil and gas industry is Abu Dhabi National Oil Company (ADNOC), the largest company in both the emirate and the UAE. While the global Covid-19 pandemic and subsequent steep decline in international oil prices present challenges for the industry, the fundamentals underpinning the emirate’s energy sector remain strong. ADNOC doubled its refinery throughput between 2008 and 2018, and aims to raise oil production to 5m barrels per day by 2030. At the same time, Abu Dhabi is working to achieve self-sufficiency in natural gas, while also meeting a larger proportion of its domestic energy needs through renewables and nuclear power. This chapter contains a viewpoint with Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company; and Mohamed Al Hammadi, CEO, Emirates Nuclear Energy Corporation.
Energy & Mineral Resources
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Indonesia has long been a key supplier to global energy markets, but focus has shifted from export-oriented production towards meeting domestic demand. Current objectives include meeting the demand for consumer fuel through crude and palm oil, addressing electricity demand via coal and renewables, and using natural gas to supply predominantly industrial consumers. The government aims to consolidate control over upstream crude oil activities, primarily through the state-owned enterprise Pertamina, but still welcomes foreign investment in the sector. Long considered one of the world’s premier mining destinations, Indonesia finds itself in a transition period in 2020 amid significant questions about the future of the industry. The archipelago is home to considerable reserves of a wide variety of metals that are crucial to the global economy, and several metals that are key inputs for electric vehicles and industrial-scale batteries. This provides opportunities for foreign investment in mining services and downstream industries. This chapter contains interviews with Dwi Soetjipto, Chairman, SKK Migas; and Hilmi Panigoro, President Director, MedcoEnergi.
Industry & Retail
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Government initiatives to strengthen Côte d’Ivoire’s industrial base have continued to yield results. However, despite public investment and government policies that have attracted private participation to the industrial sector, 2020 is likely to be a challenging year, with firms waiting to invest due to supply chain disruptions and the negative demand-side effects of the Covid-19 pandemic. Nevertheless, current policies and investments already under way leave the country’s industrial sector well positioned for continued growth over the medium and long term. Moreover, the rising number of internet users, which reached 12m in 2018, has fuelled opportunities in e-commerce. While Côte d’Ivoire, like the rest of the world, is experiencing a decline in non-essential retail sales as a result of the global spread of Covid-19, the foundation for long-term growth in the sector is strong. This chapter contains an interview with Souleymane Diarrassouba, Minister of Commerce and Industry; and Abdelmajid Touzani, Regional Director for West Africa, Bühler.
Explore chapterMakkah & Medina
Buy digital copy of this chapter - £18The holy sites of Makkah & Medina attract millions of pilgrims each year, and religious tourism remains central to their local economies. The world’s largest mosque, the Masjid Al Haram, also known as the Grand Mosque, is in Makkah and is home to the Kaaba, a shrine that Muslims consider the most sacred place in the world. While uncertainty remains surrounding Covid-19’s impact on the 2020 Hajj season, the bigger picture looks positive for the Kingdom’s two holy cities. The real estate sector is expanding alongside the Grand Mosque’s capacity, and more streamlined visa processes should encourage a larger annual influx of visitors. The key challenge for the government going forwards will be to ensure that transport and hospitality infrastructure keeps pace with the anticipated growth. This chapter contains an interview with Fahad Albuliheshi, Mayor of Medina.
Explore chapterEnergy
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As of early 2020 Qatar’s energy sector was on the threshold of major expansion plans that will allow it to benefit from growing global demand for cleaner sources of power generation. Although operations surrounding the North Field Expansion have been postponed until at least 2021, upon commencement of the project the country’s total output of liquified natural gas and polyethylene is predicted to increase by approximately 64% and 82%, respectively, over a period of around seven years. This is likely to provide a major boost for international oil companies, as well as engineering firms, shipbuilders and local Qatari businesses. This chapter contains an interview with Khalid bin Khalifa Al Thani, CEO, Qatargas.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Upgrades in transport and logistics infrastructure have been key to driving economic growth in Morocco in recent years. As the country develops and urban areas expand, the interconnectivity of economic centres and efficient connections to the rest of the world will be paramount to supporting the growth of other sectors, such as agriculture, manufacturing and tourism. While the transportation and logistics sector continues to grow in value and volume, efficiency remains an issue, and local players continue to face relatively high operational costs. Nevertheless, the modernisation of equipment and better integration of transportation modes, coupled with an increased digitisation of processes, are supporting the sector’s development. This chapter contains an interview with Nadia Laraki, Managing Director, National Ports Agency.
Explore chapterIndustry & Retail
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Industry and retail, once the focus of diversification efforts, represent important possible revenue generators in their own right. Trinidad and Tobago is one of the larger exporters in the Caribbean region, with total exports for the year to September 2019 amounting to $24.7bn. In an effort to generate foreign exchange, companies are being pushed to increase exports. Significantly, the government also hopes to double manufacturing output between 2020 and 2025. The future for industry is therefore relatively bright despite a number of challenges. The retail sector has been impacted by the national economy’s recent period of slow growth, with consumer behaviour, including reduced consumption and evolving spending patterns, accounting for shortfalls in an otherwise promising sector. However, with new investments and growing penetration of large retailers in the region, the sector is in good health. This chapter contains interviews with Dominic Hadeed, Managing Director, Blue Waters; and Gervase Warner, President and Group CEO, Massy Holdings.
Explore chapterAgriculture
Over the last decade the relative size of the agriculture sector in Ghana has more than halved, amounting to 15.3% of nominal GDP as of the second quarter of 2019, down from 31.8% in 2009. Nonetheless, the sector retains its strategic importance as a major employer, comprising 44.7% of the labour force. Varying estimates put the percentage of households owning or operating a farm at between 44.1% and 51.5%, amounting to approximately 7.3m individuals. Given agriculture’s crucial role in providing jobs for Ghana’s growing population, the government has embarked on significant modernisation efforts since 2017, chief among them the Planting for Food and Jobs initiative. This was followed in 2018 by the umbrella programme Investing for Food and Jobs, which is focused on agriculture, food security and rural development. his chapter also contains interviews with Kadri Alfah, CEO, Ghana Commodity Exchange; and Edmund Poku, Managing Director, Niche Cocoa.
Explore chapterTransport
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With investment rising despite subdued recent growth, Bahrain’s transport sector remains an important and dynamic non-oil growth driver. With passenger and cargo volumes rising across its roads, port and airport, Bahrain’s transport sector is set to benefit greatly from its sweeping infrastructure development agenda. Although many big-ticket projects, including a new airport, metro system and the King Hamad Causeway, are years away from completion, the kingdom has made significant recent progress in launching and resuming critical transport projects to address the issue of congestion. Rising investment across the sector and Bahrain’s efforts to leverage its geographic position will further support long-term expansion, putting sector on track to achieving its 2030 targets. This chapter contains interviews with Kamal bin Ahmed Mohammed, Minister of Transportation and Telecommunications; and Mohamed Yousif Al Binfalah, CEO, Bahrain Airport Company.
Explore chapterConstruction
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After several years of slower growth, Oman’s construction sector looks set to bounce back as the government continues to invest in infrastructure, tourism, housing and energy projects. Strong private sector activity in the retail market is also creating a promising pipeline of construction work on shopping malls and other commercial properties, while plans to build additional integrated tourism complexes have created a raft of contracts for both local and foreign construction and engineering firms. The Ministry of Commerce and Industry is the sector’s principal governing body. This chapter contains an interview with Simon Karam, CEO, Sarooj Construction.
Explore chapterConstruction & Real Estate
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Construction activity has increased significantly in Myanmar as the country works to address gaps in transport and power infrastructure, as well as an affordable housing shortage. The creation of several economic zones aimed at attracting investment over the coming years is expected to further the expansion. Cooperation with international organisations and partners such as China, Thailand and Japan will help the country acquire the knowledge and technology necessary to move forward. In recent years Myanmar’s real estate market has been hampered by oversupply, regulatory uncertainty, and an absence of consumer financing or avenues for international investment. However, as market conditions improve, new laws and regulations governing the development and sale of condominiums to foreigners, along with greater flexibility in mortgage financing, have set the stage for sector recovery. This chapter contains an interview with Stephen Suen, Chairman, Marga Group.
Explore chapterMaritime
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Despite slowing global economic growth and geopolitical tensions placing renewed pressure on international shipping, Dubai’s maritime sector has continued to strengthen. In 2019 the emirate moved up in the ranking of the world’s top-10 maritime capitals, securing the ninth spot, compared to its position of 10th in 2017. Today, the emirate is the leading maritime centre in the Middle East, India and Africa. Its rapid rise from a quiet fishing port in the 1970s to a regional and global shipping centre handling $354bn in non-oil trade comes down to careful planning, government investment and an attractive regulatory framework that is straightforward for logistics firms. This chapter contains an interview with Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World; Chairman, Dubai Maritime City Authority; and Chairman, Virgin Hyperloop One.
Explore chapterTransport & Logistics
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Kuwait is currently undergoing a major revamp of its transport and logistics networks, which are set to see a transformation. New roads, railways, airports and ports are either already being built or are in the pipeline, as part of the ambitious aim to re-establish Kuwait’s historical role as a regional centre for the sector. Meanwhile, the country is keen to attract foreign investment and participation in this revitalisation, with the government working hard to encourage partnerships and reduce obstacles to investment. Though challenges remain within uncertain global economic conditions, Kuwait is well positioned to take greater advantage of its strategic location within international and regional transport and logistics networks. This chapter contains interviews with Kamil Al Awadhi, CEO, Kuwait Airways; and Saud Al Naki, Vice-Chairman, Public Authority for Roads and Transportation.
Explore chapterIndustry & Mining
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A number of factors bode well for Mexico’s industrial sector. Cheap labour costs, proximity to the US market and improving human resources have attracted global firms. The sector in Mexico is making gains in some strategically important areas, and strong performance in the mining, electronics and agri-business segments is driving overall growth. Even as protectionist measures and bilateral trade tensions dominate the headlines, Mexico is strategically positioned to support Chinese manufacturers looking to bypass US tariffs. A number of risks and uncertainties remain for several industrial segments, however. The shortage of oil and natural gas supply, the absence of a government-led policy and criminal activity along supply routes are causes for concern. Still, investors will likely see ample opportunities in Mexico’s strong ties to the global economy, especially the US and China. This chapter contains an interview with Francisco Cervantes, President, National Confederation of Industry Chambers.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although Papua New Guinea relies mostly on fuel oil and diesel to generate electricity, it holds an abundance of gas, geothermal, hydro and solar energy potential. If exploited sustainably, PNG could not only meet its domestic energy requirements, but also supply reliable, cost-competitive power to its neighbours. The extractives industry is the highest consumer of energy, at 45% of the total, followed by transport (40%), and agriculture, residential and commercial activities (15%). Although crude oil production is set to decline, liquefied natural gas output is expected to double to 16m tonnes by 2024, provided the planned expansion and development projects go ahead. The temporary disruption in oil and gas production as a result of the earthquake that struck in February 2018 was offset by a rise in international oil prices over the year. The government expects oil prices to average $57-66 per barrel between 2019 and 2022, while LNG prices are to remain steady at $9 per 1000 cu feet. This chapter also contains interviews with Hiroshi Hosoi, CEO, JX Nippon Oil & Gas Exploration Corporation; Wapu Sonk, Managing Director, Kumul Petroleum; and Peter Botten, Managing Director, Oil Search.
Explore chapterTourism
Buy digital copy of this chapter - £18With heightened security measures raising tourist confidence and a weak dinar making holidays in Tunisia increasingly attractive, the tourism sector is seeing a renaissance. However, in order for this growth to be sustainable, investment is needed to modernise and improve supporting infrastructure. Furthermore, most historic or cultural sites require a significant influx of restoration funds and better general management in order to attract greater numbers of international tourists. Nevertheless, as Tunisia continues to build on its quickly diversifying tourist base, and with Europeans returning in droves to take advantage of the country’s sunshine and beaches, the outlook for the sector is bright. Government commitment is strong, and with better organisation and investment, the tourism sector has ample potential to become a significant driver of sustainable development in the region. This chapter contains an interview with Amel Hachani, General Manager, Tunisian National Tourism Office.
Explore chapterEnergy
The Philippines’ rapid development has outpaced the capacity of the energy sector to meet surging demand. In response, long-term policies have been implemented to promote upstream investment, diversify energy sources and drive down the cost of electricity. Notable projects include the construction of the country’s first liquefied natural gas import terminal and regasification facility, as well as the Visayas-Mindanao Interconnection Project, which should improve the reliability and efficiency of energy supply. Moreover, while disputes with China over sovereignty in the South China Sea – also known as the West Philippine Sea – have hindered upstream development, recent agreements on exploration and development activities in these areas could offset declining reserves at the Malampaya gas field, the Philippines’ primary domestic source of gas. This chapter also contains interviews with Erramon Aboitiz, CEO and President, Aboitiz Equity Ventures and Aboitiz Power Corporation; and Dennis A Uy, president and CEO, Phoenix Petroleum.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry got off to a strong start in 2019, as domestic consumption and exports rebounded. The national government’s policies to expand successful programmes and do away with under-performing ones, together with a focus on improving productivity and leveraging collaboration between the country’s regions, should help to strengthen industrial capacity. However, while efforts to modernise and reduce administrative hurdles are positive steps towards improving performance, regaining momentum in infrastructure development and reducing logistics and transport costs remain economy-wide priorities. Broad trends have buoyed the retail sector in recent years, including the growing number of new shopping malls and the expanding presence of internationally branded stores. The drive to increase IT usage among Colombians has also transformed the country into one of the region’s fastest-growing online retail markets. This chapter contains an interview with José Manuel Restrepo, Minister of Commerce, Industry and Tourism.
Explore chapterConstruction & Real Estate
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Increased investment in infrastructure projects – such as those in mining, the $1.5bn extension of the Jorge Chavez International Airport, the increased supply of social housing and infrastructure development around the 2019 Pan American Games – are set to propel the construction sector. Investors are optimistic given the large portfolio of public projects, but authorities should be sensitive to concerns regarding project slowdown and transparency. Performance in several segments of the real estate sector improved in 2018. Government incentives and facilitation of mortgages are expected to fuel residential real estate demand. Warehousing expansion is being driven by e-commerce sales growth, and a widening middle class is attracting investment and international brands to the retail segment. Challenges like a systemic housing deficit and low mortgage penetration rates remain, but the uptick in the sector is expected to continue. This chapter contains an interview with Guido Valdivia, Executive Director, Peruvian Chamber of Construction.
Explore chapterICT
Buy digital copy of this chapter - £18With the government prioritising economic diversifi¬cation, Egypt’s digital transformation continued apace in 2018. Although the country’s mobile market appears to have already reached saturation in terms of subscribers, exponential increases in data use on the back of the 4G rollout, as well as the prospect of a sizeable fixed-line network expansion, are expected to continue to drive revenue growth for telecoms in the near future. Guided by its ICT 2030 Strategy, which aims to transform Egypt into a telecoms and tech centre on both a regional and global scale, government support remains key with infrastructure investments, tax incentives for tech parks and manufacturing projects. Private sector support for the nascent tech start-up industry offers promising prospects for the country. This chapter contains interviews with Amr Talaat, Minister of Communications and Information Technology; and Adel Hamed, CEO, Telecom Egypt.
Explore chapterEnergy & Mineral Resources
Buy digital copy of this chapter - £18Replacing diminishing reserves and guaranteeing domestic energy security are two of Indonesia’s policy priorities. As such, oil and gas exploration and development are key areas in which the government is eager to progress. To encourage this, policymakers have adopted a series of reforms aimed at ushering in a new wave of foreign investment in the sector. Similarly, in a bid to offset declining oil fields in western Indonesia, the government is working to incentivise contractors to explore deep-sea areas along the eastern frontier. Substantial mineral reserves have put Indonesia on the brink of a new wave of development. Nevertheless, investors still need to contend with a legacy of regulatory uncertainty and a growing trend of resource nationalisation. While policymakers have made efforts to adjust the regulatory regime, exploration hurdles remain in place in the form of divestment rules and a lack of coordination between central and regional governments. This chapter also contains interviews with Ignasius Jonan, Minister of Energy and Natural Resources, and Arie Prabowo Ariotedjo, President Director, ANTAM.
Explore chapterMakkah & Medina
Buy digital copy of this chapter - £18Makkah and Medina are situated in western Saudi Arabia, near the coast of the Red Sea and roughly 350 km apart. The cities are home to Islam’s holiest sites, and are thus important to the religious lives of many of the world’s 1.2bn Muslims. Makkah is the birthplace of the Prophet Muhammad and the location of the Masjid Al Haram, also known as the Grand Mosque, which houses the Kaaba, a shrine that Muslims consider the most sacred spot in the world. Medina, meanwhile, became the destination of the Prophet Muhammad’s flight from Makkah, and it was in this new city that he helped to build the Mosque of Quba – the first in Islamic history – and was later buried.
Explore chapterEnergy
Buy digital copy of this chapter - £18For over a decade Qatar has been the world’s leading supplier of liquefied natural gas, and by 2024 the country aims to boost output by 43%. While much of Qatar’s growth in the decades after independence in 1971 was fuelled by crude oil, natural gas gained prominence in the 1990s. In 2018 Qatar announced it would leave the Organisation of Petroleum Exporting Countries, which it joined as one of the first members in 1961, in order to focus on gas. Qatar’s ambitions signal it will be in a strong position moving forward as worldwide demand for natural gas increases. In addition, Qatar is taking steps to proactively develop its solar power generation. This chapter contains an interview with Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industrial exports have long played a crucial role in Sri Lanka’s economic output, even during periods of civil strife and macroeconomic instability. Over the years, an emphasis on export orientation has led to greater productivity and employment generation. However, a new wave of instability – characterised by political uncertainty, currency depreciation and rising interest rates – affected productivity towards the end of 2018, adversely affecting investment confidence and nullifying some of the nation’s competitive advantages. Sri Lanka’s retail sector has evolved into a powerful driver of growth and opportunity. Over the last decade, fast-paced urbanisation has enticed significant investment in commercial real estate. As such, modern outlets are gradually replacing small informal merchants. While traditional vendors still play an important role in the market, modern convenience stores, hypermarkets and malls are poised to occupy an even greater share of retail space. This chapter contains an interview with Prabhash Subasinghe, Managing Director, Global Rubber Industries; and Carl Cruz, Chairman, Unilever Sri Lanka.
Explore chapterEnergy
Buy digital copy of this chapter - £18Abu Dhabi has one of the world’s largest and most developed hydrocarbons industries, benefitting from its substantial resources and openness to international investment. Building on decades of steady growth and development, the sector is undertaking a shift. The drive to diversify has resulted in higher levels of investment in both non-conventional hydrocarbons and downstream capacity, and increased participation from a widening range of global partners. This chapter contains interviews with Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company; and Awaidha Murshed Al Marar, Chairman, Department of Energy.
Explore chapterMaritime
Buy digital copy of this chapter - £18Maritime endeavours are a key component of Dubai’s history. The city was originally established as a trad¬ing port and achieved its prosperity chiefly from pearl exports. The discovery of oil in the emirate in the 1960s not only created a new source of wealth, but also encouraged the nation to develop modern maritime infrastructure, as oil exports relied heavily on shipping. In recent years, maritime facilities have been instrumental in Dubai’s efforts to diversify its economy. As part of a larger network of transport, logistics and free zones, the maritime industry is one of the cornerstones of Dubai’s economy. This chapter contains an interview with Sultan Ahmed bin Sulayem, Chairman, Ports, Customs & Free Zone Corporation and Dubai Maritime City Authority.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Large public investment in Morocco’s physical infrastructure in recent years has contributed to the expansion of domestic transport and logistics. The construction of 1800 km of new expressways, expansion of the rail network, and development of logistics and industrial zones has led to a sharp increase in the number of active companies in transport and logistics. Currently, the sector directly contributes €3.6bn, or 4%, to the country’s GDP, and provides jobs to some 1m people. However, in order to secure growth going forward, more needs to be done to facilitate private investment, which remains low. Although the number of projects under way indicates that the kingdom’s transport sector will see strong growth over the coming years, there are various issues which could potentially impact its performance. This chapter contains an interview with Hartmut Goeritz, CEO, APM Terminals Tangier.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Ghana’s agricultural output increased in 2017 and 2018, driven in large part by government policy and expenditure. According to the Ghana Statistical Service, agriculture grew 5.5% year-on-year in the third quarter of 2018, outpacing general non-oil GDP growth the same year. Industrialisation and productivity improvement programmes are expected to expand the yields from the agriculture sector, as well as create jobs and encourage greater private sector participation. The country has secured considerable funding from multilateral lending organisations and bilateral national partners to finance its ambitious agricultural agenda over the next few years, ensuring a promising outlook for the sector. This chapter contains an interview with Joseph Boahen Aidoo, CEO, Ghana Cocoa Board.
Explore chapterTransport
Buy digital copy of this chapter - £18Bahrain is home to a dynamic transport sector, including one of the Gulf’s oldest airlines and a causeway linking the kingdom to Saudi Arabia, the region’s largest economy. A second such link is in development, and soon the kingdom will also be connected by rail to the GCC train network. In addition, it will gain an expansive urban light rail system, a new airport and a revitalised national aircraft fleet. Bolstered by such projects, the sector is expanding. The transport and communications industry grew by 5.4% in 2017 in real terms, which was faster than the overall GDP growth of 3.8% and an increase from 2.5% the previous year. This chapter contains interviews with Mohamed Al Binfalah, CEO, Bahrain Airport Company; and Krešimir Kučko, CEO, Gulf Air.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Côte d’Ivoire’s push for local processing provides the opportunity to add value beyond exportation of raw agricultural resources, specifically cocoa and cashews, thereby increasing revenue from the industrial sector. Major infrastructural projects aim to provide the required logistical environ¬ment for the emerging industrial base. Significant efforts remain necessary to increase competitiveness, particularly in tack¬ling energy costs, training the Ivorian workforce and improving access to financing. The modernisation of the country’s retail model and network is primarily based on rising demand driven by the emerging middle class. Retailers are gaining interest in penetrating the interior regions to access the larger population and prepare for expansion into surrounding sub-regions. To accomplish this, retailers will look to partnerships with local players in order to take on the informal play¬ers and improve logistical networks and supply chains. This chapter contains an interview with Jean-Louis Menudier, President, Large Industrial Firms Union of Côte d’Ivoire.
Explore chapterTransport
Buy digital copy of this chapter - £18If Myanmar is to fulfil its economic potential, significant investments are required in transport infrastructure. In all areas – from roads, to railways, to ports – the country has fallen behind its neighbours in the region. Encouragingly, the government recognises the need to prioritise this area, and has begun to make progress on much-needed projects, often with the help – financial and otherwise – of development partners. If government enthusiasm is matched by effective efforts to remove red tape and improve access to capital, then the prospects for the transport sector are bright. This chapter contains an interview with U Aung Nyi Nyi Maw, Managing Director, Yangon Region Transport Authority.
Explore chapterConstruction
Buy digital copy of this chapter - £18As the second-largest driver of non-hydrocarbons growth and the sector that employs the greatest number of people, construction plays a key role in the development of Oman’s economy. While 2017 proved to be a difficult year for the industry, forecasts suggest a return to growth in 2018 and 2019 on the back of higher oil prices and a government-supported diversification plan. For domestic contractors, high Omanisation requirements and stiff competition from international peer companies remain long-term concerns, though clear land legislation and efforts to streamline the permitting process are supporting the overall business environment.
Explore chapterTransport
Buy digital copy of this chapter - £18Meeting the country’s growing transport needs remains a priority, thus the national development plan 2015-19 allocates €6bn to upgrading, modernising and expanding air, rail, road and maritime capacities. Foreign investment is actively being sought to incorporate the latest technologies and know-how into the modernisation process. However, efforts to expand the sector face some challenges, such as a cumbersome and opaque bureaucracy, the effect of which is acutely felt in certain segments such as logistics, and the drop in international oil prices. However, evidence suggests that the authorities are actively seeking solutions to overcome these issues. The transport and communications sector remains an important contributor to the economy, accounting for 14% of GDP in 2017, up from 13.4% in 2016. This chapter contains an interview with Abdelghani Zalène, Minister of Public Works and Transport.
Explore chapterIndustry & Mining
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Nigeria presents considerable potential to return high yields on investment in the manufacturing industry. The administration has introduced a range of incentives to launch and broaden activities in various manufacturing segments, including agro-processing, biofuels, cement and automobiles. Coupled with the country’s broad resource base, the large and growing working-age population and the government’s renewed commitment to diversifying the economy through industrial development, conditions are right to achieve the ambitious output, employment and export rates proposed in plans like the Economic Recovery and Growth Plan. As for the mining sector, home to abundant, untapped reserves, and increasingly the focus of pro-business policies, the sector is poised for robust near and midterm growth as investors move to capitalise on opportunities in iron ore, gold, zinc and lead, among others. This chapter contains an interview with Jean-Marc Ricca, Managing Director, BASF West Africa; and a roundtable with Chris McAllister, Managing Director, British American Tobacco Nigeria and West Africa; Ben Langat, Managing Director, FrieslandCampina WAMCO Nigeria; and Yaw Nsarkoh, Executive Vice-President Ghana and Nigeria, Unilever.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18With major new development projects under way across all transport sectors, Kuwait is pouring billions of dinars into transforming its roads, ports and airports. The country’s medium-term objective is to capitalise on its strategic location in order to become the northern nexus of the Gulf, facilitating and profiting from flows of international trade across the region for decades to come. In the shorter term, Kuwait faces challenges in tackling delays and congestion that slow the flow of goods and people around the country and across its borders. This chapter contains an interview with Sheikh Yousef Al Abdullah Al Sabah Al Nasser Al Sabah, Director-General, Kuwait Ports Authority.
Explore chapterConstruction & Real Estate
Large investment volumes have been stimulating construction activity, notably in port expansions, road development and the establishment of new power stations. These projects are expected to drive growth in both the sector and the overall economy. In addition, the need to improve living conditions for the country’s population is providing motivation for a range of urban projects. Hence, the authorities have sought to overhaul the country’s real estate sector. Over recent years the lion’s share of investment has flowed into critical infrastructure development. These projects are necessary for the consolidation of the country’s position as an international logistics centre. However, investment in new housing, as well as the upgrade of existing housing stock, is also vital for long-term development. This chapter contains an interview with Amina Abdi Aden, Delegate Minister of Housing.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport and logistics are at the core of Kenya’s economic narrative due to the country’s role as a trans-shipment hub for goods moving to landlocked countries in East and Central Africa. The Port of Mombasa is located on international container routes, serving as a well-integrated landing port for regional shipping networks, while land connectivity has also become a major focus, with a number of large-scale projects undertaken to link regional countries with the global market. However, while the authorities need to address the high cost of large-scale infrastructure projects if it is to continue successfully procuring funding, developments currently under way mean Kenya is well situated to become a major transport hub in East Africa. This chapter contains an interview with Silvester Kasuku, Director-General and CEO, Lamu Port Southern Sudan-Ethiopia Transport Corridor.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Manufacturing plays a key role in the non-energy economy, of which it is the second-largest component. It is also a significant employer, accounting for 8% of the active workforce as of the third quarter of that year, per the most recent central bank figures. While the outlook for manufacturing remains challenging, performance figures indicate some measure of success in broadening the country’s economic base, using manufacturing as a key driver. Building momentum and sustainable growth will be dependent on the government’s continued focus on diversification. In response to the changing retail landscape, the MoTI launched a new consumer policy in March 2018 to align the market with domestic, regional and international trends and norms, thus allowing consumers and suppliers to participate with confidence. Changes in the sector had created deficiencies in consumer protection in several areas of the old legislation; for example, there was no protection for consumers making digital transactions. The new policy seeks to address the legislative, administrative and enforcement needs of the evolving market, improving the foundation on which to build sustainable retail growth and development. This chapter contains an interview with Mikaeel Mohammed, CEO, SM Jaleel.
Explore chapterEnergy
Buy digital copy of this chapter - £18Although international oil and gas firms continue to face a challenging operating environment, economic expansion in Papua New Guinea has been driven by large-scale energy projects in recent years, with liquefied natural gas processing becoming an important catalyst for growth. Since the launch of the PNG LNG project in 2014, the country has witnessed a significant uptick in investment, with exploration, production, transportation and processing facilities receiving an injection of resources. However, there are a number of issues that need addressing, with power generation and domestic gas utilisation representing two key areas for further development. This chapter contains interviews with Wapu Sonk, Managing Director, Kumul Petroleum; and Carolyn Blacklock, Acting Managing Director, PNG Power.
Explore chapterMining
Buy digital copy of this chapter - £18In 2016 the mining sector contributed 1% of Argentina’s GDP, or around $5.9bn. Of this total, 40% came from the sale of industrial rocks and minerals containing calcium, salt and dolomite. The main export destinations are Argentina’s southern cone neighbours, with Chile accounting for 68% of exports, followed by Brazil (19%) and Uruguay (6%). Nearly two-thirds of the area in Argentina with mining potential remain unstaked, leaving investment opportunities in a number of provinces. While private sector spending on exploration more than doubled from $140m in 2016 to $300m in 2017, around $400m of annual investment is expected to be required to fully explore these six mining regions in the coming years. This chapter contains an interview with David Guerrero, CEO, Galaxy Lithium.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After two years of contraction and a slow first half of 2017, the construction sector recorded much-welcomed growth late in the year. In response to the political challenges and natural disasters of 2017, the government passed two milestone documents: an anti-corruption law and a PEN25.7bn ($7.9bn) Reconstruction Plan. Although the private segment contracted in 2017, positive results may follow from the anticipated public sector revitalisation. Overall, the construction sector is expected to be a mobilising force in 2018. The real estate sector had high expectations for 2017, with the Economic Report on Construction by the Peruvian Chamber of Construction (Cámara Peruana de la Construcción, CAPECO) predicting 6.6% growth. However, the sector ended the year with only 2.4% growth. Despite this, the real estate sector managed to perform 57% higher than other goods and services sectors. Projections for 2018 remain high, with CAPECO reporting that real estate developers have a higher than average growth projection of 80%. This chapter features interviews with Gonzalo Sarmiento Giove, CEO, Inversiones Centenario, and Carlos Neuhaus Tudela, President, XVIII Pan American Games and VI Parapan American Games of 2019.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18After a decade of external disruption – which saw the 2008 global financial crisis, floods in 2011 and a military coup in 2014 – Thai industry is getting back on track. According to the Ministry of Industry, the manufacturing production index grew by 2.5% in 2017, with stronger growth in the second half of the year. This trend continued in 2018, with January and February both seeing year-on-year growth of 4.7%. The government has also identified 10 priority investment sectors, evenly split into First S-Curve and New S-Curve industries. In terms of retail, general economic stability is having a positive impact on the sector, while years of targeted investment have also supported growth. Some uncertainty remains, however, with consumer debt still elevated. This chapter contains interviews with Kobchai Sungsitthisawad, Director-General, Department of Industrial Promotion; Christian Wiedmann, President, BMW Group Thailand; and Supaluck Umpujh, Chairwoman, The Mall Group.
Explore chapterAutomotive & Aerospace
Buy digital copy of this chapter - £18While renegotiations of the North American Free Trade Alliance (NAFTA) have led to an environment of uncertainty for Mexican industry, the automotive sector remains solid and on track for further development driven by rising vehicle production, local sales and export demand. Mexico is home to 24 carmakers, with manufacturing facilities in 24 states, producing cars, light and heavy trucks and tractors, as well as component parts. In addition, with exports averaging a 15% annual growth rate over the past decade, Mexico is positioning itself as a global leader in the aerospace industry. While ongoing trade negotiations between Canada, the US and Mexico over the future of the NAFTA could potentially have an effect on manufacturing as a whole, major sector stakeholders remain committed to moving forward by strengthening supply chains and integrating production processes. The sector thus looks set to remain on track for further sustained investment. This chapter includes interviews with Mayra González Velasco, President and CEO, Nissan México; and Juan Carlos Corral Martin, President, AeroClúster de Querétaro.
Explore chapterEnergy
Buy digital copy of this chapter - £18The prevailing narrative of the Philippines’ energy sector in recent years has centred around energy security concerns and the challenge of meeting growing demand. Efforts to realign the energy sector were ramped up during 2017 with the launch of reforms targeting investment and the promotion of efficiency. Modifications to the Electric Power Industry Reform Act of 2001 have come at a critical juncture for the Philippines, as robust economic growth has outpaced the sector’s capacity to meet surging demand. Due to the imminent exhaustion of the country’s gas fields, dependence on imports of hydrocarbons has grown, worsening the current account deficit. In addition to falling reserves, the cost of electricity is also a major concern. This chapter contains an interview with Alfonso Cusi, Secretary of Energy.
Explore chapterTransport
Buy digital copy of this chapter - £18Located along an increasingly important international trade corridor and benefitting from over 1400 km of Indian Ocean coastline, Tanzania is well positioned to expand its share of regional transit and trans-shipment activities. The country already serves as an international gateway for six landlocked African countries, making the development of its transportation sector a regional priority. Meanwhile, a push for domestic industrialisation necessitates a major overhaul of increasingly congested road, port and aviation networks. Addressing aspects of financing and actualising development spending will be a challenge for upcoming transportation development, but this has created new opportunities for private investors, as the government increasingly seeks to launch new projects under public-private partnership models. This chapter contains an interview with Jared Zerbe, CEO, Tanzania International Container Terminal Services.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With a host of real estate, major transport and infrastructure projects either being developed or in the pipeline, Sharjah’s construction sector is going through a busy time. Much of the new work is addressing previous shortages in areas such as gated and lifestyle communities, higher-end offices and retail premises, and more modern industrial estates. Sharjah has also begun to carve out a distinct profile on the global real estate property map. The emirate has committed to higher-end developments, while also widening ownership structures. It has grown both economically and demographically, and now offers its own much larger internal market, which is no longer so closely tied to developments elsewhere. This chapter contain an interview with Sheikh Sultan bin Ahmed Al Qasimi, Chairman, Basma Group; and Chairman, ARADA; and Raymond Khouzami, CEO, Al Thuriah Group.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry in Sri Lanka has developed over the years by taking the high road. In part driven by necessity, the country has tended to avoid low-margin, high-volume production in favour of value addition and customisation. The result has been solid demand for its goods and a strong international reputation. Meanwhile, investment in infrastructure has improved the operating environment, reforms are ongoing and efforts are being made to foster innovation and promote exports. Shopping is becoming increasingly convenient as modern outlets become more numerous, new malls are being built and an increasing number of global brands are arriving in the country. Most of all, local consumers are becoming more sophisticated and demanding better products as the middle class grows. This chapter contains an interview with Nandana Ekanayake, CEO, Siam City Cement (Lanka).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Because of its effects on employment and supply chains, Tunisia’s construction sector has always been a central component of the economy. Despite its importance, however, the challenging macroeconomic environment has had a toll on public and private spending, but a return to more stable levels is expected to come through government-backed infrastructure development plans. While real estate is recognised as one of the most interesting markets in the region due to its stability and development potential, recent years have nonetheless brought some challenges, including regulatory blockage and rising scarcity of land to expand housing options. In hand with this, rising construction costs and the difficulty gauging demand patterns due to uncertainty have somewhat increased risks for real estate developers. Despite these challenges, the sector continues to demonstrate growth potential.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The manufacturing, mining, quarrying and construction sectors continue to be pillars of Jordan’s economy, collectively accounting for around one-fifth of GDP in 2016. In recent years stable figures have been achieved despite adverse regional events, including war, border closures, population displacement and global market softening. As the relaxed rules of origin agreement with the EU began to affect more businesses in 2017, the sector anticipated higher growth. The border crossing with Iraq officially reopened in late August that year after two years of closure, and there is hope that the situation in Syria could begin to stabilise. Rebuilding the region after years of conflict is a goal both in Jordan and beyond, with important benefits for the kingdom’s businesses. Meanwhile as one of the least-saturated markets in the MENA region for modern retail, Jordan is set to see a new crop of major malls and outlets open throughout 2018, consolidating its reputation as a growth country for the industry. This chapter contains an interview with Yarub Qudah, Minister of Industry, Trade and Supply.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18As the largest country in mainland South-east Asia, and sharing borders with around 40% of the world’s population, Myanmar holds enormous potential to become a regional transport and logistics hub. However, the country suffers from a notable infrastructure deficit. Although several major highway projects have been completed, much of the road network is in need of upgrades, while the national rail network, the largest in ASEAN by kilometres of track, continues to suffer from poor maintenance and underinvestment. With a sizeable amount of funding needed to close its infrastructure gap, officials are working with international lenders and bilateral partners to finance new transport projects. An increasing emphasis on public-private partnerships (PPPs) is offering additional opportunities to private and foreign investors. This chapter contains interviews with U Thant Sin Maung, Union Minister, Ministry of Transport and Communications; U Htun Myint Naing, Chairman, Asia World; and Chen Bo, General Manager, China Road and Bridge Corporation.
Explore chapterTransport
Buy digital copy of this chapter - £18Targeting improvements in domestic infrastructure as well as expanding the links between the kingdom, the rest of the Gulf region and further afield, Bahrain is investing heavily in its transport networks. Among the major ongoing developments is the Airport Modernisation Programme, launched in 2015 to cater for rising air traffic, with the aim of turning Bahrain International Airport into one of the key regional hubs for tourism and services. Plans to construct a second causeway linking Bahrain and Saudi Arabia are also on the agenda, while the ambitious Gulf Railway, a network that would run through all six Gulf nations, has been pushed back and is now likely to move forward in 2021. Proposals to create a light rail system in Bahrain are also in the works, albeit slowly, while roads and bridges are under construction.
This chapter contains an interview with Mohamed Yousif Al Binfalah, CEO, Bahrain Airport Company.
Explore chapterAgriculture
Buy digital copy of this chapter - £18With a wide variety of crops and a high number of cultivation regions, agriculture has long been a valuable economic sector. Fertile land, sought-after cash crops and a favourable climate have all contributed to the industry becoming a crucial source of revenue. Besides being the number-one cocoa producer in the world for many years, Côte d’Ivoire has become one of the largest cashew nut exporters as well. The government is also seeking to raise the amount of domestic processing and in-country value addition by implementing new measures to advance the sector and provide it with a competitive advantage when difficult global market conditions arise.
This chapter contains an interview with Pierre Billon, Managing Director, SIFCA Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Having long been one of the most dynamic sectors of the economy, continuing to grow even during periods of turbulence, the Egyptian telecoms industry experienced a landmark year in 2017. Steady subscription growth and increasing demand for data should bolster the position of all operators, with 4G providing a new field of competition in what is incrementally becoming a less voice-dominated, price-sensitive industry. The IT sector’s contribution to GDP was $4.2bn in FY 2016/17, with the IT export industry valued at more than $3.25bn in 2017 and expected to grow at a compound annual growth rate of 13.4% through to 2020.
This chapter contains an interview with Eng. Yasser El Kady, Minister of Communications and Information Technology; and a roundtable with Hazem Metwally, CEO, Etisalat Misr; Jean-Marc Harion, CEO, Orange Egypt; and Ahmed El Beheiry, CEO, Telecom Egypt
Explore chapterConstruction
Buy digital copy of this chapter - £18Despite public investment cuts and a broad economic slowdown in the wake of lower oil prices, Oman’s construction sector continues to grow at a relatively brisk pace, bolstered by state-led diversification efforts, high income levels and relatively low labour costs. The building industry grew by a robust 10.4% in 2016, up markedly on the two previous years, according to the latest official full- year data, with sector investment staying buoyant at 5.5% growth. As the largest chunk of the non-oil economy, at roughly 45%, construction remains a pillar of government efforts to steer the country’s productive industries away from hydrocarbons under its medium-term ninth five-year plan, which covers the 2016-20 period, and its longer-term blueprint, Vision 2040.
Explore chapterTangiers
Buy digital copy of this chapter - £18In the late 1990s King Mohammed VI chose to use Tangiers as a catalyst for the transformation of the north by turning the historically sidelined region into a motor of the national economy. In the past decade, the region has seen the launch of a new economic development plan, leveraging Tangier’s strategic location at the Strait of Gibraltar. At the confluence of these key maritime routes is the cornerstone of the city’s multi-sector development strategy: the Tanger-Med port complex, which unleashed the region economic potential. Ongoing projects such as the Mohammed VI Tech City bode well for the future of the region, which is well positioned to attract further global players in increasingly complex, technology-intensive industries. One of Tangiers’ key challenges for the future will be the extension of the benefits from increased foreign direct investment to the rest of the region, including more isolated areas such as Al Hoceima.
Explore chapterTransport
Buy digital copy of this chapter - £18With increasing road, air and maritime transport movements, and the recent launch of a new five-year plan for the emirate’s transport industry, Dubai’s reputation as a major transport centre in the Middle East has continued to grow. In 2016 the emirate saw growth in aircraft, air passenger and air freight movement, as well as in the total number of Dubai Metro and bus system passengers, while the economic contribution from the maritime shipping segment has also increased. The emirate’s success in these and other transport and logistics-related areas over the past decade can be attributed largely to the rapid implementation of ambitious development strategies, with the Roads and Transport Authority launching 29 initiatives under the government’s smart city initiative between 2014 and 2016.
This chapter contains an interview with Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors, Roads and Transport Authority.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Employing over half the national labour force, agriculture has long played a pivotal role in Ghana´s economy, and its key agriculture product, cocoa, is one of the top-three export commodities. After years of slower growth, the sector is poised for a revival, particularly given the strong government and private interest in advancing development through technological innovation. As long as initiatives are well coordinated along the value chain, domestic use and export-focused commercial agriculture is likely to make steady progress in the short term.
This chapter contains an interview with Owusu Afriyie Akoto, Minister of Food and Agriculture.
Explore chapterMakkah & Medina
Buy digital copy of this chapter - £18Due to the importance of Makkah and Medina in the Muslim world, and the millions of pilgrims they attract, the two holy cities form a major component of Saudi Arabia’s non-oil economy. The pilgrimages of Hajj and Umrah are performed each year, with worshippers’ fees, food, transport and accommodation totalling some $12bn in revenues. Makkah is home to the Masjid Al Haram, known as the Grand Mosque, which houses the Kaaba – Islam’s holiest site – and is also the birthplace of the Prophet Muhammad. Medina, meanwhile, is home to the Masjid an-Nabawi, or the Prophet’s Mosque, another important place of pilgrimage for worshippers during the Hajj and Umrah. With religious tourism such a vital source of non-oil revenue, much of the development in and around Makkah and Medina over the coming years is directly linked to the goals laid out in Vision 2030, which include plans to significantly boost pilgrim numbers as well as increase the country’s appeal as a wider tourist destination.
This chapter contains an interview with Osama Al Bar, Mayor of Makkah.
Explore chapterTransport
Buy digital copy of this chapter - £18Meeting the demand for transport infrastructure in Africa’s largest country is a priority for the government. The current five-year development plan includes a major sector reconfiguration programme that allocates around €6.9bn to the upgrade, extension and construction of strategic segments, primarily maritime and rail. Traffic congestion and overdependence on road transport, inefficiencies in maritime freight management and a growing demand for urban transport are among the priorities to be tackled, as well as the construction of El Hamdania deepwater port, which will establish Algeria as a maritime hub. The rapid rate at which urban areas in Algeria are developing has led to an expansion in public transport construction between major cities. Since establishing the first metro line in 2011, the country has installed tramways and a dense network of bus lines, and is pushing ahead with additional development of both hard and soft transport infrastructure.
This chapter contains interviews with Bernard Arkas, Executive Vice-President, Arkas Holding; and Wissam El Moukahal, CEO, Entreprise de Transport Algérienne par Câbles.
Explore chapterEnergy
Buy digital copy of this chapter - £18In 2016 Qatar retained its title as the world’s largest exporter of liquefied natural gas. For many years the state has also been a global player in the crude oil and petroleum product markets. It is a key energy provider for many of the world’s leading economies, lying at the heart of a hydrocarbons logistics chain that stretches from Japan to the UK. However, these are challenging times for the oil and gas sector internationally, and Qatar has not been exempt from these recent global trends. Falling prices, and a scaling down of exploration and production, have affected the state’s main oil and gas companies, alongside their multinational allies. Oil and gas service companies, too, have felt the impact, as have a range of related research and development facilities, and energy financers and insurers. Despite these trends, Qatar remains one of the world’s strongest hydrocarbons players, with the vast capacity of the North Field natural gas facility likely to secure its major role in global energy markets for many years to come.
This chapter contains an interview with Mohammed bin Saleh Al Sada, Minister of Energy and Industry.
Explore chapterEnergy
Buy digital copy of this chapter - £18Once a key pillar of the Indonesian economy, the energy sector has declined in influence as oil and gas production has fallen. The hydrocarbons segment, which is valued at an estimated $20bn, contributed 3% to state revenues in 2016, down from 14% in 2014 and 25% in 2006. Yet the value of Indonesia’s energy sector cannot be reduced to its direct contribution to national GDP, as the power and oil and gas sectors remain a critical component of the infrastructure necessary to sustain economic growth across every other industry.
This chapter contains an interview with Garibaldi Thohir, President Director, Adaro Energy.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Comprising major food and consumer staples producers, Africa’s largest cement manufacturers, and a handful of heavy industries and light manufacturing, Nigeria has a diversified industrial sector. According to data from the Nigerian Investment Promotion Commission (NIPC), the country is home to the largest manufacturing sector on the continent and, along with Egypt, South Africa and Morocco, it accounts for two-thirds of the continent’s manufacturing in nominal US dollar terms. Given the potential of the industrial sector for both employment and revenues, the government is hoping to stoke further growth. The potential Nigeria offers as an industrial producer is not in any doubt, and the long-term advantages are sizeable, but so too are the challenges. As a result, the stabilisation of the macroeconomic situation offers some short-term hope. The long-term promise, however, is significant given the country’s vast array of inputs, such as natural gas, metals and agricultural commodities, as well as a domestic market of 189m people and duty-free access to another 120m consumers within ECOWAS.
This chapter contains interviews with Okechukwu E Enelamah, Minister of Industry, Trade and Investment; and Kayode Fayemi, Minister of Solid Minerals Development; and a roundtable interview with Chidi Okoro, Managing Director, UAC Foods; Theo Williams, Country Manager, AJE; and George Plymenakos, Managing Director, Nigerian Bottling Company (NBC).
Explore chapterEnergy
Buy digital copy of this chapter - £18Papua New Guinea’s energy sector has undergone a dramatic transformation over the previous decades, with liquefied natural gas (LNG) becoming the sector’s biggest growth driver. The multibillion-dollar PNG LNG project is now operating well above nameplate capacity, and LNG export revenues are expected to remain a major pillar of the economy in the coming decades. Ongoing exploration activities will offer a clearer understanding of the country’s hydrocarbons reserves and further support plans to expand LNG production. Major international oil companies such as ExxonMobil and Total are looking to additional gas fields for new supply.
This chapter contains interviews with Peter Botten, CEO, Oil Search and Andrew Barry, Managing Director, ExxonMobil PNG.
Explore chapterTransport
Buy digital copy of this chapter - £18Driven by measured government-backed investments, and in spite of the downward pressure from oil prices, the Kuwait transportation sector continued to grow in 2016-17. Improving connectivity regionally and globally – via air, land and sea links – is viewed as a state priority and a promising mechanism to drive non-oil economic growth. In support of government objectives, such as enhancing local and regional integration, boosting trade volume and creating new job opportunities, several major infrastructure projects are under way in the country, including the expansion of Kuwait International Airport and the construction of the Sheikh Jaber Al Ahmad Al Sabah Causeway. These fall under the KD34bn ($112.5bn) Kuwait Development Plan 2015-20 framework, which aims to push through major economic reforms, implement a pipeline of bold projects to empower the private sector, and establish Kuwait as a regional trade and financial centre by 2035.
This chapter contains an interview with Sami Fahad Al Rushaid, Chairman, Kuwait Airways.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18At the centre of Thailand’s economic growth, the energy sector is using progressively diverse means to meet the continually increasing demand for energy sources. The country’s growing industrial capacity, ongoing urbanisation and organic population growth are all contributing to rising domestic energy intensity – a trend that policymakers have addressed in a recently unveiled power development plan, which utilises a more varied primary energy mix and greater efficiency to bolster flagging self-sufficiency levels. The sector is working to expand its import and distribution infrastructure to meet growing domestic consumption. This chapter contains interviews with Anantaporn Kanjanarat, Minister of Energy; Piyasvasti Amranand, Chairman, PTT; and Areepong Bhoocha-oom, Chairman, Electricity Generating Authority of Thailand.
Explore chapterIndustry
Buy digital copy of this chapter - £18Trinidad and Tobago’s manufacturing sector is the largest in the English-speaking Caribbean. In 2016 it was expected to represent 7.8% of overall GDP, with total output worth an estimated TT$8.29bn ($1.2bn), according to government estimates. This made it the third-largest sector of the economy after the energy and services industries. Approximately 47,700 people, or 7.3% of the total active labour force, are employed in manufacturing. The country holds several competitive advantages, including cheap electricity and natural gas, two international ports that are well served by shipping lines, good availability of local or imported raw materials, a captive domestic market and relatively easy access to regional markets through trade agreements.
This chapter contains an interview with Dominic Hadeed, Managing Director, Blue Waters Products.
Explore chapterAtlántico
Buy digital copy of this chapter - £18Located in northern Colombia, the Atlántico department is one of 32 departments in the country. It is part of the Colombian Caribbean region, with the port city of Barranquilla as its capital. According to the National Administrative Department of Statistics, the population is estimated at 2.5m. In recent years, Atlántico has stood out for its positive economic performance in both absolute and relative terms, as reflected by growth and employment data. The employment rate has been rising steadily since 2008, reaching 58.4% in 2015, whereas unemployment has been hovering between 7.5% and 8% since 2012, posting a rate of 8% in 2015. This compares favourably with the country as a whole, where unemployment reached 8.9% in 2015. Ensuring high levels of service will be vital for Atlántico to remain competitive going forward, as will investing in key economic areas like innovation and entrepreneurship. This chapter features an interview with Eduardo Verano, Governor, Department of Atlántico.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After contracting the previous year, the construction sector is looking to grow again in 2017. Still feeling the impact of the recent downturn, the sector is only expected to register growth in the fourth quarter, following the negative effects of the coastal El Niño floods in early 2017. While causing significant damage, the floods made it necessary for the newly elected government of President Pedro Pablo Kuczynski to draft an ambitious $3bn reconstruction plan from which the construction sector will benefit in the medium to long term. The government foresees over $9bn worth of investments in the sector in the coming five years. Moreover, real estate investments remained quiet during 2016. While some dynamism was shown in the industrial and retail segments, housing and office did not show the signs of recovery that were expected. Many predict a pickup to occur by the end of 2017 and throughout 2018, as the housing and office segments are closing a cycle where vacancy increased steadily.
This chapter features an interview with Fernando Castillo, General Manager, ICCGSA.
Explore chapterEnergy
Buy digital copy of this chapter - £18In common with other major energy companies, lower hydrocarbons prices have prompted authorities to carry out streamlining and efficiencies in Abu Dhabi’s energy sector. Against a backdrop of reorganisation and reform, production from the emirate’s oil and gas fields reached record levels in 2016. Currently, Abu Dhabi National Oil Company produces some 3m barrels of oil and 9.8bn standard cu feet per day of raw gas. Looking ahead, ADNOC’s strategy is to improve profitability and sustainability upstream while increasing value downstream. It also plans to triple the emirate’s output of petrochemicals by 2025. In the broader energy sphere, Abu Dhabi remains committed to making long-term investments in innovation and development of renewable energy and carbon capture technologies.
This chapter contains an interview with Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Situated close to some of the world’s most important sea lanes, connecting the Asian, African and European continents, Sri Lanka has some major strategic advantages when it comes to global transport links. At the same time, this island of nearly 21m people lies just off the coast of one of the world’s largest and fastest-developing economies – India – while enjoying excellent relations with another global leader, China. Both have helped give Sri Lanka a strong foundation on which to further develop its transport and logistics infrastructure, with the goal of becoming an international hub for those countries now firmly in view.
This chapter contains interviews with Dammika Ranatunga, Chairman, Sri Lanka Ports Authority; and Kasturi Chellaraja, Managing Director for Pharmaceuticals, Logistics and Maritime, Hemas Holdings.
Explore chapterEnergy
Buy digital copy of this chapter - £18With the power segment poised to rebound while the oil and gas segment struggles to keep pace with surging demand, the Philippine energy sector is very much in flux. However, years of significant investment in power are now beginning to bear fruit, with thousands of megawatts of new capacity slated to come on-line over the next decade. The arrival of this new electricity supply, in the form of both conventional and renewable sources, should have a substantial effect as the Luzon grid moves from the brink of rolling blackouts during peak summer months to a well-supplied and balanced market. Still unconnected from the Visayas and Luzon grids, the long-neglected Mindanao power system is also experiencing an unprecedented expansion of capacity, which should provide an ample power supply for the foreseeable future.
This chapter contains interviews with Guido Alfredo Delgado, President and CEO, Emerging Power Incorporated; and Albert D Altura, President, AG&P.
Explore chapterTourism
Buy digital copy of this chapter - £18The previous years have been marked by highs and lows for many countries in the MENA region. The Tunisian tourism industry, however, has begun showing small signs of recovery following a sharp drop in international arrivals in the aftermath of two acts of terrorism. The Tunisian government and tourism industry actors have been working to capitalise on a renewed sense of stability by tapping into new markets, as well as reconceiving the way Tunisia approaches tourism. Beyond the traditional mass-market segment, the country is looking to diversify its selection by offering luxury accommodation, attracting major international hotel brands, expanding its medical tourism offering and developing alternative forms of tourism, such as bed and breakfasts and vacation rental home options. These attempts have begun to show results. The combination of new markets, new tourism offerings and new investors is beginning to lay the foundations for positive development in the next few years.
This chapter contains interviews with Salma Elloumi Rekik, Minister of Tourism and Handicrafts; and Amine Moukarzel, President, Golden Tulip Hotels and Resorts, MENA Region.
Explore chapterUtilities
Buy digital copy of this chapter - £18As with most African markets, Kenya’s power sector is defined by a two-track approach, with an eye to boosting generation and improving access. The reasoning behind the latter is clear; electrification rates in the country are low even by continental standards, and this is exacerbated by the modest urbanisation rate. As for the former, in contrast to much of the rest of the continent, Kenya currently has ample supply to meet demand, but has nonetheless set a series of targets to boost generation based on projections of increasing consumption on the back of rapid GDP growth and large public works projects. The government hopes to increase power supply dramatically over the next 12 years, with a large share coming from renewable sources. The future is also likely to involve a refocusing from building capacity to addressing cost and reliability.
This chapter contains interviews with Mugo Kibati, Chairman, Lake Turkana Wind Power.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18On the back of sound economic growth, a continuing inflow of foreign direct investment and a healthy labour force, the industrial base in Vietnam has been steadily expanding over the past two decades, with export-orientated manufacturing playing a major role within the overall economy. The potential for manufacturing in Vietnam is much higher than it was just five years ago. Recently signed free trade agreements are likely to further boost competition, as well as extend the country’s international reach, as manufacturers continue to view Vietnam as a low-cost alternative to China.
This chapter contains interviews with Michael Behrens, General Director, Mercedes-Benz Vietnam, and Chairman, European Chamber of Commerce; and Mai Kieu Lien, CEO, Vinamilk.
Explore chapterNuevo León
Buy digital copy of this chapter - £18Posting growth of 4.26% in 2015, Nuevo León remains well above the national average of 2.53%, with construction, transport, and financial services and insurance displaying the strongest levels of growth. The 2016 US election results, though, have cast some uncertainty over the future of US-Mexico trade relations. While the US is Nuevo León’s chief trading partner, the state has set its sights on ensuring long-term growth through a variety of initiatives. This includes supporting the mining sector, investing in infrastructure – especially transport and energy – and boosting productivity and competitiveness through investment in research and development, and innovation. Reforms at the federal level are already beginning to open up a variety of markets for private sector participation in the energy industry, with some movement becoming visible in gas and electricity generation, especially in the areas of combined cycle and renewables. Additionally, while the state government is making strides towards balancing the fiscal situation, this has limited its ability to funnel public investment into key projects, increasing the importance of attracting further private investment to move forward with development plans. This chapter features interviews with Fernando Turner Dávila, Secretary of Economy and Labour, State of Nuevo León; and Salvador Alva, President, Tecnológico de Monterrey.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport infrastructure is one of the current priority areas for development by the Egyptian government, which is looking to roll out an era of mega-projects. Roads are congested, with 92m people competing for space with trucks and trailers, as almost all commercial goods in the country are moved via roads. The process of refurbishing ports and rail lines is under way, but are in need of further investment, and private sector partners are involved. Though concerns remain about whether the government is currently deploying its resources in the best available spots, Egypt’s ability to attract aid and concessional financing helps the government to prioritise more projects than it otherwise could on its own, and the effectiveness of this approach will be assessed over the next several years, helping to further clarify the long-term vision.
This chapter contains interviews with Mohab Mameesh, Chairman and Managing Director, Suez Canal Authority; and Ahmed Darwish, Chairman, General Authority for the Suez Canal Economic Zone.
Explore chapterMedia
Buy digital copy of this chapter - £18Home to the UAE’s largest Arabic-language newspaper, Al Khaleej, a growing number of local and regional television channels, popular radio stations, and a large publishing footprint in books and journals, Sharjah boasts a rich media environment. Despite all this, the establishment of media free zones in the federation’s two largest emirates in recent years – Dubai Media City and Abu Dhabi’s twofour54 – there has been a sense that Sharjah needs to up its game to continue to compete with its neighbours. To that end, the announcement in 2016 of a new media free zone to be built in Sharjah, along with plans for other media-friendly initiatives, has the potential to transform the emirate’s role in the UAE’s media landscape.
This chapter contains interviews with Sheikh Sultan bin Ahmed Al Qasimi, Chairman, Sharjah Media Council; and Khalid Omar Al Midfa, General Director, Sharjah Media Corporation.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture has been the largest single economic growth driver in Côte d’Ivoire in the years following independence, supported by a diverse selection of cash crops that have benefitted from strong government support and promotion, fertile land, a favourable climate and growing conditions, and abundant water resources. Agricultural development has taken priority in recent years, as evidenced by increased public spending and development of a long-term sector strategy emphasising innovation, land allocation and crop diversification. Value-added processing, particularly in the powerhouse cocoa sector, is also a major priority for the authorities, although drought and recent political unrest could weigh on production and investment.
Explore chapterTransport
Buy digital copy of this chapter - £18With construction under way on the $1.1bn expansion of its international airport and a further $700m investment being made on road and bridge building, Bahrain is working hard to improve its connections to the rest of the world while shortening journey times for its residents. Public transit is also a priority. Within six months of its new buses starting service in February 2015, some 33,000 passengers were using them daily, and the government is planning to commission a detailed feasibility study on a light rail network. Plans for a new rail and road causeway to Saudi Arabia have been discussed for some time, but this mega-project may have to wait a few years for its turn as Bahrain completes an ambitious programme for infrastructure.
This chapter contains an interview with Sheikh Ahmed bin Hamad Al Khalifa, President, Customs Affairs.
Explore chapterConstruction
Buy digital copy of this chapter - £18With a multi-billion-dollar pipeline of public sector contracts and significant private sector developments planned for the remainder of the decade, the construction sector remains a highly significant and growing sector of the Omani economy. In the face of substantial headwinds driven by lower oil prices since the middle of 2014, the government is steering towards a diversified economy, even as it trims expenditures in the short term and delays some schemes created in the years when GCC states were enjoying windfalls from higher hydrocarbons revenues. Private sector home-builders, shopping mall developers and building materials suppliers see room for optimism in a country that experienced one of the fastest average population growth rates of any nation between 2011 and 2015, at 8.5% per year. This chapter contains an interview with Simon Buttery, CEO, Carillion MENA
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18The agriculture sector is already gaining ground from relaxed trade policies. Future potential, however, will depend on the ease of its transition from a supply-led industry to one determined by demand. For the short term, Myanmar will rely on consumption trends in India and China. It is unclear how long it will take the country to successfully penetrate international markets outside of Asia, although the process to get there is more than apparent. In line with this objective, local and international investors, with the support of the government and development agencies, are accelerating efforts to promote farming inputs, improve productivity and strengthen supply chains.
This chapter contains an interview with Sunil Seth, President, Overseas Agro Traders Association of Myanmar.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Internet infrastructure and usage have developed rapidly in Algeria in recent years, helping to pave the way for the growth of IT segments. The sector, however, is about to enter a challenging period as a result of reductions to government spending. Despite the impact this is likely to have, ICT is likely to remain a strategic priority in years to come, as the government seeks to capitalise on the sector’s high potential in line with its efforts to diversify the country’s economic base. This chapter contains interviews with Mouatassem Boudiaf, Deputy Minister for Digital Economy and Financial System Modernisation; and Nunzio Mirtillo, Head of the Mediterranean Region, Ericsson.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture is fundamental to Ghana’s economy and employs almost 50% of the population. Although its share of GDP has decreased in recent years, it continues to be vital to growth. While low levels of mechanisation and the effects of drought and climate change are threatening to slow or curtail sector growth, the government’s commitment to investing in technologies and establishing new policies to protect and support the industry are promising. With a number of crops and segments performing well below capacity, there is ample opportunity for greater investment and modernisation from private sector players.
This chapter contains interviews with Charity Sackitey, Managing Director, Barry Callebaut Ghana; and Joe Tackie, Chairman, Steering Committee, Ghana Commodity Exchange.
Explore chapterTourism
Buy digital copy of this chapter - £18Home to some of the world’s finest natural and manmade wonders, Jordan has a well-developed tourism industry that remains one of the most significant private sector pillars of its economy. The country has enjoyed decades of peace and political stability, but the conflicts and tensions afflicting neighbouring countries have impacted Jordan’s appeal as a holiday destination. Faced with falling visitor numbers over the last five years, those responsible for marketing the country’s tourism offerings are strategising to overcome problems of perception, while hoteliers, restaurateurs and tour operators are working to improve all aspects of the experience they offer to visitors and customers.
Explore chapterIndustry & Mining
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The mining sector has traditionally been a major currency earner for Gabon. The country is the world’s fourth-largest producer of manganese, and is thought to have more than 2bn tonnes of iron ore, over 40 tonnes of proven gold reserves, and a range of other base and rare-earth minerals, including lead, zinc, copper, diamonds, niobium and titanium. The mining sector’s contribution to GDP is estimated to have remained flat at 4% in 2015. However, the potential of the sector is illustrated by government plans to boost GDP contribution to 25% over the next 15 years.
This chapter contains interviews with Martial-Rufin Moussavou, Former Minister of Mining and Industry; and Pietro Amico, General Representative, Eramet Gabon.
Explore chapterMakkah & Medina
Buy digital copy of this chapter - £18As home to the world’s most important Islamic sites – including the Masjid Al Haram, or Grand Mosque, which houses the Kaaba – the holy cities of Makkah and Medina are at the centre of religious life for the world’s 1.2bn-strong Muslim population. Located near Jeddah, in western Saudi Arabia, each year the two cities attract millions of religious visitors performing the annual pilgrimages of Hajj and Umrah. In an attempt to cope with the ever-expanding resident population as well as the rising influx of yearly visitors, the government has rolled out a series of overlapping, comprehensive strategies in recent years aimed at updating and expanding the Makkah and Medina regions’ transport networks, housing stock, utilities systems and related facilities.
This chapter contains an interview with Osama Al-Bar, Mayor of Makkah.
Explore chapterEnergy
Buy digital copy of this chapter - £18In recent years Morocco has been working to reduce its energy dependency through renewable energy projects and the rollout of an ambitious oil and gas exploration programme. Its energy consumption has increased by 5-6% a year for the past 25 years, and demand is expected to quintuple by 2050. Though it possesses few oil and gas reserves, Morocco boasts strong potential in renewable energies, and is expected to use the next climate change conference, which it will host in November 2016, as a springboard for its ambitious plan to source 42% of its energy needs from renewables by 2020. Having successfully introduced renewables into its energy mix by developing several wind farms and its first solar plant in Ouarzazate, the country is now looking to share expertise by offering to cooperate on renewable energy projects in neighbouring countries.
This chapter contains interviews with Mohamad Abunayyan, Chairman, ACWA Power; and Isabelle Kocher, CEO, Engie.
Explore chapterMaritime Industry
Buy digital copy of this chapter - £18In recent years Dubai has risen through the ranks as a global maritime centre, taking its place among the top port cities worldwide. As global trade becomes more integrated, transnational companies continue to grow, and sea, land and air connections proliferate, the emirate looks set to continue climbing the rungs, helped on its way by significant amounts of new investment. Further progress could be hampered, however, by the challenges currently facing the global maritime industry, including an oversupply of vessels at a time of declining growth in cargoes. Yet during its development, Dubai has demonstrated a flexibility and willingness to change that should stand it in good stead through any storms to come.
This chapter contains an interview with Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World; and President, Dubai Maritime City Authority.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Located at the northern section of the Gulf, Kuwait lies on the historical trade routes that have for millennia linked Mesopotamia, Arabia and Persia to the Gulf and Indian Ocean trade networks. The country already boasts a quite sophisticated infrastructure, but as part of diversification plans set out in Kuwait Vision 2035, stakeholders have laid out plans to transform the country into a regional hub and global player in transport and logistics. Despite a reduction in oil export revenues, the government has been vocal about its commitment to move ahead with capital expenditures, including an airport terminal, a port facility, a series of roads and highways upgrades, an urban metro system and Kuwait’s segment of the region-wide GCC railway.
This chapter contains an interview with Sheikh Yousef Al Abdullah Al Sabah Al Nasser Al Sabah, Director-General, Kuwait Ports Authority; and President, Arab Sea Ports Federation.
Explore chapterTransport
Buy digital copy of this chapter - £18From rails and roads to ports and airports, Nigeria’s transport sector is facing an extensive overhaul. The country has long suffered as a result of inadequate investment in infrastructure, constraining the movement of people and goods, and prompting the government to push for the rehabilitation and expansion of the entire transport network. Despite the government’s substantial project pipeline and increased budget allocations, potential issues connected to investment, funding and coordination could limit their implementation. The anticipated overhaul of the industry will only happen if the private sector can be fully engaged. The success of future transport projects also depends on the coordination and integration of the networks to provide intermodal connections and seamless travel for people and goods on these ambitious new routes.
This chapter contains an interview with Iyiola Adegboye, former Acting Managing Director, Lagos Metropolitan Area Transport Authority.
Explore chapterEnergy
Buy digital copy of this chapter - £18Development of Indonesia’s energy sector to meet rapidly rising demand and sustain economic growth is arguably the most daunting challenge facing the administration of President Joko Widodo. A combination of economic growth, increased urbanization and cheap energy supplies, resulting from fuel and electricity subsidies, has led to sharp demand growth. Total primary energy consumption has risen by 70% over the last decade, while electricity demand growth has exceeded annual GDP expansion over the same period. At the current rate of economic growth, demand for energy is forecast to rise by around 7% per year, while electricity demand is expected to grow by upwards of 8% per annum over the next decade, according to the Ministry of Energy and Mineral Resources.
This chapter contains an interview with Amien Sunaryadi, Chairman, SKK Migas; and a roundtable with Heru Dewanto, President-Director, Cirebon Power; Roberto Lorato, CEO, Medco Energi Internasional; and Garibaldi Thohir, President-Director, Adaro Energy.
Explore chapterEnergy
Buy digital copy of this chapter - £18Much of Papua New Guinea’s economic success over the past decade, along with its prospects for future growth going forward, can be tied directly to the energy sector. The efficient construction and operational launch of the country’s first liquefied natural gas (LNG) programme the $19bn PNG LNG project not only secured unprecedented foreign direct investment (FDI) into the country and provided a stable revenue stream for years to come, but also delivered evidence that large, capital-intensive projects could be delivered effectively. With this proof of concept now established though the partnership of large international oil companies and the government of PNG, the door is open for further large-scale hydrocarbons recovery projects across the country.
This chapter contains interviews with Peter Botten, CEO, Oil Search; Raka Taviri, CEO, Water PNG; and Tony Honey, Managing Director, PNG Forest Products.
Explore chapterEnergy
Buy digital copy of this chapter - £18The year 2015 was a challenging one for Qatar’s oil and gas industry. The state saw its hydrocarbons revenues, which account for a significant portion of its income, significantly impacted as an ongoing global oil price plummet accelerated, with crude oil losing over two-thirds of its value between June 2014 and January 2016. The price slump extended into 2016, driven by soaring global reserves and rising output from the US and Iran. Despite these challenges, Qatar is better positioned than many. The world’s fourth-largest producer of dry natural gas and largest producer of liquefied natural gas (LNG), it has benefitted from over a decade of targeted investments that have allowed expansion into value-added gas-to-liquids (GTL) and condensate production, with a planned new helium production project indicating long-term confidence in GTLs. Although state-owned Qatar Petroleum underwent major restructuring during the first half of 2015, it is slated for medium-term growth after launching a new strategy targeting investment in foreign production projects.
This chapter contains interviews with Mohammed bin Saleh Al Sada, Minister of Energy and Industry; Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas; and Hamad Mubarak Al Muhannadi, CEO, RasGas.
Explore chapterIndustry
Buy digital copy of this chapter - £18In his October 2015 budget speech, newly appointed finance minister Colm Imbert underscored the fact that Trinidad and Tobago’s manufacturing sector had fallen below 10% of national GDP. Estimates from the Central Statistical Office put the figure at 8.1% in 2015, with food, beverages and tobacco accounting for around 4.5% of GDP. Despite having the largest manufacturing base of any CARICOM country, the government focus on energy and relative neglect of manufacturing, as well as a shortage of unskilled labor, has held back the sector in recent decades. Nonetheless, T&T holds many comparative advantages that have yet to be fully exploited. It has a handful of globally recognized industries, a strong food and beverage segment, and a strategic geographical position for the maritime industry. The coming two years will see a renewed focus on diversifying the economy away from hydrocarbons, providing alternative pillars of growth during times of low oil prices.
This chapter contains interviews with Arthur Lok Jack, Executive Chairman, Associated Brands, and Racquel Moses, President, InvesTT.
Explore chapterInsurance
Buy digital copy of this chapter - £18Consisting of both Islamic and conventional insurers, the Sultanate’s insurance sector has held steady in recent times, despite strong external pressures on Brunei Darussalam’s economy. Non-life remains a dynamic segment, with Islamic takaful products making up the bulk of these general insurance premiums. This pattern looks set to continue in the year ahead, too, with the next 12 months also promising to be one of further professionalization of the sector’s distribution channels, in response to increased globalization and liberalization as the ASEAN Economic Community takes hold. The potential future impact of the Trans-Pacific Partnership agreement on the sector is also now a subject of debate by industry players. This chapter contains an interview with Osman Jair, Managing Director, Insurans Islam TAIB; and Chairman, Brunei Insurance and Takaful Association (BITA).
Explore chapterInsurance
Buy digital copy of this chapter - £18Malaysia’s insurance and takaful, or Islamic insurance, sector has recorded consistent growth in recent years. In 2015 total assets of both combined expanded by 5.6% to RM264bn ($65.3bn). Within the life insurance and family takaful sector, the growth of takaful contributions has been notable, accounting for almost 18% of new premiums and contributions. Insurance and takaful provide an important avenue for the public to save and invest, as well as a form of risk protection for events such as death, disability and retirement. The target penetration rate for insurance and family takaful policies is 75%. As of 2015 the penetration rate was 54.9%, while in 2014 it stood at 55.5%. This chapter contains an interview with Yen Saw, CEO, Tokio Marine Insurans.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Often referred to as the pearl of South Asia, Sri Lanka’s strategic position at the southernmost point between Africa, the Middle East and East Asia has supported its transformation into a leading global shipping hub. The Port of Colombo now stands as the largest and busiest in the region, benefitting from years of investment that have significantly increased handling capacity and cargo volumes. With a host of ambitious upgrades to the country’s ports now completed, the administration of newly elected President Maithripala Sirisena is renewing its focus on the island’s interior, where poor transport infrastructure has constrained access to basic services and overall economic growth, while stifling tourism potential.
This chapter contains interviews with Nelson Liu, Overseas Operations Officer, China Merchants Holdings International; and Hanif Yusoof, Group CEO, ExpoLanka Holdings.
Explore chapterEnergy
Buy digital copy of this chapter - £18According to figures from the Statistics Centre – Abu Dhabi, in 2014 the mining and quarrying sector, including oil and gas, contributed Dh485.7bn ($132.2m) to Abu Dhabi’s GDP when measured at current prices. The emirate holds 94% of the UAE’s oil reserves and as of the end of 2014 the UAE had proven oil reserves of 97.8bn barrels, equivalent to 5.8% of the world total, placing the UAE eighth globally in terms of oil wealth. Alongside these reserves, the UAE is also home to the world’s seventh-largest reserves of natural gas, estimated at 215trn standard cu feet, with Abu Dhabi again holding the majority of resources. Although the delivery horizon for some new projects has been extended in light of the falling oil price, Abu Dhabi authorities remain committed to a long-term investment strategy that will see production reach a plateau of 3.5m bpd within the next two years. This chapter contains interviews with Sultan Al Jaber, CEO, Abu Dhabi National Oil Company (ADNOC); and Mohamed Jameel Al Ramahi, CEO, Masdar.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Unlike many economies elsewhere on the continent, Tunisia’s construction market is dominated by local firms, which are also becoming increasingly active abroad, not only in nearby countries like neighbouring Algeria, but also in parts of West Africa. The domestic market is primarily driven by government investment and, following a slowdown in 2015 – a result, in part, of low implementation rates of state-backed projects – there has been a push to improve tendering and contracting procedures. An improvement in the fortunes of the domestic construction market will depend on a range of factors, including the government’s ability to address bottlenecks in project implementation, the extent to which the tourism sector can recover from the major downturn it has entered since 2011, and improvements in the real estate market – which in turn depend on factors such as banking sector liquidity and the pricing and availability of affordable land. The Tunisian real estate development industry is fragmented, with a large number of developers for a comparatively small market. Property, and especially land prices, has seen consistently strong growth in recent years, but 2015 was a difficult year for developers due to factors such as rising construction costs, land shortages and reduced banking sector liquidity. However, industry figures indicate that revenues could improve in 2016 as several important projects under construction come on-line. The government is also looking to stimulate activity by increasing housing access for lower-income families and providing targeted support for larger developments. This chapter contains an interview with Radhi Meddeb, CEO, Comete Engineering.
Explore chapterEnergy
Buy digital copy of this chapter - £18Providing the fuel for Thailand’s economic growth engine, the energy sector continues to expand to meet the growing demands of the country. Domestic primary energy consumption is weighted heavily towards fossil fuels, which accounted for 98% of primary energy consumption in 2014. Natural gas has become the fulcrum upon which energy development is now focused in both the hydrocarbons and electricity segments, with the fuel representing 44% of total primary energy usage. In the electricity segment, the concerted strategic shift away from imported fossil fuels towards energy diversification and independence should lead to ample growth in non-hydropower renewable energy and clean coal-fired generation, along with a more limited ongoing expansion in gas-fired power plants. This chapter contains an interview with Veerasak Pungrassamee, Director-General, Department of Mineral Fuels.
Explore chapterEnergy
Buy digital copy of this chapter - £18Strong economic growth and a rise in energy demand have exerted pressure on the Philippines’ energy sector in recent years. With large, easily accessible oil and gas discoveries long since picked over, a continued decline in petroleum production has encouraged a heavy reliance on imports. As the country shifts its energy priorities away from crude oil and towards natural gas, the Department of Energy has set out a road map to establish a new network of gas pipelines to transport gas around Luzon from 2017 to 2022. Exploration in new, primarily frontier areas could mitigate the country’s increasing reliance on foreign energy sources to some degree, although any significant reserves are likely to remain tied up in territorial disputes for the foreseeable future. It is clear that several challenges remain with respect to the country’s electricity supply in the short term, particularly in Luzon. However, the implementation of new projects and incentives should help to alleviate the shortfall in the medium-to-long term, even as energy demand continues to climb at a rate in excess of 4% per annum. This chapter contains interviews with Francisco C Sebastian, Chairman, Global Business Power Corporation; and Tirso G Santillan Jr, CEO, Alsons Consolidated Resources.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Benefiting from several years of consistent macroeconomic stability and the roll out of more business-friendly regulation, Djibouti has attracted a rising amount of investment – equivalent to as much as 52% of GDP – with the vast majority directed towards capital projects. This in turn is having a noticeable impact on Djibouti’s construction sector. Urban renovation programs in the cities, especially the capital, are improving housing infrastructure, while large-scale transport infrastructure projects aiming to better connect the country and establish its position as an international commerce hub are helping reshape this small nation in the Horn of Africa. New transport, energy, water and urban infrastructure will be key for Djibouti to solidify its economic integration with international markets, but equally important will be its impact on the overall improvement in living conditions. Making the housing construction sector more dynamic will significantly help in this respect, though tackling the country’s housing deficit will remain a critical challenge, both in terms of quality and quantity. The government is working to devote a higher amount of public resources and attention to the development of adequate housing solutions. In addition to helping expand housing options for the 875,000-person country’s middle-class, large-scale efforts are also being directed towards the elimination of informal settlements in major cities, with a view to replacing temporary housing with adequate long-term construction. Policy changes – both in terms of the allocation of budgetary resources, as well as stronger encouragement for private sector participation – are expected to accelerate the construction of new homes across the country over the coming years. This chapter contains an interview with Amina Abdi Aden, Secretary of State for Housing.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18In the current context of lower commodity prices, the need to improve national transport networks has become even more important, as Colombia works to boost its competitiveness at the international level. Although the transport sector grew by 4.1% in 2014, in June 2015 the National Association of Financial Institutions forecasted that the sector would grow by 2.9% that year, a reflection of the transport infrastructure gaps the country still contends with. Colombia’s rugged geography and the hinterland location of some of its main cities, in particular the capital Bogotá as well as Medellín and Cali, put it at a logistical disadvantage compared to other countries. The World Bank’s “Doing Business 2016” report ranked Colombia 110th of 189 economies for ease of trading across borders, one place better than in 2015 but still well below most of its neighbors.
This chapter includes an interview with Alejandro Costa, General Director, Impala Terminals Colombia.
Explore chapterTransport
Buy digital copy of this chapter - £18Bahrain’s transport sector is gearing up for expansion in both the short and medium term, with GCC funds being used to complete upgrades to the road network and airport facilities. The government is also investing in infrastructure improvements and new public transport initiatives. The Ministry of Works has invested $485m in road network upgrades, which include the remodeling of junctions, bridges and tunnels, and the widening of existing highways. Meanwhile, two proposals to transform Sheikh Khalifa Bin Salman Highway into a five- or six-lane dual carriageway are on the table. Costs for the project have been estimated at $223.9m or $329.3m, depending on the option selected. Elsewhere Bahrain International Airport is also expanding to enable it to cater to more passengers and cargo, thanks to $1bn in investment by the Abu Dhabi Fund for Development.
This chapter contains an interview with Maher Salman Al Musallam, CEO, Gulf Air.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18The agricultural sector continues to play an important role in Myanmar’s economy, generating 24% of GDP and 24.6% of export earnings. The industry presents a number of industrial and productive opportunities that, if properly nurtured, could help the country regain and even surpass much of its former standing as a lead producer in the region. To do so, however, will require significant investment in the sector, greater mechanisation, the provision of better financing for farmers, as well as clearer land rights. After years of under investment and a near total drop in exports, the country is rewriting its laws, establishing initiatives to boost production and yields, and encouraging foreign investment. Given Myanmar’s abundant agricultural resources and the role the sector can play in developing the country, it is likely that these initiatives will take priority. This chapter contains an interview with U Thadoe Hein, Managing Director, Myanmar Awba Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Peru’s construction sector is experiencing a slight deceleration, falling from a few years of double-digit growth to more conservative figures in 2014 and 2015, following a reduction in public expenditure. Upcoming elections in 2016 and related government change can be expected to slow the rate of projects being allocated over the short term. However, a significant number of works in the pipeline will ensure activity over the coming years. As authorities gradually improve the environment for public-private partnerships, the infrastructure construction market is set to become easier to manage for Peruvian and foreign firms alike, ensuring the country remains a competitive destination for foreign direct investment. Meanwhile, although economic uncertainty weakened investment in the Real Estate sector for most of 2015, real estate development continues to offer significant opportunities. Housing demand remains high, and growth rates have encouraged the development of office, commercial and industrial real estate projects. This chapter contains an interview with Fernando Castillo, President, ICCGSA.
Explore chapterConstruction
Buy digital copy of this chapter - £18Oman’s construction sector was worth an estimated $5.2bn in 2014, up from $4.9bn in 2013, and forecasts show that it will continue to grow rapidly, to $5.6bn in 2015 and $6.0bn in 2016. Although the drop in oil prices will likely curtail public spending in the sector if prices remain depressed, this has certainly not been the case so far. Indeed, the total value of projects planned and under construction in a range of sectors, including energy, manufacturing, transport and utilities, currently stands at $163.5bn – equivalent to twice Oman’s annual GDP. Meanwhile, demand from the private real estate sector is also driving growth, with developers engaged in projects ranging from grade-A office buildings to shopping malls and integrated tourism complexes. Moving forward, tighter resources will likely bring the benefits of PPPs into sharper focus, helping fuel wider private participation in the sector. This chapter contains an interview with Abdullah bin Nasser bin Abdullah Al Bakri, Minister of Manpower; and Fawzi Al Harrassy, Executive Director, Teejan Group.
Explore chapterTransport
Buy digital copy of this chapter - £18As the Arab world’s most populous country, and one of its largest economies, Egypt has always had to work overtime to ensure that infrastructure capacity keeps up with demand. While the past few years of political and economic uncertainty have slowed capital spending on infrastructure, 2015 has seen that trend reversed in dramatic fashion, with President Abdel Fattah El Sisi aggressively prioritising the completion of major infrastructure projects as part of his policy agenda. While exogenous pressures – including muted global shipping volumes and slow growth in major tourism source markets such as Europe – will have an impact on the volume of traffic through Egypt, the high level of domestic demand for both passenger and freight services across all transport modes will sustain growth for years to come.
This chapter contains an interview with Yehia Zaki, Director of Operations, Egypt, Dar Al-Handasah.
Explore chapterTransport
Buy digital copy of this chapter - £18Kenya has been making considerable headway over the past two years on a development agenda designed to strengthen the country’s position as a leading regional transport and logistics centre for the East Africa region. Despite a hefty infrastructure deficit, transport investment is seen as vital. A key component of Kenya’s infrastructure plan is the Lamu Port-Southern Sudan-Ethiopia Transport Corridor project, a $24.5bn development stretching across East Africa and northern Kenya. Equally significant is the Mombasa-Malaba standard-gauge railway. Transport activity is expanding in tandem with infrastructure spending. The country saw a 5% growth in the transport and storage sector in 2014, up from 1.22% the previous year. Meanwhile, the total amount of freight traffic by rail grew by 24.3%, from 1.2m tonnes in 2013 to 1.5m tonnes in 2014, and container traffic at the Port of Mombasa rose from 894,000 twenty-foot equivalent units (TEUs) to 1.01m TEUs over the same period.
This chapter contains interviews with Atanas Maina, Managing Director, Kenya Railways; and Gichiri Ndua, Managing Director, Kenya Ports Authority.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With a population of 39.5m, concentrated along a narrow strip of coastline, along with comparatively high rates of consumption and a push for investment in fibre backbone infrastructure, Algeria offers significant potential for telecoms operators. Since the launch of 3G mobile internet services in 2013, operators have continued to roll out 3G networks across the country, with one aiming to cover all provinces by the end of 2016. The sector is now preparing for the launch of 4G long-term evolution mobile networks, on which telecoms firms and the authorities have begun to complete some preliminary work – though the government is keen to ensure that operators are capable of making the necessary investments before doing so – as well as legislative reforms, which among other measures could open up the monopolistic fixed-line segment. The IT sector appears to be on the cusp of a new stage of growth. The launch of 3G at the end of 2013 has led to rapid growth in internet access, and the planned launch of 4G and the rollout of fibre should further boost uptake. A new submarine cable due to enter into operation in 2016 will boost national bandwidth – already one of the highest in the region – and a planned ICT law may lead to increased competition, bringing down prices in the fixed segment, while fixed 4G long-term evolution services are being made available in areas where DSL access is difficult. This chapter contains an interview with Azouaou Mehmel, CEO, Algérie Télécom.
Explore chapterTourism
Buy digital copy of this chapter - £18Jordan’s tourism industry benefits greatly from a number of competitive advantages including its proximity to large regional feeder markets, diverse landscapes and climates, and the presence of major historical and religious sites. Although regional instability has dampened visitor numbers in recent years, the industry remains an important pillar of the economy, and continues to expand despite the challenges. Indeed, total bed nights spent in Jordan in the first nine months of 2014 stood at 3.92m across all categories of accommodation, an increase of 12.2% on the same period in 2013, while total room nights were 2.27m, up from 2.15m a year earlier. Elsewhere tourism and real estate developments in Aqaba, Jordan’s only coastal city, will help to boost hotel occupancy rates by generating economies of scale across the tourism industry.
This chapter contains an interview with Nayef Al Fayez, Minister of Tourism and Antiquities.
Explore chapterTransport
Buy digital copy of this chapter - £18One of the world’s more open economies, South Africa’s commercial activity and economic performance are closely linked to its ability to transport goods both within and beyond its borders. Although South Africa’s transport infrastructure is among the best on the continent, lack of investment in recent years has led to high usage costs and bottlenecks. The government is seeking to address the situation through a series of projects that involve boosting capacity at the country’s ports and enacting key public transport improvements.
This chapter contains an interview with Mark Lamberti, CEO, Imperial Holdings.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Even as Ghana’s oil and gas industry continues to expand, the agricultural sector remains a vital contributor to economic activity, employing more than half of the working population. The country cultivates a rich array of staples and cash crops, and is the second-largest producer worldwide of cocoa. The sector experienced a year-on-year growth rate of 4.6% in 2014, according to the Ghana Statistical Service, compared with 5.7% in 2013 and 2.3% in 2012. This was lower than the targeted 5.2%, and down from the earlier estimate of 5.3%. However, the sector remained the second-fastest-growing part of the economy, behind only services (5.7%).
This chapter contains an interview with Peter Ndegwa, Former Managing Director, Ghana Breweries Limited.
Explore chapterHealth
Buy digital copy of this chapter - £18Investment in both private and public health care facilities has been on the rise over the past decade in RAK, with the health care sector expected to undergo a sustained period of major growth. Demand for new services is rising rapidly as RAK, like the rest of the UAE, witnesses an increasing incidence of lifestyle-related diseases. The government has increasingly targeted private health care provision as a strategy to improve patient outcomes. The inauguration of the Sheikh Khalifa Specialty Hospital (SKSH) in February 2015 was a major step in the development of the sector in that regard.
This chapter contains an interview with Dr. Myung-Whun Sung, CEO, Sheikh Khalifa Specialty Hospital.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With the initial signs of effective reform now reaching the market, Mexico’s telecommunications and IT sector is seeing the competitive progress that had eluded it for several years. Although long-time dominant player América Móvil remains the undisputed industry leader, the asymmetric laws introduced by the government are slowly opening the market to more effective competition. This is galvanising market players and reducing prices for consumers, as well as spurring interest among foreign investors. Prices for mobile telecoms fell by 17% between February 2013 and January 2015, according to the Federal Institute for Telecommunications, while prices for global telecoms services fell 15% over the same period. However, market shares for América Móvil have remained fairly steady, particularly in mobile, a trend expected to change in 2016 once competitors are granted access to América Móvil’s wholesale services and infrastructure to complement their own facilities.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Proximity to major regional markets, which have a combined population of 140m and $1.3trn in output, is a major advantage to Kuwait’s transport and logistics sector. The government has outlined a number of infrastructure projects and upgrades to be implemented as part of Kuwait Development Plan, with enhancements to sea and air links a major priority for the state. The country’s international airport has already seen dramatic growth in recent years, with the number of passengers that travel through it jumping from 4.76m in 2004 to 9.38m in 2013, while a new $1.2bn port facility in Boubyan is expected to serve as Kuwait’s major sea link, with 24 berths and an annual capacity of 1.8m containers.
Explore chapterMakkah
Makkah’s Grand Mosque, which contains the Kaaba, is the holiest site in Islam and a place of pilgrimage for millions of Muslims worldwide. As pilgrim numbers continue to rise, the region’s hospitality and infrastructure services are witnessing significant expansion. Makkah currently has a total of 107,000 hotel rooms, with the wider Makkah region accounting for two-thirds of the Kingdom’s hospitality facilities. Meanwhile real estate saw strong growth in 2014 with the sector posting 22% growth in Makkah and Medina. Ongoing infrastructure upgrades include the Makkah Integrated Transport system. Announced in 2014, the system will feature a network of four metro lines covering a total length of 114 km, and a four-tiered bus system including bus rapid transit, local buses and a feeder service. Elsewhere, the $21bn expansion of the Grand Mosque, which began in the mid-2000s, is expected to boost its capacity to between 1.6m and 2.2m pilgrims when completed.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After a slowdown in recent years, Morocco’s construction industry saw a return to growth in 2014 and continues to be driven by strong demand for housing, public spending on infrastructure and investor incentives from the Ministry of Housing and Urban Policy – though constraints on credit access are restricting the volume of new developments. A unified construction code designed to raise standards, improve transparency, boost competition and reduce the incidence of informal building – which makes up 25% of sector activity, by some estimates – is expected to come into force in 2015. Real estate activity has closely followed that of construction, with transactions and foreign direct investment both increasing in 2014, though prices remained stable. Government incentives for development in the low-income and mid-range segments are designed to close the housing deficit, and a range of mixed-use projects are in the works.
This chapter contains interviews with Mohamed Nabil Benabdallah, Minister of Housing and Urban Policy; and Zhor Kabbaj, Director-General, Softgroup Immobilier.
Explore chapterMining
Buy digital copy of this chapter - £18Long a mainstay of Papua New Guinea’s economy, the mining sector has not been immune to the global economic turbulence that continues to buffet the industry. Slack demand for base metal products and decreased access to cash for junior operators has curtailed exploration and development worldwide, affecting a number of PNG operators in the process. Together with local administrative and logistical hurdles, these challenges have delayed a number of high-potential mineral prospects from entering into later development and production phases. While none of these next-generation projects have come on-line as of yet, parent companies continue to show resolve in bringing them to fruition with ongoing developmental expenditures, which should in time bring new and profitable projects to the market as the older legacy mines wind down their operations.
This chapter contains interviews with Greg Anderson, Executive Director, PNG Chamber of Mines and Petroleum; and Fred Hess, Managing Director, PanAust.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18While ongoing infrastructure projects are providing a steady supply of work for construction firms, fiscal constraints have led to a reduction in public investment. Access to land remains a key obstacle for real estate development. To address this, the government has introduced reforms to reduce wait times for land titles from as much as 10 years down to 180 days.
This chapter includes an interview with Paul Mapessi, Managing Director, Société Nationale du Logement Social (SNLS).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18An important contributor to T&T’s economy, the construction industry accounted for an estimated 5.2% of GDP in 2014 and 15.6% of the labour force, according to T&T’s Central Statistical Office. 2014 was a particularly good year for the sector, which grew by 7.1%, outperforming the wider economy for a second consecutive year. In 2015, the energy-related construction sector is expected to feel the effects of the downturn in oil and gas prices, though public sector building and demand for infrastructure works are likely to remain strong. Meanwhile, in the real estate sector, the political uncertainty arising from the forthcoming election is likely to put a damper on the volume of transactions and have a slight effect on prices, while the supply of affordable housing for low- and middle-income families is expected to remain below pent-up demand through 2015 and 2016. This chapter contains an interview with Roodal Moonilal, Minister of Housing and Urban Development.
Explore chapterRetail
Buy digital copy of this chapter - £18Profiting from stable economic growth, Panama’s retail sector has continued to expand over the past two years. The entry of luxury brands to the local market has diversified the retail landscape while growing demand for retail space has also fuelled the construction boom. The sector’s outlook is promising, with a number of indicators pointing toward continued growth in retail consumption. Between 2007 and 2010 poverty levels decreased by 11%, while the middle class, which now represents nearly 40% of Panamanian society, according to World Bank statistics, grew by 10%. The country also boasts the lowest level of inflation in Central America, with a rate of 2.6% at end-2014. Moreover, it has experienced a significant increase in the number of foreign residents, which have become an important high-end target for retail chains. Buoyed by the rising popularity of e-commerce among local consumers, the online retail market is particularly promising.
This chapter features an interview with Abdul Waked, President, Grupo Wisa.
Explore chapterInfrastructure
Buy digital copy of this chapter - £18In its first year in power, Indonesia’s new government has launched a major drive to boost the nation’s transport, power and water infrastructure. The administration in Jakarta is taking a leading role in helping to overcome the challenges facing the industry, and the private sector has been given a clearer, more efficient legal and administrative framework within which to operate. Many of the projects on the agenda are in the midst of securing financing, while others are still being planned or debated. The new public-private partnership (PPP) unit is expected to publish a PPP book during 2015 that will outline the projects that are open to investment and their expected timelines. This will create significant opportunities for private investors to get involved in the early stages of the country’s massive infrastructure overhaul.
This chapter contains an interview with Adrinof Chaniago, Minister of the National Development Planning Agency.
Explore chapterEnergy
Buy digital copy of this chapter - £18Given its reliance on energy imports and the economy’s recent slowdown, Turkey has benefitted from the sharp decline in oil prices in late 2014 and early 2015. The country has boosted energy supplies to support future economic growth, while seeking to reduce its energy dependence. In addition, a long-running dream to become an energy hub is starting to become a reality. Significant investment from the private sector and an increase in renewable in its power-generation mix can help the government meet the ever-rising demand for power. Finding new sources of oil and gas, including domestic ones, while expanding its burgeoning role as an energy transit hub are central to its strategy.
This chapter contains an interview with Besim Şişman, CEO and Chairman of the Board, Turkish Petroleum.
Explore chapterEnergy
Buy digital copy of this chapter - £18Despite abundant resources, Mongolia has struggled to shore up its energy security and decrease its dependence on Russia for refined fuel and electricity. The government has made some headway in diversifying fuel imports and improving its terms of trade, while several mid-stream projects could develop domestic refined fuel production. Meanwhile, important refurbishments of Mongolia’s ageing power infrastructure in 2014 will ensure adequate electricity supplies for the next three years, but new greenfield plants are needed in the long term. New wind farms will provide some respite, but larger coal-fired and hydroelectric plants at various planning stages will be key to balancing fluctuating supply and demand. As Mongolia develops a mix of larger renewables projects and decentralised off-grid systems, it is also seeking to develop its coal value chain to produce both power and coal-based fuels.
This chapter contains interviews with Gérard Mestrallet, CEO, GDF SUEZ; and J. Oyungerel, Chairman, Petrovis.
Explore chapterTransport
Buy digital copy of this chapter - £18Upgrading and developing new transport infrastructure is essential to unlocking Nigeria’s undeniable growth potential. Given that state coffers are strained, and multiple sectors are competing for funding, the government is looking to reduce public control of its transport network and hand over development, management and maintenance responsibilities to the private sector. The port concessions show the PPP model can work and demonstrate the possible efficiency and performance gains from privatisation. Across all modes of transport, a mismatch between demand projections and current capacity is evident, making a strong case for interested bidders, given the right regulatory framework and operating conditions. Prospective investors will be eagerly waiting to see how the transition impacts the passage of key bills – like the NTP – and the confirmation of the revised roles and remits of the various regulatory bodies and state institutions operating in the sector.
This chapter contains interviews with Uche Orji, Managing Director and CEO, Nigerian Sovereign Investment Authority (NSIA), and Charles Brewer, Managing Director for Sub-Saharan Africa, DHL Express.
Explore chapterJeddah
The results of efforts to address decades of rapid unplanned growth in Saudi Arabia’s second-largest city are beginning to become clear as transportation plans advance and major development projects get under way. With a focus on public- private partnerships, affordable housing and the redevelopment of large parts of the city, and a number of mega-projects and a $12bn integrated urban transport network in the works, there are considerable opportunities for investors. Efforts are aimed at facilitating sustainable growth and diversification in the coming years and will ultimately help to bolster Jeddah’s position as both the commercial centre of Saudi Arabia and the gateway to Makkah for the world’s Muslim population. This chapter contains an interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterEnergy
Buy digital copy of this chapter - £18Home to the world’s largest non-associated natural gas field and significant oil reserves, Qatar is a leading player in the global energy market. It is also at the forefront of the international gas-to-liquids and liquefied natural gas industries, as well as fast becoming a major centre for research and development in hydrocarbons. The industry does face challenges, however. Among these are the steep decline in oil prices that began in 2014; increasing demand for energy from domestic sources as Qatar develops rapidly; and the management of a new wave of investment in existing fields. Nonetheless, with the sector operating on such an epic scale – Qatar’s gas reserves alone could last well into the 22nd century at 2012 levels of production – and the commitment of international and local giants to its continued development, such challenges seem unlikely to alter Qatar’s leading role in the hydrocarbons industry.
This chapter contains interviews with Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas; and Hamad Rashid Al Mohannadi, CEO, RasGas.
Explore chapterPlantations & Agriculture
As Sarawak’s largest employer, providing a livelihood for about one quarter of the population, the agriculture, forestry and fisheries sector stands as one of the state’s key engines, even with the gains in economic diversification made in recent years. Sarawak also plays a central role in Malaysia’s agriculture sector as a whole, producing foodstuffs for local consumption and cash crops to export. Industrialisation within the Sarawak Corridor of Renewable Energy will provide greater demand for agricultural inputs as downstream food processing activity expands. Raw timber exports and the rapid expansion of plantations, particularly of oil palm, are likely to slow over the next decade due to stricter government regulation and enforcement, although downstream industries fed by sustainable timber plantations should continue to thrive. Strong global demand, together with ongoing efforts to modernise and mechanise processing of food crops such as rice, fresh produce and spices, should also contribute to sustained growth in these sectors.
This chapter contains a viewpoint from Dr James Jemut Masing, Minister of Land Development; and an interview with Grunsin Ayom, Director-General, Malaysian Pepper Board.
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Explore chapterJeddah
The results of efforts to address decades of rapid unplanned growth in Saudi Arabia’s second-largest city are beginning to become clear as transportation plans advance and major development projects get under way. With a focus on public- private partnerships, affordable housing and the redevelopment of large parts of the city, and a number of mega-projects and a $12bn integrated urban transport network in the works, there are considerable opportunities for investors. Efforts are aimed at facilitating sustainable growth and diversification in the coming years and will ultimately help to bolster Jeddah’s position as both the commercial centre of Saudi Arabia and the gateway to Makkah for the world’s Muslim population. This chapter contains an interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The administration of Benigno Aquino III aspires to achieve inclusive, broad-based growth, a goal which necessitates a strong manufacturing base that presents employment prospects for skilled, semi-skilled and low-skilled workers. The country’s demographic dividend, attractive workforce, projected economic growth and the continued improvement of its business environment are combining to generate investor interest. ASEAN integration offers newfound market access to a wide and emerging consumer base, and the Philippines will need to ramp up its manufacturing competitiveness to ensure it becomes a net exporter, rather than a pure importer, of value-added products moving throughout the region.
This chapter contains interviews with Hikosaburo Shibata, President and CEO, Mitsubishi Motors Philippines; and Ben Chan, Chairman and CEO, Suyen Corporation.
Explore chapterUtilities
Buy digital copy of this chapter - £18Abu Dhabi’s economic growth, rising population and expanding industrial sector have contributed to increasing power demand in the emirate. Demand is growing at a rate of 7.5% a year with authorities expecting this trajectory to continue over the next decade. The sector is run on an independent water and power producer model, which sees the government investing in an increasingly diversified range of facilities to meet demand for power and water generation. Most of Abu Dhabi’s power generation comes from combined-cycle gas turbine power stations, though both nuclear and renewable energy are developing in the emirate. The Gulf’s first nuclear power plant is due to come on-line in 2017, when the first of four reactors at the Barakah plant in Al Gharbia starts generation. Developments in wastewater management are improving the sewerage system, which will see it become one of the world’s largest gravity-driven networks when completed, with a 42-km main tunnel.
This chapter contains an interview with Saif Al Qubaisi, Acting Director-General, Regulation and Supervision Bureau.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture is one of the most important drivers of growth in the Ivorian economy in terms of revenues, employment and value-added activities. Contributing 22% to GDP, the sector accounts for at least 50% of exports and provides jobs to 60-70% of the population, according to the World Bank. Fertile land and favourable weather conditions enabled the country to become one of the most successful yet diversified agricultural producers in the world, contributing the largest share of cocoa to the global market, equivalent to 40% of global output in 2013/14. Although years of civil war obstructed investment, government initiatives are facilitating the restructuring and rejuvenation of production in crops as diverse as cocoa, cashew, cotton, rice and maize. State programmes also hope to address challenges to sectoral growth such as low agricultural productivity, poor access to credit and price insecurity. The diversity and potential of Côte d’Ivoire’s agricultural activities will ensure the sector remains a key source of economic growth and employment.
This chapter contains interviews with Massandjé Touré-Litsé, CEO, Coffee Cocoa Council; and Youval Rasin, CEO, DekelOil.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The value of infrastructure contracts awarded in the UAE in 2014 is expected to increase by more than five times, to $15.2bn. This rising trend is reflected in Dubai’s construction sector, which accounted for about 8% of GDP in 2013. The sector’s growth has been driven by projects linked to higher tourism numbers and upcoming international events, and Dubai Expo 2020 in particular. Expo 2020 preparations are expected to generate $23bn, or 24.4% of current GDP, between 2015 and 2021. The real estate market was severely affected by the crash in 2009, which saw property values fall by 40% in the first three month of 2009. Things have improved significantly since then, and tighter regulations, coupled with strong fundamental demand, have ensured that the future of the emirate’s real estate market is a bright one.
This chapter contains an interview with Hesham Abdulla Al Qassim, CEO, wasl Asset Management Group.
Explore chapterTransport
Buy digital copy of this chapter - £18Expansion of the transportation sector is regarded as crucial for future economic growth in Bahrain; the sector’s contribution to GDP is expected to increase from 4% to 7% in the coming years, driven in large part by the rising population. Upgrades at Bahrain International Airport will boost the facility’s passenger and cargo capacity with the addition of 13 new gates and 40 new check-in counters while plans to reduce congestion on the roads include a government initiative aiming to switch at least 15% of all personal journeys from automobiles to public transport by 2030, with the latter expected to receive significant public investment as a result. Meanwhile the Bahrain Logistics Zone, which began operations in 2008, continues to build up Bahrain’s role as a regional logistics centre as the kingdom looks to position itself as a key entry point to the GCC.
This chapter contains an interview with Maher Salman Al Musallam, Acting CEO, Gulf Air.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18An estimated 45% of Myanmar’s GDP is provided by the agricultural sector, which also employs 70% of the domestic labour force. Myanmar is well known for its rice and teak production, and is also a leading provider of rubber, oil seed, cotton, corn, chillies and pulses. A number of structural obstacles, including land rights, outdated techniques, inadequate infrastructure and low financing, have served to frustrate Myanmar’s agricultural sector in recent years. Despite these challenges, the sector holds great promise and potential for growth. Foreign trade and investment are seen as key to helping develop Myanmar’s rice production and milling industries, and several new agreements with regional neighbours should help the country move forward in coming years.
This chapter contains interviews with U Win Tun, Minister of Environmental Conservation and Forestry; and U Chit Khine, Chairman, Myanmar Rice Federation.
Explore chapterConstruction
Buy digital copy of this chapter - £18The construction sector is witnessing rapid expansion in Oman on the back of government investment in major infrastructure projects. The government has budgeted an estimated $77.68bn for development projects as part of the 2011-15 five-year plan, up 113% over the previous five-year plan, with the Oman National Railway Project comprising 45% of the total value of all current transportation construction projects. Meanwhile, new upstream and downstream investments in the oil and gas sector are presenting lucrative new opportunities for private contractors, while the building of the $1bn Oman Convention and Exhibition Centre (OCEC) in Muscat will boost the sultanate’s offering in the MICE segment. This chapter contains an interview with Sheikh Salim bin Ahmed Al Ghazali, Chairman, Golden Group of Companies.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Accounting for around 5% of GDP, the Peruvian construction sector continues to see expansion at several levels. The sector grew by 8.9% in 2013 before slowing down to 3.1% year-on-year in the first half of 2014. Activity in the construction sector is being led by the burgeoning need for housing, as well as commercial real estate, both resulting from improved living standards in Peruvian cities. As the country strives to resolve a pending housing deficit, the stable growth of the economy is prompting a new dynamism in the higher segments of the real estate market. This is supporting continued sales of new homes, as well as efforts by builders and promoters to continue to satisfy demand. As the sector matures, rising land prices encouraging a greater concentration of homes, and a lack of available space in Lima and other growing cities throughout Peru, are set to become some of the sector’s most important challenges.
This chapter contains interviews with Jesús Blanco, CEO, InGroup; Ernesto Tejeda, President, Obrainsa; and Gonzalo Sarmiento Giove, CEO, Inversiones Centenario.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18The telecoms market in Algeria has shown dynamic growth in recent years; as with many emerging markets, the mobile penetration rate has gone from zero to nearly 100% in less than 15 years and the market has demonstrated strong demand for new technologies. The long-awaited launch of 3G services in December 2013 has helped to develop new sources of growth in an increasingly saturated sector. The modernisation of sector regulation will be necessary in order to encourage further investment in this key market, which may provide the boost legislators need to restart work on the new ICT law.
The introduction of 3G mobile services in December 2013, followed in May 2014 by state-owned operator Algérie Telecom’s (AT) 4G fixed wireless data service, stand to significantly impact the IT sector in the near term, particularly in terms of consumption and demand. Private sector operators estimate that the IT sector contributes 1.3% of GDP, compared to 3.3% for the telecommunications sector. In the short term, AT will focus on deploying fibre-optic and wireless internet infrastructure, which will help to strengthen Algeria’s nascent digital economy.
This chapter contains an interview with Joseph Ged, CEO, Ooredoo; and a viewpoint from Mourad Nait, Country General Manager, Microsoft.
Explore chapterEnergy
Buy digital copy of this chapter - £18The government has pledged to increase exploration for gas in the National Development Plan and promulgated a 20-year Integrated Resource Plan to diversify the energy mix by boosting nuclear, natural gas and renewable power generation capacities. With an estimated 3.5% of global coal reserves, South Africa has traditionally benefitted from an ample supply of cheap fuel. It has the fifth-most energy-intensive economy in the world, accounting for 30% of total power consumption in Africa. South Africa generates 94% of its electricity from coal. The Department of Energy expects to reach the National Development Plan target of universal electricity access by 2025, five years ahead of schedule. Although it has one of the largest, most developed energy sectors on the continent, after three years of less-than-expected economic growth and tight capacity margins, South Africa is again reformulating its 20-year plan in a bid to address long-term energy security, equity of access to electricity and environmental sustainability.
This chapter contains interviews with Nosizwe Nokwe-Macamo, Group CEO, PetroSA; and Eddie O’Connor, CEO, Mainstream Renewable Power.
Explore chapterTransport
From a collection of ideas to cut the number of commuters in Egypt who use their cars to go to work, to multibillion-dollar plans to speed up ships using the Suez Canal; from establishing giant logistics depots to mastermind food supplies to the country, the region and maybe further afield as well, to the futuristic notion of having a two-tier train service with a 350-km per hour train travelling over the top of regular services, there is an urgency to the many plans to get the country on the move. The scale and breadth of transport improvement schemes announced and planned in 2014 is impressive. The country’s finances are being brought back into order, restoring confidence to the markets and the international financial institutions on which Egypt will ultimately need to rely in order to pay for these programmes.
This chapter contains an interview with Mohab Mameesh, Chairman, Suez Canal Authority (SCA).
Explore chapterInsurance
Buy digital copy of this chapter - £18Although the business environment for insurers is challenging, Brunei Darussalam’s small insurance industry continues to expand gradually. Increasingly high court awards to accident victims have affected the profitability of mandatory automotive and workers’ compensation lines, while the government’s local business development policies and support for sharia-compliant insurers are squeezing conventional players. The sector should get a boost from investment growth in industrial segments and planned government expenditure on infrastructure. However, it will continue to be difficult for the sector to accelerate significantly given the high level of economic security enjoyed by Bruneian citizens and the limited ability of local insurers to serve the economy’s dominant economic sector.
This chapter contains an interview with Osman Jair, Chairman, Brunei Insurance and Takaful Association, and Managing Director, Insurance Islam TAIB.
Explore chapterTransport
Buy digital copy of this chapter - £18Expansion of infrastructure and transportation networks is a key pillar of the government’s Vision 2030 economic development plan. Kenya represents a critical lifeline for landlocked neighbouring countries. While increased competition, ongoing delays among roads and ports projects, and a host of non-tariff barriers pose serious challenges to future expansion, the government’s dedication to improving transportation indicators has already witnessed steady growth in the rail, port, road and maritime segments. The sector is now poised to undergo enormous change in the next several years, with government expenditure on transportation construction and upgrades showing steady expansion. At the same time the country’s Public-Private Partnership (PPP) Act, enacted in 2013, has opened the door for private investors to help develop high-profile projects including LAPSSET, the standard-gauge railway project and Lamu Port. Coupled with regulatory reforms aimed at reducing non-tariff barriers, these developments should see transportation in Kenya improve dramatically in the medium to long term.
This chapter contains interviews with Michael Kamau, Cabinet Secretary, Ministry of Transport and Infrastructure; Titus Naikuni, Group Managing Director and CEO, Kenya Airways.
Explore chapterAgriculture
Buy digital copy of this chapter - £18As the foundation of Ghana’s economy, agriculture employs more than half of the population and is a key focus for the country’s inclusive economic development agenda. Ghana has 13.6m ha of agricultural land, and cocoa and maize account for the largest areas planted, with 1.6m ha and 1m ha, respectively. Yet as the industrial and services sectors have strengthened in recent years, agriculture’s contribution to overall GDP has steadily declined, falling from 32% in 2009 to 22% in 2013. Moreover, the sector remains underdeveloped, with the majority of rural farmers (accounting for some 90% of all farming employment) lacking the proper techniques, inputs, financing and infrastructure, such as transport networks and irrigation and storage systems. New policy reforms, however, such as seed variation control and biosafety regulations, aim to both enhance yield quality and reduce waste.
This chapter contains an interview with Anthony Pile, Founder and CEO, Blue Skies.
Explore chapterConstruction
Buy digital copy of this chapter - £18The construction sector saw renewed growth in 2013 with forecasts for continued expansion in 2014. Loans extended in 2013 reached $5.76bn, accounting for 21.5% of credit to all industries. While housing accounted for the bulk of construction activity, several major real estate and tourism development projects are driving opportunities for large contractors, particularly in the Red Sea port of Aqaba. Meanwhile in the capital, Amman, the downtown area of Abdali has been the focus of major redevelopment projects, including commercial space, retail facilities and residential units at a total investment cost of $5bn.
This chapter contains an interview with Taha Al Zboun, CEO, Dead Sea Development Zone.
Explore chapterMining & Industry
Buy digital copy of this chapter - £18Mining
The natural wealth of Gabon is not limited to oil and gas, and the country is turning to mining to help diversify away from its reliance on hydrocarbons.
The African Development Bank estimated that in 2012 the mining sector contributed 6.3% of GDP and 6% of exports, though estimates from the Ministry of Economy and Planning put it much lower, at under 2% of GDP. Either way, the sector has the potential to be a major economic driver, and the government hopes to quadruple mining’s contribution to GDP by 2025 under the Industrial Gabon development plan. In line with the government’s industrialisation strategy, local processing requirements are gradually being imposed to increase the sector’s added value and boost non-hydrocarbons activity, although infrastructure and personnel shortages will be an obstacle to development in the medium term.
Industry
Today, industrial activity is limited to agro-industry, beverages, construction materials and some timber, petroleum and mineral processing, but the state has outlined a plan to establish several industrial clusters by 2025 and double the sector’s contribution to GDP.
Industry was identified as one of three economic development pillars under the Emerging Gabon strategy launched in 2009. Under the Industrial Gabon plan, the state is working to encourage investment in downstream processing for all natural resource operations. Local processing requirements are gradually being introduced, starting with the 2010 ban on raw timber exports, which is helping to increase export value and reduce Gabon’s reliance on hydrocarbons. While the transition has not always been smooth, the economy stands to benefit significantly in the medium term from the uptick in value-added activity.
This chapter contains interviews with Régis Immongault, Minister of Mines, Industry and Tourism; and Pietro Amico, General Representative, Eramet Gabon.
Explore chapterEnergy
Buy digital copy of this chapter - £18Despite abundant reserves of coal and rich potential for wind, solar and hydroelectric power, Mongolia has lagged in exploiting its natural resources. From generation to transmission to distribution, the country’s power infrastructure is outdated, and reliance on foreign imports is growing. Aware of this, the government has been pushing to fast-track a range of projects that, if successful, should reduce the country’s dependence on any one supplier, and may in time sprout an industry in its own right. The state is now planning to upgrade its power distribution network, is trying to attract private investment to greenfield plants, and is gradually liberalising trade tariffs and creating new laws to spur exploration for crude oil. The state’s energy plan aims to reach 100% electrification by 2020, up from about 65% in 2013, despite the difficulty of spanning Mongolia’s huge, yet sparsely populated, landmass. Production of crude oil in the country’s two eastern blocks jumped from 2.2m barrels in 2010 to 3.9m in 2012, and is set to almost double in the medium term. Attracting private investment to new initiatives will be key to helping Mongolia develop its abundant natural resources – fossil fuel-based and renewable – into the energy it needs to reach its goals. This chapter contains interviews with B. Unenbat, CEO, Newcom; John Lee, President & CEO, Prophecy Coal; and R. Batbayar, President, M. Oil.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18On the economic road from farms to factories to services, Thailand has come a long way. Through a combination of low costs, sound policy, a good work ethic and a relative lack of labour activism, the country has managed to make the transition from an economy based on agriculture and commodities to become one of the most industry-oriented nations in the world. Manufacturing makes up 34% of the Thai economy, a larger portion than in all of its regional competitors, and Thailand is the world’s 17th-largest manufacturer and number 14 car maker. Industry value-added in Thailand rose from 18.5% of GDP in 1960 to a high of 44.7% in 2007. Exports grew rapidly over the same period, while agriculture shrank as a portion of GDP. Thailand’s minimum wage law was applied across the country as of January 1, 2013, settling the rate at $9.09 per day. This raised the average wage by 22.4% nationwide, and in some provinces by as much as 70%. Investors in manufacturing are attracted by the prospect of having assemblers and suppliers in multiple ASEAN countries, which would reduce risk as there would be no single bottleneck. If Thailand can move gently to the next generation of production, great rewards await. This chapter contains an interview with Prasert Boonchaisuk, Minister of Industry.
Explore chapterMining
Buy digital copy of this chapter - £18Buffeted by volatile global commodity prices and legislative uncertainty at home, Indonesia’s mineral output has fluctuated considerably in recent years. The mining sector comprised 11.24% of GDP in 2013, down slightly on 11.8% in 2012, but an improvement on the 8.94% recorded in 2004. Coal contributed $26.64bn to domestic exports in 2013, followed by copper ore at $3.38bn, nickel ore at $1.88bn and bauxite at $1.39bn. Key importers of Indonesian coal include China, India, Japan and Korea, though the expected rise in domestic consumption is also likely to affect demand and production going forward, with several new coal-fired power plants set to be built in the coming years. In spite of challenges, the country’s vast potential resource still provide substantial growth opportunities. With mineral prices expected to stabilise as emerging economies increase their demand for the country’s raw materials, domestic and foreign mining outfits should find further incentive to continue exploration and development plans, provided uncertainty around the legislative framework is addressed. This chapter contains interviews with Martiono Hadianto, President Director, Newmont Nusa Tenggara; and Arsjad Rasjid, Vice-President Director and Group CFO, Indika Energy.
Explore chapterReal Estate & Construction.
Buy digital copy of this chapter - £18Real estate transactions in Dubai totalled $64.2bn in 2013, up sharply from $42bn in all of 2012. The residential, retail, hospitality and industrial segments all experienced solid growth. Property sales jumped by more than 20% in 2013, with serviced apartments also recording strong growth figures. Demand for Dubai property seems to be coming from all corners of the world. According to the Dubai Land Department, Indian nationals invested $2.4bn in Dubai real estate in 2012, followed by the British ($1.3bn), Pakistanis ($1.1bn), Iranians ($826m) and Russians ($640m). Regulatory changes and new loan-to-value limits for residential mortgages are being introduced to cool the market and discourage property flipping. Competition in the $1.5bn facilities management industry is set to increase as new projects come on-line.
This chapter contains an interview with Sultan Butti bin Merjen, Director-General, Dubai Land Department.
Explore chapterUtilities
Buy digital copy of this chapter - £18An efficient and reliable supply of water and electricity feeds Qatar’s expanding economy, while the country’s hydrocarbons resources finance its tremendous growth. Major investments in developing the power supply have resulted in excess capacity in the domestic market, but forecasts suggest demand will begin to outstrip supply by 2018 at current capacity. Though government agencies or government-controlled companies dominate the utilities sector, there is still broad scope for private sector participation in areas such as designing, building and operating water and electricity infrastructure. Enhanced regulation will likely be key to encouraging greater participation from the private sector going forward. This chapter contains an interview with Essa bin Hilal Al Kuwari, President, KAHRAMAA.
Explore chapterUtilities
Following partial privatisation at the end of the last century, the provision of utilities in the emirate has improved significantly, while disruptions and inefficiencies in both networks have also been greatly reduced under the new model. With the growth in demand for services increasing and showing no signs of diminishing any time in the near future, ensuring an adequate supply of water and power will remain a challenge in the coming decade. Investment will be required in the short and medium terms, creating more opportunities for foreign capital and ownership in both the power and water supply systems. This chapter contains interviews with Faris Obaid Al Dhaheri, Director-General, Abu Dhabi Water & Electricity Authority (ADWEA); and Nicholas Carter, Director-General, Regulation and Supervision Bureau (RSB).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18A major driver of GDP growth over the past decade, the construction sector generated more than $2.5bn in 2013, accounting for around 9% of GDP, a year-on-year (y-o-y) increase of 30%, according to the Panamanian Chamber of Construction. Public infrastructure works are leading this surge, but the private sector is also playing a significant role through residential and commercial developments. The real estate sector is also experiencing a boom supported by real demand and increased purchasing power among the local population. Preliminary data released by the National Institute of Statistics and Census indicates that real estate, corporate and leasing activities expanded by an average of 10.3% y-o-y during the third quarter of 2013. While prices are slightly on the rise in both residential and commercial segments, indicators suggest that the market is cooling off and reaching a healthy equilibrium. Even so, tax incentives are set to maintain demand and continue to attract foreign investment. This chapter includes an interview with Victor Alberola, President, Fomento de Construcciones y Contratas Central America.
Explore chapterMining
Buy digital copy of this chapter - £18The presence of rubies, jade and other precious gems has been noted for centuries by locals, early Western explorers and colonial powers. Myanmar has an abundance of gold, silver, platinum, tin, tungsten, zinc, copper and gemstones. Yet very little of this has been exploited. One challenge to exploration and production is information. Only about half of the country has been mapped, pre-independence surveys are incomplete, and much was lost during the Cold War. Bureaucracy remains a hurdle for foreign investors. After years of working mostly with other governments directly, the Ministry of Mines lacks certain administrative capabilities and expertise. In 2014 Myanmar hopes to build trust internationally by joining the Extractive Industries Transparency Initiative, a process that shows accountability and transparency in the mining and hydrocarbons sectors. Given the huge demand for Myanmar minerals and the positive bearing of the government, it is expected that sizeable new exploration and production projects will get underway in the next few years. This chapter contains an interview with Dr Myint Aung, Minister of Mines.
Explore chapterConstruction
Buy digital copy of this chapter - £18Upgrades to the transportation infrastructure continue to drive sector expansion. Between 2011 and 2015, the government plans to invest some $10.7bn on infrastructure projects alone, with state spending on affordable housing also set to provide opportunities for contractors. Sector growth was expected to reach 5.5% in 2013, bringing total industry value to $4.3bn. This chapter contains an interview with Salim bin Nasser Al Aufi, CEO, Public Authority for Civil Aviation.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector grew 14.8% in 2012, far more than the 3% recorded in 2011, and continued to expand at a rate of 13.23% in the first half of 2013. Investor confidence remains strong, with investment in current projects rising by 5.79%, most notably in the areas of housing and infrastructure, and public-private partnerships remain the favoured model for developing public works. Likewise, in the real estate sector mortgage credit has continued to expand in recent years. By June 2013, mortgages had grown by 24.7% year-on-year to reach $27.8bn. Though the number of self-built homes has more than doubled, rapid demand is creating a growing housing deficit. A new law to strengthen regulation in the sector and reduce bureaucratic challenges for construction firms should ensure continued growth in the years to come. This chapter contains an interview with René Cornejo Díaz, Minister of Housing, Construction and Sanitation, and José Graña Miro Quesada, Chairman of Graña y Montero.
Explore chapterTransport
Buy digital copy of this chapter - £18Plans are afoot from the Ministry of Transport to enhance regulation, improve safety and increase capacity among staff, with infrastructure such as a mass transport system being viewed as not only a necessity caused by population density increases, but also vital to boosting the private sector. Allocations have set aside to refurbish the international airport, plans have been made to link the nation to the GCC Railway by 2018, and a 45-km, $5.5bn causeway to Qatar is also under construction. This chapter contains an interview with Kamal bin Ahmed Mohammed, Minister of Transportation.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Despite growing at an average rate of 2.7% between 2002 and 2012, the manufacturing sector’s share of GDP has been eroded by the rapid growth of other sectors, such as construction and services. Hampered by high energy costs, expensive logistics and low infrastructure investment, the manufacturing’s share of GDP has been declining since 2002 in what the Asian Development Bank has warned could be a premature shift away from industrialisation. The government has, however, been increasing its efforts to attract investment and accelerate manufacturing growth, resulting in the country earning an investment grade rating from three major global credit agencies during 2013. Meanwhile, with overall strong growth and key drivers such as business process outsourcing sector expansion and demographics still in place, the Philippines retail sector appears set to continue its relatively rapid expansion. This chapter contains interviews with Leonardo B Dayao, President, Puregold Price Club; and Christopher T Po, President and CEO, Century Pacific Group.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The largest contributor to Nigeria’s GDP, the agriculture sector accounted for a 40.1% share as of mid-2013, according to the National Bureau of Statistics. It is also the main source of employment in the country, responsible for more than 60% of jobs, as per figures from the International Fund for Agricultural Development. Increases in the amount of cultivated land have led to a rise in production, but yields remain low and the sector is performing below its potential. Formerly responsible for 18% of world cocoa production, Nigeria’s market share is now less than half of that. The country remains a world leader is cassava, but has also lost significant ground in crops such as groundnuts and palm oil. The Agricultural Transformation Action Plan, a state-backed market-oriented reform effort, is in the early stages of implementation and is expected to pave the way for the sector’s development going forward. This chapter contains interviews with Akinwumi Adesina, Minister of Agriculture and Rural Development; and Sunny Verghese, Group Managing Director and CEO, Olam International.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Major investments in a number of areas, such as transport, home construction and utilities provision are driving sector activity. The government is also planning a number of sector-specific initiatives, such as a plan to build 750 new hotels and create an additional 42 industrial zones throughout the country. Large-scale projects are attracting interest from both local and foreign firms. The real estate market is expecting major growth due to an existing housing shortage, the rising population and improving economic conditions. This chapter contains interviews with Farouk Chiali, Minister of Public Works; and Mark Dixon, Group CEO and Founder, Regus.
Explore chapterTourism
Buy digital copy of this chapter - £18It has been a difficult few years for Egypt’s economically vital tourism sector, in the wake of the 2011 revolution and with civil unrest continuing to occur in the summer of 2013. However, the country still managed to attract millions of foreign visitors, even discounting the number of arrivals who were not tourists per se. However, 2013 may prove tough. The disturbances earlier in the year, and the removal of the Freedom and Justice party-led government of Mohammed Morsi and its aftermath, are not good advertisements, even if the vast majority of foreign visitors remain unaffected. But Egypt’s ability to bounce back strongly from setbacks is well documented, and this should be the case again. The country has ample competitive advantages – its long coastline, the Red Sea, thousands of historical sites, welcoming people and a centuries-old reputation as a choice destination. This chapter contains interviews with ElHamy ElZayat, Chairman, Egyptian Tourism Federation; and Richard Solomons, Chief Executive, Intercontinental Hotels Group (IHG).
Explore chapterHealth
Buy digital copy of this chapter - £18Ras Al Khaimah has made significant progress over the last five years in building the infrastructure and institutions required to anchor a robust health care sector. Both population growth and changes in lifestyle have led to an increase in the demand for and cost of health care services in the emirate. Public facilities are meeting the majority of this rising need, although private service providers are also looking to enter the market, leading to improved choice for patients. The market for diabetic care looks set to continue to grow, meaning there should be opportunities for a full range of services, offering considerable opportunity for private investors.
Explore chapterMining & Industry
Buy digital copy of this chapter - £18While Gabon has a well-established niche in the global mining market as a key manganese exporter, its ambition to significantly expand exploration is generating strong interest from junior miners. With mining accounting for 6.3% of GDP and 6% of exports in 2012, according to the African Development Bank, there is potential for growth. The implementation of a new mining code in late 2013 is set to revise several rules. As Gabon seeks to catalyse investment in exploration and increase its downstream processing capacity, striking the balance between its development prerogatives and incentives for investment will be crucial. The domestic industrial base is small, but with a concerted government strategy intended to leverage the country's sizeable natural endowments towards higher-value-added processing, there is growth potential. Existing capacity is focused in the areas of building materials, food, beverages and limited timber and manganese processing. Industrial activity accounted for 7.7% of GDP and 4% of the labour force in 2012. Close coordination and timely completion of state-run infrastructure projects will be critical to the policy’s success. This chapter contains an interview with Regis Immongault Tatagani, Minister of Industry and Mining.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Driven by a national development strategy, a raft of new projects are taking shape in the construction industry, all of which provide opportunities for both domestic and foreign contractors. Meanwhile, real estate is in the early stages of a recovery, with legislation and the high purchasing power of a young and expanding population helping the sector to regain lost momentum. This chapter contains an interview with Adel Al Roumi, President, Partnerships Technical Bureau.
Explore chapterBanking
Buy digital copy of this chapter - £18After decades of turbulence, the Ivoirian banking sector is experiencing something of a renaissance. Like the economy, Côte d’Ivoire’s banking sector was growing robustly until a crisis brought on by enthusiastic lending struck in the early 1980s. Bank defaults during this period cast a long shadow, paving the way for a steady increase over the years in cash transactions. The subsequent unrest of the early millennium slowed banking growth, and in the beginning of 2011, during the most acute period of upheaval, banks closed for several months, with a number of banks temporarily nationalised by the government at the time. This was compounded by financial complications, with balance sheets deteriorating as the economy contracted.
Explore chapterTransport
Buy digital copy of this chapter - £18Home to the most developed transport network and logistics industry on the continent, South Africa ranks highest in Africa and among the best in its income group globally on a number of indices. While both freight operators and passenger service operators have been experiencing respectable growth in the past year, the long-term success of such industries will be tied to the government’s ability to execute infrastructure projects as it will have to deal with a host of major issues in the coming years, including trade barriers, congestion and the resulting need to raise funds for infrastructure development, if the country is to retain its position at the top. This chapter contains interviews with Tshepo Lucky Montana, Group CEO, Passenger Rail Agency of South Africa (PRASA); and Alan Olivier, CEO, Grindrod.
Explore chapterBanking
Buy digital copy of this chapter - £18Characterised by strong supervision and relatively conservative lending policies, Colombia’s banking sector is among the most stable and profitable in the region, with a return on assets of 1.97% across all credit entities and a return on equity of 13.56% in 2012. Although the sector is dominated by large domestic conglomerates, conditions are ripe for investors. Consumer, microcredit and mortgage lending segments have seen substantial real annual growth rates. Increased sophistication of the sector should be expected as it moves to implement Basel II and Basel III requirements and works towards compliance with International Financial Reporting Standards by January 2015. This chapter includes interviews with José Darío Uribe, Governor, Central Bank of Colombia; Luis Carlos Sarmiento, CEO, Grupo Aval; and Carlos Raúl Yepes, President, Bancolombia.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Average rental and sales prices for residential real estate have remained steady, although there has been a slight drop in the capital’s commercial segment. The construction sector is characterised by a host of large-scale, mixed-use developments. Plans have also been announced for the kingdom’s first solar cooling plant, while multiple water projects are progressing well, offering a range of opportunities for contractors.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Despite substantial roadway expansion in the last five years, the country has struggled to keep up with rapid growth of car ownership, often resulting in congestion. Much more investment is necessary, not least because economic progress is creating new infrastructure needs. The most ambitious of several proposed highway expansion plans is the North Marmara Highway, which would link Izmir and Istanbul via a third bridge over the Bosphorus. Planned expansions to rail networks include improvements to domestic lines and connections to Eurasian markets. Air transport has proven to be a significant driver of economic growth. The most ambitious of Turkey’s infrastructure projects calls for the development of a third airport at a cost of more than $9bn – a proposal which is drawing a characteristic mix of excitement, investor interest and criticism in-country. This chapter contains interviews with Sani Şener, President and CEO, TAV Airports, and Ahmet Musul, Chairman, Ekol Logistics.
Explore chapterASEAN
Buy digital copy of this chapter - £18ASEAN is set to declare itself a common market at the end of 2015, in a move that will create new opportunities for investors in a region the boasts not only some of the world’s fastest-growing economies, but also an expanding middle class. Current estimates for the combines GDP of ASEAN nations have been put at around $2.3trn, with this figure set to rise to $10trn by 2030. Economic growth in the region over the past 10 years has progressed at about 7.5% per year. With Brunei Darussalam taking on the ASEAN chair in 2013 at a crucial moment for the 10-member organisation, the country with a population just a fraction of the size of most of the region’s capitals will need to marshal all of its skills in diplomacy and negotiation to ensure that member states advance further down the road to economic integration.
Explore chapterMining
Buy digital copy of this chapter - £18With a new set of laws set to be passed in 2013 to replace the existing mining code, the government is seeking to open the sector to additional foreign investment and offer more concessions to extract and process the country’s mineral wealth. Phosphates mining accounted for 92.7% of the sector’s total production in 2011. Other mineral resources include gold, silver, barite, cobalt, copper, manganese, tin, fluorspar, iron, lead and salt. A major investment programme worth €91bn is hoped to expand phosphate production capacity and attract investor attention to opportunities in mining both phosphates and other minerals. This chapter includes an interview with Mustapha Terrab, CEO, OCP Group.
Explore chapterEastern Province
Buy digital copy of this chapter - £18The A’sharqia, or Eastern Province of Saudi Arabia, continues to be at the forefront of economic and industrial advancement. The province is a microcosm of the government’s diversification efforts and is home to a number of rapidly growing industries. The construction of new industrial sites is being accompanied by support infrastructure, including mixed-use projects that combine residential, commercial, business and leisure activities in one location. Capitalising on the region’s competitive advantages, energy-intensive industries including mining, smelting and petrochemicals are also a natural fit for the Eastern Province and should help it continue to thrive.
Explore chapterIndustry
Buy digital copy of this chapter - £18The government of Abu Dhabi continues to invest in a series of large industrial developments as it endeavours to diversify the economy beyond hydrocarbons, a key aim of its Economic Vision 2030. In the coming five years, growth in the sector is likely to be driven primarily by expanded upstream activity. Aluminium is seen as a segment ripe for expansion, with a number of new companies setting up shop in the emirate and a unique “hot metal road” being built as an efficient aluminium transit system. The petrochemicals sector is also seeing massive expansion, though uncertainties in the global economic climate could temper its growth in the long term. In retail, total retail space is expanding at one of the fastest rates in the region. International brands are looming larger, especially at the top end of the market, where expensive cars and other luxury goods are being sold at record volumes. And while concepts that work well in other parts of the world – such as e-commerce – are not necessarily guaranteed a strong future in Abu Dhabi, the fact that so many developers and retailers are pouring into the emirate is a strong indication of its growth potential. This chapter includes interviews with talks to Mohammed H Al Qemzi, CEO, ZonesCorp; Suhail Al Ameri, CEO, General Holding Corporation (SENAAT); and Khaled Salmeen, Executive Vice-President, Abu Dhabi Ports Company.
Explore chapterRetail
Buy digital copy of this chapter - £18To say there has been a retail boom in Indonesia is an understatement. The people of the country have, over the course of a few years, become consummate shoppers staying up to date with the latest trends and spending freely. Indonesia’s economy has always been driven by the consumer, but now it is being taken to the next level as people now have more money to spend. Retail sales are likely to remain strong for the next year at least, partly on the back of the introduction of the minimum wage. As the sector develops, shopping is expected to become more convenient, with new brands entering the market. This chapter contains an interview with Henri Honoris, President Director, Modern Putra.
Explore chapterTourism
Buy digital copy of this chapter - £18Since 2008 Dubai’s tourism sector has once again become a major economic contributor, following a downturn in the global economic crisis. In 2011 the industry attracted more than 9.3m tourists – up about 10% from the previous year – and contributed some 31% of the emirate’s total GDP. In the last couple of years political upheaval in the region has seen visitor numbers to popular tourist destinations in Egypt and Tunisia fall, with tourists instead favouring more stable destinations such as Dubai. Moreover, key segments such as local malls and other retail destinations have performed well, seeing an estimated 10% jump in spending. Indeed, shoppers from outside the UAE accounted for nearly 40% of the revenues local retailers brought in during the 2011 Dubai Shopping Festival. While challenges remain – including increasing competition from a number of other cities and countries in the region – if Dubai can maintain its current momentum, the emirate is well positioned to continue its reign as one of the world’s most popular and profitable tourism destinations for years to come. This chapter includes interviews with Helal Almarri, CEO, Dubai World Trade Centre; and Gerald Lawless, President and Group CEO, Jumeirah Group.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Although it may never compete with neighbours with well-established manufacturing sectors and economies of scale, Mongolia has the potential to meet domestic needs and produce goods, such as meat and cashmere for export. The move into mass production faces a host of constraints: Mongolia has a small domestic market, poor infrastructure, a growing minerals sector competing for labour and capital, and its neighbours, China and Korea, are world leaders in low-cost mass production. At the same time, Mongolia is an open economy, with low tariffs and limited non-tariff barriers, and as such, goods can easily enter from abroad. Nevertheless, Mongolia has the potential to develop a strong and healthy industrial sector: domestic demand is climbing, quality is improving and interest rates have, over the long term, been falling. If the programme to improve cashmere manufacturing and the investments to raise the quality of meat production pan out, exports of manufactured goods could become a meaningful economic contributor. This chapter contains an interview with B. Chuluunbatar, President and CEO, Monnis Group.
Explore chapterReal Estate
Buy digital copy of this chapter - £18While Oman’s property market remained relatively slow in 2011, the sector is showing signs of steady growth. In fact, property prices are now reported to be roughly three times what they were before the global slowdown. Overall, real estate contributed almost 4% to GDP in the first quarter of 2012. The sector does face challenges, most notably the shortage of affordable homes. Indeed, about 400,000 new units will be required by 2022 to meet the burgeoning housing demands of Omanis and foreign nationals. However, ongoing developments throughout the wider economy are affecting real estate in beneficial ways. Major investment in infrastructure is opening up new areas for development, and the burgeoning logistics sector is creating opportunities for warehousing and light industrial facilities.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector is in the midst of a boom thanks to infrastructure outlays under the 10th Malaysia Plan. The highlight is the Klang Valley Mass Rapid Transit (KVMRT), which includes contracts potentially worth over $20bn through 2018. Other state-driven projects include the Pengerang petrochemical facility, the Tun Razak Exchange and several highways, although the government is promoting a private-sector-driven approach to finance these developments. Infrastructure development, particularly of the KVMRT, will help fuel the real estate market, allowing for affordable housing in Selangor Valley with access to central business districts. Developers are also looking to exploit Iskandar Malaysia’s proximity to the wealthy Singaporean market for property investment.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18As part of the 2010-14 National Development Plan, Algeria intends to reduce its dependency on oil and gas by nurturing the development of local non-hydrocarbons industries. The government is now pushing ahead with large-scale infrastructure projects to facilitate the movement of goods and passengers and improve logistics, leading to heightened demand for construction materials. Industrial development zones have been established under the umbrella of the National Development Master Plan 2025, and in 2011 there were a total of 77 such zones. The sector is likely to see strong growth ahead, and there are signs that the government’s strategy is boosting the development of value-added and niche segments. The retail sector is benefitting from rising income levels supported by economic growth and strong hydrocarbons receipts. However, around 40% of Algerians still prefer to do their shopping in the more informal markets. Mall development is set to expand beyond the capital, however, land availability, particularly in urban areas, has proven to be an issue for developers. The growth in internet users bodes well for the development of online retailing. This chapter contains an interview with Chérif Rahmani, Minister of Industry, Small and Medium-Sized Enterprises (SMEs), and Investment Promotion.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Buoyed by demographic and economic growth, Nigeria’s construction sector has the potential to become the largest and most competitive on the continent. Between 2006 and 2010 the industry expanded at a rate of 12.58%. This positive growth is expected to continue in the near future as the government rolls out a number of infrastructure projects. Overall strong economic growth in Nigeria has also driven expansion of the real estate sector, which is expected to continue on its upward trend in coming years in line with the country’s rising GDP. However, whilst its growth prospects are positive, the sector faces a number of serious challenges, including limited funding to address a shortage in affordable housing and the task of providing formal homes for some 80% of the population who currently live in informal housing structures. This chapter contains an interview with Ogunbusola Solomon, President, Federation of Construction Industry.
Explore chapterTransport
The country’s successful bid to host the FIFA 2022 World Cup has lent a renewed urgency for substantial investments in transport infrastructure. The budget, released in May 2012, directs $11bn to the new airport, $5.5bn to a deep-water seaport, $1bn to a transport corridor in Doha and $20bn to roads, part of $95bn in public investment up to 2016. Beyond 2022, the upcoming Doha metro – set for completion in 2026 – will install 358 km of underground rail lines. Although challenges could arise, particularly in managing increasing cargo volumes while new infrastructure is still under construction, the government has been working to coordinate among the several relevant agencies to ensure that the currently available resources are allocated as efficiently as possible. This chapter includes an interview with Abdul Aziz Mohammed Al Noaimi, Chairman, Civil Aviation Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18The tourism sector is playing a key role in the government’s diversification strategy. With the Green Gabon programme promoting conservation and forestry, the country is aiming to attract high-spending visitors with an interest in ecotourism opportunities offered by Gabon’s lush rainforests and diverse wildlife. Initiatives are also under way to upgrade hotels and conference facilities for business tourists, who account for around 60% of visitors to the country. While the sector’s contribution to GDP was just 2.8% in 2011, it is expected to increase steadily with continued attention from the government, which is hoping to double the number of tourist arrivals by 2020. This chapter contains an interview with Alan Bernstein, Executive Chairman, Sustainable Forestry Management Africa.
Explore chapterEnergy
Buy digital copy of this chapter - £18With exploration continuing apace, the country’s hydrocarbons reserves continue to rise, and currently stand at 4.3bn barrels of oil and more than 77trn cu feet of gas. The Egyptian General Petroleum Corporation plays the roles of regulator, joint venture partner, licence provider, refiner and marketer for the oil segment. Egypt has the largest refining capacity in Africa, with 10 oil refineries and an overall capacity of 975,000 bpd, but an expansion plan calls for another 600,000 bpd of capacity by 2016. Though the price of gas remains lower than that paid in Europe, Egyptian industries see their competition coming from the countries of the Arabian Peninsula. Egypt had intended to use its gas resources to generate employment, but has found that the industrial activities it has attracted are not creating jobs at the pace imagined. This chapter contains interviews with Peter Voser, CEO, Royal Dutch Shell; Hassan Younis, former Minister of Electricity and Energy; Giuseppe De Beni, Managing Director, Italgen.
Explore chapterTransport
Buy digital copy of this chapter - £18Accounting for 10.1% of GDP in 2011, the transport sector in Ghana is comparable to several other countries within the same income bracket in the region. Major increases in imports and exports in recent years, along with the relatively recent development of oil and gas production, have helped push the expansion of transport and logistics in the country, with traffic at the two seaports having grown significantly. The country must now focus on creating a more integrated transport network, which could eventually make it a transport hub for the sub-region. This will include extending the all-season road network and upgrading its existing roads and highways. This chapter includes an interview with Geoffrey White, Director and CEO, Lonrho.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Delays and reconstruction work from 2011’s flooding have left Thailand’s contractors with a backlog of public and private projects in 2012. The construction sector is highly competitive, with major contractors focusing on efficiency and looking for public contracts rather than rely on riskier private sector work. Competition has also led Thai builders overseas, securing projects in Laos, Vietnam, and lately the opening economy of Myanmar. In real estate, condominium demand is growing as economic opportunities in Bangkok increase. Fears that the flooding would lead to an exodus of manufacturers from Thailand and a drop in demand for industrial real estate have proved largely unfounded as well, as the supply-chain benefits to clustering in Thailand generally outweigh the risks. This chapter has interviews with Plew Trivisvavet, President and CEO, CH Karnchang (CK); and Apichart Chutrakul, CEO, Sansiri.
Explore chapterEducation
Buy digital copy of this chapter - £18As the government of RAK makes the necessary changes to drive growth forward and transition to a knowledge-based economy, one thing is clear: education and educational reform are of prime importance. One important measure will be the establishment of a council by RAK’s ruler, Sheikh Saud bin Saqr Al Qasimi, which will regulate and monitor institutions of higher education in the emirate. Furthermore, several programmes have been introduced to improve the quality of teaching, including a teacher exchange that allows educators to observe different pedagogical methods. More specifically, the government plans to address three key issues in the higher education system: low English-language proficiency; students opting for careers in the public sector rather than the private; and overall quality standards. Given the correlation between education and a strong economy, the government’s and other actors’ reforms should have a strong impact on growth in the emirate in the long run. This chapter includes an interview with Sheikh Nahyan bin Mubarak Al Nayhan, Minister of Higher Education and Scientific Research.
Explore chapterEconomy.
Buy digital copy of this chapter - £18PNG’s GDP grew 8.9% in 2011, thanks in large part to the fact that construction work on the PNG LNG project is in full swing. While growth likely cannot sustain such a high pace, government officials hope that revenues from the LNG facility will catalyse an economic transformation. Analysts, however, are worried about Dutch disease, where resource-driven growth drives inflation and makes local manufacturing uncompetitive. The challenge will be to expand the formal economy, which accounts for just 15% of GDP. This will require major improvements in the security situation, infrastructure development, and investment in education. This chapter includes interviews with Ivan Pomaleu, Managing Director, Investment Promotion Authority; Karel De Gucht, EU Trade Commissioner; David Cox, Managing Director, Steamships Trading Company; Caleb Jarvis, Trade Commissioner, Pacific Islands Trade and Invest; and Surin Pitsuwan, Secretary-General, ASEAN.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Jordanian manufacturers continue to make up a sizeable slice of the country’s GDP. According to the Central Bank, in the first three quarters of 2011 the manufacturing sector made up 20.3% of GDP, expanding by 4.1% on the same period in 2010. Despite the political unrest that overtook much of the Middle East in 2011, Jordanian exports proved surprisingly resilient, both within the region and further afield, and are being encouraged by free trade agreements (FTAs). A number of FTAs have come into effect in recent years, including one with the US, the kingdom’s primary clothing export market. Foreign investment may continue to be deterred by regional uncertainty, although the first two months of 2012 saw a notable increase in investor interest. Going forward, the phosphate and potash industries, as well as fertiliser manufacturers, look set to continue on a path of strong growth. This chapter includes interviews with Hatem Halawani, Chairman of the Jordan Chamber of Industry; and Bashar Arafeh, Director and CEO at ePoints.
Explore chapterIndustry
Buy digital copy of this chapter - £18In defiance of global economic woes, Turkey managed to grow its export base, which resulted in an increase in industrial production of 9%. Turkey has been seen as an inexpensive alternative to European export products, mainly for regional buyers, and the country has hosted a booming trade in consumer goods. Vehicle sales rose by some 14%, steel production by 17%, and white goods sales jumped 19% in 2011. The government is currently focused on increasing investments into research and development (R&D), in the interest of making Turkey a value-added and high-tech exporter. Free zones and technology parks are central to this strategy, as are a raft of newly announced incentives for investors into R&D activities. The chapter has interviews with several of Turkey’s top industrial players, including Hüseyin Özdilek, the Chairman of Özdilek Holding; Tuncay Özilhan, the CEO of Anadolu Group; and Muharrem Dortkasli, the President & CEO of Turkish Aerospace Industries.
Explore chapterIndustry
Buy digital copy of this chapter - £18This section looks at South Africa’s industry sector, which has long supported the national economy. For the first 11 months of 2011 output rose 7.7% in comparison to the same period of 2010, according to Statistics South Africa. The fastest-growing manufacturing sectors included electrical machinery; radio, television and communication equipment; and automobiles and components, each of which expanded by 10% or more. Industrial Development Zones (IDZs) have become a recognisable component of South Africa’s industrial sector. The fact that the country has long positioned itself as gateway to African markets, both financially and physically, has also served its industrial sector well. This chapter contains interviews with Lionel October, Director-General, Department of Trade and Industry; Geoffrey Qhena, CEO, Industrial Development Corporation (IDC); and Peter Matlare, CEO, Tiger Brands.
Explore chapterBusiness Process Outsourcing
Buy digital copy of this chapter - £18BPO has been a major growth area for the Philippines. The country benefits greatly from a well-educated, English-speaking labour force and now the industry is looking to crack the higher-value knowledge processing outsourcing (KPO) market, taking on back-office tasks like health care information management and legal transcription. With growth of 10-15% anticipated for the medium term, the outlook for the sector is rosy. Moreover, the BPO boom is sparking development and driving the real estate market in secondary cities, which reduces the economic orientation toward Manila. This section includes an interview with Lito Tayag, Country Managing Director, Accenture.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As in many other countries, the construction industry in Kuwait was one of the first-hit areas of the economy during the global recession. However, because of this, the sector is set to benefit from hundreds of billions of dollars in infrastructure spending to be spent over the next 20-25 years as part of Vision 2035. This investment will be staggered over a series of five-year plans, the first of which being the National Development Plan (NDP), which will run until 2014. Key to the NDP will be the development of several transport projects that will improve the efficiency of commuter and construction networks. In addition, a number of human development projects are in the works, with several universities, medical facilities and hospitals set to be built in the coming years. Residential construction is also a key aspect of the plans, and to help meet growing housing demand, the government is planning six new residential cities across the country with a total of 70,000 units. The government sees liquidity injection and private-sector participation as key means of achieving these ambitious targets.
Explore chapterEconomy
Buy digital copy of this chapter - £18Mongolia’s resource-based economy is forecast to be one of the fastest growing in the world over the next two decades. The two big stories of 2011 were Tavan Tolgoi, a coal mine now ramping up its production, and Oyu Tolgoi, a copper and gold mine that should begin operations in 2013. The IMF expects investment in these projects, and growth in spinoff industries, to drive GDP growth to 12% in 2012, and the government projects even higher growth, at 25%. However, economists are warning of “Dutch disease” whereby overreliance on resource exports crowds out manufacturing and boosts inflation. Investing in infrastructure and educating citizens to participate in a modern economy will be key to achieving diversified growth. This chapter features interviews with Ch. Ganhuyag, Vice-Minister of Finance and Founder, Mongolia Economic Forum; B. Ganzorig, Chairman, Foreign Investment and Foreign Trade Agency; Jim Dwyer, Executive Director, Business Council of Mongolia (BCM); and J. Odjargal, Chairman, MCS Group. It also includes a viewpoint from B. Byambasaikhan, CEO, Newcom Group.
Explore chapterMining
Buy digital copy of this chapter - £18Largely impervious to recent economic woes in the developed economies, Indonesia’s mining sector is riding high on a wave of high commodity prices. Meanwhile, the government has undertaken to revise regulations governing the sector in a bid to improve clarity and attract more investors. However, parliamentary opposition to some of the changes, including the removal of a requirement that foreign mining companies divest a majority of their companies to Indonesian entities, has resulted in uncertainty. Moreover, the government has clashed with mining companies over a measure that would require 99% refinement of all exports within five years of beginning production. Final clarification will be necessary to enable full investor confidence in this key sector. This chapter includes an interview with Martiono Hadianto, President Director, Newmont and Chairman, Indonesia Mining Association (IMA).
Explore chapterMakkah
Makkah’s Grand Mosque, which contains the Kaaba, is the holiest site in Islam and a place of pilgrimage for millions of Muslims worldwide. As pilgrim numbers continue to rise, the region’s hospitality and infrastructure services are witnessing significant expansion. Makkah currently has a total of 107,000 hotel rooms, with the wider Makkah region accounting for two-thirds of the Kingdom’s hospitality facilities. Meanwhile real estate saw strong growth in 2014 with the sector posting 22% growth in Makkah and Medina. Ongoing infrastructure upgrades include the Makkah Integrated Transport system. Announced in 2014, the system will feature a network of four metro lines covering a total length of 114 km, and a four-tiered bus system including bus rapid transit, local buses and a feeder service. Elsewhere, the $21bn expansion of the Grand Mosque, which began in the mid-2000s, is expected to boost its capacity to between 1.6m and 2.2m pilgrims when completed.
Explore chapterTransport
Buy digital copy of this chapter - £22Situated strategically in the UAE, Sharjah is a pivotal hub for transport and trade, bordering both the Gulf and the Gulf of Oman. Home to the country’s inaugural international airport and three major ports, Sharjah invests in sustainable transport aligned with the UAE's 2031 plan for advanced infrastructure. The ongoing SkyWay project, a revolutionary hanging railway system, aims to reduce congestion. The emirate is also enhancing its transport system by upgrading its bus network, transitioning taxis to electric vehicles, and seeing robust growth in the aviation sector, especially at Sharjah International Airport. With continuous road improvements, a national rail network and expanding ports, Sharjah is positioning itself as a sustainable transport model that provides a potential blueprint for other regions to emulate. This chapter contains interviews with Ali Salim Al Midfa, Chairman, Sharjah Airport Authority; and Adel Abdullah Ali, Group CEO, Air Arabia.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22The strengthening of Kuwait’s transport and logistics sector is central to the government’s overall diversification drive, as it underpins activity across the economy. Major infrastructure developments are taking place throughout the sector with more in the pipeline, as the relevant authorities and entities work to boost passenger and freight capacities. Action is being taken to resolve operational bottlenecks and support projects that have been put on hold, as the sector holds significant potential to unlock latent economic activity and attract high levels or international investment. For example, the Kuwait Ports Authority is working to establish the country as a regional commercial centre, in line with the goals of New Kuwait 2035. This chapter contains an interview with Dheeraj Bhardwaj, Group CEO of City Group.
Explore chapterTransport
Buy digital copy of this chapter - £22Abu Dhabi’s transport sector is an important driver of economic growth. The completion of stage two of the Etihad Rail network and the imminent opening of a new terminal at Abu Dhabi International Airport are among the sector’s key milestones. This sector has experienced significant gains, with tourism and commercial activities rebounding in the wake of the Covid-19 pandemic. Abu Dhabi continues to pioneer innovative solutions, such as autonomous vehicles, water taxis and artificial intelligence-driven traffic management, aimed at easing congestion and reducing pollution. However, the deployment of advanced technologies also presents regulatory and partnership challenges. Navigating these hurdles will require agile regulators and robust public-private collaboration. Innovation not only benefits Abu Dhabi residents, but also offers valuable insights for observers around the world who are keen to learn from the emirate’s experiences in pioneering modern transport solutions. This chapter contains interviews with Mohamed Ali Al Shorafa, Chairman, Abu Dhabi Department of Municipalities and Transport; and Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
Explore chapterICT
Buy digital copy of this chapter - £22Saudi Arabia's ICT sector stands as the largest and fastest-growing in the MENA region, valued at SR154bn ($41.1bn) as of 2022. The Kingdom's ambition has attracted global attention, with multinational ICT providers gathering annually for the LEAP tech conference and Global Cybersecurity Forum. As Saudi Arabia seeks to enhance connectivity and diversify its economy beyond hydrocarbons under Vision 2030, ICT continues to play a central role. Initiatives driving digital transformation encompass various sectors, including government services, banking and manufacturing, the last of which is embracing Industry 4.0 solutions. Saudi Arabia's digital ambitions have attracted major tech players and foreign investors, bolstering the ICT ecosystem. management. The country's commitment to providing the domestic workforce with the appropriate knowledge, skills and abilities for the future will be essential in assisting it to realise its goals. This chapter contains an interview with Mohammed AlShaibi, CEO, Tamkeen Technologies.
Explore chapterEducation & Health
While there are numerous primary and secondary institutions dispersed throughout Misrata, higher education is concentrated at Misurata University. Significant efforts have been made to overhaul the education sector to make up for limits previously placed on the curriculum and disruptions to schooling, especially for children and youth. The Ministry of Education came to an agreement with the minister of national education, preschool and sport in Morocco to enhance learning opportunities in the two countries. It encompasses various collaborative initiatives, including exchanging information and expertise in the preparation and training of educational, administrative and technical personnel. Integrating ICT and English-language instruction into the education sector will be pivotal to ensuring the global competitiveness of Misrata and the country’s labour force. The health care sector in Libya is on an upward trajectory following the disruption of the Covid-19 pandemic. With Libya and Misrata having implemented policies to deal with challenges related to the pandemic, private enterprises have the potential to play an essential role in the development of the sector going forwards. With the support of domestic and international entities, new infrastructure and funding mechanisms are being developed to support care provision. As stability returns to the country, particularly in Misrata, there are indications that the private sector has begun to see the current shortfalls in the health care market as an opportunity for investment, which has the potential to attract international capital to Libya. Furthermore, the implementation of a comprehensive health insurance project across multiple municipalities could strengthen the sector while increasing the viability of private medical care facilities. This chapter contains an interview with Abdulhamit Karanfil, Chairman, Libyan Turkish Hospital.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Bahrain’s construction and real estate sectors contributed a combined 12.5% to GDP in 2022, with the two recording growth of 1.4% and 5.5% for the year, respectively. They are engines for job creation, as the country’s economic diversification agenda includes major infrastructure projects. The development of high-value sectors has resulted in significant construction activity, with new and existing businesses establishing and expanding factories and facilities. Bahrain’s economy makes it an attractive investment destination in the GCC, and its growing population means that there is a need for a greater volume and more diverse range of residential properties. A number of new affordable homes have hit the market in recent years, and the government continues to work with the banking sector to launch new mortgage products to help Bahrainis in the low- to middle-income brackets buy homes. This chapter contains interviews with Ahmed Alammadi, CEO, Diyar Al Muharraq and Mohamed Abdulghaffar Al Kooheji, CEO, Kooheji Contractors.
Explore chapterTourism
Buy digital copy of this chapter - £22Tourism in Djibouti is an essential component of the country's economic diversification push, with the goal of attracting 500,000 visitors by 2035 set to make the sector a key source of economic growth and employment going forward. With the introduction of new airports and routes, there has been a significant increase in international arrivals. Major hotel projects have attracted investment and catered to the needs of visitors, bolstering the hospitality sector. Looking ahead, Djibouti's future tourism development will focus on offering ecotourism experiences, leveraging its unique natural landscapes and biodiversity. This strategic approach aims to promote sustainable tourism practices while providing visitors with the opportunity to explore and appreciate Djibouti's diverse offerings. This chapter contains an interview with Osman Abdi Mohamed, Director-General, National Tourism Agency of Djibouti.
Explore chapterAgriculture
Buy digital copy of this chapter - £22Agriculture remains a linchpin of Nigeria’s economy, contributing nearly 25% to GDP and employing 70% of the country’s workforce. To leverage its arable land and favourable climate, and reverse its status as a net food importer, greater investment is needed to develop Nigeria’s downstream food processing and agri-business industries. The sector faces a number of challenges across its value chain, while global factors continue to affect prices. Climate change is exacerbating these challenges, as Nigeria experienced widespread flooding in September and October 2022. A combination of new initiatives and a stronger resolve to address the challenges facing the sector could improve output and quality. This chapter contains interviews with Ayodeji Balogun, CEO, AFEX Commodities Exchange; and Sefihait Kone, Managing Director, Bayer Nigeria.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Construction activity will be key to realising the objectives of Oman Vision 2040, which prioritises diversifying the economy away from a reliance on hydrocarbons revenue. Public-private partnerships present an opportunity to accelerate progress towards strategic goals such as affordable housing while also preserving public finances. Matching real estate supply with the precise demands of the residential and commercial segments will remain important as economic activity recovers from the Covid-19 pandemic. Meanwhile, the opportunity for non-Omanis to obtain residency visas through property investment is expected to raise the sultanate’s appeal to international investors in 2023 and beyond. Construction remains one of Oman’s largest non-hydrocarbons sectors and is therefore an important driver of economic diversification. The sector contracted by 16.9% in real terms in 2020, based on the latest available data from the Central Bank of Oman and the National Centre for Statistics and Information.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22Under its overarching economic development plan, New Kuwait 2035, the government is working to strategically harness the country’s location on the Gulf to transform its transport and logistics industries into key contributors to GDP. Several significant upgrades to existing transport infrastructure are at an advanced stage, while a new logistics belt is a key component of the Madinat Al Hareer, or Silk City, development – New Kuwait 2035’s flagship project. However, progress on a raft of other proposed developments that could, if completed, unlock latent economic potential for the country has stalled in recent years due to both internal and external factors, including political disagreements, complex business procedures and fluctuating international oil prices. Within the context of the Covid-19 pandemic, the importance of strong infrastructure and logistics became more evident than ever. It brought a renewed determination from Kuwait’s authorities to modernise transport infrastructure to the level required to fully realise its economic diversification plans, and facilitate the movement of people and goods within and across borders.
This chapter contains an interview with Maen Mahmoud Razouqi, CEO, Kuwait Airways.
ICT
Buy digital copy of this chapter - £22Saudi Arabia’s ICT sector is primed for considerable expansion in the coming years as digital technologies become ever-more central to cross-sectoral operations and performance. Recently, the government has made significant financial and time savings after successfully shifting many internal processes and public services online, raising efficiency, productivity and coordination across and between its various ministries. Multiple government bodies have been formed over the past decade to oversee the progressive integration of disruptive digital innovations into daily life, with notable expansion in the e-banking and e-commerce spaces signalling an increased public appreciation of and familiarity with electronic processes. This chapter contains interviews with Osama Al Dosary, CEO, Salam; and Omer Alnomany, CEO, solutions by stc.
Explore chapterICT
Buy digital copy of this chapter - £22Côte d’Ivoire is one of the most developed telecommunications markets in West Africa. Its mobile phone penetration rate was 162% in 2021 and continues to grow as Ivorians use multiple SIM cards to take advantage of promotional offers. There is strong competition between the existing mobile network operators, each of which has invested heavily in expanding and improving their coverage and services. As more affordable smartphone options enter the market and 4G and 5G services are rolled out, mobile internet usage and mobile money subscriptions will continue to grow. Expanded fixed-line internet infrastructure is also a key development, with a growing number of Ivorians signing up for fixed-line fibre-optic internet services. This chapter contains an interview with Fatoumata Bâ, Founder and Executive Chair, Janngo Capital.
Explore chapterIndustry
Buy digital copy of this chapter - £22The manufacturing sector is the second-largest contributor to non-oil GDP, behind financial services. Some of the kingdom’s key industrial players have expanded their production capacity in recent years, significantly bolstering heavy industry and downstream potential, most notably in the aluminium segment. Aluminium is Bahrain’s biggest non-oil export, and Aluminium Bahrain is integral to overall industrial performance. Strong logistics infrastructure is integrated with a network of industrial and free zones, where foreign and local investors enjoy a range of regionally competitive incentives. This chapter contains interviews with Ali Al Baqali, CEO, Aluminium Bahrain; and Abdulwahab Al Sadoun, Secretary-General, Gulf Petrochemicals and Chemicals Association.
Explore chapterAgriculture
Buy digital copy of this chapter - £22While Egypt’s agriculture sector is well established, the country continues to face challenges related to climate change, urbanisation, a rapidly expanding population, and food and water insecurity. For instance, some related industries were notably affected by Covid-19 pandemic restrictions and disruptions to the global supply chain. Egypt was among the most affected by the February 2022 invasion of Ukraine, as it is the world’s largest wheat importer, with 80% of its wheat originating from Russia and Ukraine. However, the government has introduced reforms aimed at improving irrigation techniques and cultivation efficiency to reduce water and food insecurity. For instance, nearly 60 desalination plants are now in operation processing 440,000 sq metres of water per day, and the country aimed to open 39 additional plants as of mid-2021. Moreover, private investment, mechanisation and digitalisation could modernise methods and inputs.
Explore chapterTransport
Buy digital copy of this chapter - £22Qatar’s air and sea ports have long been central to the country’s economic expansion. Most recently, the 2010 announcement that the country would host the 2022 FIFA World Cup accelerated the government’s drive to upgrade transport infrastructure, prompting significant increases in public financing. There is also a renewed emphasis on sustainability in the sector, as the development of environmentally friendly infrastructure and services is a key component of Qatar National Vision 2030. Indeed, the more efficient movement of people and goods is at the heart of the country’s broader economic development plans, and the diversification of trade routes helped the sector and the wider economy manage recent disruptions. With the roll out of Covid-19 vaccines having facilitated a return to economic activity and travel worldwide in 2021, along with the lifting of the economic blockade early that year, Qatar’s transport sector appears well placed to build on its role as an engine for broad-based growth. This chapter contains interviews with Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail, and Minister of Municipality; and Neville Bissett, Group CEO, QTerminals.
Explore chapterIndustry & Retail
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Industry has been a significant source of economic growth for Ghana in recent years, a trend that continued despite the Covid-19 pandemic. While in the past industrial development has been tied to resource endowments such as cocoa, mining and crude oil, diversification of the industrial sector has been a priority of the government since 2017, with a series of fiscal measures aimed at tackling structural challenges. Similarly, Ghana’s retail sector has expanded in recent years, bolstered by rising living standards and lower levels of unemployment. This trend continued into 2021, despite a modest slowdown in response to the pandemic when social-distancing measures resulted in falling foot traffic in shopping venues. Overall, the continued expansion of e-commerce has the potential to support the country’s long-term economic recovery.
This chapter contains interviews with Hayssam Fakhry, Managing Director, Interplast; and Ramesh Sadhwani, Co-CEO, Melcom.
Construction & Real Estate
Buy digital copy of this chapter - £22Construction in Nigeria has recently been constrained by relatively low public investment and high operating costs. Moreover, its real estate sector experienced a challenging 2020, characterised by a drop in demand, movement restrictions and global supply chain disruptions. However, renewed prioritisation of infrastructure projects – particularly in energy, housing and transport – is expected to drive recovery as the country bounces back from the Covid-19 crisis. Looking ahead, one segment poised for growth is affordable housing. The authorities’ prioritisation of developing such units and facilitating cheaper mortgage options should help more residents become homeowners in the coming years. Overall, reducing dependence on imported building materials is key. While border closures and transit restrictions stalled building activity, it also prompted developers to source materials locally – a trend that is expected to continue. This chapter contains an interview with Babatunde Fashola, Minister of Works and Housing of Nigeria.
Explore chapterThe Guide
The Guide contains listings of leading hotels and resorts in Sharjah for both business and leisure travellers, helpful information for new arrivals to the emirate and details on current visa requirements for tourists.
Explore chapterDigital Economy
Buy digital copy of this chapter - £22Philippine authorities have worked to develop the digital economy in recent years, prioritising strengthened internet service provision and a more competitive telecoms market. The country saw an increased reliance on online services and digital technologies, such as e-commerce, during the its extended lockdown period in response to the Covid-19 pandemic. This increased the impetus for players across the value chain to strengthen ICT infrastructure, fast-track the digitalisation of business processes and prepare to upskill the workforce for the new normal. Meanwhile, the versatility of the business process outsourcing industry during the quarantine period, alongside an expanding start-up ecosystem and the entry of a third telco in 2021, signals potential for the digital economy to enhance the post-pandemic recovery. Measures to accelerate digital development look set to improve the ease of doing business, create a more attractive destination for investment, and ultimately facilitate more inclusive and sustainable economic growth. This chapter contains interviews with Marc Carrel-Billiard, Global Senior Managing Director and Technology Innovation Lead, Accenture Labs; and Simoun Ung, President and CEO, OmniPay.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The government has demonstrated notable early enthusiasm to boost the ease and transparency of land ownership processes, which should stimulate activity in the construction sector. Recent years have seen the industry hindered by vulnerability to foreign currency shortages, limited availability of land for development, a lack of transparency and insufficient human capital. Ongoing efforts to improve road connectivity and affordable housing supply are also poised to provide steady demand for construction around urban areas, before expanding outwards into rural communities. Housing availability is indeed a pressing issue, especially as real estate prices have been driven up by the limited availability of land and high cost of construction. The government has prioritised this issue and shown its commitment to improving the supply of basic utilities to support developers and local communities. There is also potential for both affordable and high-end developments to be buoyed by large-scale extractives deals, which would increase demand for property and provide trickle-down benefits for the wider economy. This chapter contains an interview with Brian Hull, Executive Chairman, Century 21 Siule.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18In recent years Abu Dhabi and the wider UAE have passed several important milestones in terms of security, aerospace and defence strategy. In 2019 Hazzaa Al Mansoori, an astronaut born in Al Wathba, roughly 45 km outside Abu Dhabi City, became the first Emirati to visit the International Space Station. The mission helped to raise the profile and popularity of the UAE’s National Space Programme, under which the country aims to reach Mars by 2021, among other objectives. In 2020 the country plans to launch its Hope probe, which is scheduled to reach Martian orbit by 2021, marking the 50th anniversary of the UAE. At the same time, 2019 saw the development of new long-term strategies for aerospace and cybersecurity, alongside a major merger of defence sector entities. Meanwhile, the UAE Armed Forces continued to play a crucial role in ensuring regional stability. This chapter contains an interview with Mohammed Al Ahbabi, Director-General, UAE Space Agency.
Explore chapterInfrastructure & Transport
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For many years, Indonesia’s sizeable infrastructure gap has hindered industrial development. On Java – the country’s most densely populated island – roads, airports and seaports are under pressure due to the large amount of people and goods that need to be moved. At the same time, Indonesia faces challenges connecting other islands across the vast archipelago. Due to this, infrastructure and transport have been key priorities for the government in recent years. At the start of his second term in office in 2019, President Joko Widodo, better known as President Jokowi, launched a $412bn programme to boost investment in the country’s transport infrastructure. While infrastructure development is likely to be affected in the short term by the disruptions caused by the global outbreak of Covid-19 in early 2020, the government is working to ensure that major projects are attractive to private investors in the coming years. This chapter contains interviews with William Sabandar, President Director, Mass Rapid Transit Jakarta; and Liew Mun Leong, Chairman, Changi Airport Group.
Transport
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Côte d’Ivoire’s transport sector has attracted significant attention in recent years due to the extensive infrastructure projects that are under way throughout the country, concurrently enhancing air, sea, rail and road connectivity. These projects are set to enable greater passenger flows and increased cargo capacity. While infrastructure development is imperative for the country’s economic growth and offers opportunities for investment, the ongoing development of major projects risks adding strain to Côte d’Ivoire’s existing road, port and rail networks. Funding from a number of multilateral and international organisations, as well as some domestic firms, will provide a greater amount of support to the government’s financing efforts. In the long term this is set reduce the time and cost of transporting passengers and goods, leading to enhanced economic opportunity and improved quality of life, particularly for those in the country’s urban centres. This chapter contains an interview with Asta-Rosa Cissé, Managing Director, Abidjan Terminal/Bolloré Transport & Logistics.
Explore chapterJeddah
Buy digital copy of this chapter - £18Located on Saudi Arabia’s Red Sea coast, Jeddah is the Kingdom’s second most-populous city after the capital Riyadh, and serves as a key commercial and logistics centre. Recently completed and ongoing developments to enhance Jeddah’s transport infrastructure will continue to strengthen the city’s position as a key thoroughfare for both cargo and visitors to the holy cities of Makkah and Medina and the surrounding area. Although visitor numbers will dip as a result of the Covid-19 pandemic, in the long term the city will be able to leverage relaxed visa regulations and the increased capacity of its hotels. This chapter contains an interview with Mohammed Yousuf Naghi, Chairman of the Board of Directors, Jeddah Chamber of Commerce and Industry.
Explore chapterUtilities
Buy digital copy of this chapter - £18With GDP growth expected to stay around the 2% mark for 2020 and 2021, the utilities sector is likely to see sustained demand growth and a stable pace for planned infrastructure development. The Al Karshaah solar project should remain the most closely watched project in the power sector, and coupled with potential photovoltaic developments at the QEERI facility, Qatar may transform into a world leader in solar technology. Government bodies are working hard to ensure there is sufficient generation capacity and transmission infrastructure to support the smooth running of the 2022 FIFA World Cup, and the expansion and diversification of the country’s industrial sector. This chapter contains an interview with Essa bin Hilal Al Kuwari, President, Qatar General Electricity and Water Corporation.
Explore chapterConstruction & Real Estate
Morocco’s construction sector has performed moderately well since the global financial crisis of 2007-08. Public policy efforts have also been directed towards supporting local small and medium-sized enterprises and upskilling workers. For Morocco’s construction sector to achieve its target of generating $8.4bn by 2022, it will need to maintain a steady momentum of public investment. At the same time, efforts to upgrade the legal framework in order to enable effective public-private partnership projects, formalise small-scale subcontractors and upskill the workforce will be required to raise productivity and increase the value of infrastructure projects. Meanwhile, the real estate sector recorded a subdued performance on most indicators in 2019, as prices and demand continued to fall or show little improvement. Nevertheless, construction will drive on across all real estate segments, as Morocco experiences rapid population and economic growth. This chapter contains interviews with Nouzha Bouchareb, Minister of National Planning, Urban Planning, Housing and Urban Policy; and Nawfal Bendefa, Managing Partner, REIM Partners.
Explore chapterConstruction & Real Estate
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Following a period of subdued activity, a steady flow of projects in 2019 has seen Trinidad and Tobago’s construction industry return to healthier growth. Construction activity still remains confined to a small number of projects, which are largely driven by public sector spending. Nevertheless, major developments such as the TAB airport extension, road network upgrades and housing construction initiatives should help the sector to recover, particularly with a slightly higher state budget in 2020. There are signs of recovery in the real estate market, particularly as the need for long-term, affordable housing continues to drive the lower end of the property market. In order for the residential segment to see healthy growth in the years ahead, both the public and private sector will need to ensure that this demand is adequately met. This chapter contains interviews with Jean-Paul de Meillac, CEO, Terra Caribbean; and Emile Elias, Chairman, NH.
Explore chapterIndustry & Retail
Ghana’s industrial sector has emerged as a significant driver of growth in recent years as the country leverages its abundant natural resources to diversify the economy and attract investment. Industrial development and import substitution underscore major projects and initiatives throughout the sector, and the government has simultaneously implemented business reforms and fiscal measures in order to tackle structural challenges and improve investor confidence. Rising living standards, falling unemployment rates and lower inflation point to a turnaround in consumer demand in Ghana in the years ahead. After a slowdown in the uptake of retail space, renewed consumer confidence and increasing purchasing power could provide renewed impetus for the growth of the retail sector. This chapter also contains interviews with Kojo Aduhene, CEO, LMI Holdings; and Ramesh Sadhwani, Joint Managing Director, Melcom Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Bahrain’s construction sector was one of the fastest-growing non-oil sectors. Its expansion was supported by a surge in investment into infrastructure for energy, manufacturing and real estate. Rates of growth and lending have risen steadily on the back of a major oil and gas modernisation programme and a number of big-ticket projects. Real estate in Bahrain has remained resilient in the face of successive macroeconomic challenges, maintaining a positive growth trajectory in recent years even as rental and occupancy rates declined across the residential, commercial and hospitality segments. While developers have struggled with oversupply and weakening demand – particularly for luxury residential space – lower property prices have created new opportunities for businesses in the kingdom, where office space remains significantly less expensive than Abu Dhabi and Dubai. This chapter contains interviews with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company; and Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority.
Explore chapterReal Estate
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Oman’s real estate market has continued to feel the effects of slower economic growth over the past year. Rental rates have declined by more than 25% since recent highs were reached in 2014, and 2019 saw prices continue to fall amid concerns about oversupply and expatriate workers leaving the country. The residential segment has been the most affected, with a large amount of recent developments placing pressure on rental and sales prices. However, with strong growth expected in the retail and industrial sectors, related real estate offerings present unique opportunities. The sector’s primary regulatory body is the Ministry of Housing. This chapter contains an interview with Nasser Al Sheibani, CEO, Al Mouj Muscat.
Explore chapterTransport & Infrastructure
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Myanmar’s success in improving its transport infrastructure is clearly illustrated by developments in Yangon, the country’s commercial capital. Yangon International Airport, for instance, has undergone significant upgrades and now has an annual capacity of 20m passengers. Upgrades are also being made to the Yangon Circular Railway. Older buses that once contributed heavily to air pollution have mostly been replaced, and a modern bus service is in operation. The city is also served by 50,000 taxis and a catamaran water bus service. Ports are being modernised as well, with work on a 400-metre wharf near the Thilawa Special Economic Zone completed in December 2018. A new $290m container terminal on the Yangon River has received in-principle approval, and a deepwater port at Kyaukphyu in Rakhine State is in the pipeline as part of China’s Belt and Road Initiative. Nevertheless, transport infrastructure in the countryside remains below standard. This chapter contains an interview with Shinichi Kitaoka, President, Japan International Cooperation Agency.
Explore chapterConstruction & Real Estate
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Construction in Dubai was a major factor in the expansive economic growth seen in the early 2000s. However, the sector has witnessed a slowdown in recent years as lower oil prices depressed consumer demand. This was particularly the case for real estate, which slowed building activity. The investment prospects associated with Expo 2020 and a raft of regulatory reforms aimed at attracting foreign investors have helped to stabilise the real estate market, and many industry players are optimistic that the period of lower growth levels is coming to an end. The authorities are confident that Expo 2020 will not only stimulate real estate activity, but also the wider economy.
Explore chapterEnergy & Utilities
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With the sixth-largest proven oil reserves in the world, Kuwait is among the world’s principal hydrocarbons powers. The Gulf country is also one of the top energy sector investors, with a range of mega-projects under way. While the sector is a national industry, Kuwait is also a destination for international players, with a range of contract and tendering opportunities available, from the upstream to the downstream segment. Because of its established nature, shifting the balance towards more sustainable sources is an ongoing challenge, as is fully utilising resources to promote economic diversification. Nonetheless, Kuwait has advanced on some key projects to meet these challenges through an ambitious sector development programme. This chapter contains interviews with Hashem Hashem, Deputy Chairman and CEO, Kuwait Petroleum Corporation; and Emad Sultan, CEO, Kuwait Oil Company.
Explore chapterHidalgo
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With an economy traditionally based on mining, Hidalgo had lagged behind some of Mexico’s more prosperous and dynamic regions. However, the new administration has actively sought to foster growth in new sectors including renewable energy, sustainable transport, agro-industry, pharmaceuticals and chemicals; develop infrastructure; and create a more business-friendly regulatory framework. As a result of these efforts, it has recently recorded growth and foreign direct investment figures that exceed the national average. Hidalgo also has several advantages including close proximity to Mexico City and major road networks, a range of both new and well-established industries operating in the area, and a young and educated workforce. This chapter contains interviews with Omar Fayad Meneses, Governor of Hidalgo; José Luis Romo Cruz, Executive Secretary of Public Policy; Sergio Vargas Téllez, Secretary of Economic Development, State of Hidalgo; Camilo Serrano, General Manager for Mexico, Atlas Renewable Energy; and Cassiano De Stefano, CEO, Grupo Modelo.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18The quality of a destination’s transport infrastructure is key to attracting foreign investment. In Papua New Guinea this is an area with room for improvement. The poor condition of roads, ports and airports has raised the cost of doing business and rendered a number of sectors of the economy increasingly uncompetitive. Because of this, inland transport costs currently account for 10-15% of the on-board price at the port. Since potholed roads and poor connectivity can cause delays in fresh farm produce reaching the market on time, transport infrastructure also impacts the agriculture sector. Therefore, supermarkets in Port Moresby are stocked with imported fruits and vegetables, while many varieties produced in the Highlands go to waste. This chapter also contains an interview with Alan Milne, Managing Director, Air Niugini.
Explore chapterAgriculture
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As advancements in irrigation and mechanisation are boosting efficiency and profitability, considerable improvements in infrastructure are still required, as is the organisation of farms and supply chains to ensure long-term development. Boosting competitiveness so that producers and exporters are able to take advantage of the opportunities provided by the Deep and Comprehensive Free Trade Area is particularly important. The government has a vital role to play in achieving these objectives in terms of investing in infrastructure and logistics, pro¬viding a robust legal framework and improving access to financing to stimulate further private investment. This chapter contains an interview with Abdellatif Ghedira, Executive Director, International Olive Council; and Mohsen Boujbel, General Manager, VACPA Boudjebel.
Explore chapterTourism
Tourism in the Philippines has seen considerable growth in recent years, with over 7000 islands and an abundance of rich cultural traditions making the archipelago a regionally competitive destination. The closure of popular destination Boracay for six months in 2018 shone a light on other destinations and allowed the sector to diversify its offerings to cater to a wider array of tourists, as well as boost the country’s reputation for being sustainable and environmentally aware. The government’s goal of attracting 12m tourists per year by 2022 will be aided by the emergence of new coastal and island destinations, combined with the growth of medical tourism, cruise tourism, and the meetings, incentives, conferences and exhibitions segment. This chapter also contains interviews with Alan Peter Cayetano, Chairman, Philippines South-east Asian Games Organising Committee; and Pocholo D Paragas, COO, Tourism Infrastructure and Enterprise Zone Authority.
Explore chapterIndustry & Retail
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Industrial expansion has played a leading role in the Philippines’ economic progress, with industry’s value added doubling between the 1980s and early 2000s. From a manufacturing standpoint, a number of inherent advantages make the country an enticing production base and consumer market, including its strategic location, large population, and burgeoning middle class. However, congested transport networks and the relatively high cost of power have restricted progress. Favourable macroeconomic conditions – lower inflation and increased purchasing power – have bolstered consumer confidence in the Philippines. Likewise, enhanced business strategies and new product lines have played a key role in expanding the retail sector in recent years, as has the continued development of e-commerce and smartphone penetration. This chapter also contains interviews with Satoru Suzuki, President, Toyota Motor Philippines; Gerard Brimo, Chairman and CEO, Nickel Asia Corporation, and Chairman, Chamber of Mines; and John Murphy, CFO and Former President for Asia Pacific, Coca-Cola Company.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Colombia’s geographic and climatic advantages, alongside its numerous developments, place it in good stead to become a more prominent regional and global player in food production. Efforts to boost financial capacity, especially of small-scale producers, should lead to greater productivity and higher margins for stakeholders along the value chain. Further prioritisation of agro-industry is a key trend that will play out over the coming years, as the country looks to add value to its wide array of produce, with a particular focus on lucrative export markets in Europe, the US and beyond. However, it remains to be seen how the industry can become a driver of broader economic growth, but the rebirth of rural Colombia will be key to any future success.
Explore chapterIndustry & Retail
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The industrial sector returned to growth in 2018, with production, exports and investment growing substantially after four years of contraction. Improvements have come largely through the expansion of manufacturing, including the production of a range of higher-value-added products, along with processed fish and agro-industrial goods. In order to sustain and expand this development, the government is pursuing a number of programmes emphasising the diversification of exports, coupled with domestic policies to improve competitiveness. The retail sector has lead growth in the Latin American market in recent years, driven by the expansion of shopping malls, promotions and discount prices at supermarkets and pharmacies, and an expanding consumer base. The sector is expanding and strengthening its various formats whether that is through increasing store-based retailing or e-commerce, while stakeholders are work to take advantage of the growing middle-class consumer base. This chapter contains an interview with Toshiro Hayashi, CEO, Toyota del Perú.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction industry is poised to remain one of the most dynamic sectors of the economy. This has been apparent in an increase in the number of large-scale projects involving transport, energy, utilities and urban development. This ongoing burst of construction activity is part of an effort to address infrastructure gaps, and improve Egypt’s standing among domestic and international investors. On the other side of the spectrum, real estate developers have been able to adapt their offers to the new needs of Egyptian buyers, and have progressed with ongoing plans for housing, office space and new retail areas. Efforts to construct new cities and the New Administrative Capital are also driving innovation within the sector. Even with a long list of construction projects in the pipeline a significant amount of attention and resources in the sector will be directed towards housing and other real estate developments in the near term. This chapter contains interviews with Hassan Allam, CEO, Hassan Allam Holding; and Ahmed Zaki Abdeen, Chairman, New Administrative Capital for Urban Development.
Explore chapterInfrastructure & Transport
Buy digital copy of this chapter - £18Inadequate infrastructure has long been a challenge for Indonesia, the world’s largest archipelagic state. With more than 17,000 islands and a population of around 265m, it may be the most complicated country in the world in terms of logistics. Since President Joko Widodo was inaugurated, transport and infrastructure investment has become a key pillar of the Indonesian government’s policy agenda. The scale of infrastructure investment under “Jokowinomics” significantly exceeds that of previous administrations. Among the administration’s initial aims was the construction of 1000 km of toll roads, over 3000 km of railways, 15 airports, 24 seaports, 33 dams and power plants to supply 35,000 MW of energy, altogether costing some $355bn. A further 2650 km of new non-toll roads are targeted in the government’s National Medium-Term Development Plan 2015-19. This chapter also contains interviews with Luhut Panjaitan, Coordinating Minister for Maritime Affairs, and Bambang Brodjonegoro, Minister of National Development Planning.
Explore chapterJeddah
Buy digital copy of this chapter - £18As Saudi Arabia’s second-largest city, Jeddah serves as an important commercial centre and is also the setting for a series of important developments currently under way, which will secure its place on the map as a regional economic centre. While Jeddah already boasts the biggest seaport on the Red Sea and is the gateway to the holy cities of Makkah and Medina, it is also set to become home to new tourist destinations and the world’s tallest building, the Jeddah Tower. As such, the city will play a central role in achieving the Kingdom’s aim of reducing its dependence on oil and diversifying its economy, as laid out in the long-term development blueprint Saudi Vision 2030. This chapter contains an interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterUtilities
Buy digital copy of this chapter - £18In the two decades since it first began exporting liquefied natural gas, Qatar’s economy and population has expanded rapidly, increasing demand for electricity and water. A report published in 2015 noted that the utilities sector accounts for most of Qatar’s natural gas consumption. From 2007 to 2017 the country’s annual consumption of natural gas doubled from 24bn cu metres to 47.4bn cu metres, according to BP’s “Statistical Review of World Energy 2018”. In 2018 the country set the goal of boosting annual LNG output by 43% to 110m tonnes by 2024, the demand for which is expected to surge in the medium term given a number of major infrastructure projects in the pipeline, including a metro rail network and the planned city of Lusail.
Explore chapterTransport
Buy digital copy of this chapter - £18Sri Lanka has a total of 12,290 km of national highways, 1561 km of rail tracks, two international airports and four seaports. In order to boost the local economy and quality of life, the cultivation of an effective, reliable and cost-efficient transport system has been a priority for successive governments, albeit with varying degrees of success. Improvement plans in the pipeline include light rail transit and bus rapid transit systems in Colombo; the new transport system and port within Port City Colombo; the expansion of the Port of Colombo through the East Container Terminal; an overhaul of road and railway infrastructure; and improved airport infrastructure and technology. Sri Lanka is encouraging more public-private partnerships (PPPs) and created a new PPP Unit within the Ministry of Finance in order to facilitate more private sector involvement in infrastructure development. This chapter contains an interview with Bai Jingtao, Managing Director, China Merchants Port Holdings Company.
Explore chapterUtilities
Buy digital copy of this chapter - £18With strong private sector and foreign investor engagement, the utilities sector in Abu Dhabi is one of the most enduringly attractive to a wide range of businesses. Despite the economic slowdown of recent years, vital big-ticket projects in areas including nuclear energy, solar energy and desalination are continuing to progress at pace. The power and water sector is overseen by several bodies, reflecting the UAE’s federal nature and the relevance of these industries to the public interest. As home to the capital and the vast majority of the UAE’s hydrocarbons resources, Abu Dhabi is central to federal decision-making. Power and water are closely related in the UAE, since most desalination units from which potable water is derived are linked to power plants. This chapter contains an interview with Mohamed Jameel Al Ramahi, CEO, Masdar.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Dubai’s economy went through several years of expansive growth in the years following the turn of the millennium, with much of this driven by an active and rapidly expanding construction sector. Indeed, such was the pace and scale of activities at the time that a popular claim had it that the emirate was home to around 20% of the world’s cranes at the height of the boom in 2006. Even though growth levels are not what they once were, Dubai’s construction industry continues to play a significant role in its economy, and the emirate has become a global leader in terms of the value of its ongoing projects.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Growth in the construction sector is principally influenced by government investment and the implementation of infrastructure, energy and residential housing projects. Indeed, about 80% of turnover from the sector comes from public projects. After delays in public infrastructure projects in 2017, 2019 is looking bright for public investment in mega-projects. Meanwhile, the slew of foreign investment in the real estate sector in 2018 signals the high level of international confidence in the market, which is expected to remain strong in the years to come. Promising segments are luxury real estate and retail. To ensure inclusive growth within the sector, the government will continue to carry out its social housing programme through to 2020. This, together with increased private sector participation and the construction of middle-income units, is set to help curb the lodging deficit that has challenged the country for many years. This chapter contains an interview with Karim Beqqali, CEO, Yamed Capital.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Building on years of robust growth in the sector, Ghana has launched a multifaceted programme to increase its industrial capacity and output. This wave of new initiatives is designed to strengthen the investment environment and boost the value-added component of the country’s manufactured exports. In 2017 manufacturing contributed $6.1bn to GDP, some 12% of the total. Moreover, the combination of a buoyant economy and demographic shifts such as rapid population growth and rising urbanisation levels are driving new trends in the Ghanaian retail sector. International brands and mall developers are becoming increasingly present, and the scope for the expansion of modern retail is considerable, following a decade where GDP grew by between 2% and 14% in any given year. This chapter contains an interview with Michael Okyere Baafi, Executive Secretary, Ghana Free Zones Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18A major contributor to employment and GDP, the Bahraini construction sector has continued to expand in recent years, despite slower regional growth. This performance continued into the first half of 2018 with an uptick in activity, supported by a series of major infrastructure projects, in part financed by neighbouring GCC states. Furthermore, with demand for transportation and industrial facilities set to rise and a number of new projects in the pipeline, the sector appears set to remain busy over the coming years, despite constraints on the government’s capital expenditure budget. This chapter contains interviews with Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Côte d’Ivoire has been undertaking ex¬tensive public infrastructure works with a notable focus on transportation, which accounted for 9% of GDP in 2018. Over €10.7bn is being devoted to roads and the wider transport sector under the National Development Plan 2016-20, yet the great¬est challenge remains developing and maintaining an integrated logistics network. Several projects are under way in air and maritime transportation, such as the continu¬ous development of the national carrier, Air Côte d’Ivoire, and the expansion of the two major ports of Abidjan and San Pedro. These investments are set to secure the country’s position as a regional transit hub. However, the country still needs to address its logistical issues, caused primarily by the fragmented market, though consolidation and investments by international players is starting to address the issue. This chapter contains an interview with Hien Yacouba Sié, General Manager, Autonomous Port of Abidjan.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Myanmar’s manufacturing sector reached a turning point in 2018 as liberalisation, tax reforms, infrastructure improvements and the development of special economic zones helped turn the country from a low-cost regional production base to a rising manufacturing destination with capacity on the rise. The sector has an advantage due to the country’s relatively low operating costs, favourable demographics and liberalising government policies. Myanmar’s retail segment has boomed in the years since the economy was liberalised, with foreign goods hitting the market and local sellers making their offer more sophisticated. Legacy retail conglomerates are investing in Western-style upgrades to supermarkets and malls, and foreign investors are entering into joint ventures to bring technical know-how. Foreign loans and investment in the retail sector are also bearing fruit. This chapter contains interviews with U Win Aung, Chairman, Myanmar Thilawa SEZ Holdings; and Daw Win Win Tint, CEO and Founder, City Mart Holding.
Explore chapterReal Estate
Buy digital copy of this chapter - £18As Oman’s economy starts to feel the effect of resurgent oil prices, its gradually recovering property market is creating brand new opportunities for both tenants and property buyers. Although a growing number of departing expatriates, rising Omani unemployment rates and limited salary increases have limited the property market’s potential since the decline in oil prices starting in 2014, the sultanate’s young population and carefully managed economy ensure that it continues to possess the fundamentals necessary for long-term investment value. This chapter contains an interview with Sheikh Salim bin Ahmed Al Ghazali, Chairman, Golden Group of Companies.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In an effort to meet the infrastructure needs of a growing population and facilitate increasing exports of industrial and agricultural products and minerals, the government sees a robust and stable construction industry as a key component of its vision for the future. Even as the overall economy has slowed, the sector has remained a consistent engine of growth. The building materials segment, which grew by 16.3% in the first quarter of 2018, is particularly promising as Algeria builds on recent investments in manufacturing plants and shifts its focus to scaling up exports. After a decade of rising prices, the Algerian real estate market experienced a gradual slowdown in 2017 and through most of 2018. This chapter contains interviews with Abdelwahid Temmar, Minister of Housing and Urban Planning; and Li Jian, Assistant President, China State Construction Engineering Corporation (CSCEC), and Chairman, CSCEC Algeria.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Long a critical sector for the Nigerian economy, agriculture recorded steady growth throughout the country’s recent recession and supported macroeconomic stability against a backdrop of volatility in the global oil market. Although the sector’s workforce, exports and GDP contribution have fallen in recent decades, as oil and gas production became Nigeria’s economic mainstay, the country is home to vast amounts of arable land and a large, diverse production base that includes many high-value cash crops, offering significant opportunity for development and investment. Recognising the sector’s high growth and export potential, the federal government of Nigeria has increasingly focused on agricultural development as a support mechanism for macroeconomic and non-oil growth. This chapter contains an interview with Audu Ogbeh, Minister of Agriculture and Rural Development; and a roundtable with Chaim Zach, Managing Director and CEO, Agric International Technology and Trade; Kabiru Rabiu, Group Executive Director, BUA Group; and Aliyu Abbati Abdulhameed, Managing Director, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.
Explore chapterEnergy & Utilities
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The energy sector is the backbone of Kuwait’s economy, accounting for 90% of both exports and government revenue. Major projects led by state-owned companies responsible for the extraction, processing and marketing of oil and gas also drive the non-oil economy by supporting tens of thousands of jobs in engineering, construction and support services. Despite the fall in oil prices, progress on these projects and investment in new technology continues. With self-imposed production cuts coming to an end, the strategic intent is to transform Kuwait from a country that primarily pumps and exports crude oil, to one with an integrated energy industry. Goals include optimising oil extraction, realising the full potential of domestic natural gas fields and doubling refining capacity to produce cleaner fuels and increased volumes of feedstock for a more diversified downstream sector. This chapter contains an interview with Nouf Al Abdul Razzaq, General Manager, BP Kuwait.
Explore chapterTourism
With new promotional campaigns and its popular “Djibeauty” slogan, the country has garnered positive attention from international media and received prestigious accolades in recent years. As outlined in the Djibouti Vision 2035 strategy, the government’s national development policy launched in 2014, economic diversification beyond trade will rely heavily on the country’s ability to sustainably develop its tourism offerings. While there has been some success in boosting investment in infrastructure, which is key to facilitating tourism, the country still has a long way to go in terms of improving international connectivity and domestic accessibility for it to become a top tourist destination. This chapter contains an interview Osman Abdi Mohamed, Director-General, National Tourism Office of Djibouti.
Explore chapterAgriculture
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Agriculture remains a significant part of the Kenya economy, however, growth was slowed by several hurdles, most prominently a drought that the state declared to be a national disaster. The drought restrained domestic production of staple crops such as maize, leading to food scarcity and steep rises consumer inflation. Despite the lower grain output, production of horticultural crops marked an all-time high and remained crucial sources of foreign exchange earnings. Meanwhile, meeting the ambitious target set by the Big Four agenda, which aims to transform Kenya from a state incapable of satisfying domestic demand into a food-secure country, will require mitigating dependence on rainfall, diversifying the nation’s staple basket and supporting smallholders. This chapter contains an interview with Agnes Kalibata, President, Alliance for a Green Revolution in Africa.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector has the potential to satisfy the housing demands of Trinbagonians, improve the transport infrastructure and support economic growth over the long term. Local professionals have been largely responsible for the built environment of Trinidad and Tobago until recently, and the domestic sector still has strong potential to develop local capabilities outside T&T. However, proper planning is required to ensure that the sector can advance in a way that safeguards the interests of the country’s future generations. In the face of subdued demand and the resulting competition for tenants, developers are adapting to the shifting demographics and rising requirements for improved service delivery and amenities in the office and residential segments. Longer-term growth will be largely dependent on the health of the economy, as this could once again shift the dynamics of real estate in T&T. As the economy rebounds, market demand is expected to gradually catch up to supply. This chapter includes an interview with Meng Yan, Managing Director, China Railway Construction (Caribbean) Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Developing Papua New Guinea’s infrastructure has long been a challenge due to its diverse terrain and unevenly distributed population. However, increased public investment is expected to boost the transport sector. Long-term projects, such as the Sustainable Highlands Highway Investment Programme, being executed by the Asian Development Bank in partnership with the government, and the Civil Aviation Development Investment Programme should also bolster domestic and international connectivity, as well as the expansion of key industries. This chapter contains an interview with Paul Abbot, CEO, PNG Air.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Accounting for roughly 16.7% of Argentina’s GDP, manufacturing was the largest contributor to the economy in 2017. Industrial output is highly diversified within the sector. In 2017 food and beverage processing comprised 30.9% of gross production value. This was followed by chemicals manufacturing (13.6%); motor vehicle and auto parts manufacturing (7.4%); petroleum refining and nuclear fuel (6.4%); and base metals production (5.7%). While estimates vary, the government predicts that construction, agriculture and energy production, along with the continuation of liberalising reforms, will encourage economic growth in 2018. After the manufacturing industry, the wholesale, retail and repairs sector is the second-largest component of Argentine GDP, contributing 13% in 2017. Looking forward, retail will witness a moderate growth tied to the improving performance of the economy and the reconfiguration of financial policies. This chapter includes interviews with Dante Sica, Minister of Production; and Miguel Acevedo, President, Argentine Industrial Union.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18In 2017 Peru was struck by the El Niño Costero floods, and some industrial segments were forced to stop production as a result. Despite that, significant growth in non-primary manufacturing segments – such as food products, paper and cardboard, and construction equipment and machinery – helped the sector record a relatively positive outcome for the year. Moreover, driven by the expansion of shopping malls, low prices at supermarkets and pharmacies, and a growing middle class, the retail industry grew by 4.3% in 2017 and is projected by the Lima Chamber of Commerce and the Retail Labour Union to grow by up to 6% in 2018. Furthermore, the 2017 Global Retail Development Index claimed that Peru’s retail industry recorded the largest growth in Latin America, despite an economic slowdown. Peru ranked 9th out of 30 countries based on market attractiveness, country and business risk, market saturation and time pressure. This chapter includes interviews with Rafael Álvarez, CEO, Backus; and Mario Campodónico, CEO, Supermarket Division, Cencosud Perú.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism remains one of the primary drivers of economic growth in Thailand. The sector’s positive performance can be partly attributed to a number of inherent pull factors, including a welcoming culture, abundant natural resources, biodiversity and relative affordability. However, infrastructure has struggled to keep up with the fast-paced growth in visitor numbers, a situation that has led to overcrowding at popular beaches and long lines at airports. To tackle these problems, officials have looked to upgrade transport links and diversify tourism offerings around the country. Recent years have also seen authorities working to reach more high-end travellers, and a number of initiatives have been introduced that aim to position Thailand as an upmarket tourism destination. This chapter contains interviews with Weerasak Kowsurat, Minister of Tourism and Sports; and Dillip Rajakarier, CEO, Minor Hotels; and COO, Minor International.
Explore chapterNuevo León
Buy digital copy of this chapter - £18Posting a GDP growth rate of 3.9% in the first half of 2017, Nuevo León outpaced the national economy, which grew at a rate of 2.5% over the same period. Despite a challenging year of slow growth in 2016, the manufacturing sector remained the main driver of the state’s economy in 2017. Though the US continues to be Nuevo León’s largest trading partner, the state has pushed to diversify its economy and ensure long-term growth by expanding beyond export-oriented industrial production. The state government actively supports mining and agricultural production, the construction of energy and transport infrastructure, and the enhancement of competitiveness and productivity through investment in research and development. Nuevo León’s reputable universities and its high level of formal sector employment are additional assets that should help the state prepare for the future. This chapter features interviews with Fernando Turner Dávila, Secretary of Economy and Labour, State of Nuevo León; and Omar Díaz, President, Neoris.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18A pillar of one of Asia’s rising economies, the Philippine industrial sector posted another strong performance in 2017, growing by 7.6% despite recent geopolitical turbulence related to the 2016 election. Manufacturing output increased by 8.5%, bolstered by expansion in each of its core segments of electronics, food and beverages, chemicals and furniture. Riding the wave of consumer confidence that has remained relatively steady since the presidential election in 2016, the Philippine retail sector scores well in global rankings for development potential. With a population of over 105m and a growing consumer middle class, per capita GDP reached around $7700 at purchasing power parity in 2017, moving ahead of India. This chapter contains an interview with Inanc Balci, CEO and Co-founder, Lazada Philippines.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Tanzania’s telecoms industry is considered as a model for development in sub-Saharan Africa. The sector has recorded rapid growth in activity, supported by some of the lowest user tariffs in Africa, speedy smartphone and mobile broadband uptake, and steady investment in infrastructure and next-generation service expansion. However, sustaining growth will require telecoms operators to navigate a handful of obstacles, including one of the highest tax rates in Africa, as well as a recent push by the government to expedite required initial public offerings on the Dar es Salaam Stock Exchange. Although these challenges could weigh on future revenues, the country’s relatively low levels of mobile broadband penetration, combined with demand for cashless banking services and new investment in infrastructure, should keep telecoms growing steadily over the medium term. Improvements in and expansion of ICT services have accelerated in Tanzania over the last decade, supported by new submarine cable connectivity, successful completion of a National ICT Broadband Backbone project and rising investment in mobile broadband networks. However, the country’s large rural population and substantial small and medium-sized enterprise segment means that internet penetration remains low and ICT services are out of reach for most businesses. Steadily rising demand for next-generation services and rapid growth in e-government and e-payment systems could see that change in the coming years, with internet adoption, mobile broadband network coverage and digital financial services set to continue on a strong growth path into 2018. This chapter contains an interview with James Kilaba, Director-General, Tanzania Communications Regulatory Authority.
Explore chapterHealth
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Rapid expansion is under way in Sharjah’s health care sector, as the emirate looks to meet the needs of both an expanding population and heightened demand for high-end medical services – changes that are highlighted by the opening of hospitals, clinics and pharmacies, as well as the development of the new Sharjah Healthcare City. As a result, the sector’s value will rise from some $2bn in 2016 to reach $2.4bn by 2019, according to the Sharjah Investment and Development Authority. This chapter contains an interview with Taher Shams, Managing Director, Zulekha Healthcare Group.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Having a strategic location along one of the world’s busiest maritime trade routes, Sri Lanka is well positioned to capitalise on rising Indian Ocean trade volumes. Under the auspices of the economic development strategy Vision 2025, released in 2017, authorities are moving to transform the country into a leading global trans-shipment and logistics hub. Sri Lanka benefits from a deepwater coastline, giving it a competitive advantage over India. Cargo volumes at the country’s maritime hub, the Port of Colombo, have risen steadily in recent years, with the port recording double-digit growth in 2016. However, delays in building the East Container Terminal, the port’s next phase of expansion, weighed on operations in 2017. This chapter contains an interview with Julian Bevis, Senior Director, Group Relations, South Asia, Maersk Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Following global trends, the Tunisian telecoms industry has continued to move from fixed telephony into mobile, sustained by a rise in data use and the ongoing expansion of smartphone penetration rates. This has opened up the sector to new product development and expansion opportunities, despite the market’s small size relative to some of its regional neighbours. The telecommunications sector is certain to remain fundamentally important to Tunisia’s economic and social development in the years to come. However, the country’s continued sensitive fiscal position – which has pushed the government to look for additional revenue – presents a risk of lowering of the sector’s growth potential over the short-, medium and long term.
Explore chapterTourism
Buy digital copy of this chapter - £18With sweeping desert landscapes alongside natural and man-made wonders, tourism is an important facet of Jordan’s economy. Visitors flock to the country to see the fabled ancient city of Petra, take in important holy sites for Christians, Jews and Muslims, and bathe in the Dead Sea. While continued tension in the region has dented tourist numbers over the last few years, there are signs that this is turning around, with marketing strategies now in place to better promote the kingdom and further develop niche tourism segments, such as adventure, film and medical tourism. International hotel chains continue to add to the number of rooms available in the kingdom, establishing the foundations for long-term growth. This chapter contains an interview with Lina Annab, Minister of Tourism and Antiquities.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Myanmar’s recent economic growth, low wages and favourable tax exemptions have spurred the arrival of international manufacturers. To support this trend, the government has enacted a range of policies to promote the development of special economic zones (SEZs) and industrial clusters. Manufacturing capacity is on the rise as a result, helping to diversify the economy away from its traditional reliance on agriculture. Maturing consumption patterns have likewise captured the attention of some of the world’s leading consumer brands, which now occupy retail shelves across the country. Real annual sales growth reached 4.3% between 2013 and 2015, higher than that of Cambodia, Laos, Thailand and Vietnam. This chapter contains interviews with U Khin Maung Cho, Minister of Industry; Takeshi Minakata, Managing Director, Myanmar Brewery; and Daw Marlar Win, Chairperson, UMG Myanmar.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18While 2017 saw the construction sector’s rapid growth slow somewhat, Bahrain has an impressive pipeline of projects lined up for the next few years. A strong focus on transportation and industrial infrastructure, as well as the construction of tens of thousands of affordable housing units, is expected to be among the key drivers of growth for the sector in the near future, with much of this coming from government-backed projects tied to Bahrain’s Economic Vision. Strong real estate growth continues with a number of residential, commercial and hospitality developments coming on-line in 2017 and 2018. However, rental prices have not been immune to the ongoing regional challenges, notably lower oil prices, with rents dropping in 2017 for residential real estate, and remaining subdued for the office sector. Despite this, the overall volume of real estate transactions has grown, with strong demand from locals and residents from countries in the region.
This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterRetail
Buy digital copy of this chapter - £18Political stability and continued economic growth are fuelling the development of the retail industry. This is attracting new consumer goods manufacturers to the country and driving the development of new shopping outlets with diverse offerings to cater to changing consumer habits. The number of retail points is growing through both brick-and-mortar expansion and e-commerce platforms, as more Ivorians – especially in the major cities – gain access to the internet. Competition is also picking up in modern retailing as international players look to expand their networks of both large-scale supermarkets and hypermarkets. Abidjan has been the main focus of this development, however, as the market matures vendors will likely allocate more resources to less-developed areas.
This chapter contains an interview with Nasser Seklaoui, Director-General, SOCIAM/NASCO.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Construction remains one of the most important contributors to the domestic economy. In 2016 the sector’s output increased by 10.3%, a significant uptick after growing at an average of 5.3% in the preceding four years. This growth trend was largely maintained in 2017, expanding by 7.3% in the first nine months of FY 2016/17. The Egyptian real estate market has proven itself remarkably resilient to the political and economic tensions experienced previously in the country. However, while the industry has historically been seen as a safe bet in uncertain times, economic headwinds – especially strong in late 2016 and the first half of 2017, stoked by government reform efforts – are proving to be a tougher proposition.
This chapter contains interviews with Hassan Allam, CEO, Hassan Allam Holding; Osama Bishai, CEO, Orascom Construction; Magued Sherif, CEO, Sixth of October; and Ashraf Dowidar, CEO, ARDIC.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Market pressures have continued to weigh on Oman’s real estate sector since oil prices fell from their historic highs, driving the sultanate to adjust to lower revenue by trimming budgets and paring back some investment. Growth in public payrolls and jobs – a key driver of real estate demand – slowed in 2016 as the government reduced spending by 7.5% to tackle a fiscal deficit surpassing 20% of GDP; weaker economic conditions have likewise constrained job creation in the private sector. This deceleration has put pressure on both demand and property prices. While residential rents in Muscat, normally a sector bellwether, were 20-25% below their 2014 peak in September 2017, there are hopes they are beginning to stabilise.
Explore chapterTourism
Buy digital copy of this chapter - £18Contributing 8.1% to GDP and accounting for 7.1% of employment in 2016, tourism holds an important place in Morocco’s economy, with 2017 garnering strong results. Despite having faced some challenges, the country has a number of favourable factors to build upon, such as its political stability, new infrastructure developments and multiplying air connections. While the sector is still far from achieving its 2020 target of 20m arrivals, the latest figures signal an uptick in activity, demonstrated by growing inflows, an increasing number of overnight stays and new infrastructure. Even with these successes, however, sector leaders have identified weaker areas to focus on, such as relatively low average occupancy rates. In the meantime, Morocco’s niche tourism segments – notably seaside, business, and meetings, incentives, conferences and exhibitions – are seeing marked progress, thanks to proactive source market diversification and targeted travel promotions.
Explore chapterMaritime
Buy digital copy of this chapter - £18Over the past half-decade Dubai has risen into the upper echelons of the global maritime industry. In April 2017 it was named the fifth-most competitive maritime cluster in the world, and the 10th maritime capital overall by the Norway-based Menon Business Economics Group, which publishes a bi-annual report on the international maritime industry. The report measures various cities on attractiveness and competitiveness, technology, finance and law, ports and logistics, and shipping. As the 10th-highest-ranking centre, Dubai was rated best in the MENA region. Furthermore, this is a notable rise from the previous edition, published in 2015, in which Dubai ranked 13th overall. The report predicts that Dubai will continue to grow in importance in coming years, becoming the sixth most-important maritime centre by 2022.
This chapter contains an interview with Sultan Ahmed bin Sulayem, Chairman, Dubai Maritime City Authority.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry is at the centre of government plans to transform the economy from one reliant on its resource base to one driven by value-added exports. The current administration has laid out a series of plans to achieve these goals and build strong value chains around key industries, announcing a number of policies designed to support the industrial agenda and expand production. The performance of the retail sector has generally reflected that of the wider economy, and as Ghana is a particularly price-sensitive market, the inflationary environment and subsequent decline in spending have affected segments such as food and luxury goods. However, the long-term opportunities in the market are promising, thanks in large part to Ghana’s young and growing population; more than 50% of citizens are under the age of 25, providing a stream of tech-savvy and eager consumers.
This chapter contains interviews with Kais Marzouki, CEO, Nestlé Central and West Africa Region; and James Asare-Adjei, Former President, Association of Ghana Industries, and CEO, Asadtek Group.
Explore chapterJeddah
Buy digital copy of this chapter - £18As the second-largest city in Saudi Arabia, Jeddah plays a central role in the Kingdom’s non-oil economic growth, largely due to a combination of its roots in shipping and trade, and its importance as a transit point for millions of visitors travelling to the holy cities of Makkah and Medina each year. Major infrastructure projects in the city are set to underpin growth across various sectors in the coming years – including industry, tourism and logistics – while also positioning the broader region as a principle contributor in achieving the country’s longer-term goals under Saudi Vision 2030.
This chapter contains and interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterICT
Buy digital copy of this chapter - £18Technological advances over the past decade have played a fundamental role in transforming business practices and promoting a new digital culture in Algeria. A major shift in Algeria’s IT landscape has taken place following the arrival of 3G and 4G technologies, with the internet penetration rate jumping from 25.6% in 2014 to 71.2% by the end of 2016. Although still under consideration, the approval of the proposed telecoms law could help boost investment and new projects, while expansions of fibre-optic networks and international submarine cables will solidify the country’s internet connections, in turn opening possibilities for innovation, start-ups and partnerships.
This chapter contains an interview with Riad Hartani, Strategic Technology Adviser, Algiers Smart City project.
Explore chapterUtilities
Buy digital copy of this chapter - £18Driven by large energy-intensive developments and a rapidly growing population, demand for electricity and water has surged in Qatar over the past decade. Peak power demand on the country’s networks has more than doubled since 2006, while water consumption has also increased in tandem with the country’s development. Base case assumptions issued by government regulators and procurement agencies forecast strong demand growth over the next several years in both water and power as the country gears up to host the 2022 FIFA World Cup. Power generation and desalination capacity has continued to grow since 2007. With considerable capacity coming on-line in 2018 and the Qatar Power Transmission System Expansion project entering its 13th phase, supplies of power and water are well positioned to meet growing demand.
This chapter contains an interview with Essa bin Hilal Al Kuwari, President, Qatar General Electricity and Water Corporation (Kahramaa).
Explore chapterInfrastructure
Buy digital copy of this chapter - £18An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing $414.6bn of new public works projects between 2015 and 2019, including large-scale transportation, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to deliver planned projects, with dozens of state actors collaborating to develop new infrastructure policy, including an organised framework for public-private partnerships, new finance models and risk management reforms. Public expenditure on infrastructure is expected to hit a historic high in 2017.
This chapter contains interviews with Bambang Brodjonegoro, Minister of National Development Planning; and Jin Liqun, President, Asian Infrastructure Investment Bank.
Explore chapterAgriculture
Buy digital copy of this chapter - £18As Nigeria’s economy contracted in 2016, the country’s agriculture sector took on even more importance. Long touted as a remedy to the West African nation’s dependence on oil, agriculture is now seen as a potential economic saviour. Before hydrocarbons became the main source of economic growth and export revenue, agriculture dominated the local economy. A number of indicators have been stalled in a low-growth pattern for decades; however, they are now beginning to move in the right direction. Despite some challenges and a high food import bill, the agriculture sector continues to grow.
This chapter contains interviews with Audu Innocent Ogbeh, Minister of Agriculture; Rahul Savara, Group Managing Director, TGI Group; and Bukar Tijani, Regional Representative for Africa, UN Food and Agriculture Organisation.
Explore chapterTransport
Buy digital copy of this chapter - £18A challenging, disparate geography and low population density have created a unique set of issues for Papua New Guinea’s transport industry. Costs are high across all major modes of transport, and a lack of connectivity presents a serious challenge to doing business outside of Port Moresby. The country’s recent construction boom in the lead up to ExxonMobil’s $19bn liquefied natural gas project has not been as beneficial to public spending as initially anticipated, and budgetary shortfalls caused by low global commodities prices and a wider macroeconomic slowdown have significantly affected the delivery of planned new transport upgrades. As a result, public spending on transport is projected to further contract every year until 2021.
This chapter contains an interview with Richard Yolo, Acting Managing Director, National Airports Corporation.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Economic stability, comparatively well-developed infrastructure and competitive investment incentives have attracted a steady flow of financing to Thailand’s manufacturing sector from both foreign and domestic sources, resulting in one of the strongest manufacturing bases in the ASEAN region and the second-largest economy within the trade block. These investments – made initially in basic industrial areas such as auto manufacturing, simple electronics and food products – have laid the groundwork for future steps up the value chain, while also providing an export-driven stream of revenue for the government to provide further improvements to infrastructure and financial incentives. This chapter contains interviews with Kanit Sangsubhan, Secretary-General, Eastern Economic Corridor Office; Roongrote Rangsiyopash, President and CEO, SCG; and Markus Lorenzini, President and CEO Thailand, Siemens.
Explore chapterEnergy
Buy digital copy of this chapter - £18With about 6% of the world’s proven crude oil reserves Kuwait plays a major role in global energy markets. However, its reliance on a single commodity which is prone to significant fluctuations in value also presents challenges for the economy as a whole, and the energy sector in particular. According to estimates from the US Energy Information Administration, Kuwait’s total export revenues in 2015 were $40bn, compared to $119bn in 2012. Although the country has accumulated significant savings over the years, giving it fiscal buffers to weather lower oil prices in the short term, falling income has given greater impetus to long-term plans to boost production, increase upstream efficiency and diversify downstream industry, so that Kuwait can optimise the value of its natural resource endowment and pass on the benefits to its citizens.
This chapter contains an interview with Jamal Jaafar, CEO, Kuwait Oil Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18A gradual recovery in the number of projects on construction firms’ order books for 2017 is expected. Current performance in the sector hints that an improvement could come, based on a moderate pick-up in the energy sector and greater public sector demand. Progress is being made to develop public-private partnerships and push forward with the project pipeline. Although the real estate market has slowed somewhat during the course of 2016, the domestic residential market continues to show signs of relative strength, while the luxury and energy-related sectors have seen a cooling off. However, estate agents and industry executives note that the sector has experienced these cycles before and is on track for recovery.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector is the third-largest sector as a source of new employment and employs 8.5% of the workforce. The sector is poised to continue to grow over the coming years, which makes the issue of infrastructure expansion critical. High logistical costs make Colombian businesses less competitive internationally, but infrastructure investment programmes, such as the 4G programme and the PMTI, are likely to reduce operational costs with benefits trickling down to consumers and through the economy overall. Furthermore, the establishment of a long-term perspective for the advancement of multi-modal transport ensures that the development of the infrastructure will remain a priority for the country’s economic development agenda. This chapter includes interviews with René Puché, President, Port of Barranquilla; and Juan Camilo Samacá, President, Almaviva.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18While there are disagreements regarding the short-term economic forecast for industry, the consensus for 2018 is considerably more upbeat. By that time, reconstruction and other infrastructure projects should be well under way, delivering the positive shock that the domestic economy, and the sector, urgently requires. In addition, the retail sector in Peru has been the second-fastest-growing sector of the economy over the past decade, after construction, driven by rising consumer spending. Retail sales peaked at $64bn in 2013-14, before falling back to an average of $61bn in 2015-16, in line with the slightly cooler economy. Peru’s total private consumption has more than doubled in nominal terms since 2007 to peak at $132bn in 2014, easing a little in 2014-16 to around $126bn, and the country ranks seventh in the region for this indicator, meaning that there is tremendous room for growth.
This chapter includes interviews with Alfredo Pérez, General Manager, Alicorp, and Juan Pablo García Bayce, General Manager, Gerdau Siderperú.
Explore chapterUtilities
Buy digital copy of this chapter - £18With widespread coverage of potable water, wastewater and electricity networks, Abu Dhabi maintains utility services that are on a par, if not better than, many countries in Europe and North America. At the same time, the emirate’s government has been committed for many years to boosting power and water infrastructure further, with 2017 seeing some of the world’s most advanced projects in these spheres. At the same time, utilities development is also being carried out within the framework of the Abu Dhabi Economic Vision 2030, which includes clear environmental and sustainability goals. While many of Abu Dhabi’s power and water projects and facilities are famed for their size, future expansion is based on quality and innovation, giving the emirate a place at the forefront of technological and scientific development in the utilities field.
This chapter contains interviews with Sheikh Abdulla bin Mohammed Al Hamed, Chairman, Regulation and Supervision Bureau; and Mohamed Al Hammadi, CEO, Emirates Nuclear Energy Corporation.
Explore chapterPlantations & Agriculture
Buy digital copy of this chapter - £18A long-time economic mainstay and the country’s primary employer, the agriculture sector makes up 9% of Sri Lanka’s GDP and is a significant source of foreign exchange. With the exception of rubber, all of the country’s major agricultural exports saw growth between 2010 and 2015. Export earnings increased during the same period, with agricultural exports comprising around one quarter of the total. The sector includes an established plantation segment, producing mainly tea, coconut and rubber, and a less-established food crop production segment, which produces fruits, vegetables and other crops, predominantly for domestic consumption.
This chapter contains interviews with Navin Dissanayake, Minister of Plantation Industries; and Jayantha Karunaratne, Chairman,Tea Exporters Association.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The often-overlooked industrial sector continues to largely impress investors, as manufacturing is currently one the best-performing segments not only in the Philippines, but in South-east Asia as a whole. Apart from its favourable location in a rapidly growing region, the Philippines has a distinct advantage thanks to its large, relatively low-cost yet highly educated labour force. Although starting from a comparatively low base, the value of the industrial sector – which includes the subsectors of manufacturing, mining and quarrying, construction, and electricity, gas and water – has expanded rapidly in recent years from $26m in 2000 to $86.7m in 2015.
This chapter contains interviews with Patrick Henry Go, President and COO, JG Summit Petrochemicals Group; and Jonathan C Ng, President, Republic Biscuit Corporation.
Explore chapterEnergy
Buy digital copy of this chapter - £18While Tunisia has far fewer oil and gas reserves than its neighbours, it was not until the late 1990s and early 2000s that the country’s demand began surpassing domestic production. It was then that Tunisia became dependent on foreign energy imports, and began diversifying its energy mix through renewables and efficiency campaigns to curb consumption. Local authorities are now looking to revise Tunisia’s hydrocarbons code and further promote foreign investment in the country’s relatively small oil and gas industry, especially given the low lifting and breakeven costs. Nevertheless, developing local energy production through renewables and domestic oil and gas requires a number of reforms that have proven challenging to implement against the backdrop of post-revolutionary governmental and economic uncertainties.
This chapter contains an interview with Saïd Mazigh, General Manager, Carthage Power Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport and logistics are at the core of Kenya’s economic narrative due to the country’s role as a trans-shipment hub for goods moving on to landlocked countries in East and Central Africa. The Port of Mombasa is a crucial landing point for goods, and links to the Northern Corridor that runs west across the country to the neighbouring markets of Uganda, Rwanda, Burundi and the Democratic Republic of Congo. Serving the region means maintaining sufficient transport and logistics capacity for now and for the future, meaning that the government is expending significant capital on transport networks, often in collaboration with private investors. The transport sector is a core part of Kenya’s economic strategy. The Standard-Gauge Railway project, efficiency upgrades at the Port of Mombasa and enhancement of other ports and transit corridors are central to the effort to compete with neighbouring countries’ projects. Being at the developmental forefront of transport infrastructure will help Kenya recapture some lost revenue and maintain its leading transit role in the region.
This chapter contains an interview with Frank Matsaert, CEO, TradeMark East Africa.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The rollout of new free trade agreements gives Vietnam added possibilities to export its agricultural goods, but tapping these markets will require an enhancement of the sector’s sustainability. This effort is likely to involve the consolidation of smallholders, lack of which has so far prevented the country from transitioning into a key agricultural export player. Also on the agenda are food safety, environmental impact, increasing the export of high-end manufactured products, diversification and commercialisation of by-products. The government has put forth sector goals it wants to see accomplished by 2020 that involve drastic reforms in promoting science and technology for increasing productivity and development, and creating high-quality and competitive products, all while improving farmers’ livelihoods.
This chapter contains an interview with Tiet Van Thanh, General Director, Vietnam Bank for Agriculture and Rural Development.
Explore chapterSan Luis Potosí
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Of all the places vying to be industrial and logistical hubs, San Luis Potosí perhaps lays the best claim to being in the middle of everything. San Luis Potosí is as central as it can be relative to the economic centres of the country. In 2015 the state’s economy expanded by 5.4% compared to 2.6% growth at the national level, putting it in fifth place out of 32 states in terms of GDP growth. Despite unavailable official state figures for 2016, San Luis Potosí is again expected to more than double the nation’s rate of growth, with 2.3% forecast for Mexico and 4.6% for the state. While the uncertainty that has been ushered in with the new US administration may have lowered expectations in the short term, there are several encouraging signs that industrial growth is set to continue apace in the region. Central players in San Luis Potosí’s private sector are, therefore, expecting the region to keep growing for many years. This chapter includes interviews with Juan Manuel Carreras, Governor of San Luis Potosí, Gustavo Puente Orozco, Secretary of Economic Development; and Vicente Rangel Mancilla, CEO, Grupo Valoran, and CEO, Grupo Ranman.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As of the end of 2016, Egypt’s telecommunications sector was strongly positioned for future growth. With more than 95m mobile subscribers, the nation’s three mobile telecoms providers – namely Vodafone Egypt, Etisalat Misr and Orange Egypt – are investing heavily in network expansion, quality of service improvements and new technologies. This has accelerated in recent months, following the National Telecom Regulatory Authority issuance of four 4G LTE licences in mid-2016. While the licensing of 4G LTE service providers in Egypt bodes well for consumers, the operators face a tightening competitive environment. Furthermore, all three mobile operators report relatively narrow margins and various infrastructure-related challenges, while mobile data – and smartphone usage – is still seeing slow uptake. The steady advance of ICT over the past decade has left Egypt’s tech industry in a strong position, despite the nation’s ongoing economic and political challenges. The country has seen a significant rise in internet penetration in recent years, as a result of growing usage among middle-class Egyptians and the business community, rapidly expanding international bandwidth, as well as the accompanying lower tariffs. While Egypt’s strong fundamentals, state-led support programmes and large tech-savvy workforce bode well for the future of the domestic ICT industry, numerous challenges lie ahead.
This chapter contains an interview with Ashraf Sabry, CEO, Fawry.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As the third-largest economy of the seven emirates that make up the UAE, Sharjah has a large population and a strategic location for regional connectivity, as well as significant real estate activity, all of which contribute towards an expanding construction sector. The emirate has several major real estate projects under construction, many of which are mixed-use developments that could have a big impact on the emirate’s property market. The opportunities available in Sharjah today have drawn the interest of many more companies from the rest of the UAE, and from other GCC countries, to get involved in the near future, further opening the emirate to outside investments.
Explore chapterTransport
Buy digital copy of this chapter - £18After missing out on needed maintenance and expansion work over the past decade, Côte d’Ivoire’s transport infrastructure is receiving some overdue attention. Expansion of transport networks across the country has become imperative, with a headline growth rate of 8.4% in 2016, and increasing urbanisation putting pressure on existing networks. Increased congestion, from both higher domestic and international trading, is putting added strain on roads, ports and railroad systems. However, recent reforms have bolstered the transport sector’s physical infrastructure, including the growing use of the public-private partnerships as a means to attract private financing and management into strategic infrastructure such as ports, airports and land transport routes. This chapter contains interviews with Ibrahima Koné, Director-General, Quipux Afrique; and Abdoulaye Coulibaly, Chairman, Aeria & Air Côte d’Ivoire.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With a raft of measures aimed at improving infrastructure, industry, housing and connectivity, the government of Bahrain has a $32bn investment strategy to accelerate economic diversification in the kingdom, providing abundant opportunities for the country’s construction sector. Even against a backdrop of falling oil prices that has seen the cancellation or deceleration of infrastructure investment in some neighbouring economies, Bahrain’s construction businesses have continued to outperform most other sectors. Some neighbouring GCC countries have stood by their 2011 commitment to finance $10bn in mega-projects in Bahrain over 10 years through the Gulf Development Fund (GDF), which has allowed construction to press ahead on some schemes despite a projected budget deficit of $4bn posted by the kingdom for both 2015 and 2016. According to Bahrain’s Economic Development Board, the aggregate value of GDF projects under way by August 2016 reached $4bn. This included a $1.1bn airport expansion project.
This chapter contains interviews with Faisal Faqeeh, Chairman, Bin Faqeeh Real Estate Investment Company; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Sentiment in Oman’s real estate sector remains cautiously upbeat in the face of a downturn in the global price of oil and the consequent impact on government spending plans in the sultanate. Residential rental prices have softened in some areas, with landlords preferring to trim prices to avoid untenanted periods in their properties, but in new fashionable developments lettings and sales have been holding firm. This is particularly true in the planned communities known as Integrated Tourism Complexes, which have been popular with Omanis as well as international buyers. In the retail and hospitality sectors several ambitious projects are either in the planning stages or under way, driven by optimism among larger corporate investors about the medium-term prospects of a country with a rapidly growing population and a long track record of peace and stability. This chapter contains an interview with Nasser Al Sheibani, CEO, Al Mouj Muscat.
Explore chapterMining
Buy digital copy of this chapter - £18The immense wealth that lies beneath Myanmar’s soil continues to entice prospectors from around the globe, and recent structural reforms are expected to bolster the sector and attract much needed capital. The nation’s first democratic government has shown determination to remedy past wrongs and clean up a sector that has immense potential to fuel growth. However, the new administration has inherited a wealth of intricate challenges that will require a vast amount of resources to resolve. Given the country’s geology and the passing of long-awaited legal amendments, most of which are geared towards promoting foreign participation, mineral exploration is expected to accelerate.
This chapter contains interviews with U Ohn Winn, Minister of Natural Resources and Environmental Conservation; and U Nay Win Tun, Chairman, Ruby Dragon Group of Companies.
Explore chapterSétif
Buy digital copy of this chapter - £18With the nation’s largest industrial park set to be built in Ouled Saber, Sétif is set to benefit from an increasing flow of private and public investment into sectors such as electronics, automotive and agri-industry. The new enterprises emerging in the Sétif region will provide employment opportunities for thousands of people, while also advancing the province’s importance as a key contributor to Algeria’s economy.
Explore chapterTransport
Buy digital copy of this chapter - £18Economic development continues to drive Ghana’s need for expansion and renovation of transport infrastructure. With ongoing offshore activities and an increasing number of construction projects across the country, the government recognises the need for reliable transport services. As the country works to situate itself as a key gateway to West Africa and with an economy set to grow more quickly than the global average, its transport infrastructure will continue to require expansion and modernisation. Plans are in place for making promising improvements over the next decade and the government is eagerly pursuing private partners to help, creating opportunities for qualified investors.
This chapter contains an interview with Richard Anamoo, Director-General, Ghana Ports and Harbours Authority.
Explore chapterICT
Buy digital copy of this chapter - £18Technological transformation and supportive state policies have led to 15 years of rapid growth in the kingdom’s ICT sector, now among the largest in its economy. Liberalisation in the 1990s and early 2000s made its telecoms industry one of the most open in the MENA region, but in recent years both telecoms and IT growth have suffered as a result of slowing macroeconomic growth, weakening global and domestic demand, and, in the telecoms sector, a high tax environment. Recognising the challenges facing the sector, the government has unveiled a host of new policies aimed at returning growth to pre-2009 levels. On the IT side, a new 10-year roadmap, REACH 2025, will help bolster competitiveness, human resource development, access to finance, investor incentives and Jordan’s IT export development.
This chapter contains an interview with Majd Shweikeh, Minister of ICT.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Already the most developed market in Central Africa, according to the International Telecommunications Union, the expansion of Gabon’s ICT sector is high on the government’s priority list for the coming years, as it continues to push for economic diversification and private sector development. In 2015 the sector accounted for 5% of the economy, according to the National Agency for Digital Infrastructure and Frequencies. However, the government has laid out ambitious strategies to broaden access and inclusion, which will require significant capital investments, particularly in rural areas, which may become more difficult in light of the government’s slowing revenues.
This chapter contains a roundtable with Abderrahim Koumaa, Director-General, Gabon Telecom; Alain Kahasha, Managing Director, Airtel Gabon; and George Akoury, CEO, Azur Gabon.
Explore chapterJeddah
Buy digital copy of this chapter - £18Spurred by rapid population growth and mounting public and private investment, Jeddah – Saudi Arabia’s second-largest city – is on the rise. Since the early 1990s the population of its urban area has more than doubled, reaching 4.1m residents as of the end of 2015. While this growth has slowed somewhat over the past half decade, from a high of 3.4% in 2011 to 2.6% in 2015, rising economic uncertainty across much of the Gulf and wider Middle East has driven increased investment in Jeddah over the same period. Indeed, as of January 2016, more than 850 development projects worth a combined SR74bn ($19.7bn) were under way across the municipal region, including state-led initiatives aimed at upgrading and expanding transport infrastructure, power and sewage networks, and education provision.
This chapter contains interviews with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry; and Hussein S Al Amoudi, Chairman, Shamayel United Development Company.
Explore chapterEnvironment
Buy digital copy of this chapter - £18Morocco has established a solid legal framework in recent years to encourage the development of renewable energy and the implementation of energy efficiency strategies. With the impact of climate change becoming more apparent in the country, the government has developed several initiatives to lower greenhouse gas emissions and improve its management of water resources. In the context of urban sprawl and its impact on water supply and natural ecosystems, Morocco has put in motion a robust plan aimed at enabling the country to better adapt to climate variations.
This chapter contains an interview with Hakima El Haite, Minister of Environment.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although perhaps no longer able to boast more cranes operating within its boundaries than in all the other cities of the world put together, Dubai is still comfortably one of the world’s leading centres for the construction industry. Major projects continue to roll out, while existing ones finish off or evolve into new developments. This activity is not without its challenges however. Past misfortunes have left a legacy of greater caution and tighter regulation. The global environment, too, poses challenges, with oil and gas prices at a low, the dollar – and thus the dollar-pegged dirham – at a high, and growth slowing in China and sluggish in Europe. All these factors impact the Dubai construction sector precisely because of one of its great strengths – its global interconnectedness and international status. Going forward though, there is plenty about which to be optimistic, with contractors, building materials suppliers and manufacturers all seeing high demand for their services as the emirate prepares itself for Dubai Expo 2020 and beyond.
This chapter contains interviews with Sultan Buti Bin Mejren, Director-General, Dubai Land Department (DLD); and Hesham Abdullah Al Qassim, CEO, wasl Asset Management Group.
Explore chapterEnergy
Buy digital copy of this chapter - £18A founding member of the Organisation of the Petroleum Exporting Countries, Kuwait and other members together hold over 80% of the world’s proven oil reserves, of which Kuwait has 101.5bn barrels, or 6%. After the Second World War its role in newly global energy markets gradually increased, with production growing to 1m by 1955. Following independence in 1961, the country spent two decades bringing its energy resources under the government’s purview by acquiring shares in oil operations. In 1980 the authorities founded Kuwait Petroleum Corporation (KPC) to bring all state-owned oil operations under a single organisation. In the resulting structure, KPC manages the sector through its subsidiaries, which handle upstream, downstream, transport and petrochemicals operations. The Supreme Petroleum Council meanwhile is charged with overseeing all oil-related decisions, and the council includes the ministers of finance, oil, foreign affairs, and commerce and industry, as well as the state minister for Cabinet affairs.
This chapter contains interviews with Mohammad Ghazi Al Mutairi, CEO, Kuwait National Petroleum Company (KNPC); and Jamal Jaafar, CEO, Kuwait Oil Company (KOC).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As the continent’s most populous nation and arguably its biggest economy, Nigeria offers a lot of potential for construction firms – particularly given the significant need for infrastructure work, from housing to roads. However, meeting this demand will require overcoming a number of obstacles, ranging from cash flow issues and payment delays to import of equipment and building material costs. A difficult macroeconomic environment is also constraining efforts to remedy this situation in the short term. The property market is defined by significant long-term potential, but realising it is not necessarily simple. A drop in the price of oil, a lack of foreign exchange and a depreciating currency are all combining to slow the economy, in turn dampening demand for both residential and commercial real estate. However, with a young and urbanised population of more than 184m people, the outlook in the longer term is more positive. If household incomes rise and access to finance improves, the scope for growth is immense.
This chapter contains a roundtable with Ronald Chagoury Jr, Vice-Chairman, South Energyx; Odenigwe Ike Michaels, CEO, Centenary City; Vinay Mahtani, CEO, Churchgate; and Elias Saad, Chairman, Eko Pearl Towers.
Explore chapterInfrastructure
Buy digital copy of this chapter - £18When Joko Widodo rode to power on a wave of pro-business rhetoric in Indonesia’s 2014 presidential election, a key plank of his economic development platform was rooted in shoring up the country’s outdated and inadequate infrastructure. Now firmly entrenched at the country’s helm, the Widodo administration is going to significant lengths to make good on these campaign promises by channelling an unprecedented amount of funds into domestic infrastructure projects. The spending spree began with the addition of Rp112.4trn ($8.2bn) in the 2015 supplementary national budget, which was earmarked specifically for infrastructure outlays. This represented a 39% increase over the 2014 budget, funded largely by fuel subsidy savings made possible in part by the drop in oil prices at the time. These additional funds are being dispersed far and wide, spread across projects in oil and gas, power, water supply and waste treatment, roads, urban transport, rail, ports and airports.
This chapter contains interviews with Basuki Hadimuljono, Minister of Public Works and Public Housing; and Emma Sri Martini, President-Director, PT Sarana Multi Infrastruktur.
Explore chapterMining
Buy digital copy of this chapter - £18In line with the downward cyclical trend still buffeting the industry globally, the mining sector in Papua New Guinea remains in a cooling period in terms of exploration and production activity. To counter act tighter profit margins brought on by sluggish global demand for minerals and the corresponding drop in commodity prices, mining companies across PNG have responded by increasing efficiency and taking cost-cutting measures. Adding to the challenge of these market realities were other factors beyond the control of mining operators in 2015, such as a drought that lowered river levels enough to limit access to some mines and cut shipments, as well as temporary shutdowns due to health and safety concerns. These factors aside, the country’s historically strong copper and gold mines remain a crucial component of the economy.
This chapter contains an interview with Michael Johnston, President and CEO, Nautilus Minerals.
Explore chapterUtilities
Buy digital copy of this chapter - £18As Qatar’s population and economy have expanded in recent years, demand for utilities has also been increasing rapidly. Power and water consumption have recorded average growth rates of 10.4% and 7.7% a year, respectively, over the last half-decade, according to the country’s main utilities authority, the Qatar General Electricity and Water Corporation (Kahramaa). Such growth has prompted the government to pursue a range of expansion projects to raise capacity, many of them with foreign and private sector help, from pilot solar power projects to a large new power and water plant under way at Umm Al Houl. The drop in oil prices, meanwhile, is unlikely to severely hamper development of the sector, which has strong state backing and is supported by commitments in Qatar National Vision 2030 to provide first-rate public services – something it is doing increasingly via public-private partnerships.
This chapter contains an interview with Khalid Mohammed Jolo, CEO, Nebras Power.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18The Trinidad and Tobago real estate market’s fortunes have long been tied to those of the oil sector. Between 1991 and 2006 house prices more than quadrupled as the country’s hydrocarbons and petrochemicals industries grew strongly. This stoked a construction boom that led to the rapid development of grade-A office and residential properties. Following the 2008 financial crisis, prices dropped by 20% but recovered strongly up to 2014, with residential properties reaching 8.7% year-on-year growth by the third quarter of 2014. Falling oil prices have since led to a slowing economy and the oversupply of grade-A residential and office space has depressed rents and valuations. Meanwhile, affordable housing projects have seen cost overruns and industrial estate projects have been slow to get off the ground. Even so, in the Ministry of Finance’s “Review of the Economy 2015” the construction sector was forecast to have a strong 2015, growing 3.4% and accounting for 5.3% of GDP.
Explore chapterICT
Buy digital copy of this chapter - £18The government of Brunei Darussalam has taken the initiative with regards to fostering a strong ICT sector in the Sultanate. The government is mindful of technology’s potential to create value for the country’s economy and to ensure social development for its citizens. To date, government officials, in concert with the private sector, have initiated various strategic ICT infrastructure projects and pursued the development of a comprehensive e-government system.These undertakings are fully aligned with the goals set out in the country’s long-term strategic vision, Wawasan Brunei 2035, which charts a course toward a “smart society” composed of an educated, highly skilled work force, with its people enjoying a high quality of life in a country where there is dynamic and sustainable economic growth. This chapter contains an interview with Pengriran Zain, Chief Executive, and Authority for the Info-communications Technology Industry (AITI).
Explore chapterEnergy
Buy digital copy of this chapter - £18With oil prices depressed and global economic activity slowing, these are undoubtedly challenging times for oil and gas companies, producers and countries worldwide, and Malaysia is no exception. Yet despite the downsides, these are also key times for the development of new resources and strategies in the sector, with Malaysia at the forefront of many renewable energy trends. Even as it makes a major contribution to global oil and gas production, the country is leading the way in biofuels and biomass, solar energy and hydroelectric power. It is also a key player in the regional energy network, a system being rapidly enhanced by the arrival of the ASEAN Economic Community. This chapter contains an interview with Mohd Yazid Ja’afar, CEO, Johor Petroleum Development Corporation.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Spanning 65,000 sq km and with a moderate climate, fertile soil and an abundant supply of groundwater, Sri Lanka has long benefitted from favourable agricultural conditions. The sector remains an economic mainstay and primary national employer. As manufacturing and industrial activities have expanded, agriculture’s position as the primary economic engine has been eroded in recent years, although it remains a major strength, with high-value tea, rubber, coconut and spice production contributing significantly to export earnings. This is despite falling global commodities prices and reduced production hitting export crops in recent years.
This chapter contains interviews with Rohan Pethiyagoda, Chairman, Sri Lanka Tea Board; and Merrill Fernando, Founder and Chairman, Dilmah Tea.
Explore chapterUtilities
Buy digital copy of this chapter - £18With the decline in oil prices placing the federal budget under pressure, and demand for power and water increasing at a rapid rate, the authorities have turned their attention toward more effective consumer pricing and demand management. Diversification away from reliance on combined-cycle gas independent water and power producers will have a transformative effect on the supply side of the sector in the coming years. Renewable energy is expected to play an increasingly important role in Abu Dhabi’s power generation in the near future, with the emirate working towards a 7% renewable target by 2020. The biggest shake-up to Abu Dhabi’s power sector, however, will arrive with the launch of the Barakah Nuclear Power Plant, which is due to begin producing power in 2017 and will eventually have an output of 5600 MW – representing more than a third of current generation capacity.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With high bandwidth, coverage and network reliability, Tunisia’s telecoms infrastructure is well developed, particularly by regional North African standards, though competition is low in some segments, leading to high prices for international calls. However, following the launch of a mobile virtual network operator (MVNO) in 2015 and the completion of a new undersea cable the previous year, infrastructure and competition are set for a further boost in 2016 through the planned activation of 4G networks, which may also see the arrival of a fourth mobile operator. Investors in segments such as off shoring, however, are still looking out for further moves to bolster competition, in particular in terms of international traffic, without which costs are expected to remain high. Addressing these challenges will be key to future sector growth. Bolstered by a well-educated workforce, competitive costs, proximity to Europe and strong telecoms infrastructure, Tunisia has emerged as a regional centre for IT-related businesses and export-oriented industries such as off shoring and business process outsourcing (BPO). However, it is now facing growing competition from nearby markets such as Egypt and Morocco. A vibrant start-up community is also helping the country move up the value chain, and it is home to an increasing number of local companies producing and exporting proprietary content. This chapter contains a dialogue with Didier Charvet, CEO, Orange Tunisia; and Nizar Bouguila, Chairman and CEO, Tunisie Télécom.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Having already established itself as a manufacturing hub within South-east Asia, Thailand’s industrial sector is looking to further differentiate itself from other countries by moving up the value chain and expand its capabilities to produce greater value-added products in a variety of modern industries. This strategy seeks to spur industries to progress up the technology ladder from established industries already operating in Thailand. Solid economic growth averaging roughly 4% annually since 2000 along with the country’s solid industrial and export base has fuelled a steady rise in domestic income across all income levels over the past decade and a half, leading directly to a rise in consumer spending power. Assuming a stable political environment going forward, Thailand’s retail sector as a whole is expected to continue its upward trajectory, which was interrupted briefly by unforeseen events in 2014 and 2015, with the EIU forecasting annual sales volume growth for the sector of 3.6%, 3.4% and 4.3%, respectively for 2015-18. This chapter contains interviews with Mark Kaufman, President, Ford ASEAN; Chadatip Chutrakul, CEO, Siam Piwat and Siam Paragon Development; and Supaluck Umpujh, Vice-Chairwoman, The Mall Group.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Growing an impressive 7.2%, the Philippines was one of Asia’s best-performing economies in 2013. As growth has given rise to increased business activity and boosted consumer spending power, the question that arises is whether this new-found domestic demand will be for goods and materials produced locally or imported from abroad. This is an issue that will become even more important in 2015 as ASEAN Economic Community integration further opens the market to imports from regional manufacturing powerhouses. At the same time, integration offers new-found market access to a wide and emerging consumer base, and the Philippines will need to ramp up its manufacturing competitiveness to ensure it becomes a net exporter, rather than a pure importer, of value-added products moving throughout the region. This chapter contains interviews with Edgar “Injap” Sia II, Chairman and CEO, DoubleDragon Properties; and Winstron Co, President, Emperador Distillers.
Explore chapterTourism
Buy digital copy of this chapter - £18Djibouti’s tourism sector has set some ambitious goals, including an aim of attracting 500,000 visitors by 2030. The industry is slated to play a key role in the government’s economic development strategy, Djibouti Vision 2035, which looks to leverage the role of tourism as a job creator and foreign exchange earner, in line with broader economic diversification efforts. Djibouti benefits from a variety of niche attractions, including sandy beaches along the Red Sea, salt lakes, volcanic fields and popular underwater diving sites. Yet, according to the World Bank’s “Country Partnership Strategy for the Republic of Djibouti” report, published in March 2014, only 10% of the country’s tourism potential is being exploited. Concerns over infrastructure shortfalls remain, and further capacity development is required, as limited connectivity is an impediment to tourism growth. This chapter contains an interview with Bertrand Lafrance, Founder, Discover and Aid Nature Wildlife Reserve.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Largely cut off from foreign investment during the 1980s and 1990s due to security concerns, Colombia developed a wide variety of local manufacturing businesses and brands. However, the opening of the economy over the past decade has forced local firms to compete with international imports. Moreover, the rapid growth of the oil and mining industries has shrunk manufacturing’s importance in the wider economy. In the first nine months of 2015 the sector’s proportion of GDP fell below 11%, down from 14% in 2009. Nonetheless, several sub-sectors continue to show promise, and the devaluation of the peso, improvements to infrastructure and the commissioning of a new refinery offer hope of an industrial rebound. Meanwhile, despite the economic slowdown and the weakening of the peso, the retail sector posted solid growth of 3.4% in the first 10 months of 2015, with hardware and home improvement sales (18.3%), and alcoholic beverages and cigarettes (13.5%), among the best-performing segments.
This chapter includes an interview with Christian Daes, Chief Operating Officer, Tecnoglass.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Colombia’s construction sector remains an engine of economic development, both as a driver for employment and a significant contributor to GDP. In 2014 the sector grew by 9.9%, and accounted for over 1.4m direct jobs, according to Colombia’s National Statistics Bureau. Much is now resting on a new stimulus package launched in May 2015, the Plan for Production and Employment. The $6.2bn plan, to be implemented in the period 2015-19, is expected to have a positive impact on the construction sector, due to its focus on housing, the acceleration of expenditure on large-scale infrastructure and a programme to rebuild public schools across the country. Meanwhile, housing demand continues to fuel Colombia’s real estate sector, with government-sponsored initiatives encouraging the construction of new homes for lower-income Colombians, and the growth of the middle class galvanizing demand for medium-income housing.
This chapter includes an interview with Carlos Jacks, President, CEMEX.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Bahrain’s construction sector is booming, with the country using billions of dollars of Gulf Development Programme donations to remodel its airport and highway system, as well as provide tens of thousands of affordable new homes for its citizens. In 2014 year-on-year sector growth was 7.3%, and was only surpassed by the hotel and restaurant sector, and personal and social services. In the first quarter of 2015 growth was 7.5%. Meanwhile the real estate sector is continuing to recover, with retail and hospitality capitalising on growing visitor numbers in recent years. Indeed, with the hotels and restaurants sector reporting growth of 9.9% in 2014, hospitality is a sector slated for significant future growth, as many new hotel builds aim at the luxury end of the market. In terms of the retanl market, a new tenancy law is expected to remove the confusion that has surrounded rental agreements, bringing clarity for both tenants and landlords alike.
This chapter contains an interview with Faisal Faqeeh, Chairman, Bin Faqeeh Real Estate Investment; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterMining
Buy digital copy of this chapter - £18Sitting above the Indian, Indochina and Eurasian plates, Myanmar is divided into four geographic belts, which help to provide a rich and diverse minerals mix. While most industries have benefited from an influx of foreign investment since the opening of the economy in 2011, the mining sector has yet to catch up. This is due to several reasons, including legal inconsistencies and ongoing civil unrest in key areas. Though much will depend on implementation of mining law reforms passed in late 2015, prospective investors are eagerly waiting in the wings to tap the country’s deposits of metals, ores, industrial minerals and coal. This chapter contains interviews with U Htun Lynn Shein, Chairman, Myanma Precious Resources Group; and Vicky Bowman, Director, Myanmar Centre for Responsible Business.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18With falling commodity prices taking their toll on Peru’s export revenues and GDP growth, the focus of the Ministry of Production (PRODUCE) has turned to the diversification of the economy and provision of greater added value to production. PRODUCE has set the target of returning Peru to 7% growth rates through private partnerships that will develop the country´s secondary and tertiary industries. Despite these efforts, the industrial sector is experiencing a slowdown, with sector GDP amounting to $9.8bn in the first five months of 2015, a 2.6% year-on-year decrease. Meanwhile, Peruvian retailers look set to take stock and focus on maximising revenues rather than rushing to open more floor space. The days of double-digit consumer growth may be a thing of the past, but medium-term expansion of between 3% and 4% in 2016 presents attractive prospects. While per-capita incomes remain low by regional standards, recovering commodities prices are expected to support the retail sector’s long-term potential.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Oman’s real estate sector has continued to grow in recent years, and despite the fall in oil prices, demand, particularly from the private sector, has helped fan development. Projects that target niches, such as high-end offices, units in integrated tourism complexes, shopping malls and gated communities are flourishing. The residential leasing market saw five consecutive quarters of stability to the second quarter of 2015, as steadily rising demand matched new projects coming onto the market and the economy expanded at a steady pace. Meanwhile, Muscat’s retail mall market remains buoyant, and as of autumn 2015 all malls were at 100% capacity. This chapter contains an interview with Sheikh Salim bin Ahemd Al Ghazali, Chairman, Golden Group of Companies.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The fundamental demand drivers of Egypt’s telecoms sector are very appealing, by any measure. The country has a large and growing population, increasing purchasing power and high media consumption. However, operators still have had to navigate some tricky challenges. Price competition in the voice market has eased after aggressive discounting in recent years, but data usage and value-added services, which are seen as key revenue earners, still remain modest. Unlike many other sectors of the Egyptian economy, the ICT industry has remained remarkably resilient in the face of the political uncertainty and macro-economic instability wrought by the 2011 revolution. Beyond the basics of national internet infrastructure, Egypt offers a number of benefits for potential ICT investors, not least among which is its proximity to the lucrative European markets.
This chapter contains interviews with Yasser El Kady, Minister of Communications and Information Technology; Hazem Metwally, CEO, Etisalat Misr; Yves Gauthier, CEO, Mobinil; Walid Gad, Chairman, Telecom Egypt; and Ahmed Essam, CEO, Vodafone Egypt.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following on from decades of positive gains, Kenya’s construction sector continues to see robust growth and remains a central component of the country’s immediate and longer-term economic growth agenda. The industry’s GDP contribution in 2014 totalled KSh259.6bn ($2.86bn), up 13.1% on 2013. This growth pushed the construction sector’s share of the economy up by a third of a percentage point to reach 4.8% of GDP. The construction industry’s substantial jump in 2014 made it the best-performing sector that year, owing primarily to an injection of funds for major road works, railway projects and road rehabilitation. Commercial credit extended to the construction sector rose from KSh70.8bn ($778.8m) in 2013 to KSh80.4bn ($884.4m) in 2014, an increase of 13.6%. Similarly, the value of approved building plans in the private sector rose by 7.8%, from KSh190.6bn ($2.1bn) in 2013 to KSh205bn ($2.26bn) in 2014.
This chapter contains an interview with Michael Turner, Managing Director, East Africa, Actis.
Explore chapterAgriculture
Buy digital copy of this chapter - £18A drive to improve food security, coupled with weakened oil prices worldwide, has prompted Algeria to accelerate its planned agricultural reforms over the next five years. To that end, in 2014 the government announced plans to spend AD300bn (€2.8bn) each year on agriculture as part of the Public Investment Programme 2015- 19. However, some key challenges must be addressed. In this respect, government-led efforts to increase the area of irrigated land, encourage the use of fertiliser and promote uptake of new farming techniques constitute a big step forward. In the coming years, water usage is expected to play a central role in sector development plans, given the challenges posed by Algeria’s hot, dry climate and the government’s declared intention to intensify local production levels as a means to reduce the country’s reliance on food imports. This chapter contains interviews with Sid Ahmed Ferroukhi, Minister of Agriculture, Rural Development and Fisheries; and Kaci Ibrahim, General Manager, Ifri.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Jordan’s information and communications technology (ICT) sector is one of the most developed and robust in the region, bolstered by 15 years of industry friendly policies and a young population of digital consumers. Mobile subscribership soared from 3.13m users, representing 57% penetration in 2005, to 11.1m users and 147% penetration at the end of 2014. The market has seen consumers shift from personal computers and voice/SMS-centric mobile services to a data-driven mobile broadband market, with the popularity of 3G services increasing rapidly since their launch. Meanwhile state support for the IT sector is strong, and in 2010 the government launched a flagship early-stage seed investment company with the goal of supporting 500 new start-ups. The company provides between $30,000 and $70,000 in seed funding for various startup enterprises, and had invested in 95 companies by early 2015.
This chapter contains an interview with Majd Shweikeh, Minister of Information and Communications Technology.
Explore chapterEnergy
Buy digital copy of this chapter - £18With the most energy-intensive economy on the continent, South Africa has undergone a spate of load shedding in recent years as demand for electricity continues to outstrip supply. While faltering output and poorly maintained infrastructure have had an adverse effect on the country’s economic performance, a range of government initiatives – notably the country’s independent power producer (IPP) bidding programme – should help strengthen long-term output and reduce the risk of volatility. As the country searches to find short-term solutions to plug power gaps in the national grid, policy implementation and a renewed focus on bringing the Medupi, Kusile and Ingula plants on-line will help to accelerate IPP programmes, curb load shedding and stabilise the broader power sector.
This chapter contains an interview with Brian Molefe, Group CEO, Eskom.
Explore chapterTransport
Buy digital copy of this chapter - £18Rapid economic development, demographic growth and regional dynamics have put increasing pressure on Ghana’s transportation system over the past decade, and it has at times struggled to keep pace. Rather than allow the transportation sector to become a victim of the country’s success, the government has pushed forward infrastructure development projects, with the private sector encouraged to take a major role in finance, construction and management. The importance of private participation in transport infrastructure has become ever more apparent in recent years. Although Ghana’s public resources remain limited, pressure on its transportation system has increased due to economic and population growth, as well as a rise in visitor numbers and trade, including with the landlocked countries to the north.
This section contains interviews with Peder Sondergaard, CEO of Africa and Middle East Region, APM Terminals, and Geoffrey White, CEO, Agility.
Explore chapterEducation
Buy digital copy of this chapter - £18Moves towards the development of a knowledge-based economy have begun in RAK as the emirate implements education reforms and student enrichment initiatives get under way. The Ministry of Education’s mid-range policy for the 2015-21 period targets knowledge integration in industries related to science, technology, engineering and mathematics. Meanwhile, with the federal goal of meeting 15% of total energy demand via renewable sources by 2030, RAK’s research institutions are increasingly involved in launching their own renewable energy projects.
Explore chapterTransport
Buy digital copy of this chapter - £18A significant component of the Mexican economy, the transport sector accounted for 6.4% of the country’s GDP and 5.3% of national employment in 2014, according to the Mexican Chamber for the Construction Industry. The country’s significant expansion of manufacturing in recent years is both benefitting the transport sector and placing it under increased pressure. Against this background, the current administration introduced a wide-ranging national infrastructure programme for 2014-18, allocating $39.2bn for the improvement of transportation links. Though declining oil prices since mid-2014 have negatively impacted the country’s budgetary position, leading the government to cut expenditure, no major cuts to large-scale transport infrastructure have taken place, aside from a small number of railway projects. Nonetheless, the current fiscal context may well lead to delays in project execution and will require the government to use the country’s evolving public-private partnership model to seek out increased private sector participation.
This chapter features an interview with Norman Foster, Chairman and Founder, Foster + Partners.
Explore chapterEnergy
Buy digital copy of this chapter - £18Kuwait’s position as one of the biggest players in the international energy markets is backed by its proven reserves, currently the sixth-largest in the world. While international oil prices will have a significant impact on state revenues moving forward, low production costs and ample fiscal reserves should shield the country from the price downturn. The country increased its oil production by more than 14% between 2007 and 2014, from an estimated 2.57m bpd to 2.93m bpd, according to OPEC. Moving forward, the government has outlined plans to develop critical infrastructure projects and a number of major oil developments for a total five-year investment of more than $116bn, with spending in the oil and gas sector to top $100bn. In the non-oil segment, the Kuwait Institute for Scientific Research is investigating the potential for alternative energy sources and has recently launched three projects with a combined capacity of 70 MW.
This chapter contains interviews with Hashem Sayed Hashem, CEO, Kuwait Oil Company; and Anas Meerza, Group CEO, National Technology Enterprises Company.
Explore chapterJeddah
Buy digital copy of this chapter - £18The Kingdom’s second-largest city and its most significant seaport, Jeddah is one of Saudi Arabia’s key economic engines. While rapid population growth has placed a strain on both housing and public infrastructure, economic growth remains strong, with GDP per capita increasing by 2.4% in 2014 while employment rose by 3.4%. Expansion plans for Jeddah Islamic Port, which is key to the region’s growth and already handles 55m-60m tonnes of shipped goods per year, are expected to increase its capacity by 45%. Among the numerous other development projects are under way, most notable is Kingdom City in Obhor to the north of Jeddah, whose centrepiece will be the world’s first building to be over 1 km tall: Kingdom Tower.
This chapter contains an interview with Mazzen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterTransport
Buy digital copy of this chapter - £18An influx of capital and a number of major upgrades have improved Morocco’s transport sector significantly in recent years, with private investment initiatives working alongside the state-led development programme. Despite tight budgetary constraints, authorities allocated a large chunk of the 2015 budget towards transport projects, with the biggest slice going to the ports segment, followed by tranches for road, rail, airport and logistics upgrades. These projects should help push Morocco up the World Economic Forum’s rankings for global competitiveness, where it is currently ranked 55th out of 144 countries for overall infrastructure, well above many of its North African neighbours.
This chapter contains interviews with Driss Benhima, Chairman of the Board and CEO, Royal Air Maroc; and Nadia Laraki, General Manager, National Ports Agency.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The launch of 3G and 4G in 2014 should provide new revenue streams in the telecoms sector, and the focus in the near term will be on improving data capacity and network quality. Growing demand for digital services and the commercialisation of access to Gabon’s second submarine cable are helping to lay the foundations for a rise in activity in the ICT sector. This chapter includes an interview with Alex Bernard Bongo Ondimba, Managing Director, National Agency for Digital Infrastructure and Frequencies (ANINF).
Explore chapterICT
Buy digital copy of this chapter - £18The telecommunications sector in Papua New Guinea, long synonymous with high prices and poor service, is undergoing a sea change as fresh competition, infrastructure rollout, and market reforms result in increased coverage and access. More connections to major international subsea cable systems are being put in place. Domestically, with fibre as the backbone and microwave links and satellite systems acting as complementary technologies offering redundancy and connectivity to more remote parts of the country, the government’s goal of achieving 50% broadband penetration by 2018 seems on track. As speeds increase, capacity improves and costs come down, ICT is set to become a more integral part of many PNG businesses and help them improve their competitiveness and global integration.
This chapter contains interviews with Jimmy Miringtoro, Minister for Communication and Information Technology; Bhanu Sud, CEO, EMTV; and Reuben Kautu, Chairman, Dataco.
Explore chapterIndustry
Buy digital copy of this chapter - £18Although an important part of T&T’s economy, the manufacturing sector’s performance has been disappointing in recent years. According to the T&T Manufacturers’ Association, the value of manufacturing output declined at an average annual rate of 4.3% from 2010 to 2014. In its “Review of the Economy 2014”, the government noted that economic activity in manufacturing fell by 5.8% in 2012, 1.8% in 2013 and was expected to register a further contraction of 0.7% in 2014. Even so, T&T has the largest manufacturing sector in the Caribbean, with an estimated output value of around $1.2bn in 2014. The second-largest non-oil sector within the economy, manufacturing represented about 8.5% of GDP in 2014, and directly employed more than 60,000 people. Following the fall in global hydrocarbons prices, 2015 is expected to be a challenging year for the industry, marked by fiscal austerity and a potential reduction in household consumption. This chapter contains an interview with Racquel Moses, President, InvesTT.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Buoyed by a combination of factors, including the country’s prime geographic location, sustained economic growth and the influx of foreign investment in recent years, Panama’s real estate market has seen unprecedented growth since 2006. Today it is a key component of Panama’s economy, amounting to $4.6bn or 12% of GDP in 2014. Though fast growth has led the cost of land to skyrocket, sometimes as much as three-fold, a growing middle class and a significant housing deficit, coupled with thriving industrial and retail segments, make for a positive outlook for the real estate sector. Meanwhile, representing $5.1bn and 14% of the nation’s growing GDP, the construction sector is another dynamic component of the economy. According to the Panama Construction Chamber, the sector grew by 14% in 2014 and is set to expand by 10% in 2015, with the residential market offering the most potential for dynamic growth. This chapter contains an interview with Ramón Arosemena, Minister of Public Works; and Alberto Vallarino, President, Grupo Verdeazul.
Explore chapterTransport
Buy digital copy of this chapter - £18With the new administration under Joko Widodo committed to spending a greater share of the budget on improving the nation’s transport infrastructure and moves under way to provide an enhanced organisational and administrative framework for the sector, there is a new sense of energy with regards to transport in Indonesia. Indeed, with logistics costs equivalent to around 27% of GDP, efforts to reduce this by boosting the efficiency of the transport sector could make a real difference to the country’s economic growth, in turn translating into increases in per capita incomes. Much remains to be done and greater private involvement will be needed, but there is significant optimism about current sector plans.
This chapter contains an interview with Djarwo Surjanto, President-Director, Pelindo III.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Over the last decade, the construction sector has transformed the skyline of Istanbul and other cities, renewed and extended Turkey’s transport infrastructure, and built new communities and facilities from the Aegean to the Caucasus. Construction employs tens of thousands directly and has also established a range of related industries— such as construction machinery, building materials, engineering and architecture. With the domestic market providing a strong base, and with Turkish contractors having successfully diversified their markets and projects in recent years, the construction sector is well positioned to continue growing. From residential to retail property, the real estate market has also flourished in the last few years. With strong fundamentals in terms of population and income growth, the market should be able to maintain its expansion in the years ahead.
This chapter contains a dialogue with Ergil Ersü, Chairman, Gama Holding, and Orhan Paçacı, Member of the Executive Committee and Shareholder, Mesa Holding, and an interview with Emin Sazak, CEO, Yüksel İnşaat, and former President, Turkish Contractors Association.
Explore chapterTransport
Buy digital copy of this chapter - £18The transportation situation in Mongolia has improved a great deal over the past few years. Substantial additions have been made to the road system, with a total of 5469 km being built between 2012 and 2016. In terms of rail a number of breakthroughs were made in 2014 that promise to expedite progress on lines that have been long delayed. Overall, real progress has been made and momentum remains strong; however, the country still faces considerable transportation and logistics challenges. Questions remain about balance and focus, and the international community is encouraging Mongolia to prioritise logistics and key infrastructure. The right pieces are being put in place and the country will soon find itself better integrated with international transport networks.
This chapter contains interviews with P. Batsaikhan, Former CEO, Mongolian Railways; and T. Lkhagvasuren, Director-General, Civil Aviation Authority of Mongolia.
Explore chapterAgriculture
Buy digital copy of this chapter - £18With the world’s seventh-largest population, which continues to grow rapidly its current 170m, agriculture is key part of Nigeria’s economy. After decades of declining production, trends have been moving in the opposite direction in the past several years as overall food supply rises. Guided by the Agricultural Transformation Agenda, which was launched in 2011 as part of a push to overhaul productivity and output in the sector, short-term goals have included eliminating market distortions and improving transparency while delivering more and better inputs to farmers. The medium-term goal is to achieve self-sufficiency in a number of key staples, such as rice, and to develop the agribusiness sector and export markets. Given the successes achieved so far, the agricultural sector is poised to reinforce its role as a key economic contributor.
This chapter contains interviews with Akinwumi Adesina, Minister of Agriculture and Rural Development, and Johan Steyn, Managing Director Middle East and Africa, Cargill.
Explore chapterEastern Province
Home to the world’s largest conventional oil field, and Saudi Arabia’s largest province by size, the Eastern Province is responsible for much of the Kingdom’s oil production. It is the most important centre for heavy industry in the country and home to the world’s biggest petrochemicals cluster at Jubail, which is currently in the midst of a major expansion. Other large-scale projects at Ras Al Khair Industrial City, Al Ahsa Second Industrial City, Dammam Third Industrial City and the Sadara petrochemicals complex, as well as the recently inaugurated SATORP refinery, look set to further bolster the Eastern Province’s status as a centre for heavy industry.
Explore chapterUtilities
Buy digital copy of this chapter - £18A rapidly expanding economy and growing population mean that demand for power and water from both industry and households in Qatar has never been greater. This trend is set to continue for some time to come, with an ambitious multibillion-dollar programme of infrastructure building in the lead-up to the 2022 FIFA World Cup, requiring more people, more electricity and more water. At the same time, new demands for cleaner, more efficient and sustainable systems are making an impact, with implications for design and cost. However, Qatar has some major advantages when it comes to overcoming these challenges. An abundant supply of natural gas connected to a modern processing system is one, while the country’s financial reserves are another. There is a continuing, planned commitment by the authorities and many international partners to make this dramatic expansion happen as seamlessly as possible.
This chapter contains interviews with Ahmed bin Amer bin Mohammed Al Humaidi, Minister of Environment; and Essa bin Hilal Al Kuwari, President, KAHRAMAA (Qatar General Electricity and Water Corporation).
Explore chapterTransport & Infrastucture
The state’s once underdeveloped transportation infrastructure is transitioning from a maligned weakness to a position of strength as improvements to air, sea and land connections continue to ease the flow of goods and people within Sarawak and abroad. For an island state whose inland waterways also still serve as the primary conduit for moving people and cargo internally, water transportation remains a key element in Sarawak’s logistical network and its further augmentation remains a focal point for future development. Road interconnectivity has been a high priority of federal development plans and a prerequisite of the Sarawak Corridor of Renewable Energy. Major investments in Sarawak’s transportation network are providing a substantial leap in capacity and capability, which should provide a strong base for the expected growth in coming years.
This chapter contains interviews with Michael Manyin Jawong, Minister of Infrastructure Development and Communications; Mior Ahmad Baiti, CEO, Bintulu Port Holdings; and Ritzerwan Rashid, CEO, MASwings.
Explore chapter
Eastern Province
Home to the world’s largest conventional oil field, and Saudi Arabia’s largest province by size, the Eastern Province is responsible for much of the Kingdom’s oil production. It is the most important centre for heavy industry in the country and home to the world’s biggest petrochemicals cluster at Jubail, which is currently in the midst of a major expansion. Other large-scale projects at Ras Al Khair Industrial City, Al Ahsa Second Industrial City, Dammam Third Industrial City and the Sadara petrochemicals complex, as well as the recently inaugurated SATORP refinery, look set to further bolster the Eastern Province’s status as a centre for heavy industry.
Explore chapterTourism
Buy digital copy of this chapter - £18Under the current government, tourism has been identified as a vehicle to be prioritised for the positive impact it can have on inclusive economic growth, and efforts appear to be bearing fruit. Thanks to an aggressive and highly successful global marketing campaign, brand awareness is on the rise. Momentum looks to continue as 2015 has been designated the “Visit the Philippines Year” and is set to include a slate of events throughout the calendar year that commenced with a visit from Pope Francis in January 2015. With plentiful natural endowments and a cultural propensity for service and hospitality, the Philippines is fortunate to possess assets that serve as demand drivers. A boost to infrastructure could ensure more seamless and efficient movement for visitors throughout the country’s various islands.
This chapter contains an interview with Ramon R Jimenez Jr, Secretary, Department of Tourism; and a dialogue between Cristino L Naguiat Jr, Chairman and CEO, Philippine Amusement & Gaming Corporation, and Stephen Reilly, COO, Resorts World Manila.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18Driven in large part by targeted government investment and an offset programme aimed at bolstering domestic capacity, Abu Dhabi has witnessed tremendous growth in its aerospace and defence industry in recent times. National Service was introduced in the UAE in 2014 and is mandatory for Emiratis aged 18 to 30. The government has also launched a range of training programmes aimed at bolstering its national security initiatives and applying international best practices to the domestic security sector. Moving forward the UAE is expected to double homeland security spending over the next 10 years, from $5.5bn to more than $10bn, while the emirate’s growing aerospace sector is having positive knock-on effects for domestic industry, with additional training set to boost employees’ qualifications in other key areas, such as foundries and shipbuilding.
This chapter contains a viewpoint from Homaid Al Shemmari, CEO of Aerospace and Engineering Services, Mubadala.
Explore chapterTransport
Buy digital copy of this chapter - £18In the decades following independence in 1960, Côte d’Ivoire led West Africa in terms of transport infrastructure. Today, although several years of civil unrest have taken their toll, it still has one of the largest road networks in the region, as well as relatively competitive aviation and maritime port infrastructure. As the government pushes to attain emerging country status by 2020, the nation’s transport networks are set for a boost in public funding: out of the CFA11trn (€16.5bn) budgeted in the 2012-15 National Development Plan, the state has allocated 25.5% to projects in transport infrastructure. Côte d’Ivoire’s reinvestment in its long-neglected transport infrastructure comes just in time to keep pace with the demands of a growing population and an expanding economy. Sustaining the funding levels needed to maintain these networks will pose challenges, but strong investment from the private sector and a high level of public-private collaboration bode well for the sector.
This chapter contains interviews with Dominique Lafont, CEO, Bolloré Africa Logistics; and Gervais Koffi Djondo, Chairman, Asky.
Explore chapterTourism
Buy digital copy of this chapter - £18Dubai’s tourism offering has continued to expand in recent years, and with the emirate consistently rising to meet new challenges and break new records, this trend looks set to continue. Visitor numbers have increased every year since 2003, resulting in a CAGR of 8.3% for 2003-13. Investment into the sector is rising quickly as well: 6.2% of total investment in the UAE during 2013 was directed to the tourism and travel sector, with estimates suggesting investment growth could reach 9.7% for 2014. Preparations for Dubai Expo 2020 are underpinning large infrastructure projects like the airport expansion, upgrades to tram and train links, and major ongoing hotel developments. An increasingly wide variety of sporting competitions are also being hosted by Dubai, and new stadiums and facilities are set to boost the emirate’s image as a sports hotspot.
This chapter contains an interview with Helal Almarri, Director-General, Dubai Department of Tourism and Commerce Marketing (DTCM).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The residential segment is well on its way to returning to pre-2009 levels of growth, with the volume of real estate trading expanding by 30% in 2013 and total value of transactions reaching $2.28bn, compared to $1.76bn in 2012. State-funded housing projects are expected to drive expansion, with the government signing its first-ever housing public-private partnership agreement in 2012. Spending on social housing has boosted the kingdom’s construction sector, which is projected to return to stable growth in the next few years, expanding by 8.59% annually until 2018. Meanwhile private contractors have benefitted from transport construction and expansion projects, with rail and road links set to aid development under the auspices of the Economic Vision 2030 plan. The government intends to invest a total of $22bn in infrastructure over the next four years, with industrial construction poised to see strong growth as a result of new transportation and logistics builds.
This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterMining
Buy digital copy of this chapter - £18With a wealth of untapped geological resources, including the world’s richest jade and ruby mines, Myanmar is set to attract a flood of foreign investment into its high-potential mining sector. In the decades to come, mining is expected to be one of the top drivers of Myanmar’s economic development. Current growth is being driven by a number of smaller projects in metals and by a boom in tin ore output from existing mines. Coal output is growing rapidly, thanks mainly to rising output from the Kalewa basin, in the Sagaing region west of Mandalay. The scale of opportunities in the sector is such that there are already dozens of international mining firms visiting Myanmar, studying its geology and applying or preparing to apply for exploration licenses. A reform that may clear away obstacles to international exploration was adopted in August 2014, allowing foreign investors to own up to 100% of mining licenses. While the wave of exploration expected to be released by reforms will take many years to convert into production, the mining industry appears to be in the early stages of a long-lasting expansion.
This chapter contains interviews with Dr Myint Aung, Minister of Mines; and U Maung Ko, Chairman, Myanmar Federation of Mining Association (CEC).
Explore chapterReal Estate
Buy digital copy of this chapter - £18Oman’s real estate market has shown resilience following the global financial turmoil and is poised for future expansion as economic growth in the sultanate drives local demand. In 2013 the sector grew 6.1% over 2012 and forecasts indicate this trend will continue. Increasing numbers of integrated tourism complexes are attracting foreign investment into the sector, particularly the high-end market, while in a bid to support affordable housing ownership, the government is supporting programmes that provide interest-free loans to qualifying citizens and removing age restrictions for access to financing.
This chapter contains an interview with Hawazen Esber, CEO, The Wave, Muscat.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Accounting for around 15% of GDP, the manufacturing sector has recorded strong growth over the past decade. Between 2004 and 2013, value added from manufacturing grew at a compound annual rate of 5.8% in real terms. While growth is uneven among the various manufacturing activities, the sector has been buoyed by strong growth in basic metal products and in non-metallic minerals. The government of President Ollanta Humala is attuned to both the importance that manufacturing will play in Peru’s economic future and to the sector’s shortcomings. In 2014, the government laid out the National Plan for Productive Diversification that aims to promote investment and innovation in manufacturing, and scale back burdensome industrial regulations. As the government attempts to steer the economy towards a more diversified mix of activities, an increased focus on more sophisticated goods with higher added value and less exposure to commodities price volatility should be expected.
This chapter contains an interview with Piero Ghezzi, Minister of Production.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Although agriculture’s contribution to GDP had dipped slightly from 10% in 2012, domestic output is on the rise. The Ministry of Agriculture and Rural Development estimates that the value of agricultural production increased five-fold over the last 15 years, from €4.65bn in 2001 to €23.81bn in 2013. The government has made it a priority to boost domestic production to reduce its ever-rising import bill and end the country’s reliance on imports of dietary staples such as cereals and milk. Government efforts to subsidise fertilisers, certified seeds, machinery and irrigation equipment have helped to modernise the sector. The presence of private agro-industry groups should further help to carry this effort onwards and increase productivity going forwards.
This chapter contains interviews with Abdelwahab Nouri, Minister of Agriculture; and Hocine Mansour Metidji, CEO, Group Metidji.
Explore chapterTransport
Buy digital copy of this chapter - £18South Africa is home to the farthest-reaching and highest-quality transport network on the African continent. For decades the country’s extensive road, air, rail and sea links have underpinned economic and social development not only in the domestic market but through the region as a whole. In recent years the government has made a concerted effort to shore up South Africa’s infrastructure and connectivity, establishing a handful of large-scale, long-term capital investment programmes, including the 2012 National Infrastructure Plan (NIP), under which the state plans to spend $407.2bn on new and upgraded infrastructure across the transport, energy, water, sanitation, health and education sectors over a 15-year period. Major transport projects include a $1.54bn initiative to revitalise the country’s rail network and a $1.4bn plan to update and expand provincial bus lines. The rapid pace of investment and development in recent years is widely considered to be a reflection of both the sector’s many strengths and long-term potential for continued growth.
This chapter contains interviews with Nazir Alli, CEO, South African National Roads Agency Limited; and Monwabisi Kalawe, CEO, South African Airways.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The Egyptian telecoms sector is one of the most dynamic parts of the country’s economy, having weathered the economic slowdown over the past few years. Following the approval of a new universal licence in September 2014, the sector is set to see significant changes: a new mobile operator will be launched by legacy telco Telecom Egypt, the fixed-line market will be opened to mobile companies, and, within a few years, 4G networks will be rolled out and new international gateway licences offered. The long-awaited green light to universal licences will trigger some of the most significant changes in the market’s recent history. With a large domestic market and a strong export-oriented sector, Egypt’s ICT industry is one of the economy’s leading magnets for investment. Internet use is growing rapidly but still has substantial scope to expand. Egypt is also one of the world’s top outsourcing and offshoring destinations, leveraging a skilled workforce, low costs, an advantageous location and strong government support. While there are still challenges, including limited fixed-line broadband networks and modest household demand, greater liberalisation of infrastructure ownership along with a concerted push by the government will help boost activity in the coming years.
This chapter contains a roundtable with Saeed Al Hamli, CEO, Etisalat Misr; Yves Gauthier, CEO, Mobinil; and Hatem Dowidar, Chairman, Vodafone Egypt.
Explore chapterICT
Buy digital copy of this chapter - £18The ICT sector has been singled out as a priority in Brunei Darussalam’s long-term strategic development plan, Wawasan Brunei 2035, which has set an ambitious target for the sector to contribute 5-6% to national GDP by 2015, compared to an estimated 2% in 2013. Although dial-up internet connections continue to dwindle, broadband connections witnessed a dramatic resurgence starting in 2013. Strong investment in mobile and fixed telecoms infrastructure is providing a durable, capable and efficient backbone that will serve as a solid foundation to build upon for future public and private ICT growth opportunities. Private sector participation should pick up in the ensuing years as the technology becomes more widely accepted and utilised, and the expansion of home-grown ICT start-ups should provide an additional push through the creation of a more locally relevant context.
This chapter contains interviews with Haslina Taib, CEO, BAG Networks; and Suhaimi Hussain, CEO, DST.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following several years of sustained growth, the outlook for Kenya’s construction sector remains positive as the industry benefits from the elevated levels of public spending outlined in the Vision 2030 development strategy. Although a slowdown in capital inflows into infrastructure and real estate projects between 2009 and 2011 impacted real growth rates, the sector as a whole has delivered average annual growth rates of 15.26% between 2008 and 2012. With a host of infrastructure projects planned, as well as increased housing demand, contractors are set to profit from a continuation of the robust upward trajectory of recent years. Backed by regulatory reform under the newly formed National Construction Authority (NCA), the industry should also see improved enforcement of standards and training.
This chapter contains an interview with Mohamed Hassanali, CEO and Director, HassConsult Real Estate.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Ghana’s telecommunications industry is mostly driven by activity in the mobile segment. But the business also has a high level of competition that benefits from a liberalised market regime and a robust regulatory framework. The sector is crowded, with six operators in the lower to-middle-income country of 25m people, but this has not stopped operators from rolling out new infrastructure and services. While operators are confronted with cost and operational pressures, Ghana’s scope for growth in data and value-added services is high, and a clear and robust regulatory regime ensures an even playing field for the nation’s six operators. Meanwhile, the coming on-stream of five submarine cables has added considerable broadband capacity and allowed the operators to expand their networks and range of services. Indeed, access over the past half decade has dramatically improved with the landing of undersea fibre links and the introduction of wireless and 3G – and more recently 4G – technologies.
This chapter contains interviews with Paarock VanPercy, Director-General, National Communication Authority (NCA); and Neal Hansch, Managing Director, Meltwater Entrepreneurial School of Technology (MEST) Incubator.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry is one of the mainstays of the Jordanian economy with the sector producing roughly one fifth of the country’s GDP and employing around one tenth of Jordanians. The success of Jordan’s current strategy to build higher-value-added industries is reflected in the pharmaceutical sector, which has leveraged both the high standard of human resources in the country and the availability of local feedstocks to establish Jordan as a regional leader in the field. The retail sector has undergone a change in recent years with the arrival of global-quality shopping malls. However the pattern of shopping in outdoor markets or in family-owned mixed retail shops has remained largely unchanged, with Jordan’s top five organised retail brands accounting for just 5% of the market. In e-commerce, Jordan has jumped ahead thanks to the kingdom’s advantage in educated human capital, and the market looks set to be worth more than $2bn by 2016.
This chapter contains an interview with Hatem Al Halawani, Minister of Trade and Industry.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Telecoms
Gabon’s telecoms sector is undergoing an important shift in 2014. The highly competitive market will see two of its four operators merge, potentially changing the balance with the traditional market leader.
The long-awaited launch of 3G service in April 2014 is helping to open new avenues for growth in Gabon’s increasingly saturated mobile telecommunications sector. Subscriber numbers continue to rise, but with real penetration of nearly 100%, future growth will come from the introduction of higher-value services. Competition is fierce with four operators serving a relatively small market, and providers are working to expand their networks and boost service quality.
IT
Gabon aims to transition to a digital economy by 2016, supported by $68m in public and private investment in national infrastructure planned for 2013-14.
Commercialisation of access to the long-awaited Africa Coast to Europe (ACE) fibre-optic cable, expected in early 2015, should propel Gabon’s IT sector forward in the next year. The public sector continues to be the primary digital consumer, but demand for internet connectivity, IT hardware and services is growing rapidly. For now, the market continues to be held back by limited broadband capacity, so 2014 will be focused on efforts to commercialise access to the ACE cable and to expand IT infrastructure both in Gabon and the broader sub-region to meet rising demand.
This chapter contains interviews with Alain Ba Oumar, President, Federation of Operators of Electronic Communications of Gabon; and Axcèle Kissangou-Mouelé, Managing Director, Société de Patrimoine des Infrastructures Numeriques.
Explore chapterTransport
Buy digital copy of this chapter - £18As roads are being built, and as related infrastructure is developed, Mongolia’s connectivity and logistics are greatly improving. Significant investments in transportation have been made in recent years, especially in 2013, and more are expected. The government is spending $200m to revamp 33 intersections in Ulaanbaatar, and it has set the goal of connecting all of Mongolia’s 21 provinces to the capital. Furthermore, given that the city’s current logistics facilities are regarded as inadequate, an integrated logistics centre being planned. This will be established as a public-private partnership and involve project financing from outside sources such as international organisations, development banks and private investors. The country is home to a number of local airlines; however, it has been suggested that the market is getting overcrowded and consolidation could be on the way in the future. Mongolia’s connections are likely to continue improving over the next few years as more roads are finished and after the new airport is operational. This chapter contains an interview with G. Jargalsaikhan, President & CEO, MIAT Mongolian Airlines.
Explore chapterTransport
Buy digital copy of this chapter - £18The Thai government is planning to build four high-speed rail lines linking Bangkok with the northern city of Chiang Mai, the Laotian border, the industrialised eastern seaboard and Malaysia, effectively joining all corners of the country. Thailand’s infrastructure plan aims to reduce the ratio of logistics costs to GDP by 2% from its current 15.2%, increase the speed of non-high-speed trains and boost the percentage of freight carried by rail from 2.5 to 5. Meanwhile, reopened to help relieve congestion at Suvarnabhumi Airport, Don Mueang Airport is also overcrowded, handling 16m passengers a year despite its capacity for 10.5m. The renovation of the airport’s second terminal will boost capacity to at least 20m. Located at the centre of the ASEAN Economic Community, which is due to take effect from December 2015, Thailand is positioning itself as the regional transport hub. It is opening transfer depots and centres in anticipation of an increase in trade, while shipping is also set to benefit. Vast improvements to neglected areas of the country’s infrastructure are also important for Thailand’s future economic wellbeing, irrespective of the AEC. This chapter contains interviews with Chadchart Sittipunt, Minister of Transport; Sorajak Kasemsuvan, Former President, Thai Airways International; and Prapat Chongsanguan, Governor, State Railway of Thailand.
Explore chapterIndustry Retail
Buy digital copy of this chapter - £18Indonesia has all the makings of an industrial powerhouse: a young and talented population, relatively cheap labour and a large domestic market. The country has the capacity to develop its industrial capacity, specifically in terms of export-oriented industries. Indeed, manufacturing is vital to the Indonesian economy. Without it the country would have a difficult time addressing its current account deficit, escaping the middle-income trap and taking the edge off the commodity cycle. Indonesia must look for advantageous terms in foreign trade agreements and ensure that it is able to remain competitive in terms of import and export trade balance. Though national and presidential elections in April and July 2014, respectively, may bring some uncertainty for investors, on the whole most indicators point to a year of expansion for the economy. The challenge for the sector at this point is to make sure that a lack of infrastructure and demands for increased wages do not derail the return and rise of Indonesian manufacturing. This chapter contains interviews with Irvan K Hakim, President Director and CEO, Krakatau Steel (Persero); Klaus Lesker, Member of the Executive Board, Ferrostaal; Hiroyuki Fukui, President Commissioner, Toyota Motor Manufacturing Indonesia; and VP Sharma, CEO, Mitra Adiperkasa.
Explore chapterIndustry
Buy digital copy of this chapter - £18Building on Qatar’s comparative advantages, the government has focused on developing industrial sectors that support or leverage its energy resources and industry. Developing downstream facilities that add value to energy by-products, for example, has helped build a portfolio of petrochemicals, chemicals and fertiliser companies. Other investments include developing energy-intensive industries in steel and aluminium that can benefit from Qatar’s low-cost gas supplies. Shipbuilding is another growing segment that contributes to industrial output and supports the energy sector. While global economic conditions may present some challenges, local and regional demand is likely to remain strong, ensuring a positive outlook for Qatar’s growing industrial base. This chapter contains interviews with Abdulrahman Ahmad Al Shaibi, Chief Coordinator, Industries Qatar; and Abdulrahman Ali Al Abdulla, CEO, Muntajat.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18The government has played a key role in the expansion of the security, aerospace and defence industry over the past decade in an effort to strengthen the UAE’s defence capabilities and as a means of boosting economic diversification. The UAE has traditionally purchased the majority of its military hardware and equipment from the world’s largest suppliers; however, this is changing as more local companies enter the industry. By most counts demand for defence-related equipment and services is on the rise, both within the UAE and throughout the broader region, meaning that there is potential for continued growth in the sector in Abu Dhabi. Despite challenges such as high level of regional competition, most local defence and aviation firms expect to see continued expansion going forward. This chapter contains an interview with Staff Major General Obaid Al Ketbi, Member, Executive Council and Deputy Commander General, Abu Dhabi Police (ADP).
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18With demand for power estimated to grow around 7.5% per year until 2016 and maintaining annual averages of 5.6% in the following 10 years, managing the balance between demand and supply is a key concern for Panama. In other utility segments, such as water, rising consumption levels are exposing decades-long underinvestment in infrastructure networks. As a result, ambitious investment plans – from both public and private sources – are being rolled out across the utility spectrum. Meanwhile, commercial oil finds in the country’s south-eastern region have led to a preliminary set of rules and regulations to govern oil extraction in years to come. Plans for the diversification of the energy mix include renewables such as wind, solar and biofuel facilities, while the country also seems eager to expand other resources such as gas and, to a lesser extent, coal. This chapter features an interview with Fernando Marciscano, General Manager, Empresa de Transmision Electrica Panamena.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With ICT expenditure reaching $4.59bn in 2012, Algeria spends considerably less than many of its neighbours, for example Morocco, which spent $13.25bn in the same year. However, the country is making efforts to help modernise and boost the sector. Internet users can expect improvements as the government has planned a major overhaul of network infrastructure. The launch of 3G should also help to further develop the sector, as well as push service providers to improve connection speeds and reliability, while parliament is working on drafting new legislation that is expected to increase competition. This chapter contains an interview with Abdelhamid Benyoucef, Chief Executive Officer, HB Technologies.
Explore chapterIndustry
Buy digital copy of this chapter - £18Myanmar is seeking to build upon the growing and steady contribution of industry to GDP. This figure rose from 12% to 15.3% between 1970 and 1995 even as international sanctions affected the garment industry, with clothing exports falling by 60% and a loss of 80,000 jobs. However, with reform has come optimism of a turnaround in the making. As of 2012 the country had around 200 garment factories, having peaked at 300 in 1999. In addition, there are five steel plants, as well as hundreds of smaller steel workshops and four cement factories. In many ways, Myanmar has very suitable conditions already in place to develop and sustain an industrial base. In order to maintain its position as an attractive, low-cost market for international investment, Myanmar will need to overcome rising property and electricity prices, not to mention gaps in transport infrastructure. Progress will also depend on how laws are finally settled and whether the domestic financial system can be reformed to the extent that local corporations are able to finance their own facilities. This chapter contains interviews with U Maung Myint, Minister of Industry; U Khin Maung Win, Chairman, Myan Shwe Pyi Tractors; Dr Sai Sam Htun, Chairman, Loi Hein Company; and Daw Win Win Tint, Managing Director, City Mart Holdings.
Explore chapterTourism
Buy digital copy of this chapter - £18The total number of visitors to Dubai in the first nine months of 2013 was 7.9m, and the emirate has set itself a target of reaching 20m visitors per year by 2020. The emirate received a major boost towards achieving this goal when its bid to host World Expo 2020 was accepted in November 2013. Of the anticipated 25m World Expo visitors between October 2020 and April 2021, it is forecast that around 70% will be from outside the UAE. The energy going into providing facilities for tens of millions of foreign visitors is relentless and looks set to continue over the coming years, with endeavours to improve the offerings for sport, MICE, cultural and medical tourism all working to make the emirate a desirable destination for tourists.
This chapter contains an interview with Helal Saeed Al Marri, Director-General, Department of Tourism and Commerce Marketing, and CEO, Dubai World Trade Centre.
Explore chapterReal Estate
Buy digital copy of this chapter - £18The market saw a rapid slowdown after 2008, as investors backed away from the Gulf and economic growth tapered. However, from 2012, development has picked up to meet resurgent demand, and major projects are being rolled out in all sectors. Economic expansion, a growing population and increasing interest from foreign investors are driving a strong recovery in Oman’s real estate market. Expansion of retail real estate is rising in line with increasing purchasing power of the population, aided by a hike in the minimum wage that took effect in July 2013. This chapter contains an interview with Ziyad M Al Zubair, Director, The Zubair Corporation.
Explore chapterIndustry
Buy digital copy of this chapter - £18Like many Latin American countries, Peru is prioritising industrial development, moving away from primary product dependency and working to establish a healthy balance between manufacturing and commodity exports. One of the most important economic activities in Peru, the manufacturing sector contributed 15.98% to GDP in 2012, displaying year-on-year growth of 1.32%, and continued to expand at a rate of 1.42% during the first half of 2013. Despite unfavourable external conditions that have to some extent reduced demand for primary products, the steadiness of non-traditional manufacturing has helped keep overall growth on track, diversifying both products and markets. External trade has proven a successful formula, positioning the country on an international level, while it benefits from strong internal demand due mainly to large-scale development in areas such as construction, mining and energy. A growing middle class is also fuelling internal demand, reflected in the positive performance of fast-moving consumer goods in particular.
Explore chapterTourism
Buy digital copy of this chapter - £18As rich in natural beauty as regional tourism leaders Thailand and Malaysia, the Philippines’ history of under-investment, weak promotion and security troubles has made it one of the least-visited large countries in the area. But the Philippines is pushing hard to develop the potential of its tourism sector. Visitor numbers and revenues have been climbing steadily, though less quickly than those of neighbouring countries. Under the administration of Benigno Aquino III, the sector has received greater attention and growth has accelerated. The tourism sector is likely to roughly maintain its current growth rates over the next few years, with foreign tourist receipts growing at 10-15% annually and domestic tourist receipts rising by 20%. The acceleration of overall economic growth in 2013 suggests that domestic tourism growth could also rise further. This chapter contains interviews with Ramon R Jimenez Jr., Secretary, Department of Tourism; and a roundtable with Jorge Sarmiento, President & COO, Philippine Amusement & Gaming Corporation (PAGCOR); Thomas Arasi, President & COO, Solaire Resort & Casino; and Clarence Chung, Chairman, Melcro Crown Resorts.
Explore chapterIndustry
Buy digital copy of this chapter - £18As manufacturers scour the globe for new growth opportunities, few markets offer greater long-term potential than Nigeria, which boasts an enormous domestic population, plentiful feedstock and limited market penetration. The total value of Nigeria’s manufacturing sector increased 7.55% in 2012, reaching N761bn ($4.8bn) at current base prices, up from N634bn ($3.9bn) in 2011. A globally competitive manufacturing sector is integral to Vision 20:2020, which aims to transform the country into one of the world’s top 20 economies by 2020. With production under capacity, Nigerian industry is operating well beneath its potential, increasing the challenge of competing with cheap foreign goods. However, the success of some local producers shows plenty of room for optimism about the sector’s long-term potential. This chapter contains interviews with Olusegun Aganga, Federal Minister of Industry, Trade and Investment; and Laurent L Philippe, Group President of Central and Eastern Europe, Middle East and Africa region, Procter & Gamble.
Explore chapterEnergy
Buy digital copy of this chapter - £18As the largest non-OPEC oil producer in Africa as well as the continent’s second-largest natural gas producer, Egypt’s hydrocarbons resources and production play a central role in the nation’s economy. While the sector was nationalised in the 1960s, more recent reorganisations have created separate authorities for oil, gas and petrochemicals, which has allowed the private sector to play a bigger role. At the end of the 2000s, around 80% of oil and gas services were operated by the private sector and 90% of exploration activity was conducted by multinationals. Exploration activities have continued even amidst the ongoing political transition, with several recent discoveries adding to both oil and natural gas production. However, a number of long-standing challenges remain. These include an oil production level that has stayed flat in recent years and a rapidly rising demand for energy in the domestic market that has placed increasing pressure on Egypt’s exported gas supply. This chapter contains interviews with Sherif Ismail, Minister of Petroleum; G Steven Farris, CEO, Apache Corporation; and Ahmed Mostafa Emam Shaaban, Minister of Electricity and Energy.
Explore chapterTransport
Buy digital copy of this chapter - £18Under the Emerging Gabon initiative, the government is planning infrastructure investments in road, maritime and air transport. Among the priorities are improving connectivity between Libreville and the oil centre of Port-Gentil, as well as providing additional capacity on rail networks for mineral and passenger loads from the lesser developed interior of the country – both of which are needed, given the current state of linkages. The sector received a boost in terms of infrastructure in the lead-up to the Africa Cup of Nations in 2012, which sparked a flurry of road and aviation improvements prior to the competition. Despite some delays, transport projects are progressing, in many cases with the support of international lenders and donors, as well as the expertise of foreign contractors. This chapter contains an interview with Amadou Diallo, CEO of DHL Freight, Deutsche Post DHL.
Explore chapterEducation
Buy digital copy of this chapter - £18Like the other emirates in the UAE, Ras Al Khaimah’s development strategy is centred on transitioning to a knowledge-based economy. The government thus places a strong emphasis on both human and social development, with a particular focus on improving education. In 2010 the Education 2020 plan was expanded by the Ministry of Education to include 10 strategic objectives and 50 initiatives to be implemented over the decade, including a focus on improving basic skills in communications, English and maths. Vocational training is another priority area, with an emphasis on skill-specific training driven by recent economic diversification, especially in the tourism sector. The government recognises that to maintain the policy of Emiratisation, new entrants to the workforce must be sufficiently skilled to take up jobs available to them, and the education strategy focuses on achieving this.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With the introduction of 4G, the highly competitive telecoms market is likely to see growing use of smartphones and data services. The future development of the sector would be greatly aided by a new telecoms law and the emergence of an independent regulator. The need for this is clear and the Ministry of Communications has a plan to address this. In IT, state spending remains the primary growth driver, alongside the wealthy, young and tech-savvy consumer base.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Regionalism is a feature not only of Francophone West Africa’s monetary regime and banking sector, but also of its financial markets. The bond market is dominated by sovereign issues from Côte d’Ivoire and Senegal, the two largest economies in the region. The equity market has two capitalisations – Sonatel and Ecobank Transnational Incorporated – while most of the companies listed from Côte d’Ivoire. Although traded volume and market capitalisation have been on the rise in recent years and financial performance has been impressive, the regional financial markets remain a marginal source of funding, except for governments. Unlike some of Africa’s larger, more dynamic exchanges, the Bourse Régionale des Valeurs Mobilières (BRVM) has been stagnant in recent years, with few new equity listings. The markets are limited to trading of shares and bonds, although moves are afoot to open up the exchange to smaller businesses, and to the development of derivative products and commodities.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Ensuring that the economy is well served by South Africa’s energy resources has become one of the government’s overriding concerns. Coal deposits are South Africa’s primary energy resource, with reserves estimated at 30.16bn tonnes as of the end of 2011. Due to an electricity deficit, the government has commissioned two coal-fired power stations, but even as new capacity is added, demand continues to rise, and this “moving target” characteristic of the electricity deficit will exercise the minds of government planners for years to come. The country’s oil reserves are modest, but the presence of large deposits of shale in the Karoo Basin is generating significant interest. The country’s reserves of uranium are estimated to be 295,000 tonnes, or 5% of the world’s total, and the government identified nuclear energy as a key part of the country’s energy mix. This chapter contains an interview with Brian Dames, Chief Executive Officer, Eskom.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Colombia’s increasingly deep, diverse and sophisticated capital markets suggest a coming of age for the sector, which in 2012 saw total annual traded volume reach $36bn and a record total market capitalisation of $270bn. Well-established sovereign fixed-income and foreign exchange markets have been complemented in recent years by a developing derivatives market, increased domestic corporate debt issuance and a rising stock exchange, with strong domestic and international investor appetite across a range of asset classes. The Integrated Market of Latin America, which brings together the equity markets of Colombia, Chile and Peru, currently ranks second to Brazil on the continent in terms of market size, and offers new opportunities for the region. This chapter includes interviews with Juan Pablo Córdoba, President, Bolsa de Valores de Colombia; and Alejandro Santo Domingo, Board Member, Valorem.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry accounts for about one-fifth of GDP and around 90% of exports. Mining, chemicals, and textiles and garments manufacturing are the top segments, but the kingdom is also the largest exporter of pharmaceuticals in the Arab world. Several new free trade agreements –including one with Turkey – are expected to boost export volumes and revenues. More malls are expected to be added to the three shopping facilities already in place, further adding to the size of the retail sector.
Explore chapterReal Estate and Construction
Buy digital copy of this chapter - £18With instability in the real estate sector largely stabilised after a slump in the property market, the government and private firms are focusing on the issue of affordable housing for nationals, with a plan to provide housing to 54,000 Bahrainis waiting for a subsidised government home. In the construction sector, plans are also in place to improve transport infrastructure, with roads and bridges set to receive the greatest share of funding. There has also been a renewed commitment to ensuring greener building regulations, and while the current emphasis in Bahrain is on affordable housing, this could open up new opportunities for green initiatives that also reduce costs for the construction sector. This chapter contains interviews with Essam bin Abdulla Khalaf, Minister of Works; Mohammed Khalil Alsayed, CEO, Ithmaar Development Company; and Christopher Sims, CEO, Naseej.
Explore chapterAgriculture
Buy digital copy of this chapter - £18A favourable climate and proximity to affluent Europe and the dry Middle East make Turkey a global breadbasket and a natural destination for investors. Foreign direct investment is at unprecedented levels, reaching a total of $2.1bn by October 2012. Major government infrastructure projects are also set to boost the agriculture industry in the coming years. The sector is hampered by high levels of protection, inadequate irrigation, fragmented farms and limited access to capital to fund technological improvements. Although consolidation and mechanisation of the farming sector has resulted in fewer farm jobs, unemployment can be offset by the creation of new job in related industries such as food manufacturing. Turkey wants to see agricultural exports more than triple to $40bn over the next decade. Ideal ecological conditions, a well-developed industry, rising global demand and government support for investment make this a realistic target.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Several years of strong investment, mainly driven by government initiatives to improve infrastructure and address a housing shortage, have boosted Brunei Darussalam’s construction industry. Major on-going projects include upgrades to the Brunei International Airport, as well as the construction of the Brunei Cancer Centre, the Prime Minister’s Office and several key roads and bridges. It is also likely that demand for the construction of homes, schools and hospitals that cater to the Sultanate’s growing population will remain strong in the years to come. If the Sultanate’s economic diversification project succeeds in attracting investments to the country, Brunei Darussalam will need modern and efficient policies and regulators oversee the development of its built environment. This chapter contains an interview with Marcelino Ugarte, General Manager, Heidelberg Cement Asia.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction industry has been a major driver of growth in recent years as Gabon has made moves to upgrade its infrastructure. These include major road projects, two new hydroelectric dams, port extensions and the construction of a new international terminal at Port-Gentil International Airport. Housing projects have also been important given the estimated deficit of 200,000 homes nationwide. In spite of this high demand – and, indeed, a need for affordable housing – the real estate market has been largely backed by luxury housing projects. The government has in recent years sought to eliminate bureaucratic obstacles in the real estate sector and created several new institutions to aid in the sector’s development. This chapter contains an interview with Yannick Mokanda, Director-General, National Agency for Urban Planning, Topographical Works and Land Registry (ANUTTC).
Explore chapterTransport
Buy digital copy of this chapter - £18Now in the midst of a three-stage strategic plan to develop the transport sector and position the country as a regional hub for air and maritime traffic, Morocco has experienced remarkable growth in transport networks in recent years. The government invested some €10.67bn between 2008 and 2012 for infrastructure building and introduced liberalisation and competitiveness reforms. To maximise the benefits of the country’s expanded infrastructure, the government has also proposed a Dh60bn (€5.33bn) investment programme over the 2010-30 period for the construction of a nationwide logistics network. This is expected to increase efficiency and boost revenues in maritime, air, road and rail transport. While much of Morocco’s transport sector continues to be managed by public entities, particularly airports and railways, private sector firms are coming to play larger roles, especially in maritime segment. This chapter includes interviews with Aziz Rabbah, Minister of Equipment and Transport; and Hartmut Goeritz, Director-General, APM Terminals Tangier.
Explore chapterEnergy
Buy digital copy of this chapter - £18Accounting for just under 30% of real GDP and providing roughly 80-90% of state revenue in any given year, the oil and gas sector has been the dominant force behind Saudi Arabia’s economy for decades. Seeking to cement its position as a front-runner in the global market, the government has continued to invest heavily in the sector over the last decade to boost capacity and develop new resources. These new discoveries, along with new, more efficient lifting technologies, have seen the Kingdom’s proven reserves increase over the past two decades in spite of rising extraction rates. Indeed, oil consumption in the Kingdom peaked at 2.86m bpd in 2011 and this growth shows no signs of stopping; it is predicted that the rate of consumption will double by 2030. Moreover, since achieving its target production capacity of 12m barrels per day, the nation is looking to continue its success by developing downstream refining and petrochemicals operations. This chapter includes an interview with RPN Singh, Indian Minister of State for Petroleum and Natural Gas. It also features viewpoints with Maria van der Hoeven, Executive Director, International Energy Agency; and Peter Voser, Global CEO, Shell.
Explore chapterAerospace and Defence
Buy digital copy of this chapter - £18With a long-term aim of building up its aerospace and defence industry, the government is focusing on establishing a local aviation centre to develop capacity and attract investment. An important element of this is international linkages, which will be essential to the success of both the aerospace and defence industries in the emirate. The UAE’s good relations with most of the world mean restrictions on export of technology to the country are unlikely to prove too onerous. More specifically, within the sector naval shipbuilding is seen to hold particular potential as a future growth area for the UAE – welcome news for the strategists of economic diversity. With military spending on the increase across the GCC, there could be plenty of work for the shipyards in the years ahead. This chapter includes an interview with Homaid Al Shemmari, Executive Director, Mubadala Aerospace.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With foreign direct investment rising, factories being built and real estate booming, the construction sector in Indonesia is expanding rapidly. The government is undertaking programmes to improve infrastructure, building roads, airports, railways and ports. While Indonesia remains more consumption-oriented than places like China, investment is an increasingly important part of the mix. The construction sector is expected to continue to expand rapidly over the next few years as the property market sees further rapid growth. Unblocking bottlenecks, increasing capacity and improving efficiency are all vital tasks going forward as the sector evolves. This chapter contains interviews with Ketut Budi Wijaya, President Director, Lippo Karawaci; and Harun Hajadi, Managing Director, Ciputra
Explore chapterRetail
Buy digital copy of this chapter - £18With wholesale and retail trade making up 30.7% of the emirate’s GDP in 2011, Dubai has become the Middle East’s chief retail centre. The emirate is home to one of the largest malls in the world, has a massive domestic consumption of retail goods and boasts a reputation as a prime shopping destination among well-heeled tourists. Despite a hiccup in numbers after the 2008-09 global financial crisis, the sector bounced back quickly, and the emirate continues to work to promote its image as a shopping destination for visitors from both East Asia and the West. With rising incomes among locals and expats alike, record-breaking numbers at the DSF and DSS, and a steadily increasing supply of international brands, local retailers are optimistic about the future. This chapter includes interviews with Iyad Malas, CEO, Majid Al Futtaim Holding; and Colm McLoughlin, Executive Vice-Chairman, Dubai Duty Free.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With an overall population density of only two people per square mile, and 40% of the nation living nomadically, providing 3G services has been more challenging than in other countries. However, as of December 2012, 3G services became available in all provinces. With 27% of the population under the age of 15 and a GDP that grew 15.7% per capita in 2011, the number of 3G users is expected to increase in the years to come. Debate is ongoing over which technology will prevail, however, with 4G demand expected to be highest in Ulaanbaatar and other large cities. Prospects for the telecoms sector are generally good. Also promising is the IT sector, thanks to a new corridor and fibre-optic networks. At the end of December 2012, the nation was ranked ahead of other players in the region, such as China and Indonesia, in terms of download speeds. The country is quickly becoming wealthy, benefitting from the fact that the market is relatively open and free. More competitive operators are expected to meet the market’s needs. Crucial to development will be how the government manages its dealings with the private sector. Companies must also ensure that employees are well-trained and qualified to work with rapidly evolving technology. This chapter contains a roundtable with B. Byambasaikhan, Chairman, Mobicom; D. Bolor, CEO, Skytel; and R. Granbold, CEO, Unitel.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18As part of a strategy to diversify the economy away from the oil and gas sector, efforts are continuing apace within the industrial sector. In particular, the government is working to expand steel production, as regional demand is expected to increase in line with large-scale projects underway in the GCC region. The aluminium industry, for example, is showing signs of good growth, with new rolling plants expected to become operational by the end of 2013. In retail, a number of factors continue to shape the market. While competition has increased as more companies have set up retail outlets, salaries have also grown, boosting consumer spending as a consequence. In spite of some labour difficulties and increased competition, the retail sector presents a variety of investment opportunities – not only in the larger, more traditional segments, but also in a number of niche markets. This chapter includes an interview with Khalil Abdullah Al Khonji, Chairman of the Oman Chamber of Commerce & Industry (OCCI).
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18From a regional perspective, Malaysia’s communications industry is at an intermediate level of development: significantly ahead of most ASEAN countries, but trailing “Asian tigers” like Singapore, Hong Kong, and South Korea. New developments in telecoms may be changing this, with wireless operators rolling out 4G networks and Telekom Malaysia deploying a fibre-to-the-home network in core areas. The IT sector, meanwhile, is seen as a prime candidate for powering a next-generation Malaysian economy, and possible sources of growth include the creative multimedia, outsourcing, and data centre industries. Sourcing talent for this industry, however, is proving to be a perennial headache. This chapter includes interviews with Mohamed Sharil Tarmizi, Chairman, Malaysian Communications and Multimedia Commission (MCMC), and Zam Isa, Group CEO, Telekom Malaysia.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Since the liberalisation of the telecommunications sector in 2000, Algeria has become one of the highest teledensity markets on the continent. With a mobile penetration rate nearing 100% and a fixed-line segment at 8% and growing, the sector is on a steady rise with numerous growth opportunities. The mobile market accounts for most of the growth, with a turnover of AD222bn (€2.13bn) in 2010. The success of the mobile telephony industry gave the sector its largest revenue share yet, growing 17% from €3.75bn in 2010 to €4.4bn in 2011. Indeed, as the total mobile penetration rate approaches 100% and demand for both fixed and mobile services continues to rise, the telecommunications sector is poised to experience significant expansion in the coming years. But despite its considerable population size, internet usage in Algeria remains low. However, growth indicators are encouraging, as subscribers grew to 1m in 2012 from 900,000 in 2010. Given the significant room for expansion, a sense of cooperation, rather than competition, prevails among industry players in the sector. This chapter contains an interview with Nasser Marafih, CEO, Qtel.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18Transforming Nigeria into a knowledge-based economy is the central goal of the government’s policy on ICT. Mobile use is the main means of access, with around 92m users, and numbers could grow significantly as other devices become available. While there are a number of opportunities to develop the Nigerian IT sector, the field is not without some challenges, including those arising from the lack of connected terrestrial infrastructure. These could be solved, however, thanks to significant investments being made in satellite technology and by telecoms operators in fibre-optic networks and base stations. Significant investments by all operators in their terrestrial infrastructure should bring about better coverage and quality of service, but these firms still face challenges in terms of power costs and security issues. This chapter contains an interview with Ernest Ndukwe, Chairman, Openmedia Group, and Director, Centre for Infrastructure, Policy, Regulation and Advancement, Lagos Business School.
Explore chapterReal Estate
Buy digital copy of this chapter - £18While the real estate sector has experienced a lull in recent years, property prices have remained stable over the past 12 months – a significant improvement on three years ago when prices were in freefall. The sector has recovered from the global economic crisis, and government plans to expand the non-hydrocarbons sector bode well for the market. In addition, new luxury real estate developments are expected to come on-line throughout 2012, indicating there is still sufficient demand for high-value property. Furthermore, bank credit to the sector grew 91.5% from October 2010 through October 2011. The sharp increase and still relatively low penetration levels imply that the majority of credit is going to the commercial segment, and that there is room for expansion in the sector as a whole. This chapter includes interviews with Abdulla Abdulaziz Turki Al Subaie, Group CEO, Barwa Real Estate Company.
Explore chapterTelecoms
Buy digital copy of this chapter - £18Thanks to a heavy private sector presence and sizable domestic demand, Egypt’s telecommunications sector has seen immense growth in its subscriber base. Although average revenue per user is low compared to other regional markets – at roughly one-third that of Morocco and one-quarter that of Jordan – affordability and improved features and services have helped drive penetration up to 112%, or 92.44m people, by the end of June 2012. Crucially, data is playing a growing role in boosting revenues. Egypt’s information technology industry has also emerged as an impressive regional player, employing more than 215,000 people across 4700 registered companies, with an issued capital of $7.61bn. The country has seen strong double-digit growth year-on-year in terms of internet penetration, with 31.21m users by the end of June 2012. Access is still uneven although mobile usage is helping improve rural accessibility. Crucially, content and services – particularly in terms of e-commerce and e-government, as well as back-office outsourcing – has been growing, and the government has pushed to boost value addition through innovation incubators. This chapter features a dialogue with Hatem Dowidar, CEO, Vodafone-Egypt; and Yves Gauthier, CEO, Mobinil.
Explore chapterIndustry
Buy digital copy of this chapter - £18Ghana’s industrial sector is still quite small and import-reliant, with manufacturing making just a modest contribution to GDP. The sector has traditionally been based around a few key products, including cement, metals and agricultural products such as cocoa. However, a new five-year plan for the 2011-15 period has established the aim of increasing industrial competitiveness. This will largely be achieved through upgrading technology, improving the manufacturing value chain, putting in place more incentives and regulations for producers and raising work safety standards. The outlook for the retail sector, meanwhile, is optimistic, particularly given rising purchasing power and improved distribution networks. This chapter contains interviews with Hannah Tetteh, Minister of Trade and Industry; and Ashok R Mohinani, Executive Director, Mohinani Group.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18Thailand lags behind its peers in several measures of connectivity and IT-readiness, although this may change in the near-term. A 3G spectrum auction is scheduled for the third quarter of 2012 after years of delay that saw neighbours adopt the standard widely and even implement 4G. Reforms to the state-owned enterprises that control the infrastructure – TOT and CAT – are being considered, which could enhance competition and lower prices. On the IT front, hardware sales dominate the market, with relatively strong growth in computer sales, albeit from a low base. Smartphones and tablets are expected to attract a disproportionate share of the hardware market, especially given the government’s plan to give tablets to schoolchildren. This section features interviews with Anudith Nakornthap, Minister of Information and Communication Technology; Thares Punsri, Chairman, National Broadcasting and Telecommunications Commission (NBTC); Jon Eddy Abdullah, CEO, Total Access Communication (DTAC); Suphachai Chearavanont, President & CEO, True Corporation; and Wichian Mektrakarn, CEO, Advanced Info Service (AIS).
Explore chapterTourism
Buy digital copy of this chapter - £18Though one of the smaller emirates in the UAE, RAK is developing as a tourism destination. The emirate received 835,200 tourists in 2011, a significant increase over the previous year, which saw 600,000 visitors. There are hopes that these figures will continue to rise to reach 1.2m by 2013. To facilitate this, RAK International Airport is currently being expanded at a cost of $27m. New runways are being built and passenger and cargo terminals are being extended. The RAK Tourism Development Authority (RAK TDA) has also set a target to add 10,000 hotel rooms by 2016. Going forward, the emirate is looking to capitalise on cruise tourism by creating tailor-made excursions for cruise arrivals, who are expected to exceed 20,000 in the 2012-13 season. This chapter includes an interview with Victor Louis, COO of Ras Al Khaimah Tourism Development Authority and CEO of Ras Al Khaimah Hospitality Group.
Explore chapterBanking.
Buy digital copy of this chapter - £18PNG’s banking sector is dominated by three major players: BSP, ANZ and Westpac. The challenges they face are familiar to emerging markets, including limited capital, riskier commercial loans and a largely unbanked population. The current issue is an excess of liquidity, as banks have accumulated plenty of cash through a build-up of foreign exchange reserves, yet are hesitant to lend it out. To incorporate more people within the formal banking system, the government is expanding the National Development Bank, while the private sector is counting on mobile banking to reach rural inhabitants. This chapter includes interviews with Loi M Bakani, Governor, Bank of Papua New Guinea; and a roundtable discussion with Vishnu Mohan, CEO (PNG), ANZ Banking Group; Ian Clyne, CEO, Bank South Pacific (BSP); and Ashleigh Matheson, Managing Director, Westpac Bank (PNG).
Explore chapterAqaba
Buy digital copy of this chapter - £18The town of Aqaba and the short strip of coast on which it lies represent Jordan’s only access to the sea. This makes Aqaba a strategic location for a range of sectors in the economy, including transport, logistics and industry. Aqaba is also a premier tourism destination, boasting the highest number of hotel nights outside of the capital. Furthermore, its tourism capacity is set to be expanded by three real estate mega-projects, namely the Ayla, Saraya and Marsa Zayed developments. The projects will see numerous hotels and residential units built, as well as the extension of the coastline. However, as in the rest of the country, the local tourism sector has recently been negatively affected by regional instability and the eurozone crisis. Development and growth will continue to depend on this and other external factors such as the national economy, the regional real estate market, and the political and security situation in neighbouring countries. This chapter includes an interview with Nasser Madadha, Chief Commissioner of Aqaba Special Economic Zone Authority; and Chairman of the Board of the Aqaba Development Corporation.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector responded to the 2008-09 financial crisis with promising growth on the back of rising urbanisation and a newly announced urban renewal plan to secure the nation’s cities against earthquakes. Additionally, international interest in the country’s real estate investments, particularly from the Middle East, is helping to drive the sector. With a constantly rising need for affordable, mid-class, and luxury residential properties, as well as the prominence of mixed-use buildings and commercial properties, and a vast pipeline of infrastructure projects, the industry is expected to grow persistently in the course of the next decade. This chapter has interviews with Ahmet Haluk Karabel, the President of the Housing Development Administration of Turkey (TOKİ); Avni Çelik, the Chairman of Sinpaş; Erman Ilıcak, the Chairman of Rönesans Holding; and Anthony Khoi, the President and CEO of Aerium Turkey.
Explore chapterTransport
Buy digital copy of this chapter - £18While South Africa’s infrastructure has held a comparative advantage over its neighbours, upgrades have become necessary for most categories of public infrastructure to maintain that edge. The country’s airports are routinely praised as the best in Africa, and there is no shortage of capacity after a recent round of upgrades in advance of the 2010 World Cup. South Africa has 747,000 km of roads and a functioning railway network. The 20,500-km rail network is managed by Transnet, which is working on a plan to overhaul the rail system. The port at Durban is the country’s largest, handling around 60% of traffic, however, the country’s sea ports are challenged by high costs and congestion. This chapter contains interviews with Brian Molefe, CEO, Transnet; and Richard Branson, President, Virgin Atlantic.
Explore chapterIndustry
Buy digital copy of this chapter - £18While the Kingdom’s established heavy industries continue to play an important role in the economy, the government is seeking to diversify industrial activity into areas such as high-tech manufacturing and the downstream aluminium segment. After aluminium, petrochemicals is the largest industry in Bahrain, with ammonia, methanol and urea all produced locally. While steps are being taken to increase petrochemicals production in the Kingdom, one challenge that remains is ensuring the supply of natural gas at a price that allows Bahrain’s goods to remain competitive in the regional market. But Bahrain has a history of success in diversification, and shifting towards high-tech manufacturing and other new areas will help the industrial base develop further and reduce reliance on heavy industry. In the future, rather than using finite natural resources, these niches will rely on developing the skillsets of the national workforce and also making use of the Kingdom’s geographical position midway between developed markets in the US and Europe and the quickly expanding economies of Asia. This chapter includes an interview with Chris Potter, Chief Executive, Arab Shipbuilding & Repair Yard.
Explore chapterTourism
Buy digital copy of this chapter - £18The Philippines tourism industry is hoping to emerge from a challenging few years that saw the country blacklisted by Hong Kong and the civil aviation authority downgraded by the US and EU. Although the growth in visitors during those years was solid, arrivals figures are barely a quarter of those seen in powerhouses like Thailand. The country has shifted its international tourism promotion to Asia, especially markets like South Korea. Meanwhile, domestic tourism dominates the sector’s revenues, providing some 80% of tourism income. This chapter features interviews with Ramon Jimenez, Secretary, Department of Tourism (DoT), and Cristino L Naguiat Jr, Chairman and CEO, Philippine Amusement and Gaming Corporation (PAGCOR).
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18Ever since Kuwait opened its mobile market to further competition by granting a licence to a third mobile operator, Viva, in 2008, competition has ratcheted up. However, while the number of mobile subscribers has also increased, from 4.09m in first-quarter 2010, to 4.59m registered users in 2011, operator revenues have declined. With tightening margins, mobile internet and value-added services have become the primary battleground in the fight for revenues. Blackberry, iPhone and iPad promotions, for example, are now targeted at the youth and high-income segments of the population. Internet penetration rates have increased, yet at just 39%, the coming years should see many opportunities for entrepreneurs to deliver specialised online content to Kuwaitis. However, the government wishes to ensure that internet service providers bring prices down over time as the market develops, and is considering the introduction of a sector regulator.
Explore chapterBanking
Buy digital copy of this chapter - £18The banking sector has recovered from a financial crisis in 2008-09 that resulted from economic overheating and internal inflation. The sector is set to benefit from an influx of new mining projects, although the scale of the mining enterprises themselves far outstrips the available capital of all top banks combined. Instead, banks will focus on lending to service industries and to consumers who use their newfound wealth to buy houses and cars. Small and medium-sized enterprises are a major focus, and the government has launched programmes to improve access to credit. One threat to growth, however, is a tightening of interest rates as the central bank tries to curb inflation. This chapter features an interview with L. Purevdorj, Governor, Bank of Mongolia (BOM), and a roundtable discussion with John P Finigan, CEO, Golomt Bank; Norihiko Kato, Acting CEO, Khan Bank; Randolph S Koppa, President, Trade and Development Bank (TDB); and D. Bat-Ochir, CEO, XacBank.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Efforts are under way to transition the economy from one based on the export of raw materials, particularly hydrocarbons, to more advanced production. Recent trends show that this push is gaining traction, as Indonesia’s GDP grew 6.1% in 2010 despite a 2.3% contraction in the oil and gas sectors. The country aims to become an industrialised country by 2025. To facilitate this transformation, state planners have identified six core sectors capable of contributing significantly to Indonesia’s GDP, and divided the country into six “economic corridors” that will focus on a specific set of industries for which they are most suited. Infrastructure development will be key to industry’s success. This section includes interviews with Sudhamek AWS, President Director, GarudaFood; John Gledhill, President Director, HM Sampoerna; and Suryo Sulisto, Chairman, Indonesia Chamber of Commerce (KADIN); and a viewpoint by Fransiscus Welirang, Director, Indofood.
Explore chapterJeddah
The Kingdom’s second-largest city and its most significant seaport, Jeddah is one of Saudi Arabia’s key economic engines. While rapid population growth has placed a strain on both housing and public infrastructure, economic growth remains strong, with GDP per capita increasing by 2.4% in 2014 while employment rose by 3.4%. Expansion plans for Jeddah Islamic Port, which is key to the region’s growth and already handles 55m-60m tonnes of shipped goods per year, are expected to increase its capacity by 45%. Among the numerous other development projects are under way, most notable is Kingdom City in Obhor to the north of Jeddah, whose centrepiece will be the world’s first building to be over 1 km tall: Kingdom Tower. This chapter contains an interview with Mazzen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Sharjah's economic evolution is driven by vibrant construction and real estate sectors. The 2024 budget allocated $11.1bn, emphasising infrastructure, economic and social development. Real estate contributes significantly to Sharjah's GDP, generating $6.6bn revenue in 2022, helped in part by competitive mortgage rates, low taxes and enhanced transport links. Expatriates are a substantial segment of the population and are driving property demand. Legal changes in recent years have allowed non-UAE or GCC nationals freehold property ownership, spurring foreign investment. Meanwhile, the construction industry is supporting economic growth by expanding industrial sites and free zones. Initiatives like Sharjah Sustainable City and green construction investment underscore the emirate's commitment to sustainability. Ongoing infrastructure projects bolster connectivity, confirming Sharjah's position as a resilient and innovative investment destination. This chapter contains interviews with Yousef Al Mutawa, CEO, Sharjah Sustainable City; and Ahmed Alkhoshaibi, Group CEO, Arada.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Kuwait’s construction and real estate sectors are significant contributors to the country’s economy, propelled by government initiatives, private investment and oil revenue. New Kuwait 2035, the country’s long-term plan for economic diversification and sustainable growth, elevates the sectors’ importance with the intention of increasing the quantity and quality of infrastructure projects, while evolving legislation aims to create a more favourable business environment. As demand for affordable housing grows, the government is promoting the development of commercial and mixed-use projects to diversify the economy and attract businesses. The focus on promoting public-private partnerships is meant to stimulate growth and reduce the burden on public finances. This chapter contains an interview with Khaled Al Mashaan, Vice-Chairman and CEO of ALARGAN Group.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £22The Covid-19 pandemic exposed global supply chain inefficiencies, affecting manufacturing and retail alike. Abu Dhabi, as well as the broader UAE, is applying lessons from this era and focusing on self-sufficiency and local supply chains. This approach strengthens local retail and wholesale operations, which are adapting to the 5% value-added tax introduced in 2018. At the same time, enhanced governance, services and investment regulations are helping to encourage foreign direct investment in manufacturing. As conglomerates navigate industrial trends, opportunities for small and medium-sized enterprises (SMEs) in national value chains are growing, benefitting the manufacturing segment, investors and SME ecosystem development. Abu Dhabi’s expanding e-commerce industry also offers growth potential, supported by the Tajer Abu Dhabi scheme. The transition to renewable energy aligns with development goals and appeals to global businesses seeking robust environmental, social and governance policies, while improved trade relations are enhancing the growth potential of Abu Dhabi’s manufacturing and retail sectors. This chapter contains an interview with Sultan Al Jaber, UAE Minister of Industry and Advanced Technology.
Explore chapterInnovation
Buy digital copy of this chapter - £22Saudi Arabia is restructuring its innovation ecosystem, focusing on harnessing top scientists, researchers and inventors; increasing intellectual property; and attracting private investment and venture capital. Funding is being channelled into research, development and innovation (RDI). financing a diverse range of projects and partnerships. Synergising the three constituent components of RDI will be key to achieving these goals. There have been early signs of progress in this regard, with the Kingdom rising through global innovation-related rankings in recent years. Sector-specific strategies are also being explored to build a more productive innovation ecosystem that can support broad-based economic growth. Meanwhile, the entrepreneurial spirit of the Kingdom’s young, motivated and increasingly diverse workforce signals promise for advancements in the Saudi RDI space in the years ahead. This chapter contains an interview with Munir Eldesouki, CEO, King Abdulaziz City for Science and Technology; and Head, Founding Team, Research Development and Innovation Authority.
Explore chapterThe Guide
The Guide contains listings of some of the leading hotels and resorts in Misrata and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterIndustry
Buy digital copy of this chapter - £22.00Bahrain’s manufacturing industry is a key contributor to non-oil GDP and is one of the priority sectors targeted by the government to drive economic diversification. Aluminium manufacturing, led by the majority government-owned enterprise Aluminium Bahrain, is the country’s largest industrial segment. The kingdom’s globally competitive capabilities and output will be further leveraged through downstream infrastructure expansion. The government has identified increased investment and activity in the manufacturing segment as a critical component of its plans to establish the country as a competitive logistics centre. This will also enable the kingdom to supply its major ongoing infrastructure development programmes with locally produced materials. This chapter contains interviews with Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Sameer Abdulla Nass, Chairman, Bahrain Chamber of Commerce and Industry.
Explore chapterHealth & Education
Buy digital copy of this chapter - £22There have been improvements in numerous indicators in Djibouti’s health care sector, reflecting efforts to enhance services and promote public health initiatives. Medical services are expanding in scope, reaching rural areas and ensuring broader access to quality care. While the Ministry of Health is responsible for the sector at the national level, medical directors of regional hospitals ensure localised health care provision. In terms of education, Djibouti continues to improve nationwide access to learning, particularly primary and secondary schooling. Additionally, there is a growing focus on vocational and tertiary education opportunities, providing students with the skills and knowledge needed for the job market and supporting the country's development goals. This chapter includes interviews with Deka Ahmed Robleh, Director-General, National Social Security Fund; and Nabil Mohamed Ahmed, Minister of Higher Education and Research.
Explore chapterICT
Buy digital copy of this chapter - £22With a population of close to 220m and an internet penetration rate of 51% at the beginning of 2022, Nigeria’s large ICT consumer market offers room for growth, making it an enticing prospect for local and international investors, particularly with the population forecast to reach 377m by 2050. Inadequate policy implementation has long prevented the sector from reaching its potential, but the government’s willingness to enter into public-private partnerships is a reason for optimism. Moving forwards, the burgeoning, responsive financial technology space and wider start-up ecosystem are bright spots for the domestic economy. Greater public-private cohesion in those areas would give the government an opportunity to collaborate with the country’s most innovative minds to develop effective solutions to macro and socio-economic challenges. This chapter contains interviews with Kashifu Inuwa, Director-General and CEO, National Information Technology Development Agency; and Olu Akanmu, President and Co-CEO, OPay Nigeria.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £22Manufacturing activity has undergone a significant expansion in Oman since the turn of the century, with further growth targeted in a number of strategically identified segments to boost self-sufficiency and aid the economic diversification agenda. The Covid-19 pandemic demonstrated the importance of self-sufficiency, particularly in relation to food and medical supplies. Industrial, free and special economic zones are facilitating private investment in manufacturing segments, particularly metals and petrochemicals. Incentives and concessions for entities operating within those areas – alongside new laws – are contributing to an increasingly attractive business environment. The retail sector has experienced growth in recent years thanks to a growing population, higher levels of disposable income, tourist arrivals and the emergence of segments such as e-commerce. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones; Lujaina Mohsin Darwish, Chairperson of the Infrastructure, Technology, Industrial & Consumer Solutions Cluster, Mohsin Haider Darwish; and Sayyid Azzan bin Kais Tarik Al Said, co-founder and CEO, AZD Technologies.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Kuwait’s construction and real estate sectors rebounded in the years preceding the Covid-19 pandemic, following the 2017 unveiling of New Kuwait 2035, the government’s overarching development blueprint, which heralded an extensive infrastructure pipeline. This sparked growth in construction activity, and saw a host of new residential and commercial properties enter the market. In spite of that reinvigoration, both the country’s traditional reliance on oil revenue and the fact that the government has routinely favoured public financing over private for major infrastructure developments has contributed to delays on construction projects in recent years. However, the easing of pandemic-related disruptions and a spike in global oil prices have allowed the government to once again channel funding into housing, energy, utilities, industry and health care infrastructure projects. This chapter contains an interview with Mazen Hawwa, Vice-Chairman and Group CEO, United Real Estate Company.
Explore chapterInnovation
Buy digital copy of this chapter - £22A productive cross-sectoral innovation ecosystem underpins the world’s leading economies, enabling countries such as the US, China and Germany to respond effectively to existential challenges, economic inefficiencies and commercial opportunities that ultimately bolster economic sustainability. In recognition of this, Saudi Arabia’s government is working to plug gaps in the Kingdom’s own innovation ecosystem by ensuring each sector of its economy has a strong research, development and innovation (RDI) component. Saudi Arabia’s sovereign reserves and reformed regulatory frameworks have enabled rapid economic diversification, and its flourishing RDI entities have made significant contributions to the Kingdom’s search for solutions to national challenges, which include water scarcity, genetic diseases, the Covid-19 pandemic, the energy transition and food insecurity. This chapter contains an interview with Munir El Desouki, President, King Abdulaziz City for Science and Technology.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22Following the outbreak of the Covid-19 pandemic in 2020 and its subsequent economic impact, Côte d'Ivoire's has construction sector helped the economy recover. There has been growing demand for residential properties to house the expanding middle class amid rapid urbanisation. Furthermore, industrialisation has increased the need for larger industrial zones and commercial centres, as well as an expansion of modern transport networks across the country. The real estate sector is growing at pace, with several residential and commercial projects planned for urban areas. However, the lack of housing for low-income families and difficulties in accessing finance have driven the development of informal housing. As the country undergoes urbanisation and industrialisation, there is an opportunity for officials to provide social housing with alternative financing options for informal workers and lower-income populations. The chapter contains an interview with Nicolas de Roquefeuil, General Manager, SETAO.
Explore chapterICT
Buy digital copy of this chapter - £22With a relatively small but sophisticated market, Bahrain’s ICT sector is an important driver of export growth in the country, thanks to the scalability of software and services and supportive government policy. As the kingdom looks to capitalise on the digitisation gains made before and during the Covid-19 pandemic, economic recovery plans centre around further ICT development and cybersecurity preparedness. The authorities are seeking to attract regional and international investment not only in the sector itself, but also in other industries with sizeable IT requirements that Bahrain is well placed to serve. This chapter contains an interview with Mohammed Ali Al Qaed, Chief Executive, Information & eGovernment Authority.
Explore chapterTourism
Buy digital copy of this chapter - £22In 2020, when international arrivals and tourism operations were affected by the Covid-19 pandemic, there was a worry that the tourism industry would lose its post-2017 momentum. However, efforts have been made to maintain the upward trend. Indeed, public investment in the tourism sector and concerted marketing campaigns aimed at fuelling engagement laid the groundwork for a rebound. In May 2021 the Central bank of Egypt amended an initiative to make it easier for hoteliers to afford renovations, financing a maximum of 90% of the costs of replacement and renewal, up from the previous 75% coverage. Moreover, the government has sought to bolster the domestic tourism market, encouraging Egyptians to take their holidays in cultural destinations. Looking to the future, the Grand Egyptian Museum, home to around 100,000 artefacts, is opening its doors in 2022.
Explore chapterConstruction
Buy digital copy of this chapter - £22The construction sector is nearing the end of a decade of building, as developing infrastructure directly and indirectly related to the 2022 FIFA World Cup has taken centre stage since 2011. Focus is now shifting to legacy plans for stadia sites, as well as non-tournament projects that facilitate the goals of Qatar National Vision 2030. Recent milestones that will positively shape the sector in the coming years include the passage of the dedicated Public-Private Partnership Law and measures related to private sector labour protections, which should have a significant impact for construction workers. The growing emphasis on sustainability in building is also shaping activity, as is the use of digital technologies in the planning, construction and operation of infrastructure as smart city concepts move to the fore. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority (Ashghal).
Explore chapterICT
Buy digital copy of this chapter - £22Ghana’s ICT sector has proven to be one of the country’s fastest-growing industries in recent years, with key market players offering more innovative products as data traffic surged amid the Covid-19 pandemic in 2020. Indeed, the sector had increased its contribution to GDP from $900m, or 2.3% of the total, in 2014, to $1.7bn and 3.6%, respectively, in 2017. The expansion of telecoms services has fuelled innovation and investment in ICT subsectors such as software, application platform development and mobile money. Looking ahead, policy efforts are likely to bolster growth due to the strategic importance of ICT in digital and industrial development plans. For instance, the $212m e-Transform Ghana Project, supported by the Word Bank, has provided funding and increased access to digital technologies, and strengthened instructional capacity. This chapter contains an interview with Selorm Adadevoh, CEO, MTN Ghana.
Explore chapterTransport and Logistics
Buy digital copy of this chapter - £22Although transport networks have historically been underfunded, the government is prioritising their development, as enhanced connectivity is key to supporting growth in non-oil sectors. Demand for transport is set to rebound in the second half of 2021 as the economy reopens and the African Continental Free Trade Area is in force. The most significant gains in the coming years are expected in the road and port segments, with urban rail projects progressing more slowly. As Nigeria is the most populous country on the continent, investors continue to see notable potential in the transport sector but have traditionally been deterred from investing in other areas of the economy because of concerns about infrastructure capacity. As such, redoubled cooperation between the public and private sectors to develop multi-modal nodes will be crucial. This chapter contains an interview with Emmanuel Ezenwere, CEO and Founder of Arone.
Explore chapterTable of Contents
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Health
Buy digital copy of this chapter - £22The Philippines’ universal health care (UHC) system is now operative, after President Rodrigo Duterte signed the bill into law in February 2019 and Francisco Duque III, the secretary of health, signed the implementing rules and regulations in October that year. This set the stage for 2020 to be the first year of UHC, strengthened by collaboration and the expertise of the private sector. Limited financing and a shortage of medical personnel remain legacy constraints on the system, with wide-ranging strategies to tackle both communicable diseases and non-communicable diseases among the growing population. Although the Covid-19 pandemic placed further pressure on health care infrastructure, the government forged ahead with its goal, deploying resources to priority areas as funds and capacity allowed. The private sector stepped up to fill some of the remaining gaps, and greater levels of cooperation between public and private actors are expected as UHC gains momentum. This chapters contains an interview with Eugenio Ramos, President and CEO, The Medical City.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18With the Covid-19 pandemic set to significantly slow economic growth worldwide in 2020, Papua New Guinea’s industrial sector can expect some headwinds; however, growth is forecast to return in 2021. The authorities hope the industrial sector can benefit from the rebound and help to improve national self-sufficiency in areas such as food production, while boosting export revenues in the process. Plans to fuel the creation of small and medium-sized enterprises across a wide range of industries also bode well for future expansion. If successful, this should spur the emergence of downstream activities centred around the country’s natural resources. Meanwhile, key players in the retail sector have adapted quickly to meet the challenges presented by the pandemic. In many cases, brands have transitioned from physical stores to online platforms. Supply chains have remained relatively resilient, indicating that the sector can expect to return to the growth trajectory witnessed over recent years, fuelled by urbanisation and a rapidly growing middle class. This chapter contains interviews with James Rice, CEO, Paradise Foods; and Alfred Yau, Director, Papindo.
Explore chapterTransport & Logistics
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As Egypt seeks to integrate more fully into global value chains, the development of transport infrastructure is a vital part of the country’s long-term growth. The government has made investment in the transport sector a priority – both in an effort to increase foreign trade, and to reduce urban congestion and pollution. The sector has been substantially impacted by the Covid-19 pandemic, with international flights halted and pressure placed on logistics infrastructure to ensure the uninterrupted provision of essential goods. Although the likely global economic downturn following the pandemic will present challenges for the transport sector in the short to medium term, the country’s growing population, strategic location at the crossroads of various international trade routes, and steady demand for goods and transport services should ensure that the sector’s long-term prospects are positive.
Utilities
Buy digital copy of this chapter - £18There is a rapid transformation taking place in Abu Dhabi’s power and water sector. A major shift in the energy mix is under way, with a transition away from fossil fuels and an expanded use of renewables and nuclear power. At the same time, the emirate continues to be a leading supplier of electricity and water to other emirates of the UAE, while technological advances and developments in demand management are shaping sector trends. Changes also mean challenges, however, with utilities providers having to adapt to new patterns of supply, while also having to meet increasingly urgent demands for sustainability and higher environmental standards. This chapter contains an interview with Bader Saeed Al Lamki, CEO, National Central Cooling Company (Tabreed).
Explore chapterIndustry
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With the largest land mass, population and economy in South-east Asia, Indonesia has considerable potential to become the region’s industrial powerhouse. Nevertheless, with a development model traditionally reliant on the export of natural resources rather than processed goods, the Indonesian industrial sector remains below its potential. Indeed, in terms of output and exports of manufactured products, the country lags behind many of its neighbours. The expansion of the sector has been further hindered by restrictions on foreign investment, in conjunction with the relative underdevelopment of the county’s infrastructure network. However, this situation has changed in recent years, with the government identifying the industrial sector as a key driver of economic growth and diversification. The current administration aims to turn the country into a leading regional manufacturing centre, in part by easing the investment process for foreign firms and offering incentives, including through increasing the number of special economic zones. This chapter contains interviews with Agus Gumiwang Kartasasmita, Minister of Industry; and Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry.
Construction & Real Estate
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The construction of numerous large infrastructure projects has contributed considerably to economic expansion since 2012. The sector’s dynamism has attracted international companies, particularly Chinese firms, which have completed several projects in transport, logistics and energy. With major infrastructure projects nearing completion and others under way, the construction and public works sector is likely to remain a key contributor to the economy in the medium term. Activity has also benefitted from a real estate boom, with many new properties in the pipeline, especially around Abidjan. However, since the government is increasingly looking to private funding to realise its construction and real estate ambitions, delayed investment due to the Covid-19 pandemic may impede meeting targets in 2020. This chapter contains interviews with Bruno Nabagné Koné, Minister of Construction, Housing and Urban Planning; and Clyde Fakhoury, CEO, PFO Africa.
Explore chapterEnergy
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Saudi Arabia’s energy sector remains the backbone of the economy. As of March 2020 energy operations were facing the twin challenges of low oil prices and sluggish demand as economies around the world ground to a halt following the outbreak of Covid-19. However, the fundamentals underpinning the Kingdom’s energy sector remain strong. The size of its endowment, the comparatively low cost of recovery and opportunities to tap into new natural gas fields all suggest that the country’s energy sector will be a valuable source of competitively priced fuel when the world’s industrial economies start up again.
Explore chapterIndustry
Buy digital copy of this chapter - £18Qatar’s industrial sector has the potential to play a pivotal role in economic diversification, with both heavy and light manufacturing in a position to benefit from major milestones ahead. Industry, along with the domestic economy overall, has developed resilience and a level of self-sufficiency since the June 2017 blockade imposed by several Arab countries. An abundance of natural gas reserves has allowed the country to develop value-added and energy-intensive segments, especially as the country shifts towards cleaner and renewable sources of energy. This chapter contains an interview with Ramez Al Khayyat, Vice-Chairman and Group CEO, Power International Holding.
Explore chapterICT
Greater promotion and adoption of digital solutions has the potential to shift the backbone of the kingdom’s ICT sector beyond just telecommunications. While international rankings place the kingdom among some of the best-performing countries in both the North African region and the continent of Africa in ICT-related indices, infrastructure development and upgrades must be strengthened in order to create more inclusive and productive development. Enhanced and updated training programmes will be crucial to changing mindsets on the benefits of technology, as well as preparing the current and future workforce to overcome modern challenges. With the kingdom’s regulatory framework moving in the right direction, ICT developments will continue to bridge national divides and cement Morocco’s position as one of the most important players on the African continent. This chapter contains an interview with Mohammed Drissi Melyani, CEO, Digital Development Agency.
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Drawing on its potential as a services outsourcing centre, Trinidad and Tobago’s ICT sector remains a key contributor to the islands’ economy. In 2018 the telecommunications and broadcasting sector contributed around 3.7% to GDP. Revenue was generated primarily through software development, web design, data processing and training. Looking ahead, regional headquartering, research and development, business process outsourcing and cybersecurity remain key areas open to further development, especially as T&T seeks out private sector investment from around the globe. Adding to its prospects, T&T possesses the best ICT infrastructure in Latin America and the Caribbean, and ranks second in the region in terms of skills readiness among workers. This chapter contains an interview with Kirk Henry, CEO, iGovTT.
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Ghana has the second-highest data penetration rate in sub-Saharan Africa, the fastest-growing mobile money market on the continent and a burgeoning tech start-up scene. ICT therefore represents one of the most dynamic areas of its economy. Recognising the sector’s potential, the government has stepped up efforts to stimulate market activity and pave the way for the rollout of 4G and 5G technology. Nevertheless, taxes and spectrum costs have dampened growth and emerging tech firms continue to struggle for financing. The rapid expansion of mobile data penetration and mobile money platforms has had a transformative effect on the economy, boosting financial inclusion and providing companies with new avenues to develop and market their products. These platforms have also opened up new opportunities for start-ups. This chapter also contains a roundtable with Daniel Asare Kyei, CEO, Esoko; Curtis Vanderpuije, CEO, ExpressPay; Daniel Marfo, General Manager, Zipline Ghana.
Explore chapterIndustry
Buy digital copy of this chapter - £18Outside of financial services, Bahrain’s manufacturing sector has grown to become the largest contributor to non-oil GDP. The sector has benefitted from rising foreign direct investment inflows, one of the world’s leading global aluminium industries and increasing diversification into value-added production across several segments. Manufacturers and exporters in Bahrain have long exploited significantly lower operating costs than elsewhere in the GCC, generous investor incentives, and well-connected logistics at a network of free zones offering easy access to regional and global markets. As the kingdom moves forward on implementing a large-scale infrastructure development agenda, local manufacturers are also positioned to benefit from rising domestic demand. This chapter contains interviews with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism and Ali Al Baqali, Acting CEO, Aluminium Bahrain.
Explore chapterIndustry
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Manufacturing is on track to reach the target contribution of 15% of GDP by 2020 laid out by Oman’s Vision 2020 economic development plan, which was first announced in 1995. Indeed, Oman has accomplished 70% of its ambitions in Vision 2020, Talal bin Sulaiman Al Rahbi, deputy secretary general of the Supreme Council of Planning, told local media in October 2019. Past decades have seen manufacturing’s contribution to GDP rise from under 1% in 1980 to 9.6% in 2018, and it is expected to rise further. Room remains to broaden the industrial base: under the long-term plan Vision 2040, the government is looking to encourage the adoption of technology in manufacturing to enhance competitiveness and increase output. This chapter contains interviews with Hilal bin Hamad Al Hasani, CEO, Public Establishment for Industrial Estates; and Sheikh Khalil Al Harthy, CEO, Credit Oman.
Explore chapterIndustry
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Industry in Myanmar has benefitted from a period of strong economic growth, an increasingly welcoming environment for foreign investment and more open regulatory reforms. The outlook for Myanmar’s industrial sector is bullish in light of ongoing reform, the successful blueprint provided by the Thilawa Special Economic Zone, infrastructure development and the growing consumption power of a nascent middle class. However, as Myanmar heads into an election year, it is hoped that the reform agenda does not stall as politics ramps up. Looking ahead, there is significant potential for further growth as efforts to source materials locally pick up and infrastructure improves, particularly transport routes that will reduce logistics costs and open up less developed parts of the country to further investment. This chapter contains an interview with U Zaw Min Win, President, Union of Myanmar Federation of Chambers of Commerce and Industry.
Explore chapterTourism
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Attention in Dubai has already started to shift beyond Expo 2020 to the emirate’s long-term prospects as a tourism destination. Passenger numbers at its airport, one of the busiest in the world, have not been unaffected by regional economic headwinds. Nor have hotel occupancy rates and average daily rates emerged unscathed from the pre-expo supply boost. But the emirate remains a major draw, and by and large there is a sense among public and private sector stakeholders that the constant mining of new source markets, fine-tuning of regulation and willingness to adapt to changing visitor expectations will generate enough momentum to maintain growth both in the lead-up to Expo 2020 and beyond. This chapter contains an interview with Jose Silva, CEO, Jumeirah Group.
Explore chapterConstruction
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Major infrastructure works – from roads and schools to airports and hospitals – are either under way or in the design phase in Kuwait, highlighting the significant activity seen in the construction sector in recent years as the country works towards the goals outlined in the New Kuwait 2035 development plan. Perhaps the most ambitious of these projects is the 700,000-inhabitant Silk City mega-development in Subiyah on the northern side of Kuwait Bay. Government spending has, by and large, driven these projects, and 2017 and 2018 saw delays and postponements. As such, getting the investment and development balance right will be key to maintaining sustainable development, with a healthy mix of public and private participation now being sought.
Explore chapterSan Luis Potosí
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In 2018 San Luis Potosí was the eighth-fastest growing state in the country. Key growth drivers for the state economy include the automotive, manufacturing, agriculture and tourism sectors. Traditional industries have continued their strong performance into 2019, while new sectors are emerging that are aimed at diversifying the state’s economic offer. Collaboration with other states, coupled with predictions for another strong year, means San Luis Potosí will likely continue to consolidate its position as one of Mexico’s most attractive and reliable states for investment. This chapter contains interviews with Juan Manuel Carreras López, Governor of San Luis Potosí; Gustavo Puente Orozco, Secretary of Economic Development, State of San Luis Potosí, Jaime Chalita Zarur, President for San Luis Potosí, Employers Union of the Mexican Republic; and Hermann Bohrer, President and CEO, BMW Group Plant San Luis Potosí.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Papua New Guinea’s hosting of the 2018 APEC Leaders’ Summit proved to be something of a catalyst for the construction sector. Although the authorities had to mitigate the shortage of high-end hotels in the capital city by hiring cruise liners to accommodate international delegates attending the event, a host of construction projects were launched to meet the other infrastructure needs of the summit. Similarly, while the completion of PNG’s flagship liquefied natural gas project, PNG LNG, in 2014 ended the boom witnessed in the real estate sector, the momentum provided by increased construction activity between 2008 and 2014 continues to support the market. The commercial real estate sector in the capital Port Moresby has undertaken some notable projects in recent years. Meanwhile, a number of housing projects are under way, and a culture of homeownership has taken hold. This chapter also contains an interview with Ken Richardson, General Manager, Strickland Real Estate.
Explore chapterEnergy
Buy digital copy of this chapter - £18Efforts to overhaul the country’s hydrocarbons regulations, however, have been stymied by political instability, while the development of energy projects has been slowed by social unrest across the country. A revised hydrocarbons code has yet to be passed by Parliament and the question of whether to tap into non-traditional oil and gas reservoirs has increasingly become a key issue of debate. Despite the challenges, progress in diversifying the energy mix has seen the state issue a host of international tenders aimed at attracting contractors into a new renewable energy programme. This is expected to help the country achieve its goal of having renewable sources account for 30% of the energy mix by 2030. This chapter contains interviews with Slim Feriani, Minister of Industry and Small and Medium-Sized Enterprises; and Moncef Harrabi, CEO, Tunisian Company for Electricity and Gas.
Explore chapterTransport & Infrastructure
On the back of the government’s Build, Build, Build initiative, various infrastructure projects have been implemented across the country to ease the flow of goods and people, as well as make the country an attractive place to live and work. Dubbed “Dutertenomics”, President Rodrigo Duterte’s prioritisation of infrastructure is intended to usher in a golden age of development for the Philippines. Indeed, infrastructure was a cornerstone of the election campaign that brought him into office in 2016. The administration is holding true to its promise, and in a bid to foster economic growth and alleviate congestion, the state is making major strides towards an efficient transport ecosystem. This chapter also contains interviews with Arthur P Tugade, Secretary of the Department of Transportation; and Eddie Monreal, General Manager, Manila International Airport Authority.
Explore chapterICT
Buy digital copy of this chapter - £18The ICT sector is one of the most promising sectors in Colombia with high demand for telecommunications services, and an emphasis on innovation in commerce and industry. However, financial challenges, such as changes in interest rates, also significantly impact the growth of ICT due to the long-term nature of investments in the sector. Similarly, companies can struggle to access financing to offer new products and attract a greater share of the competitive market. This is influenced by pressures both within the country’s active start-up scene and from the development of new technologies across the world. Although it is expected that companies will be able to keep up, the key to ensuring penetration rates continue to increase will be designing products that meet consumer demands and anticipate upcoming trends. This chapter contains a roundtable with Ignacio Roman Vila, President, Avantel; Fabián Hernández, President, Telefónica Movistar Colombia; and Marcelo Cataldo, President, TigoUNE.
Explore chapterTransport
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The commitment of Peru to meeting its transport and logistics needs is apparent in the FY 2019 budget. The Ministry of Economy and Finance set aside PEN326.6m ($98.9m) for road, air and port infrastructure development, with plans to secure additional funds from the private sector. The prospects for investment in the sector are positive, as the need to close the country’s infrastructure gap is coupled with Peru’s improving image as a business destination. The latter is supported by a legal framework that facilitates public-private partnerships. Planning processes must take into account that the acquisition of land, and contracts now include an anti-corruption clause. The government is working to improve the business environment by hiring international consultants to contribute to the employment of best practices when carrying out joint works by the government and private sector. This chapter contains an interview with Juan José Salmón Balestra, CEO, Lima Airport Partners.
Explore chapterTransport
Buy digital copy of this chapter - £18Better transport networks are not only key to fulfilling the country’s ambitions to raise trade volumes with international markets; they will also be useful in properly managing the ongoing urban development taking place across many parts of the country. To reach these goals an increase in private investment participation is required. Moreover, for Egypt to maintain its position as a global maritime transport centre, ongoing improvements in port capacity are key, as well as measures to improve the competitiveness of port operations. Government plans to expand cargo movement across the Nile River will open up opportunities for multimodal transport across the country, and a clear framework to attract more involvement of the private sector in the system should boost the construction and operation of river ports in the pipeline for construction. This chapter contains an interview with Mohab Mameesh, Chairman, Suez Canal Authority; and Chairman, Suez Canal Economic Zone.
Explore chapterIndustry
Buy digital copy of this chapter - £18With the largest land mass, population and economy in South-east Asia, Indonesia is set on becoming the region’s industrial powerhouse. A historical reliance on natural resources has left its industry lagging behind that of regional peers Thailand, Malaysia and Vietnam in terms of exports, even as the country continues to clock robust GDP growth. Excessive bureaucracy and protectionist policies have further hindered the development of manufacturing exports, contributing to the double-digit decline in foreign direct investment in the third quarter of 2018, as well as the country’s persisting trade deficit. However, reforms are taking hold and Indonesia enjoyed GDP growth of 5.1% in 2018, with gains in both light and heavy manufacturing. Estimates put manufacturing’s contribution to GDP at 20.5%, not far below levels in most industrialised economies. This chapter also contains interviews with Airlangga Hartarto, Minister of Industry, and Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry.
Explore chapterEnergy
Buy digital copy of this chapter - £18Even as Saudi Arabia lays the groundwork for diversification, the energy sector is expected to continue to play a leading role in the economy. It is estimated that oil and gas will account for at least half of the country’s exports to 2040. As the world’s leading oil exporter, the Kingdom plays a key role in meeting global demand and forming international energy policies, as evidenced by the implementation of the Organisation of the Petroleum Exporting Countries (OPEC) supply cuts to stabilise oil prices. In 2019 Saudi Arabia’s energy sector aims to strike a balance between diversifying and strengthening downstream offerings such as petrochemicals, and incorporating renewables into the energy mix. This chapter contains interviews with Abdulkarim Alnujaidi, CEO, National Gas and Industrialisation Company; and Kamal Pharran, CEO, Saudi Tabreed.
Explore chapterIndustry
Buy digital copy of this chapter - £18The potential for the industrial sector to play a major role in Qatar’s economic growth was officially recognised in 2008 with the publication of the country’s plan for long-term development, Qatar National Vision 2030. Since then Qatar has taken a number of steps to increase the incentives available to foreign investors interested in supporting the country’s industry. Boosted by a new project to build a large petrochemicals complex, and responding to concerns about food supply and security in the wake of the 2017 blockade, non-hydrocarbons industries look poised to play a more prominent economic role. This chapter contains interviews with Mohamed Badr Al Sadah, CEO, Hassad Food; and Nasser Hassan Al Naimi, Managing Director, Barzan Holdings.
Explore chapterPlantations & Agriculture
Buy digital copy of this chapter - £18Sri Lanka’s economy has traditionally been agriculture-based, but several centuries of international trade – and the introduction of tea, rubber, and coffee cultivation by the UK – have altered the sector’s makeup significantly. After independence in 1948, the economy remained highly dependent on trade, with tea, rubber and coconut making up the bulk of exports, even while many Sri Lankans continued rice cultivation for domestic consumption using ancient reservoirs and paddy irrigation systems. Despite its generally strong economic growth since the end of the civil conflict in 2009, challenges still face the industry. Indeed, cultivation methods and post-harvest losses often result in low yields, productivity and profitability, which threaten to undermine growth and long-term potential. This chapter contains an interview with Mufaddal Jafferjee, Director, Jafferjee Brothers.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18The UAE continues to spend heavily on its military capabilities, while at the same time pushing to expand its domestic defence-related manufacturing industries, as a means both to better protect its own national security and to contribute to diversifying its economy away from oil and gas. Significant agreements point to the long-term success of the goal of developing a domestic industry, even as deals continue to be signed with international arms manufacturers for military equipment for the UAE’s armed forces. In recent years a core focus in Abu Dhabi has been on the commercial development of the emirate’s own security, aerospace, defence industries, with the sector constituting a key pillar of the Abu Dhabi Economic Vision 2030 long-term strategy. This chapter contains an interview with Maktoum Ali Al Sharifi, Director-General, Abu Dhabi Police.
Explore chapterTourism
Buy digital copy of this chapter - £18Dubai enjoys a global profile as a major destination for both business and leisure, and today boasts some of the world’s leading offerings for hotels, conference centres, entertainment facilities and shopping malls. It is within close flying distance of some of the world’s most dynamic tourism source markets, and the emirate also remains a popular destination for its neighbours in the Gulf. The sector faces mounting challenges: competition is fierce, and low oil and gas prices have dampened the economy. Dubai has also widened its appeal to the mass market, which is more price conscious and careful with its spending. Nevertheless, signs of recovery are now easily recognisable, and it appears that the ability to stay strong in tough market environments will result in future rewards.
Explore chapterFez-Meknes
Buy digital copy of this chapter - £18Boasting a dynamic and diversified economy, the Fez-Meknes region contributed 9.4% to Morocco’s national GDP in 2018, fourth by economic output. Established in 2015 as one of 12 distinct administrative areas, Fez-Meknes covers an area of over 40,000 sq km and forms a crossroads between several prominent economic centres on the country’s coasts. The region, one of the country’s largest by population, output and consumption, has accordingly launched many projects to lift growth. It has identified the shortcomings it must tackle, as well as its existing strengths and those economic sectors with the most potential to add value to local economic activity. The region must address urban unemployment, rural poverty, illiteracy among women and economic precarity. It already has the resources to foster job creation, lift wages and build wealth, including fertile land, a rich cultural heritage and cities equipped with extensive industrial capacities. This chapter contains an interview with Rachid Aouine, Director, Regional Investment Centre of Fez-Meknes.
Explore chapterICT
Buy digital copy of this chapter - £18With one of the region’s highest levels of mobile data penetration and a thriving start-up scene, Ghana’s ICT sector is one of the most active parts of the economy, and the government recognises that ICT is a central economic driver and enabler, becoming increasingly active in its support of the industry, while also working to tackle new threats such as cybercrime in its goal of developing Ghana’s middle-income status. Broadband internet is a growing necessity to support businesses of all kinds, thus Ghana is currently rolling out 4G networks. Economic and demographic factors mean that this is a fast-growing market, with a young generation increasingly enthusiastic about communications and technology. This chapter contains interviews with Kenneth Ashigbey, CEO, Ghana Chamber of Telecommunications; and William Senyo, Co-founder and CEO, Impact Hub Accra.
Explore chapterIndustry
Buy digital copy of this chapter - £18Oman’s industrial sector is a key pillar of its long-term development strategy, as well as a major employer and a steadily growing source of wealth. It covers a wide range of fields, including mining, petrochemicals, aluminium and organic beverages. The recent economic slowdown in both the country and the wider region still poses challenges. With much economic activity driven by government expenditure and investment, the sustained lows in oil and gas prices have strained margins in the private sector. Additionally, government policies related to employment and in-country value have sparked some debate. Nonetheless, Oman continues to offer a strong value proposition for businesses, and rising oil prices in the first half of 2018 bodes well for the future. This chapter contains an interview with Bader Al Nadabi, Vice-chairman and Co-founder, Al Sarh Group.
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Buy digital copy of this chapter - £18Bahrain is one of the most diversified economies in the GCC region, due in large part to a well-established manufacturing industry. The kingdom’s biggest industrial segment by far is aluminium production, and its importance is set to grow further with the launch in 2019 of a new pot line at national aluminium producer Aluminium Bahrain (Alba), which will increase the firm’s capacity by nearly half. A range of other manufacturing segments are also well established, including refining and petrochemicals, and recent years have seen growing foreign investment in the development of other industrial segments such as food and pharmaceuticals. This chapter contains an interview with Tim Murray, CEO, Alba.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector has experienced significant growth since 2011 as a result of heavy public and private investment. Foreign investors have helped usher in new infrastructure projects, which contributed to the rise of local cement production. The govern¬ment is focusing on projects to restore the road network and provide affordable housing. The construction industry may witness some slowdown compared to the 2011-17 period, primarily due to factors external to the sector such as the government’s revenue decreasing due to lower cocoa sales and political risk associated with the upcoming 2020 elections. That said, the long list of ongoing and planned projects — including highways, bridges, ports and stadiums — provide cause for optimism. Beyond public works, the social housing programme is likely to sustain the real estate sector, with a healthy growth rate for the short to medium term. This chapter contains an interview with Cheick Sanankoua, Managing Partner, HC Capital Properties.
Explore chapterAgriculture
Buy digital copy of this chapter - £18On the back of inefficient government policies and limited public expenditure, the agriculture sector dwindled under military rule. However, in the wake of economic liberalisation, increased investment and structural reform, the sector’s potential is ready to be unlocked. In recent years efforts have been made to enhance agricultural output with greater investment in production and post-harvest infrastructure. According to the Directorate of Investment and Company Administration, a total of $134.5m in foreign direct investment was approved for the agriculture sector in FY 2017/18, more than the combined total over the previous six years. With approximately two-thirds of the workforce directly or indirectly engaged in some form of farming, policymakers are eager to rejuvenate the sector. This chapter contains an interview with Thadoe Hein, Group CEO, Awba.
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Algeria has witnessed significant progress in the development of its ICT sector in recent years. Following strong investment in the recent rollout of key ICT infrastructure, the country has also updated its legal framework and introduced a series of new regulations to accompany growth. While telecoms still dominate the ICT sector, signs of diversification, digitisation and cybersecurity efforts are combining for a positive outlook. In a large market that is ideally located between developed and developing countries, the country’s ample opportunities for growth for new players, increased competition and an educated workforce can turn it into a regional leader. This chapter contains an interview with Steve Tzikakis, President, SAP South Europe, the Middle East and Africa.
Explore chapterAbuja
Buy digital copy of this chapter - £18Home to the national capital Abuja – one of the fastest-growing cities in Africa – the Federal Capital Territory has risen to become a significant investment destination in recent years. Supported by rapid population growth, rising GDP and expanding household consumption, a wide offering of opportunities have arisen across construction, mining, agriculture, ICT and real estate. However, rapid urbanisation presents serious challenges. The ongoing prioritisation of transport and infrastructure spending, coupled with efforts to increase private sector investment in real estate go some way towards addressing these issues. However, more remains to be done to further increase private sector involvement in large-scale infrastructure projects and to leverage the territory’s manufacturing potential. This chapter contains an interview with Muhammad Musa Bello, Minister of the Federal Capital Territory.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Hundreds of thousands of construction workers in Kuwait are busy building bridges, roads, homes, the region’s largest refinery, an expanded airport terminal and a new port. These are just some of the major projects being completed as the country works towards the New Kuwait 2035 vision. However, these developments are almost entirely driven by government spending and components of the Kuwait National Development Plan 2015-20, which have been subject to delays and postponements in 2017 and 2018. Despite these setbacks, the remaining two years of the plan should see the completion of major infrastructure improvements that could serve as the catalyst for significant changes within Kuwait’s economic landscape.
Explore chapterHealth & Education
Meeting the health care needs of Djibouti’s citizens in both concentrated urban areas and diffuse rural populations has led to differentiated policies based on region. To achieve the goal of universal coverage, the government has committed to improving health care access in the inner regions, providing care to vulnerable populations and boosting coordination with global partnerships in support of its Vision 2035 development strategy, which is prioritising investment in human capital through education and health care. This will build upon the comprehensive overhaul of the Djiboutian education system in 2000, which helped provide 80% of the population with access to education by 2016. Efforts to close the gap for the remaining 20% continue to be the object of significant outreach projects conducted by the government in tandem with international development organisations. This chapter contains an interview with Moustapha Mohamed Mahamoud, Minister of National Education and Vocational Training.
Explore chapterICT
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Having earned the moniker Silicon Savannah – a status the country first actively sought in 2013 when it launched its economic development roadmap, Vision 2030 – Kenya has made significant strides in ICT. Vision 2030 included a technology development blueprint with the main objective of transforming the country into a global digital player. Progress in this regard is being fuelled by favourable government policy, investment in infrastructure and a vibrant entrepreneurial ecosystem. Improvements, such as the addition of four fibre-optic sea cables between 2009 and 2016, have stepped up the quality of connectivity and reduced costs for consumers and businesses. Value-added services supported by mobile money have enabled mobile operators to maintain profitability, as the industry’s focus has shifted, first from voice to SMS, then to the current era of data-driven growth. This chapter contains an interview with Joseph Mucheru, Cabinet Secretary, Ministry of ICT.
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Buy digital copy of this chapter - £18As Telecommunications Services of Trinidad and Tobago continues to expand its 4G LTE network launched under the bmobile brand in 2016, Digicel began the rollout of its 4G LTE network in early 2018, promising eventual island-wide coverage. However, local operations for the company are facing a potential consolidation phase over 2018 and 2019, as the group’s transformation programme mandates a global 25% reduction in its workforce. This trend of consolidation is anticipated to persist in other large companies, as operators introduce measures to advance their long-term strategies in pursuit of digital transformation. With a key sector development strategy already in place, the state aims to increase IT’s contribution to 5% by 2021, and as growth indicators in a number of segments are picking up, prospects for T&T’s ICT sector are positive. This chapter contains an interview with Ronald Walcott, CEO, Telecommunication Services of Trinidad and Tobago.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18While resources-related projects will always be the engine of the sector, the rising number of residential, hotel, retail, transportation and office developments are becoming increasingly important, as the country’s hosting of APEC in 2018 and the expanding middle class continue to shift Papua New Guinea’s construction priorities. Although a downturn in the commodity cycle, the end of construction on the PNG LNG project and long-standing ambiguities over land rights have constrained development in the real estate sector, changes are afoot that could lead to significant improvements. About half a dozen major housing projects are now under way, and homes at reasonable prices are fast becoming available. A culture of home ownership is taking hold, driven by rising prosperity and aspiration. This chapter contains interviews with Matthew Lewis, Managing Director, Hornibrook NGI; and Graham Boddington, General Manager, Northbuild Construction.
Explore chapterCórdoba
Buy digital copy of this chapter - £18Located in the centre of the country and imbued with a rich history and the benefits of a productive climate and soil, the province of Córdoba has developed a multi-pronged economy that is resilient to external shocks. This includes an agriculture sector undergoing modernisation, a value-added food industry and an automotive manufacturing segment that significantly contributes to economic growth and local employment. Posting a GDP per capita of $9288 in 2017, Córdoba is among the top provincial contributors to national GDP, at 7.9%. Córdoba has the challenge of remaining one of the most competitive regions in South America. Doing so will necessitate developing infrastructure for further expansion, sustaining business conditions so companies can thrive, empowering the workforce to support future growth and providing good social conditions for inhabitants of the province. This chapter features an interview with Juan Schiaretti, Governor of Córdoba.
See also:
Special Report: Argentina 2018 : Córdoba
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Transport
Buy digital copy of this chapter - £18The transport sector remains a vital aspect of Peru’s economic success, growing by 2.30% in 2016, and by an average of 2.26% in the first eight months of 2017, according to the National Institute of Statistics. This expansion was driven by a 3.05% increase in airport transit, a 4.26% growth in railway transport, as well as respective increases of 2.11% and 0.74% for passenger and freight ground transport. To better compete internationally and accelerate the economic growth of its regions, Peru will have to prioritise reducing its logistics costs. Road transportation remains the area with the greatest future challenges as well as investment potential. That being said, significant upgrades in infrastructure, both at the urban and provincial levels, appear set to take place in the next few years. This chapter features an interview with Javier Lancha de Micheo, CEO, APM Terminals Callao.
ICT
Buy digital copy of this chapter - £18Thailand has seen tremendous growth in its technology sector in recent years and is now increasingly regarded as one of the industry leaders in South-east Asia. The government recognises the benefits that a vibrant ICT sector can have for the wider economy and plans to push ahead with a series of ambitious legacy projects. The state’s objectives for the sector are based around its Thailand 4.0 programme, which incorporates interlinked initiatives such as the Eastern Economic Corridor, the establishment of 100 Smart Cities nationwide and the transition from 4G to 5G technology. While these initiatives present tremendous opportunities for both local and foreign companies, there remain challenges to overcome. This chapter contains interviews with Teeranun Srihong, Chairman of the Board of Commissioners, Digital Economy Promotion Agency; and Ariya Banomyong, Managing Director, LINE Thailand.
Explore chapterHidalgo
Buy digital copy of this chapter - £18With a rich mining history, an unrivalled location both for exporters and companies serving the domestic market, and escaping relatively unscathed from the drug-trafficking violence that afflicts other parts of Mexico, Hidalgo has the tools to flourish, despite being one of the less developed states in the country. Hidalgo’s current government has looked to accelerate efforts to attract investment since taking office, launching a package of reforms designed to ensure that being next door to one of the world’s largest consumer markets is an asset for the state and its people. With plenty more investment in the pipeline, the task now facing Hidalgo’s government is to ensure that the benefits are felt across the state’s broader economy and remain localised. This chapter includes interviews with Omar Fayad Meneses, Governor of Hidalgo; José Luis Romo Cruz, Secretary of Economic Development, State of Hidalgo; Elías Massri Sasson, CEO, Giant Motors; and Mauricio Leyva Arboleda, CEO, Grupo Modelo.
Explore chapterTourism
Buy digital copy of this chapter - £18As efforts to develop tourist attractions ramp up inside the capital and beyond, the Philippines is well placed to capture a lucrative share of the 1.3bn-strong market of global business and leisure travellers. An archipelago of over 7000 islands with bountiful natural attractions and rich cultural traditions, the country drew 6.6m visitors to its shores in 2017, representing an 11% increase on the previous year. Tourist spending hit $27bn in the process, up from $25bn in 2016, contributing nearly 10% of GDP. This chapter contains interviews with Lawrence Ho, Chairman and CEO, Melco Resorts & Entertainment; and Andrea Domingo, Chairman and CEO, Philippine Amusement and Gaming Corporation.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As a direct beneficiary of the government’s current economic strategy, which focuses on major infrastructure, housing and energy investment, and a key player in the ongoing shift of government functions from Dar es Salaam to Dodoma, the construction industry is undergoing significant expansion in both absolute and relative terms. The pace of growth has been fast, with the overall sector valuation jumping from $1.6bn in 2010 to $6bn by 2015, and its contribution GDP growing from 7.4% in 2006 to 13.6% in 2015 on mainland Tanzania, and from 7.7% to 9.5% on the Zanzibar archipelago. The government is betting that short-term struggles caused by rooting out corruption will pay dividends over the long term by providing a more predictable operating environment in which domestic builders can thrive. Tanzania has relatively young real estate sector, with large-scale commercial development only taking off in the 1990s. While public sector actors historically handled the largest projects in the country, private sector players are now playing an increasingly important role in developing residential, office and commercial space. However, the industry in mainland Tanzania is growing more slowly than the economy overall, with its contribution to GDP declining steadily in the past 10 years, from 6.1% in 2006 to 3.2% in 2015. Cost sensitivity remains a significant concern, not only directly in terms of house sales, but also indirectly in terms of demand for formal retail and commercial space, since approximately three-quarters of the population live on $2 or less per day. As a result, the country will most likely have to depend on government intervention and innovative financing to help address demand at the lower end of the real estate market, while higher-end residential and commercial spaces are left in the hands of private sector developers. This chapter contains an interview with Dhruv Jog, Managing Director, Advent Construction.
Explore chapterLegal Framework & Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the legal and tax frameworks in which local and international investors operate in Sharjah, including a rundown of the free zones exempted from caps on foreign ownership and a summary of the new UAE-wide value-added tax of 5%. This chapter contains a viewpoint from Eslam Farouk and Nehad Farouk, Co-founders, Al FaroukInternational Intellectual Property Rights Management.
Explore chapterPlantations & Agriculture
Buy digital copy of this chapter - £18With a land area of more than 65,000 sq km, Sri Lanka’s agriculture sector is characterised by small-scale farming and a tropical climate that is highly variable. Agricultural output comprises rice, fruit, vegetables and livestock primarily for domestic consumption, and export-focused products such as tea, rubber and coconuts. Around 55% of land is used for agriculture. Traditionally the backbone of the economy, agriculture’s share of GDP has steadily declined over the decades, from 30.4% in 1975 to around 8% in 2015. While Sri Lanka is moving towards an urbanised manufacturing and services economy, the rural agriculture, forestry and fisheries industries are the source of income for more than 2.1m Sri Lankans, the 2016 Labour Force Survey reported. This chapter contains an interview with Navin Dissanayake, Minister of Plantation Industries.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Building on years of experience, Tunisian manufacturing capacity has been able to capitalise on the country’s geographic position and track record for quality. This, plus the improvement of transport infrastructure and enacting business-friendly regulations, has encouraged the emergence of a handful of significant industrial subsectors, which have aided in employing a growing number of Tunisians and diversifying the economy. However, Tunisia’s overall business environment has been negatively impacted by the post-revolution climate, with a decline in foreign direct investment. Tunisia’s retail sector has been affected by political instability, falling consumer confidence and currency devaluation in recent years. Still, improving security and the positive performance of international industries that rely on Tunisian suppliers underline the resilience of the local industry and retail sectors. This chapter contains interviews with Slim Feriani, Minister of Industry and Small and Medium-sized Enterprises; and Nabil Chaibi, CEO, Ulysse Hyper Distribution – Carrefour Tunisie.
ICT
Buy digital copy of this chapter - £18Holding the potential to become a major economic growth driver, Jordan’s ICT sector has seen decades of robust telecoms expansion and a liberalisation agenda launched in the early 2000s, supporting rapid growth in mobile penetration and internet usage. Jordan’s ICT sector has been the focus of a series of recent government reforms aimed at supporting macroeconomic growth, with new lending programmes and multiple tax incentives supporting tech firms and IT service providers. The same cannot be said for telecoms operators, which face one of the world’s highest sector-specific tax burdens, with ongoing government efforts to accelerate fiscal consolidation remaining a cause for concern among stakeholders. Recent sector development strategies have identified multiple ICT business lines offering considerable private sector investment opportunities, with the ongoing e-government services and digitisation drive expected to support private sector growth, enabling sustainable long-term development and the eventual transformation into a knowledge-based economy. This chapter contains an interview with Ghazi Al Jobor, CEO, Telecommunications Regulatory Commission.
Explore chapterAgriculture & Forestry
Buy digital copy of this chapter - £18While it has gradually reaped the rewards of diversification efforts to end overreliance on rice, Myanmar’s agriculture sector is now at a crucial juncture. Although progress has been made, structural impediments continue to weigh on farming output. However, a new development strategy is expected to enhance sector monitoring, boost production, and improve the industry’s regional and global competitiveness. Investment in infrastructure and processing capacity has the potential to transform the nation into an exporter of higher-quality agricultural products that could open the door to more varied overseas markets, with trade diversification taking on increasing importance due to India’s new agriculture import quotas. This chapter contains interviews with U Win Aung, Chairman, Dagon Group of Companies; and Gerhard Hartzenberg, Managing Director, New Holland Agriculture.
Explore chapterIndustry
Buy digital copy of this chapter - £18Since the 1970s Bahrain has made a concerted effort to diversify its economy, with efforts visible in the vibrant manufacturing segment and from the growth of the kingdom’s heavy industries. Despite the drop in state revenues due to lower global oil prices in recent years, Bahrain continues to invest in its industrial sector, notably with the $3bn expansion of Aluminium Bahrain, which will see production grow to 1.5m tonnes per year – a rise of over 500,000 tonnes. Meanwhile, Bahrain continues to capitalise on its oil and gas resources, with significant investment in the downstream petrochemicals segment. This is highlighted by the $5bn being spent on the modernisation taking place at Bahrain Petroleum Company and the $515m gas plant expansion by Bahrain National Gas Expansion Company.
This chapter contains an interview with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Aluminium Bahrain.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector has undergone rapid development in the past few years, and the country is now re-emerging as a leading regional transport centre. Several projects are under way or in the pipeline, such as the expansion of ports in Abidjan and San Pedro, the rehabilitation of the national railway, and increased handling capability at Abidjan International Airport for both cargo and passengers. Key challenges for the sector include the maintenance of roads and strengthening of links between major ports. Government authorities and private investors alike are seeking to address such issues via the programmes outlined in the 2016-20 National Development Plan, as well as through public-private partnerships.
This chapter contains an interview with Amadou Koné, Minister of Transport; and Philippe Eponon, President, Ivorian Group of Construction and Public Works.
Explore chapterTransport
Buy digital copy of this chapter - £18From urban transit to seaports and airports, the country’s transport network is poised for a significant upgrade. Although demand is unpredictable and subdued in certain segments, the emphasis on developing strong transport infrastructure should provide opportunities to investors and operators alike. In the third quarter of FY 2016/17 the transport and storage sector grew at a rate of 4.4%, just above that of the overall economy, which expanded by 4.3%. As economic growth picks up speed, there will be plenty of opportunities for growth in operations and services, and the government is seeking to ensure that the country has the necessary infrastructure to meet heightened demand.
This chapter contains interviews with Safwat Musallam, Chairman, Egypt Air; and Ayman Khattab, President and CEO, General Electric (GE) North East Africa; and Vice-President, South Gulf and East Africa, Baker Hughes GE.
Explore chapterIndustry
Buy digital copy of this chapter - £18Growth in Oman’s industrial and retail sectors has been affected by both commodity prices and weaker consumer sentiment, which have lowered spending and forced some companies in heavy industry to delay investment programmes. However, the impact of the costs borne by the sultanate’s manufacturers was offset somewhat in 2017 by the rise in exports to Qatar following the blockade of that country’s trade. The government is investing heavily in combatting hydrocarbons dependence and facilitating the development of a more diversified economic base. Manufacturing has been prioritised as one of the pillars of this strategy under the Tanfeedh programme for national economic diversification.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As operators and mobile users adopt new forms of mobile communications, the kingdom’s telecoms market is progressively moving away from the traditional voice-based business model. This is leading to new challenges in terms of regulation and market competition, but is also setting the stage for a new phase, wherein data forms a critical part of telecoms services. Despite slower growth, the industry is an important component of the economy, and not merely because of its trickle-down impact on other sectors. Morocco’s efforts to develop the ICT sector have produced noticeable results, and growing ICT and telecoms usage have allowed companies to create employment and make a larger contribution to exports. Government policy has similarly focused on increasing the role of ICT to bridge existing gaps between the state and citizens by establishing a series of e-government policies that have paved the way for business and citizens alike to interact with the state. However, improved service quality in rural areas is required for the sector to unlock further growth and expansion.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In 2017 Dubai was on the cusp of what is widely expected to be a multi-year building boom. Driven most immediately by preparations for Expo 2020, the construction of new and improved infrastructure and major event spaces constitutes an important component of the construction pipeline for the foreseeable future. At the same time, Dubai’s steadily increasing population, the rising number of incoming visitors and strong investment growth in recent years have fuelled an influx of new residential areas, hotels and warehouses.
This chapter contains an interview with Hussain Sajwani, Chairman, DAMAC Properties.
Explore chapterICT
Buy digital copy of this chapter - £18Ghana was one of the first countries in Africa to liberalise and deregulate its telecoms industry. The sector is well established, and has a high penetration rate in voice and data services, bringing a range of content to consumers and posting steady growth. Both private operators and public bodies are pushing forward on geographic coverage and network expansion, while service improvement has been a particular focus of the government in recent years. IT has become a crucial component of economic growth in Ghana over the last decade. The country offers a stable environment for innovation, and the development of IT products and applications, thanks in part to a welcoming regulatory framework and rapid uptake of data services.
This chapter contains interviews with Nana Osei Afrifa, CEO, Vokacom; and Jørn Lyseggen, Founder and CEO, Meltwater Group.
Explore chapterEnergy
Buy digital copy of this chapter - £18At a time of great change in Saudi Arabia and amidst debates about rapid economic diversification, it is perhaps easy to overlook the fact that even in the most optimistic forecasts of Saudi Vision 2030 – the national development strategy – the oil and gas sector will account for at least half of the country’s exports in the fourth decade of the 21st century. Similarly, while the revolution in shale oil and gas in the US has dominated headlines, the cost at which Saudi Arabia is able to pump crude oil and gas remains among the lowest in the world. The global oil supply and demand cycle may have resulted in lower prices since mid-2014, but the anticipated initial public offering of 5% of the state energy company Saudi Aramco, valued at up to $2trn, has heightened expectations that the Kingdom could soon be home to the most valuable listed company on the planet.
This chapter contains an interview with Mohammad Sanusi Barkindo, Secretary-General, Organisation of the Petroleum Exporting Countries; and Abdallah Al Subaiyyal, President and CEO, Yanbu Aramco Sinopec Refining Company.
Explore chapterTourism
Buy digital copy of this chapter - £18Located a short distance from Europe, and with a large and comparatively wealthy population of its own, Algeria is primed to make use of its significant tourism potential. Though the industry remains underdeveloped, particularly in regards to the number of hotel rooms and the cumbersome visa regime, foreign business tourism and niche areas such as spa, desert and ecotourism have strong scope for growth.
This chapter contains an interview with Lazhar Bounafaa, CEO, Groupe Hôtellerie Tourisme Thermalisme.
Explore chapterIndustry
Buy digital copy of this chapter - £18Central to Qatar National Vision 2030, the country’s long-term development plan, is creating a competitive and diversified economy. The industrial sector plays a key role in this, broadening the scope of private sector activity, encouraging the shift to higher value-added activities and creating jobs in an increasingly knowledge and innovation-based economy. Recent times have seen the impact of the shift away from hydrocarbons dependency, despite the large share of Qatar’s GDP still contributed by its oil and gas sectors. Now though, with some industrial projects having been scaled down or put on hold due to lower oil and gas revenues in recent years, the sector has to demonstrate its resilience. Enhancing efficiency and cutting costs are thus major priorities, with leaner and more agile competitive industries the likely result. Furthermore, while the ongoing economic blockade of Qatar, which began in June 2017, presents a challenge, government entities and the private sector have pushed for initiatives to expand industries and establish new projects to boost local products and achieve self-sufficiency.
Explore chapterTransport
Buy digital copy of this chapter - £18Road, port, airport and rail upgrades are a critical priority for the government of President Joko Widodo, with his administration having overseen an infrastructure and transport spending surge since taking office in 2014. The main aims of this increased resource allotment are to lower transportation costs – which are among the highest in South-east Asia – reduce congestion, and improve the sector’s business and investment climate. Progress is being made on all fronts, and infrastructure spending is forecast to hit a record high in 2017.
This chapter contains interviews with Elvyn Masassya, President Director, Pelabuhan Indonesia II; and William Sabandar, President Director, Mass Rapid Transit Jakarta.
Explore chapterICT
Buy digital copy of this chapter - £18Despite facing many challenges in 2016, the Nigerian telecoms market continues to grow and offers significant potential for investment. With a population of 189m, this substantial consumer base offers a variety of opportunities for mobile operators, broadband companies and content providers. Furthermore, the government’s intention to use telecoms and ICT not only for economic development, but also for financial inclusion, bodes well for the industry. At the same time, the Nigerian telecoms sector is constrained by high costs, general economic uncertainty and an uneven competitive environment. However, the long-term outlook for the market is positive: the country has a young, rapidly expanding population, providing a substantial pool of consumers, and smartphone use and data consumption are expected to increase swiftly over the next five years and beyond. Investment in infrastructure will be key in the years ahead, as well as a more attractive environment for both foreign investors and local start-ups. Despite these challenges, the country has managed to produce some of the continent’s most successful ICT firms, and the sector is expected to emerge as a standout market in the coming years.
This chapter contains an interview with Ayotunde Coker, CEO, Rack Centre.
Explore chapterICT
Buy digital copy of this chapter - £18The liberalisation of the Trinidad and Tobago telecoms industry, which has been under way since 2004 under the guidance of state regulator the Telecommunications Authority of T&T, has been one of the major successes of the non-oil economy of the last decade. The country now boasts a number of high-quality, fixed-line internet and cable TV providers, and two mobile operators, which have invested in developing infrastructure and delivering competitively priced, high-tech services. There have also been positive strides in terms of developing the domestic ICT industry. Recognising that education – both in terms of general digital literacy and advanced training – is the necessary first step towards building up the sector, the government has focused on drafting a five-year ICT in education strategy, which should be published in 2017 or early 2018. In order for the sector to grow it will be critical to develop adequate human resource talent, only then can the sector develop locally created software solutions for domestic or regional use.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although it recorded double-digit expansion during the boom years of 2010 to 2013, Papua New Guinea’s construction industry faces a challenging operating environment in 2017. Growth contracted in 2014 following the completion of a major liquefied natural gas project, and contractors have since struggled to regain the momentum seen earlier in the decade. The sector rebounded in 2015 and 2016, with preparations for the 2015 Pacific Games and the APEC 2018 summit helping to maintain stability. Although the real estate industry is experiencing a downturn, a moderation of unsustainably high prices is expected to benefit long-term growth. Affordable housing also retains considerable potential for future expansion, and recent consumer sentiment surveys reveal pent-up demand for mid-market properties.
This chapter contains an interview with Jason Yip, Managing Director, DAC Real Estate.
Explore chapterTransport
Buy digital copy of this chapter - £18Thailand’s rise to the forefront of economic development in South-east Asia over the past three decades was first fuelled by its agricultural prowess, which was then followed by its transition into a regional manufacturing powerhouse, before the more recent push to evolve into a knowledge- and service-based economy. Although numerous factors have aided the country’s achievements across disparate sectors, a common thread that runs through each of these industries has greatly improved their odds of success both internally and internationally: an increasingly modern, capable transportation network. This chapter contains interviews with Arkhom Termpittayapaisith, Minister of Transport; Sombat Kitjalaksana, Managing Director, Bangkok Expressway and Metro; and Usanee Sangsingkeo, Acting President, Thai Airways International.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With the country beginning to clear a backlog of major projects in energy, infrastructure and housing, the construction sector in Kuwait has seen a resurgence of activity in recent years. The government’s five-year National Development Plan committed to spend KD34bn ($112.5bn) over the 2015-20 period, and KD12bn ($39.7bn) worth of projects were signed off in the plan’s preliminary year. The country has seen its first successful construction project completed on a public-private partnership (PPP) basis, and according to National Bank of Kuwait, there is a further KD10bn ($33.1bn) in PPP projects in the pipeline for schemes ranging from power and water to education, health and transport. Real Estate meanwhile accounts for 6% of Kuwait’s non-oil GDP with the impressive scale of real estate activity apparent from satellite images showing a new city in the country’s south being reclaimed from the sea over the course of 15 years. Several new communities being built by the government to provide homes for more than 100,000 Kuwaiti married couples, will provide ample new opportunities to develop residential, retail and commercial property in the years ahead.
This chapter contains interviews with Khaled Al Mashaan, Vice-Chairman and CEO, ALARGAN and Yasser Hassan Abul, Minister of State for Housing Affairs.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. The government estimated that the construction sector will grow by 3.9% in 2017, largely driven by the execution of large-scale projects, which is set to accelerate growth of the infrastructure segment from 2.4% in 2016 to as much as 8% by 2017, as the various 4G projects take shape. Residential, commercial and office projects, as well as large-scale infrastructure development, will continue to drive the sector in coming years. The focus on pre construction sales by the real estate market has allowed the sector to avoid significant risk, while expanding to support the housing needs of the population. This has galvanised social housing programmes and property acquisition by middle-income Colombians. Although real estate remains profitable due to genuine demand, companies will have to manage a number of variables that remain out of their control, such as construction licences and access to water and electricity connections. This chapter features an interview with Alfredo Rizo, CEO, Terranum Corporate.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector will remain a vital aspect of Peru’s economic success, and reducing the current infrastructure deficit is key to sustaining recent positive growth trends. In light of the 2017 flooding crisis, the Ministry of Transport and Communications is now urgently prioritising investment in transport infrastructure so as to restore the minimum conditions for the private sector to operate. This investment will, in turn, deliver an important boost to economic activity across several sectors, creating jobs in the process. To better compete internationally and accelerate the economic growth of its regions, Peru will also have to prioritise reducing its logistics costs.
This chapter features interviews with Lizardo Helfer, General Manager, Cosapi, and Félix Antelo, CEO, LATAM Airlines Peru.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Across the island, a wide-ranging infrastructure development campaign is unrolling to expand Sri Lanka’s production capacity, efficiency and productivity, with the added aim of reducing regional disparity. Building and infrastructure projects are expected to strengthen the country’s economy, with the ultimate aim of achieving high-income, sustainable economic growth for all Sri Lankans. Various programmes are set to span the entire spectrum of infrastructure assets, encompassing transport, housing and urban development, hospitals, water supply and sanitation, and industrial areas including warehouses and logistic centres. Although Colombo’s high-end luxury property such as hotels, condos and retail outlets comprise the main draw, other areas – such as Galle and Colombo’s suburbs – are also receiving increased attention and investment from both foreign and domestic sources, as well as from expats looking to return home after the cessation of a decades-long civil conflict in 2009.
This chapter contains interviews with Patali Champika Ranawaka, Minister of Megapolis and Western Development; Susantha Ratnayake, Chairman, John Keells; and Wong Heang Fine, Group CEO, Surbana Jurong.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18The security, aerospace and defence sectors have risen to become an important component of Abu Dhabi’s economic diversification strategy, with activities gaining momentum in recent years. In the aerospace segment, 2016 saw major contracts for new original equipment manufacturing (OEM) and maintenance, repair and overhaul projects signed, which should support the emirate’s ongoing transformation into a knowledge-based economy. Aerospace development dovetailed with growth in the UAE’s burgeoning space programme, which will see it launch a probe to Mars in 2020, setting the stage for commercialisation and additional private investment on the back of a newly unveiled Space Policy. Development of a robust defence manufacturing base is also progressing well, following the launch of new armoured vehicle and protective equipment ventures.
This chapter contains an interview with Khalifa Al Romaithi, Chairman, UAE Space Agency.
Explore chapterTourism
Buy digital copy of this chapter - £18With abundant natural beauty and heritage sites spread across 7000 islands, the Philippines has steadily gained recognition over the years as a competitive tourism destination, despite being located in a region of strong contenders. With the campaign “It’s More Fun in the Philippines!” launched in 2012, the country has not only experienced a boost in visibility, driven by social media and aggressive international marketing efforts, but has also generated tourism growth substantial enough to push the sector into a more prominent position in the economy.
This report contains an interview with Steve Wolstenholme, President, Okada Manila.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector has long played a key role in Tunisia’s development given the country’s focus on exports and tourism. A combination of low logistical costs and proximity to European markets helped it attract visitors and export everything from olive oil to airplane components. As part of the Tunisia 2020 strategy, the government has been looking to regain logistical competitiveness and appears to be on track to do so, with private investors pledging approximately $15bn in infrastructure investments during the November 2016 Tunisia 2020 Conference. However, following through with the development strategy will depend on the government’s ability to attract further foreign investment, improve the business climate and channel the social aims of trade unions. The transport sector is crucial for Tunisia to restore confidence, recover its role as an industrial workshop for Europe, and convert itself into a key logistics hub between Europe and Africa.
This chapter contains interviews with Anis Ghedira, Minister of Transport; and Anis Riahi, General Manager, Express Air Cargo.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture is Kenya’s largest economic sector, and held its position as a major growth driver in 2015, with ideal weather conditions improving food security and cash crop export earnings. Despite economic uncertainty, the sector has been one of the most resilient in Kenya, with ongoing efforts to improve irrigation and bolster foreign investment, even as stakeholders continue to grapple with limited mechanisation and irrigation, spending cuts and insufficient value-added. Reducing reliance on rain-fed agriculture will be a critical priority for stakeholders as they seek to maintain the sector’s momentum in 2017. Despite domestic policy and labour challenges, Kenyan agriculture remains on track to continue driving national economic growth in 2017. Although production remains dependent on weather conditions, long-term strategies aimed at bolstering mechanisation and reducing rain-fed production should see the sector remain a growth driver for several years.
This chapter contains an interview with Peter Kimanga, Director, Gold Crown Beverages.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After a series of lacklustre years between 2011 and 2014, the construction market has picked up considerably and will expand on the back of increasing residential demand and infrastructure needs. A key factor that will drive demand for further housing construction is the amended Housing Law and the Law on Real Estate Business, both passed in 2014 to remove restrictions on foreign ownership of residential and commercial properties. Meanwhile, among the local population, a growing young and middle class is expected to push up demand for quality homes and investment-grade offices.
This chapter contains an interview with Le Viet Hai, Chairman and General Director, Hoa Binh Construction Company.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The Mexican telecoms sector is one of the largest and most dynamic in Latin America. The government’s telecoms and broadcasting reforms, introduced through new legislation and a constitutional amendment in June 2013, are widely seen as some of the most successful changes made by the administration of President Peña Nieto. One sign of this is the contribution of the telecoms sector to GDP, which increased to around 3.6% in 2016, up from 2.6% five years earlier. In addition to telecoms, Mexico’s ICT sector has been experiencing strong growth in recent years. ICT exports have accounted for around 10% of Mexican manufacturing exports. In 2014 the value of Mexican ICT exports was $62.4bn, ranking the country as the world’s fifth-largest ICT exporter, behind China, the US, South Korea and Japan. There is clearly major scope to increase technology market penetration in Mexico, particularly by increasing digital management systems across manufacturing industry and services where take-up has so far been limited. The fundamentals of the technology sector point to strong medium and long-term growth.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Recent macroeconomic trends – particularly the depreciation of the Egyptian pound and the foreign currency shortage – reflected both positively and negatively on Egypt’s real estate market throughout 2016, resulting in mixed results and predictions across the sector. The situation was felt across all sectors, but it had a particular impact on the real estate market. On the one hand, investment in property continues to be a relatively stable prospect in uncertain times. On the other hand, the depreciation of the Egyptian pound resulted in increased construction costs for imported materials and corresponding delays, diminished the amount of disposable income for the population and made profit generation a challenge for the retail segment. Yet despite some economic setbacks and continued legislative hurdles, there is reason for optimism in the country’s real estate sector. While growth rates may have slowed for the moment, and foreign currency shortages have delayed some projects, demand remains strong and housing needs across the income spectrum must be met.
This chapter contains interviews with Ayman Ismail, Chairman, New Administrative Capital; and Ahmed El Hitamy, CEO, Madinet Nasr Housing and Development.
Explore chapterHealth
Buy digital copy of this chapter - £18Already home to a number of modern health care facilities, the emirate is preparing for a strong push in the sector as it pursues its goal to become a centre of excellence in the UAE. Meanwhile, an ageing population and increasingly sedentary lifestyles are raising new health challenges that both the private and public sector are helping to address, led by the federal-level Ministry of Health and Prevention and the local-level regulator, the Sharjah Health Authority.
Explore chapterSan Pedro
Buy digital copy of this chapter - £18While Abidjan may serve as Côte d’Ivoire’s commercial centre, San Pedro – 350 km to the west – is the key gateway for the country’s exports. The city, which is situated in the San Pedro Region of the Bas-Sassandra District along the Gulf of Guinea, ranks as Côte d’Ivoire’s second-largest city in terms of economic activity. Growth has been driven in large part by the construction of a deepwater port, which has emerged as the main portal for the country’s primary export earner, cocoa. However, a number of other sectors, including cash crop processing and mining in the northern and western stretches of the country, have also helped boost activity in the region.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The sultanate’s ninth five-year plan, covering 2016-20, is the final component of the government’s long-term Vision 2020 development strategy, and is focused on reducing reliance on the energy sector’s contribution to GDP, while boosting non-petroleum industrial activities such as mining and quarrying, manufacturing, and building and construction. These together accounted for OR5.33bn ($13.8bn), or 19.8% of GDP, in 2015, a share expected to grow to 29% by the end of the decade, even though the sector faces rising pressure from reduced state spending and the ongoing economic downturn in 2015-16. This chapter contains an interview with Hilal bin Hamad Al Hasani, CEO, Public Establishment for Industrial Estates.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Recording steady growth in recent years, Myanmar’s industrial and retail sectors have been buoyed by solid macroeconomic fundamentals, economic liberalisation and regulatory reforms encouraging investment and expansion. The new administration has set a bold industrialisation target, with manufacturing expected to become one of the most significant economic growth drivers in the coming years. Job creation and infrastructure investment are priorities, with ongoing development at three special economic zones also expected to attract new industrial and manufacturing investment. Low labour costs provide an additional incentive, despite a shortage of skilled labour, which has driven the government to target significant new investment in vocational training.
This chapter contains an interview with U Ko Ko Gyi, Group Managing Director, Capital Diamond Star Group.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Algeria has been taking active steps to lower its food import bill and improve local agriculture production. That being said, the government continues to face challenges in areas such as land appropriation and financing. Given its sizeable agricultural land potential and current development programmes, Algeria is ideally poised to be an exporting country for agricultural produce. Developing a smart export policy and system based on intensive agriculture will be crucial going forward. This chapter contains interviews with Abdesselam Chelghoum, Minister of Agriculture, Rural Development and Fisheries; and David Blumberg, CEO, Blumberg Grain Middle East & Africa.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With mobile internet growing strongly and the government committed to extensive ICT development, Ghana’s IT sector is gaining momentum. Demand for tech services and products is rising from private and public sector bodies, as well as individuals, and the rollout of new in-country cable networks and nascent 4G is boosting connectivity. These factors, as well as Ghana’s competitive advantages as a business destination, are stimulating the start-up scene.
This chapter contains interviews with Kwabena Akyeampong, CEO, Ghana Investment Fund for Electronic Communications; Ali Faramawy, President, Microsoft Middle East & Africa; and Valentina Mintah, CEO, West Blue Consulting.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18With a long history of advanced surgery, a well-established medical tourism industry and more than 60 private hospitals and clinics, the health care sector in Jordan has long been regarded as a regional example of excellence. For many years, the kingdom has been more advanced than most other countries in the Middle East by many international health indicators, but the escalating emergency and humanitarian situations in neighbouring countries have posed a number of challenges for the sector. The education sector meanwhile has been a cornerstone of Jordan’s development, and the country has spent many years pursuing reforms to prepare the foundations of a knowledge economy.
This chapter contains interviews with Dr Fawzi Al Hammouri, Chairman, Private Hospitals Association; and Princess Sumaya bint El Hassan, President, Royal Scientific Society.
Explore chapterTourism
Buy digital copy of this chapter - £18In a bid to diversify Gabon’s economy away from hydrocarbons, the government has been looking to boost the tourism sector as a means to generate foreign currency, create jobs and promote social and economic development across the country. The sector is expected to develop in the next few years on the back of expanded hotel capacity, upgraded transport infrastructure and better air links, following the 2017 Africa Cup of Nations (ACN). As a major regional event, the 2017 ACN should give the sector a major boost, especially with regard to hotel capacity. However, further work to address obstacles, including a lack of qualified staff, insufficient transport links to parks and ongoing poaching activities, remains crucial to developing the industry.
Explore chapterEnergy
Buy digital copy of this chapter - £18The drop in the price of oil since mid-2014 has had a significant impact on Saudi Arabia, which relies on the stuff for the vast bulk of state revenues – 73% by some estimates – and for around 40% of its GDP. While global demand remains high, the increasing supply of oil on the international market, much of it coming from Russia, US shale oil and Iran, has continued to push prices down. The price of crude in early 2016 was about 70% below its 2014 peak, having declined steadily for a year and a half, from $114 per barrel in June 2014 to $37.30 at the start of 2016. This dropped to a low of $28.50 per barrel in late January before recovering to around $50 as of July 2016. The resulting government budget cuts was one factor that led to discussion of an initial public offering of part of Saudi Aramco, the Kingdom’s state-owned energy giant and the world’s largest crude oil exporter.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following a slowdown in 2013 caused by a range of factors, Morocco’s construction industry returned to growth in 2014 and 2015, driven by high demand for housing and investment in infrastructure projects. While the prices of building materials have fallen with global economic downturn – the steel segment in particular has felt the impact of slow growth in international markets – cement consumption saw a modest return to growth in 2015. In the real estate sector, after a drop in the market following a boom that peaked in 2007-08, recent years have shown signs of a modest recovery. While the luxury segment has remained depressed after the global downturn of 2008-09, state incentives aimed at attracting developers to the mid-range and affordable housing segments, which are marked by a persistent deficit, have helped offset this somewhat, and new legislation allowing for the creation of real estate investment trusts (REITs) is set to attract greater foreign investment in segments that have previously lagged. If such investment picks up in the coming years as predicted, the sector’s recovery will continue.
This chapter contains interviews with Abdelaziz El Mallah, General Manager, JACOBS Engineering S.A.; and Nawfal Bendefa, CEO, Vecteur LV.
Explore chapterTourism
Buy digital copy of this chapter - £18Dubai’s Department of Tourism and Commerce Marketing (DTCM) expects an influx of visitors by the turn of the decade, and these projections are helping to drive the construction of theme parks, hospital wings, shopping malls and several new hotels. Dubai announced total international visitor figures of 14.2m for 2015, an increase of 7.5% on 2014, and became the fourth-most-visited city in the world. Additionally, Dubai International Airport (DIA) was crowned the world’s busiest air transport hub for overseas flights in 2015, pulling ahead of London’s Heathrow and staying ahead since. In the years leading up to 2020 a number of key developments are taking place that are designed to attract and cater to increasing numbers of tourists. The emirate is targeting new segments of the travel market geographically, as well as adapting its offering to entice more family groups and medical tourists.
This chapter contains interviews with Helal Saeed Almarri, Director-General, Department of Tourism and Commerce Marketing (DTCM) and Raed Al Nuaimi, CEO, Dubai Parks and Resorts.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Real estate has long been a mainstay of Kuwait’s non-oil economy, while its construction industry is among the strongest in the region and a rising star in the non-oil economy, with its growing population, tightly regulated land market and wealthy populous all combining to fuel demand for new building. In 2014 the two industries together accounted for 10.6% of non-oil GDP. Although a range of factors, including lower oil prices, have affected growth projections across the GCC, Kuwait’s real estate sector is particularly well-poised to face lower prices, with residential the largest segment by both sales and number of transactions, with sales reaching $4.6bn in 2015.
This chapter contains interviews with Khaled Al Mashaan, Vice-Chairman and CEO, ALARGAN International Real Estate; Ahmad Kasem, Deputy CEO, United Real Estate Company; and Osama Jawad Bukhamseen, Executive Director, Bukhamseen Holding; and Chairman, Engineering Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Even amid the macroeconomic uncertainty of 2015 and the first half of 2016, the performance of Nigeria’s telecoms sector was marked by steady subscriber growth, a renewed regulatory mandate and continued infrastructure development. By July 2016 the country was home to 150.3m active telecoms subscribers, according to the federal telecoms regulator. This user base represents 81.7% of the total population of 184m in 2016, with the mobile segment accounting for more than 99% of subscriptions. Over the course of 2015 and 2016 the ICT industry has developed rapidly on the back of state-led growth initiatives and also, increasingly, as a result of rising levels of private sector activity. According to estimates compiled by the Federal Ministry of Communications, in 2015 ICT-related activities accounted for nearly 11% of GDP, up from 6% in 2012 and less than 1% as recently as 2001. The rapid uptake of mobile data subscriptions over the past few years, plus the steadily rising number of smartphone handsets in circulation indicate significant unmet demand for digital products and services.
This chapter contains interviews with Adebayo Shittu, Minister of Communications; and Issam Darwish, Executive Vice-Chairman and Group CEO, IHS Towers.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Indonesia’s transport sector is in the midst of a major overhaul, with government investment in infrastructure set to hit an all-time high, driven by new projects. All segments in the sector are set to benefit from a far-reaching infrastructure development agenda, with plans to construct 2500 km of new highway to complement ongoing upgrades across Indonesia’s vast network of ports and airports. Perhaps most promisingly, 2015 saw solid progress towards the delivery of a national rail network, with the signing of a new agreement for a high-speed link on Java, although land acquisition continues to pose challenges, raising doubts as to whether the project will be completed on time and within budget. At the same time, public funding is still insufficient to meet its long-term infrastructure goals, opening a host of new opportunities to foreign investors, with the government moving to revise its negative investment list to permit increased foreign participation.
This chapter contains interviews with Elfen Goentoro, President-Director, PELNI; and Bambang Tjahjono, President-Director, AirNav Indonesia.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter explores Papua New Guinea’s tax regime, focusing on issues slated for Treasury consideration, current corporate taxation guidelines, withholding rates and other key areas for investors. It also contains an interview with Jonathan Seeto, Territory Partner, PwC.
Explore chapterICT
Buy digital copy of this chapter - £18The Papua New Guinea telecoms market is set to enter a new phase. After nearly a decade of rapid expansion, largely the consequence of Jamaica-based Digicel’s market dominance on the mobile side, and given state-run Telikom’s virtual lock on essential infrastructure, credible and effective competition may soon be arriving. A restructuring has been proposed that promises to combine Bmobile, the number two player in the mobile space, and Citifon, the number three, and bolt them on to a new nationwide 4G network to create a powerful challenger to Digicel.
This chapter contains an interview with Michael Donnelly, CEO, Telikom.
Explore chapterHealth
Buy digital copy of this chapter - £18The large-scale investments of the past half-decade look set to continue driving Qatar’s health sector in 2016. With a rapidly rising population and household incomes well above the developed-world average, public and private sector outlays are on track to keep rising alongside a state-led push to raise quality and expand services. As the public sector enters a new cost-optimisation phase in the wake of the oil price drop, the government is increasingly looking to the private sector to fill areas of need, particularly those stemming from the rise of lifestyle-related diseases, such as diabetes and cancer.
This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health.
Explore chapterIndustry
Buy digital copy of this chapter - £18Though chiefly known for its success in the oil and gas sector, Qatar is also home to a number of non-hydrocarbons industries that are playing an increasingly important role in the economy, particularly in light of the government’s broader plans for greater diversification. According to the Ministry of Development Planning and Statistics (MDPS), the non-hydrocarbon sector accounted for all GDP growth in 2015, and was led by the services and construction sectors. Most of Qatar’s industry is relatively new, having been built up in the last few decades, largely as downstream components of the oil and gas sector. Qatar’s downstream petrochemicals sector forms a key pillar of its industrial base – and has maintained robust output despite depressed global oil prices. Qatar is also the largest producer of urea fertilizer in the GCC, accounting for 37% of the 15.2m tonnes produced in the region in 2014, up from 28% a decade earlier.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18In the past decade the Trinidad and Tobago telecoms and broadcasting industry has expanded into a dynamic sector of the economy. The Telecommunications (Amendment) Act of 2004 acted as a catalyst for the industry, with all segments of communications and entertainment liberalized simultaneously on the principle of fair competition. At present, T&T has four fixed-line and two mobile telephony companies, seven international incoming and out¬going phone companies and eight internet service providers. In addition, there are 13 subscription television companies, seven free-to-air TV channels and 38 radio stations. Though increasing numbers of Trinidadians are connected to the internet, greater uptake of ICT solutions is required from both the private and public sectors for the economy to take full advantage of the benefits of connectivity. T&T has so far been slow to develop local software businesses and train the human talent needed to support ICT. Nevertheless, the sector remains a key focus of attempts to diversify the economy.
This chapter contains an interview with Cynthia Reddock-Downes, Acting CEO, Telecommunications Authority of Trinidad and Tobago (TATT).
Explore chapterTransport
Buy digital copy of this chapter - £18As Brunei Darussalam prepares to diversify its economy away from oil and gas, it is looking toward other sectors to contribute further to GDP. The transport industry has thus found itself in the spotlight, with expectations of the sector’s economic and strategic potential running high. The extent to which the various transport- and logistics-related initiatives are successful remains to be seen; however, the government appears to be taking the challenge of transforming the sector into a regional powerhouse seriously. Foreign investors and the private sector are also beginning to recognize that transport and logistics are now ripe for investment. If all goes according to plan, mega-projects like Temburong Bridge – which will connect Brunei Darussalam’s western and eastern halves – could catalyze greater economic efficiency for the entire Sultanate. This chapter contains an interview with Dermot Mannion, Former Deputy Chairman, Royal Brunei Airlines.
Explore chapterInnovation
Buy digital copy of this chapter - £18A series of economic reforms launched in 2010 support Malaysia’s goal of lifting itself out of the middle-income trap and into the ranks of high-income economies by 2020. As part of the Economic Transformation Plan (ETP), the government established the Agensi Inovasi Malaysia (Malaysian Innovation Agency, AIM) to lead policies and strategies related to innovation. Additionally, innovation and research and development have been identified as crucial to success in five of the 12 National Key Economic Areas targeted for transformation, including hydrocarbons and palm oil, as part of a strategy to move from labour-intensive to knowledge-based industries. Over the past few years, policymakers have sought to make the country more conducive to innovators and risk-takers. The 11th Malaysia Plan, which lays out the country’s economic path through to 2020, describes innovation as one of its game-changers. This chapter contains an interview with Mark Rozario, CEO, Malaysian Innovation Agency.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Sri Lanka’s construction industry has been a major beneficiary of the country’s rapid economic development over the past six years. Since the end of the civil war in May 2009, the country has rushed to make up for more than two and a half decades of intermittent building activity across most segments, from high-end residential housing to commercial and office space to a variety of key infrastructure segments. In 2015 and early 2016 Sri Lanka’s real estate market expanded rapidly, continuing a medium-term growth trend that has been fuelled by an increased appetite for residential property among the nation’s wealthy and middle-class population, growing demand for grade-A office and commercial space from local and foreign corporates, and rising interest in the country as a tourist destination.
This chapter contains a viewpoint from Patali Champika Ranawaka, Minister of Megopolis and Western Region Development; and an interview with Ranjit Fernando, Chairman, Urban Development Authority.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18Abu Dhabi’s security, aerospace and defence industries have become a critical component of the emirate’s ongoing push to both protect critical national infrastructure and its interests abroad, as well as transform itself into a knowledge-based, diversified economy. Total military spending in the UAE stood at 5.1% of GDP in 2012 before rising to 6.1% in 2013 and then moderating to 5.7% in 2014. The UAE is the regional leader in defence manufacturing companies, with more than 80 firms focusing on shipbuilding, unmanned systems, and aviation and land systems. Meanwhile, the UAE’s space plans formally began in July 2014 with the announcement that the country would launch a scientific mission to Mars in 2021. This chapter contains an interview with Major General Mohammed Khalfan Matar Al Rumaithi, Commander-in-Chief, Abu Dhabi Police.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18Tunisia boasts Africa’s sixth-largest manufacturing sector, and the country’s geography is an important asset for growth, offering direct access to the Mediterranean Sea and proximity to the European market, to which the bulk of the country’s exports are destined. Despite such logistical advantages, labour productivity, the size of the informal sector and problems in some subsectors – such as textiles – suggest significant room for improvement. Meanwhile, segments such as agribusiness, construction materials and machinery manufacturing have proven relatively successful in recent years. In the years since Tunisia’s 2011 revolution, manufacturing growth has sometimes stumbled, declining from approximately 2.3% of GDP in 2014 to 1% in 2015. This chapter contains interviews with Romdhane Souid, CEO, Groupe Chimique Tunisien; and Amine Ben Ayed, CEO, Misfat.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite boasting a range of attractions and a reputation for hospitality on par with its regional competitors, the Philippine’s tourism industry has a long way to catch up with nearby powerhouses such as Thailand and Malaysia. Under the administration of President Benigno Aquino III, the sector has been identified as a vehicle to be prioritised for the positive impact it can have on inclusive economic growth, and efforts appear to be bearing fruit. The World Economic Forum (WEF), in its “Travel & Tourism Competiveness Report 2015”, ranked the Philippines at 74th overall, 12 places higher than the country ranked in the previous report – the largest improvement of any country within the Asia-Pacific Region. With plentiful natural endowments and a cultural propensity for service and hospitality, the Philippines is fortunate to possess assets that serve as demand drivers. This chapter contains interviews with Jose Chaves Alvarez, Governor, Province of Palawan; and Joy Cañeba, CEO, Philippines AirAsia.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with JC Colas-Groupe CHD, OBG explores the taxation system, examining Djibouti’s investor-friendly environment. This chapter contains a viewpoint from Felix Emok N’Dolo, Managing Director, JC Colas-Groupe CHD.
Explore chapterIndustry
Buy digital copy of this chapter - £18Bahrain is investing heavily in expanding its industrial sector, as the non-oil sector continues to drive growth in the kingdom. The oil and gas sector grew by 3% in 2014, while the non-hydrocarbons sectors expanded by 4.9%. In the first quarter of 2015, manufacturing was up 5.9% year-on-year. In June 2015 Aluminium Bahrain (Alba) announced it would be going ahead with a sixth production line, a $3.5bn project designed to boost annual production by 55%, or 514,000 tonnes, to 1.45m tonnes, making it the world’s biggest single-site smelter. The aluminium industry represents a major contributor to both GDP and export revenues. According to the Economic Development Board, the two most valuable non-oil export commodities from January to May 2015 were aluminium wires, worth $234m, and aluminium rods, worth $196.5m.
This chapter contains an interview with Tim Murray, CEO, Aluminium Bahrain (Alba).
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18After decades as a primarily agrarian society, over the past six years Myanmar has made considerable progress towards the development of a sustainable industrial base. Its key manufacturing sectors – which include textiles and garments, food and beverage (F&B) products, and construction materials – have attracted growing investment and, consequently, have rapidly expanded output. In 2014 the industrial sector accounted for 21% of GDP, nearly double its 2008 share of 11%. Foreign direct investment in manufacturing also showed rapid growth in 2014 and the first three quarters of 2015, reaching $1.5bn. From 2012 to the end of 2014 Myanmar’s retail sector expanded by 7-15% per year, in line with overall GDP growth in excess of 7% over the same period. Despite various hurdles, most local retailers expect to see considerable expansion in the foreseeable future. This chapter contains a dialogue with Jean-Francois van Boxmeer, CEO and Chairman of the Board, Heineken NB; and Yoshinori Isozaki, President and CEO, Kirin Holdings Company.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Several years of rapid economic growth have laid bare persisting gaps, underscoring the need to reduce logistics costs and revamp the country’s infrastructure. Improving transportation networks has become one of Peru’s top priorities. Although the slowdown in China is sure to impact demand for the country’s mineral exports and affect state spending, investment in upgrading and expanding infrastructure is expected to continue. Peru’s Ministry of Transport and Communications expects investment in transport to continue to grow, with another $10.2bn to be committed through new concessions set to be signed in 2016. These investments may take time to materialise, but will have the long-term benefit of improving conditions for the private sector to operate. The transport sector will remain a pillar of Peru’s economic future, as reducing the infrastructure deficit is key to sustaining the growth trends Peru has experienced in recent years.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18For over two decades Oman’s industrial sector has been a key plank in the government’s economic diversification strategy, and the country’s non-petroleum sectors continued to see robust growth in 2014. Electricity and water supply grew by 8.6% to reach $973.5m, mining and quarrying expanded by 8.5% to $322.3m, and building and construction was up 8.3% to $5.4bn. Recent efforts to boost the manufacturing sector have included the creation of an in-country value scheme, specifically addressed towards the oil and gas industry, which aims to develop local content in servicing the energy sector. Meanwhile, Oman’s international reputation for stable growth is increasingly serving to draw in local, regional and international developers and brands. In 2014 the retail and wholesale segments of the service sector made up 6.6% of the country’s GDP. This chapter contains an interview with Gert Hoefman, CEO, Oman Cables Industry.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The government’s push to stimulate the economy after a turbulent post-revolutionary period is good news for Egypt’s construction sector. Dozens of planned mega-projects and public works initiatives mean that the contracting industry is facing a sizeable project pipeline across all segments of the market. Large-scale plans for a new capital city and the expansion of the Suez Canal, coupled with rather more prosaic infrastructure upgrade requirements, promise a welcomingly busy few years for Egypt’s construction firms. As the problems facing material producers subside, it is expected that prices will also flatten out. Property is one of the few areas that has benefitted from the uncertainty and instability of post-revolutionary Egypt. As investors have become jittery and the government has introduced capital controls, money has flowed into real estate. It is unsurprising then that the sector has witnessed strong growth in 2014-15. However, the market is bifurcated, showing two distinct dynamics at opposite ends of the spectrum. Rising prices and increased supply in the upper end of the market combined with the apparently growing appetite for flipping properties could pose as an early warning sign of a bubble forming.
This chapter contains interviews with Hassan Allam, CEO, Hassan Allam Construction; Mohamed Mohsen Salah El Din, Chairman, The Arab Contractors; Magued Sherif, Managing Director, SODIC; and Tarek Abdel Rahman, Co-CEO, Palm Hills Developments.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms sector continues to be a critical element of the economy, laying the groundwork for greater investment and performing well in terms of mobile money and ICT infrastructure growth. As smartphone penetration and 4G coverage increase, new regulations are lowering barriers for tech imports and facilitating the expansion of e-governance. The country saw mobile penetration at 83.9% as of June 2015. This followed healthy growth throughout 2014, with mobile phone penetration rising by 2.9% from January to March 2015. The government continues efforts to incorporate ICT into its service delivery, and is implementing the Connected Kenya 2017 master plan to guide the country’s ICT and broadband development. The plan aims to see the sector create up to 180,000 jobs and contribute up to 8% of the value of goods and services produced in the country.
This chapter contains a roundtable discussion with Bob Collymore, CEO, Safaricom; Adil El Youseffi, CEO, Airtel; Vincent Lobry; and CEO, Orange Telkom; as well as an interview with Jambu Palaniappan, Regional General Manager for Middle East and Africa, Uber.
Explore chapterTourism
Buy digital copy of this chapter - £18In the face of declining revenues on the back of low oil prices, Algeria has renewed its focus on economic diversification, with tourism – among other sectors – being viewed as a key source of potential alternative revenues, as well as a vehicle for job creation and rural development. To that end, government priorities include accelerating hotel construction, improving personnel training, raising service quality and facilitating investment promotion. Global tourism indicators bode well for the future development of the industry, and with the volume of planned public spending on bed capacity, private partnerships and training, Algeria should be well placed to capitalise on these projections. The future development of Algerian tourism will depend on its ability to tap into such opportunities and focus on new trends such as rising purchasing power and the shifting demographics of travellers. Identifying such trends and distinguishing between the different categories of potential visitors will be crucial in determining the type of developments and offerings that are required to cater to each category. This chapter contains and an interview with Amar Ghoul, Minister of Tourism.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Jordan is one of the Middle East’s pre-eminent medical tourism destinations and a regional leader in pharmaceuticals production, with the kingdom’s efforts to attract further overseas patients set to drive growth in the private hospital segment in the coming years. Around 250,000 medical tourists visited Jordan in 2014 and this number is set to increase, with Saudi Arabia recently approving subsidies for medical treatment at Jordanian facilities. Meanwhile the country boasts high levels of education and, due to the nearly universal primary education and supplemental government programmes, the country’s literacy rate grew from 92% in 2007 to 98% in 2012, well above the average for the MENA region.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although South Africa’s construction industry remains a major economic engine, the industry has struggled to maintain pre-2010 highs, when work related to the 2010 FIFA World Cup propelled sector growth into the double digits. The interim has been marked by project delays, labour unrest and a subdued macroeconomic environment, which saw employment figures, profits and new projects decline in 2014 and 2015. Despite these challenges, the industry’s long-term forecast remains positive, with major new investment expected in the coming years under the government’s National Infrastructure Plan and contractors benefitting from steady expansion in the residential real estate sector. Although far from the conditions of the early 2000s, South Africa’s property market has remained resilient in spite of challenging macroeconomic conditions. Rising demand for affordable housing and a host of “new city” projects have kept the residential market steady, while A-grade commercial space – albeit on the verge of oversupply in some areas – is poised for strong growth. Although rising electricity prices are having an impact on the real estate market, the country’s burgeoning e-commerce, transport and logistics segments are expected to improve vacancy and rental rates across all property segments.
This chapter contains an interview with Eric Vemer, CEO, Group Five.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Dynamic and competitive, Ghana’s telecoms sector is one of the brightest spots in an economy that has had a bumpy ride over the past two years. Demand for mobile services in particular is resilient and rising. As of June 2015, Ghana had a total of 32.36m mobile subscribers, indicating theoretical market penetration of 119.41%. The market is appealing, as evidenced by the strong international presence and competition. In IT, the government, international institutions and the private sector are increasingly convinced of the market’s potential, and the importance of the ICT sector in broader social and economic development. However, more investment in infrastructure, products, and services is needed to capitalise on this potential, with many residents, businesses and parts of the government still lagging behind in technology adoption.
This chapter contains an interview with Jonathan Tawiah, Managing Director, Ostec.
Explore chapterTourism
Buy digital copy of this chapter - £18Revenues for RAK’s tourism sector rose 44% in 2014 and the total number of overnight stays by guests grew by 72% to reach 2.14m.The tourism sector is estimated to support 307,000 jobs across the UAE, or 5.4% of total employment, which is expected to rise by 5.4% in 2015 and 2.6% per annum until 2025. Developers hope to see the area grow substantially in the next few years as the mixed development of holiday homes, restaurants, marinas and numerous hotels will make a significant contribution to the economy and change the shape of the hospitality sector.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As the recent constitutional reforms start to have an impact on the Mexican economy, construction activity is poised to grow. Total investment in the construction sector reached $148bn in 2014, according to the Mexican Chamber of Construction, of which 75% was accounted for by private investment. Though construction continues to be a volatile activity, the sector remains a key component of the Mexican economy, accounting for 8.1% of GDP in 2014. Meanwhile, a growing population and urban development in key cities across the country has put housing development at the forefront of government policy. The 2013 housing crisis, which saw the collapse of three of the biggest homebuilders in Mexico, has seen the government rethink subsidy allocation and other incentives, a move set to help revive the housing sector and reduce the country’s housing deficit, currently estimated at 15.3m homes.
This chapter features an interview with Fernando González Olivieri, CEO, Cemex.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The Kuwaiti construction market saw a marked rebound in 2014, with the government moving forward with key developments in a number of sectors. The Public Authority for Housing and Welfare has a mandate to provide housing for 2.6m people by 2030. The country’s oil and gas sector was a major contributor to the country’s resurgence in construction projects, with oil and gas projects representing more than 60% of the $25.1bn awarded in 2014. Rising investment in real estate, meanwhile, is bolstering that sector, with the total value of transactions in 2014 increasing by nearly 40% on 2013 to reach $7.27bn.
This chapter contains an interview with Khaled Al Mashaan, Vice-Chairman and CEO, Alargan.
Explore chapterEnergy
Buy digital copy of this chapter - £18The recent fall in oil prices means that the energy sector’s contribution to Saudi Arabia’s economic growth will be limited in 2015, with expansion to be driven more by the non-oil sector, which is forecast to increase by about 5% in 2015. Saudi Arabia’s crude oil production averaged 9.71m bpd in 2014, compared to 9.63m in 2013 and 9.76m in 2012. However, despite lower oil prices, the Kingdom has increased production in 2015, with its output climbing above 10m bpd to reach 10.3m in March. The country had proven oil reserves of 269.5bn barrels, or 15.8% of the world total, at the end of 2013, and natural gas reserves totalling 290.8trn cu feet, or 4.4% of the global total. In the face depressed prices, and in a bid to expand and diversify its offering, the sector is continuing to invest in new downstream technology, feeding state-owned Saudi Aramco’s transformation from an oil and gas producer into an integrated energy company, with a growing emphasis on oil refining and petrochemicals.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The government’s Green Morocco Plan, launched in 2008 to run through 2020, aims to boost productivity through closer public-private collaboration, while at the same time improving smallholders’ earnings. While the country has in recent years made significant strides in boosting food output, several segments – including cereals, powdered milk and table oil – fall shy of their potential, and Morocco continues to rely heavily on food imports to meet demand. Even so, the value of food exports in Morocco grew 3.2% from 2013 to 2014, with the increase driven mainly by processed foods and seafood.
This chapter contains interviews with Mohamed El Guerrouj, Director, Agency for Agricultural Development; and Rita Maria Zniber, CEO and Chairman, Diana Holding.
Explore chapterTransport
Buy digital copy of this chapter - £18Divided by ridges of high mountains and dense with tropical rainforests, Papua New Guinea has some of the world’s most difficult terrain to traverse. The country also possesses around 800 islands, with much of its 6500km of coastline only accessible by sea. Thus, transport and logistics in the country has long been a major challenge. Still, much of the country’s overall economic development hinges on these transport barriers being faced and overcome. New plans and strategies are being rolled out, with some of the state’s new largesse, gleaned from new hydrocarbons activities, finding its way into a major new infrastructure boost. For investors, the opportunities are significant, with the country looking for everything from project financing, to international expertise in design and engineering. PNG may well be a challenging environment, but it remains one that is also full of possibility.
This chapter contains an interview with Greyling Park, CEO, Post PNG.
Explore chapterTourism
Buy digital copy of this chapter - £18The industry’s potential has garnered attention from the government and private operators, with the state aiming to boost visitor numbers to 100,000 per year by 2020. The majority of visitors come for business, but luxury tourism projects are in the works to diversify the offer. Ecotourism and luxury are two promising segments that could help boost the sector’s contribution to GDP.
This chapter includes an interview with Lee White, Managing Director, National Agency for National Parks (Agence Nationale des Parcs Nationaux, ANPN).
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector is becoming a priority for the government of T&T, as it works to establish a network of transport links capable of supporting economic growth throughout the country. A series of projects are now under way, including the Galeota Port project and the San Fernando-Mayaro highway, both of which are expected to support economic development and contribute to the decentralisation of activity. Though lower hydrocarbons prices and policy uncertainties connected to T&T’s 2015 election are having an impact on transport and logistics, the outlook for the sector remains positive, with significant investment in infrastructure either currently moving forward or already in the planning stages. The trends supporting passenger and freight demand are set to continue, and while the next government may reassess some policies, it will be able to do so in the context of moderate growth. This chapter contains an interview with Michael DiLollo, CEO, Caribbean Airlines.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18Panama’s energy and utilities sector could be poised for a comeback. With a vision to turn Panama into an energy hub, the administration of Juan Carlos Varela is looking to strengthen the existing electricity and hydrocarbons market and its infrastructure, using both public and private investment. Multimillion-dollar investments in fossil fuel power generation, network infrastructure and renewables are in the pipeline over the coming five years. The electricity segment is set to undergo significant expansion in the coming years, with a 700-MW extension of the fossil fuel generation base under way. On the hydrocarbons front, various new terminals and special economic areas for oil are planned. The possibility of larger vessels crossing the canal, like LNG carriers, has also generated renewed interest. The addition of power through renewables and connectivity to networks in Central America and South America could drive Panama to become an energy hub for export in the region.
This chapter contains an interview with Rafael Pérez-Pire, General Manager, Unión Eólica Panameña.
Explore chapterIndustry
Buy digital copy of this chapter - £18Industrial development is perhaps the most important pillar of Indonesia’s long-term economic expansion strategy, and the nation has made significant economic strides in recent years as a result of its fast-expanding industrial sector. The country is now poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly choosing Indonesia over China, Thailand and Malaysia, drawn in by the country’s relative stability, sizeable low-cost labour pool and large domestic market. While it will make Indonesian exports more attractive to the global market, many of Indonesia’s major industries remain import-dependent, and rising input costs represent the most significant challenge facing operators. Industry and manufacturing are nonetheless poised to continue on an upwards trajectory, with major sectors – including pharmaceuticals, automotive manufacturing, textiles and metals – all projected to expand on the back of solid macroeconomic fundamentals.
This chapter contains interviews with Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry; Sudirman MR, Chairman, Association of Indonesian Automotive Industries; Eddy K Logam, Chairman, Indonesia Ship Building and Offshore Association; and Iwan S Lukminto, President, Sri Rejeki Isman.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Substantial rainfall in the winter and spring, coupled with heavy snow in many regions, broke the drought that hit Turkey’s agriculture sector hard in 2013-14, with farmers looking forward to improved yields and higher earnings, and rebounding from a lean year that saw one of the region’s leading agriculture producers having to import grain and other foodstuffs. Agriculture provides jobs for around a quarter of the workforce, a figure that rises further when the value-added component of processing and agribusiness is factored in. Self-sufficient in many products, Turkey is also a major agricultural powerhouse internationally. It is ranked first in Europe in terms of agriculture output and seventh globally. Yet, obstacles to investment persist, primarily the fragmented landholding structure. The government has said it wants to unify the rest of Turkey’s fragmented farms and bring water to all irrigable areas by 2020. This will help the country reach its 2023 target of $150bn in gross harvests.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Rapid economic expansion in Mongolia over the past half-decade has played out across many of the country’s constitutive industries, and construction and real estate are no exceptions. Much of this growth took place in the residential segment, which has been the focus of an increasing number of large-scale, state-led development projects in recent years. Given the attention the construction sector is drawing from the public and private sectors, most local construction firms are looking forward to higher revenues in the years ahead. Growth in the real estate sector can be attributed to a state-sponsored mortgage scheme, fast-growing demand for commercial retail space, and, more broadly, increasing urbanisation and rising incomes among the burgeoning middle class. Despite challenges, including the dip in real estate prices in late 2014 and early 2015, many property developers and market-watchers remain optimistic about the future.
This chapter contains interviews with G. Batdorj, Executive Director, Khutul Cement Shohoi JSC; and B. Jugder, President, National Development Corporation.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In recent years the construction market in Nigeria has been among the world’s fastest growing, forecast to have expanded by 13% in 2014 on the back of a diverse array of demand drivers, including substantial state investment in infrastructure, rising levels of foreign direct investment and rapidly increasing urbanisation rates. The authorities have launched a host of initiatives that are aimed at addressing many of the industry’s steepest challenges – high building costs, delays in public contract payments, lateness in project delivery, lack of a national building code, reliance on state infrastructure projects and poor quality standards – though the efficacy of these schemes has yet to be confirmed. In the last few years Nigeria’s real estate market has expanded rapidly, continuing a decade-long upward trend fuelled by rising per capita incomes, steadily increasing foreign direct investment, urbanisation and strong corporate demand. Even though local and foreign developers have carried out a large number of projects in recent years, in most segments demand has been outpacing delivery. As a result, the country is undersupplied in a handful of key areas, including high-quality office space, affordable housing and formal retail. Despite a range of pressing challenges, Nigeria’s real estate sector is set to continue expanding in future, albeit at a slower pace than over the past decade.
This chapter contains an interview with David Frame, Managing Director, South Energyx Nigeria.
Explore chapterEnergy
Already the world’s largest oil producer and second-largest repository of reserves, Saudi Arabia is now looking to boost output of natural gas, including through deep-water and unconventional exploration, as well as to increase refining output. Total oil production in 2013 was 11.53m barrels a day, down 1.1% on 2012’s record levels, but still amounting to 13.1% of global output. This chapter contains a viewpoint from Ali Al Naimi, Minister of Petroleum and Mineral Resources.
Explore chapterIndustry
Buy digital copy of this chapter - £18Falling oil prices have spurred ongoing efficiency and diversification efforts in Qatar, with data from Qatar National Bank (QNB) showing that more than half of the state’s GDP is now accounted for by the non-hydrocarbons sector. Figures from the third quarter of 2014 showed industry contributed 6% of nominal GDP, with manufacturing accounting for $19.7bn of industry’s $30.7bn total contribution to GDP in 2013, or 64%. Qatar is now one of the world’s largest fertiliser exporters, with the GCC accounting for around one-quarter of global urea trade by volume in 2013 and 12% of global ammonia trade. While heavy and medium industry will remain major pillars moving forward, Qatar National Vision 2030 has emphasised the need for a shift towards knowledge-based industries, with lighter, high-tech manufacturing now receiving a boost and efforts now under way to encourage greater private sector involvement in the sector.
This chapter contains an interview with Khalid Al Subaey, Managing Director, Mesaieed Petrochemical Holding Company.
Explore chapterConstruction & Real Estate
Steady economic growth, increased industrialisation, rapid urbanisation and one of the highest foreign investment rates in the country are all contributing to fuel a strong performance in Sarawak’s construction industry. The private and public sectors are doing their part to fill up the order books and, as a result, the construction industry has nearly doubled in productivity over the five-year span of 2009-13, during which the annual value of completed projects spiked from $1.5bn to $2.4bn. The myriad of factors influencing Sarawak’s real estate market have resulted in a mixed bag for the sector, with property growth, value and transaction activity all varying widely by region. Despite the regulatory uncertainties giving property developers and purchasers pause on a national level, the real estate market looks set to continue its strong run in Sarawak, due largely to a robust investment pipeline that should help fuel demand for the foreseeable future.
This chapter contains interviews with Richard Curtis, Group Managing Director, Cahya Mata Sarawak; and Joseph Wong Kee Liong, President, Sarawak Housing and Real Estate Developers Association.
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Explore chapterEnergy
Already the world’s largest oil producer and second-largest repository of reserves, Saudi Arabia is now looking to boost output of natural gas, including through deep-water and unconventional exploration, as well as to increase refining output. Total oil production in 2013 was 11.53m barrels a day, down 1.1% on 2012’s record levels, but still amounting to 13.1% of global output. This chapter contains a viewpoint from Ali Al Naimi, Minister of Petroleum and Mineral Resources.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18Transport and infrastructure is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centres and cities across the archipelago. With public infrastructure spending rising to 4.1% of GDP in 2015, the need for greater private sector participation is crucial to ensuring efficient and effective delivery of projects. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of public works, and righting these issues would ensure the advantages of private sector interest could be realised. Improvements to road infrastructure, investment in existing port facilities and the construction of new ports will take the sector to the next level.
This chapter contains interviews with Cosette Canilao, Executive Director, PPP Centre of the Philippines; William K Hotchkiss III, Director-General, Civil Aviation Authority; and Ramon S Ang, Vice-Chairman, President and COO, San Miguel Corporation.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18The real estate sector in Abu Dhabi is currently in a period of growth and rising prices, following the global financial crisis that began in 2008. As of the third quarter of 2014, all segments of the market were in simultaneous recovery for the first time since the downturn. The government is set to continue promoting market stability, maintaining its high level of involvement in real estate investment development while growing demand, coupled with tight supply in some areas, suggests that overall prices will continue to rise across most market segments in 2015. Meanwhile the emirate’s construction industry appears to be entering a period of renewed growth, with the total value of construction projects under way or in the pipeline standing at $727bn as of April 2014, making the UAE the second-largest construction market in the GCC.
This chapter contains interviews with Saeed Al Ghafli, Chairman, Department of Municipal Affairs; and Mohammed Al Mubarak, CEO, Aldar.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After a decade of under-investment, Côte d’Ivoire’s construction sector has sustained double-digit growth over the past three years as private reconstruction and public investment continue to rise sharply. Côte d’Ivoire’s property market has also grown rapidly since 2011. With private initiatives flourishing and public spending on the rise, the market is witnessing genuine developments, but much more will be needed to close a housing gap exacerbated by a decade of civil unrest. With a strong portfolio of public projects, particularly in transport infrastructure and low- to middle-income housing, the demand for construction materials is set to grow further. Substantially supported by international donors, Côte d’Ivoire has opened its doors to global construction firms and has diversified investments sources. However, further support for local SMEs is needed to sustain long-term growth, while the development of the country’s construction material manufacturing industry will be critical to controlling input prices and limiting imports.
This chapter contains an interview with Charles Paradis, CEO, Bouygues Construction Concessions.
Explore chapterTransport
Buy digital copy of this chapter - £18Dubai’s transport, communications and storage sector is a leading contributor to the economy, accounting for 14.8% of GDP in 2013. Dubai’s reputation as a transport and logistics hub was bolstered in 2010 with the launch of a logistics corridor connecting Jebel Ali Port, Jebel Ali Free Zone and the new Al Maktoum International Airport. The corridor will be supported by the development of Etihad Rail, a new nationwide rail network whose 628-km second phase will connect Mussafah Port in Abu Dhabi with major ports in Dubai. Plans announced in 2014 for the expansion Al Maktoum International Airport will increase its yearly passenger capacity to more than 200m, making it the biggest airport in the world upon completion. The Roads and Transport Authority is planning to launch up to 35 mega-projects to meet the demands of Dubai Expo 2020, with infrastructure development set to be allocated up to $4bn.
This chapter contains an interview with Mattar Al Tayer, Chairman and Executive Director, Roads and Transport Authority (RTA).
Explore chapterIndustry
Buy digital copy of this chapter - £18Industry in Bahrain continues to grow as increasingly low borrowing rates, particularly for manufacturing, demonstrate banks’ willingness to finance projects in the sector. Bahrain’s manufacturing sector accounts for 15% of GDP making it the country’s third-largest economic contributor after hydrocarbons and financial services, and is expected to reach 20% of GDP within the next decade. The sector is dominated by basic metals, refined petroleum products and chemical products, and in 2012 employed 13% of the total workforce in the kingdom. Bahrain is home to the sixth-largest aluminium smelter in the world, which has encouraged the clustering of several downstream businesses, while the kingdom’s burgeoning pharmaceuticals sector was worth $260m in 2012 and is expected to rise by a compound annual growth rate of 10.1% to 2017.
This chapter contains interviews with HE Dr Hassan Fakhro, Advisor to the King for Economic Affairs; and Tim Murray, CEO, ALBA.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18While much ground remains to be covered in Myanmar’s industry and retail sectors, its progress to date is remarkable, given the country’s history and the challenges it faces in a highly competitive neighbourhood. Figures from the end of November 2014 show manufacturing coming in third, behind the oil and gas and power sectors, in terms of total investments received. Strong international support and investment, together with the efforts of a hard-working, young, highly literate and motivated population, are paying increasing dividends, as Myanmar opens up to the world and progresses towards joining the ASEAN Economic Community (AEC). With robust economic growth expected to continue, paralleling continued investor interest, industry and retail are likely to see further expansion in 2015 and beyond. While almost all manufacturing areas offer major upsides, an awareness of changing local conditions and the ability to adapt to political dynamics will be key for sustained growth.
This chapter contains interviews with Stuart Dean, CEO, General Electric ASEAN; and Rehan Khan, Managing Director, Coca-Cola Myanmar.
Explore chapterIndustry
Buy digital copy of this chapter - £18Vision 2020’s economic diversification mandate has seen Oman’s industrial segment expand rapidly in recent years, with the non-oil sector expanding by 7.6% in 2013. The strong growth being witnessed in the petrochemicals, aluminium, steel and mining segments is expected to continue with government investment in the industrial sector projected to reach $517.88m between 2014 and 2020. Sohar, with its host of new infrastructure and raw production projects completed in recent years, is set to become Oman’s dominant industrial hub. The petrochemicals segment is also poised for strong development with total investment reaching $16.59bn in 2013. Efforts to revitalise the mining segment hold great potential, as the introduction of new legislation aimed at increasing value-added and reducing raw exports is expected to provide a major boost to the sector. This chapter contains an interview with Hilal bin Hamad Al Hasani, CEO, Public Establishment for Industrial Estates (PEIE).
Explore chapterTransport
Buy digital copy of this chapter - £18In an effort to close the transport infrastructure gap, estimated to reach $20.9bn by 2021, Peruvian authorities are implementing heavy investment plans and making extensive use of public-private partnerships. With economic growth increasingly exposing the current limitations of Peru’s transport channels, efficiency and progress are key to ensuring sustainable growth in the future. Due to the economy’s heavy reliance on mineral exports, Peru’s links between its hinterland and export gateways on the coast remain essential, and this is encouraging expansion work in major road connections. Private management of port facilities is allowing for fresh investment in new equipment to increase capacity and shorten service times. Growth is also driving development of aviation infrastructure to raise capacity for domestic and international traffic. By land, water and air, the revamping of transportation infrastructure seems set to determine the country’s growth prospects over the medium term.
This chapter contains an interview with José Gallardo Ku, Minister of Transport and Communications.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite its unique natural and historical heritage, Algeria’s tourism sector has long struggled to transform into an important component of the country’s economy. Nonetheless, new government incentives, along with private initiatives to expand existing hotel capacity, are helping to modernise the sector, which has historically been sidelined by government focus on other economic activities. Although Algeria is in a prime location to attract many tourists, the country has sought to avoid mass-market tourism in an effort to maintain high-quality offerings. The role of the tourism sector in the economy is expected to continue on an upward trend, although this evolution will most likely happen at a slow pace. As Algeria aims to attract more travellers from traditional markets such as France, Spain or Germany, it will be competing with more developed destinations such as Egypt, Tunisia and Turkey.
This chapter contains an interview with Frtiz Van Paasschen, CEO, Starwood Hotels and Resorts.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector benefits from strong fundamentals but has grappled recently with a slowdown in big-ticket infrastructure work and falling margins, prompting some firms to focus their efforts outside of their home turf. However, this has helped to stoke growth in smaller and newly established contractors. While significant infrastructure spending has been planned for the medium term, order books, while busy, have yet to provide the dramatic rebound that has been hoped for. Despite the lingering uncertainty, there are signs that momentum is swinging in a positive direction. A number of state-owned enterprises, for example, are beginning to implement and break ground on projects that for years have stalled at the discussion and planning phase.
South Africa’s property market appears to be in a healthy place, demonstrating solid if not necessarily exceptional growth. However, there are exogenous pressures that could hamper demand, including a sluggish economy, eroding business and consumer confidence, escalating running rates, in addition to interest rate hikes, but these could serve as factors that will keep growth in check and temper the market from becoming over-exuberant. The scope for potential growth varies, unsurprisingly, but broadly speaking the outlook for the near term is fairly robust.
This chapter contains interviews with Henry Laas, CEO, Murray & Roberts; and Louis van der Watt, CEO, Atterbury Group
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Like many sectors in the country, construction has had more than its fair share of challenges in recent years. Yet in spite of the downside risks, the prospects for the building industry have not been brighter for decades. Continuation of new cities around Cairo, complete with offices and shopping malls, plans for 1m new affordable homes in the social housing segment, the expansion of the Suez Canal, the development of 75,000 sq km of land on either side of the canal for industry and myriad other infrastructure schemes are turning Egypt into a hive of activity. The ambitiousness underpinning the construction plans – as well as the country’s finances – is certainly impressive, but project delivery will be crucial in sustaining the momentum, particularly given the externalities, such as job creation, that the country’s construction sector provides. After a sharp decline in real estate activity in 2011, the market has bounced back and many companies should see full-year figures for 2014 return to pre-revolution levels. The residential market was the strongest-performing sector in Cairo in the third quarter of 2014, with sales recovering ahead of rents in most locations as confidence returns. Going forward, the type and balance of future developments will almost certainly change to better meet the needs of a greater number of Egyptians. The 1m-home housing project could well see its completion date slip in face of the practicalities of producing so many units in an atmosphere where there is huge pressure on resources. Even so, with so many programmes being pushed by the government in all sectors of the economy, in a decade Egypt could look a very different country than that on display today.
This chapter contains interviews with Osama Bishai, CEO, Orascom Construction Industries and Iyad Malas, CEO, Majid Al Futtaim Holding.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18Situated along crucial sea shipping routes on the southern edge of the South China Sea, Brunei Darussalam is well placed to take advantage of growing trade within the region. Under the 10th National Development Plan, running from 2012 to 2017, the government has allocated 19.7% of the budget to communications and transportation projects. Major investments in infrastructure are designed to have an impact beyond simply serving domestic demand, and are geared towards encouraging more international shipping lines and logistics operations to set up shop locally. Far exceeding the Sultanate’s current demand for passenger and cargo traffic, improvements across a number of modes will serve to ensure ample room for growth in the years to come.
This chapter contains interviews with Pehin Dato Suyoi Osman, Minister of Development; and Dermot Mannion, Deputy Chairman, Royal Brunei Airlines.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecommunications sector in Kenya is one of the more dynamic in Africa, having garnered recognition in particular for its success in rolling out mobile money platforms and value-added services, and benefitting in a broader sense from the government’s effort to increase the role of telecoms and ICT in the country’s overall development. Wireless connectivity has acted as a leapfrog technology, enabling Kenyans to skip fixed-line connections and transition directly to mobile phones. An aggressive approach to building infrastructure has yielded significant benefits for Kenya, bolstered by growth in mobile money platforms, which has helped encourage start-ups and expand digital value-added services. The country’s Connected Kenya 2017 master plan for ICT and broadband development clarifies its step-by-step vision for growth and its needs for foreign investment along the way. The government’s determination to extend broadband access to all Kenyans is likely to reinforce the burgeoning innovation culture that has taken root and provides for a promising medium-term outlook.
This chapter contains interviews with Fred Matiang’i, Cabinet Secretary, Ministry of Information, Communications and Technology; and Bob Collymore, CEO, Safaricom.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18In spite of its role as one of Africa’s fastest growing economies, Ghana has yet to fully transition its agriculture and resource commodities base into a vibrant and diversified industrial sector. According to the Ghana Statistical Service (GSS), industry accounted for 28.6% of GDP in 2013. While not the region’s largest market, Ghana does provide a range of competitive advantages, including a transparent regulatory environment, accessible inputs and lower overheads than some of its neighbours. As with many African frontier markets, formal retailing is beginning to capture a greater share of spend as an expanding middle class increases consumption and becomes more demanding in terms of convenience and variety. Setting up shop in Ghana, however, is not without its challenges. A shortage of prime retail real estate translates into high rents, and the fact that a large proportion of consumer goods are imported leaves margins subject to currency volatility, import duties and logistics bottlenecks.
This chapter contains an interview with Mustapha Ahmed, Acting Minister of Trade and Industry.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism accounts for 14% of Jordan’s GDP, with receipts in 2014 up 10% year-on-year. Efforts are under way to diversify Jordan’s tourism offerings with an emphasis being placed on religious tourism, aimed particularly at visitors from East Asia, while Jordan’s medical infrastructure remains one of the country’s most valuable tourism assets with the World Bank ranking Jordan the top medical tourism destination in the Middle East and fifth in the world in 2011. Adventure and eco-tourism is also on the rise, as part of the kingdom’s wider push to attract younger visitors. Meanwhile, new luxury developments in the Gulf of Aqaba and the Dead Sea demonstrate Jordan’s intention of establishing itself as a major holiday destination in the region.
This chapter contains an interview with Nidal Katamine, Minister of Tourism and Antiquities.
Explore chapterTourism
Buy digital copy of this chapter - £18As oil output declines, the government is looking to encourage growth in the tourism sector, with the aim of developing high-end and luxury ecotourism under the rubric of the Green Gabon strategy for sustainable development.
In spite of the country’s wealth of natural attractions, Gabon’s tourism industry has remained small in both absolute terms and the contribution it makes to the local economy. Between 2006 and 2011 some 100,000 visitors arrived in Gabon, with France ranking as the highest visitor market at around 35% of arrivals. Tourism made up 1.2% of Gabon’s GDP in 2013, but the government anticipated the sector’s contribution will grow 9.5% in 2014, and an annual average of 7.3% through 2024. The sector is set to expand in coming years, pushing up its contribution to GDP.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although the construction sector faces a number of challenges, such as the lack of a well-trained local workforce and low levels of domestic materials production, the sector is expected to benefit from increasing government investment in housing and infrastructure. Mongolia has a severe lack of affordable housing, and addressing this shortage is expected to be a major driver of construction activity in the foreseeable future. In addition to housing projects, modernizing and expanding Mongolia’s transport links and utilities networks is a key area of focus at present. Only Mongolian citizens are currently allowed to own land; however, foreigners can obtain usage rights to land and own buildings and other structures. While a number of challenges remain, most local players expect Mongolia’s real estate sector to continue to grow for the foreseeable future. New activity bodes well for the country’s long-term development prospects. This chapter contains interviews with E. Bat-Üül, Governor of Capital City and Mayor of Ulaanbaatar; and E. Jargalan, CEO, Erel Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Even though the minimum wage has gone up and there is no shortage of work, the construction sector in Thailand is facing a serious dearth of labourers. As developments in neighbouring countries have increased employment opportunities there and the minimum wage has risen across Thailand, companies have faced difficulties in finding workers for building sites. However, despite some setbacks following floods in late 2011, the sector has been resilient and grew by more than 7.5% over 2012, a trend likely to continue in the years ahead. In order to facilitate new projects under the government’s infrastructure drive, a new public-private partnership law has been designed to encourage private investment by making regulations more transparent and clear. Meanwhile, the rise of the middle class has maintained the affordability of purchasing property and there is especially high demand for condominiums in Bangkok. While prospective foreign buyers, especially from Russia and China, are seeking to get onto the property ladder, restrictions on foreign ownership and financing remain in place. The advent of the AEC at the end of 2015 may have a profound effect on the market as well. This chapter contains interviews with Yuthachai Charanachitta, President and CEO, ITALTHAI Group; Apichart Chutrakul, CEO, Sansiri; and Chanond Ruangkritya, President and CEO, Ananda Development.
Explore chapterConstruction
Buy digital copy of this chapter - £18Increased government investment in infrastructure has helped unleash a boom in Indonesia’s construction sector. With rapidly growing demand for residential real estate, office buildings, industrial estates and other property across the archipelago, the construction sector is poised to see significant expansion. And, although the sector has declined since 2012, a new law that allows foreign nationals to purchase condominiums is likely to help drive up foreign direct investment for future construction projects. One of the main challenges for the sector in 2013 was the rupiah’s depreciation against the US dollar, which significantly increased the cost of building materials. The prices for asphalt and concrete, for instance, rose 21% and 20%, respectively. Dams, roads, and bridges account for the majority of government projects that are currently under way or planned to begin construction in the next few years. Toll roads and bridges will be the first investment areas as the government seeks to improve the nation’s transport links. Human capital development and a boost in industry standards are key for the sector to increase its overall GDP contribution. Though the sector may slow in the first part of 2014, it is expected to gain momentum once the new administration is given time to establish new regulations. If it favours infrastructure development with similar attention as the current administration, the sector will continue to benefit from increased government spending.
Explore chapterTransport
Buy digital copy of this chapter - £18Qatari authorities’ emphasis on infrastructure development is not surprising. Trade remains a key component of the state’s economic livelihood. Between 2000 and 2012, transport and communications’ share of GDP nearly tripled from 2.2% to 6.9%. Qatar allotted $45bn to finance transport infrastructure in 2013, and looking ahead, a growing transport and logistics sector fits within the government’s plans for the country’s future. Possible changes in construction conditions seem like the biggest potential challenge on the road ahead, while materials and contractor costs could rise significantly as more infrastructure projects continue to break ground. The authorities’ progress on Customs regulations is a positive sign, however, as smoother procedures lower costs and speed up projects. This chapter contains interviews with Saad Ahmed Al Muhannadi, CEO, Qatar Rail; and Nabeel Mohammed Al Buenain, Project Executive Director, New Port Project.
Explore chapterTransport
Buy digital copy of this chapter - £18Developing Abu Dhabi’s domestic transport infrastructure and broader transport industry has been one of the government’s priorities over the past decade. At the same time, the rapid expansion of the local aviation and maritime shipping industries has contributed to the emirate’s growing reputation as a transit and logistics hub. Further expansion is under way to meet the need of anticipated population growth, with the population set to reach 2.6m by 2030, up from just 0.9m in 2008. The emirate’s ongoing transport projects are creating significant opportunities for local and international investment, while developments in the air transport segment are set to considerably boost Abu Dhabi’s international connections. This chapter contains an interview with Tony Douglas, CEO, Abu Dhabi Airports.
Explore chapterICT
Buy digital copy of this chapter - £18According to the National Public Services Authority, ICT revenues rose from $743m in 2007 to $957m in 2013, maintaining a contribution to national GDP of around 3%. Much of this growth has been generated through the expansion of mobile services and broadband, which continue to offer significant room for growth. Fixed-line connections also registered significant expansion, rising 14% year-on-year in 2012, with the installation of 80,000 new lines. Thanks to Panama’s location, foreign investment incentives and connection to the continent’s primary fibre-optic networks, it is well placed to become a regional ICT centre. The biggest challenge facing the sector is capacity, primarily in human resources. A combination of expatriate employment and longer-term educational efforts will be required for the sector to overcome a shortage of skilled ICT professionals and reach its full potential.
Explore chapterTransport
Buy digital copy of this chapter - £18Despite years of isolation and being a relatively poor country, Myanmar has a surprisingly developed transportation network. It has 66 airports, eight airlines, more than 5500 km of rail and about 150,000 km of roads. However, those years of isolation left the country’s transportation infrastructure in poor condition, so Myanmar is making efforts to improve the system, and it is likely that these efforts will pay off in the medium and long term. The construction of less expensive and safer transportation options is vital to achieving Myanmar’s long-term development goals. If priority areas are dealt with quickly and if major setbacks are avoided, the sector will improve steadily until the more complex investments, such as urban rail, can be completed. This chapter contains an interview with U Nyan Htun Aung, Minister for Transport.
Explore chapterRetail
Buy digital copy of this chapter - £18Revenues from shopping malls and retail outfits reached $626m in the first nine months of 2013, 22% higher than the same period of 2012. Out of 323 major international fashion retailers, more than half, maintained an outlet in Dubai in 2013, and the emirate is considered by one agency to be second only to London in importance for global fashion retail. Though Dubai was undoubtedly delighted with the acclamation of being named second only to London as the world’s most important home of international brands, the emirate will have top spot in its sights – especially if it can clear the final hurdle by 2020. The entrenchment of global branding and resultant potential is palpable in the retail sector.
This chapter contains an interview with Colm McLoughlin, Executive Vice-Chairman, Dubai Duty Free.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18As oil reserves continue to draw down, the government is focusing on downstream processing and developing a complementary port infrastructure and transport net- work. By 2020, the government aims for industry to contribute 30% of GDP and to reduce oil’s share of GDP from 50% to 19%. The discovery of mineral resources presents further opportunity in mining growth. This chapter contains interviews with Gert Hoefman, CEO, Oman Cables; and Said Al Masoudi, Acting CEO, Sohar Aluminium.
Explore chapterInsurance
Buy digital copy of this chapter - £18An overhaul of the regional insurance regulations in the West African CFA zone is expected to yield its best results in Côte d’Ivoire, the largest market in the sub-region. With a penetration of about 3%, according to the country’s insurance association, the Association des Sociétés d’Assurances de Côte d’Ivoire (ASA-CI), insurers are only just scraping the surface of the market’s potential.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Transport and logistics infrastructure in Peru has not kept pace with the high level of economic growth. According to a report released by the Association to Promote National Infrastructure in October 2012, $88bn in investment will be necessary over the period 2012-21 to close the existing infrastructure gap, a move essential for continued economic development. To this end, in 2011 the government launched a plan to invest $20.5bn in infrastructure over the following five years, and major efforts are being made to attract more private investment. In 2013 the government declared the promotion and facilitation of investment in Peru a national priority, with special emphasis on procedures and the issue of permits and licences. Apart from confronting the natural challenges posed by the nation’s rugged and mountainous terrain, the biggest challenge facing the sector in the short term will be pushing investment plans through the lengthy bureaucratic approval processes in a timely fashion.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18As the government pursues its infrastructure development programme, real growth in the sector is expected to reach 5.9% per annum between 2013 and 2017. Backed by a favourable macroeconomic environment, political stability and increased spending, the country’s transport sector is slowly being modernised. In 2013 more than $7.2bn has been budgeted for port, road and rail infrastructure upgrades. In 2014 the government has allocated around $9.6bn – an increase of 35% -- for public works projects. Despite various challenges, the overall outlook for the transport sector in the medium term looks positive and is supported by a healthy economy, decisive leadership, and a strong financial situation that has made the nation an outlier of growth in a region that is otherwise buffeted by economic troubles. This chapter contains interviews with Joseph Emilio Aguinaldo Abaya, Secretary, Department of Transportation and Commerce; and Ramon S Ang, President and COO, Philippine Airlines.
Explore chapterRetail
Buy digital copy of this chapter - £18With the largest population in Africa and one of the continent’s fastest-growing economies, Nigeria has emerged as a prime market. According to the Central Bank of Nigeria, retail and wholesale trade totalled $45.55bn in 2012, or 17% of GDP. Retailers have found it expensive to operate locally given the need to generate power independently, which necessitates the purchase of both generators and diesel fuel. Online shopping sites offer international retailers the opportunity to outsource the challenges of operating in Nigeria to local companies while still accessing the market. As such changes take root and the middle class continues to grow, the marketplace offers significant opportunities.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Although Algeria has historically relied heavily on food imports to meet domestic demand, the agriculture sector has seen considerable growth since the 2008 introduction of the Agricultural and Rural Renewal Policy. Under the policy, production has grown by an average of 13.8% per year, with total output reaching $29.3bn in 2012. Despite this growth, however, food imports still accounted for 19% of all imports in 2012, worth a total value of $8.98bn (although this was an 8.8% decline from the previous year). With the goal of producing 70% of the country’s food by 2014, the government has implemented a number of incentives to boost investment in the sector, modernise practices and boost agribusiness output.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18One of the country’s biggest magnets for foreign investment, Egypt’s ICT sector is well positioned to enjoy long-term growth. Internet penetration has been growing steadily, thanks to increasing accessibility, rising demand and more diverse content. More than 33m Egyptians access the internet, with broadband connections comprising over 90% of all internet connections. As of mid-2013, internet penetration stood at around 40%. Similarly, demand for IT products and services should continue to rise from the government and private sector alike, though the pace of growth will be linked to economic recovery. The telecoms sector is one of the most competitive and dynamic parts of the economy. Egypt has 94.5m mobile subscriptions for a population of around 85m, indicating a penetration rate of 113.5%, according to the Ministry of Communications and Information Technology. The market is internationalised – the three existing GSM operators are all majority foreign-owned, all by large global players, indicating the appeal of the market to the world’s biggest telcos. While other sectors have been hard hit by Egypt’s tumultuous post-revolutionary years, telecommunications companies have continued to invest and expand. The major development of the next year is likely to be the issue of universal licences, which at the time of writing was going ahead despite political uncertainty. This chapter contains an interview with Ashraf Sabry, CEO, Fawry.
Explore chapterTourism
Buy digital copy of this chapter - £18The government has prepared a 10-year development strategy to help guide sector growth, and a central part of this strategy is leveraging the private sector. To this end, the government is actively partnering with private operators to help promote tourism and is developing a reputation for managing public-private partnerships in the sector. Ras Al Khaimah continues to raise its profile as a tourist destination, having doubled its number of visitors in the past two years, and the focus is now on niche markets such as ecotourism, cruises and health. Major new hotel projects such as Al Marjan Island will add much-needed capacity, while improved transit links to nearby emirates should also help to support growth.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Construction has been at the heart of government plans for economic development, with the expansion of energy and transport infrastructure intended to help realise the goal of diversifying the economy. The government seeks to generate over $13bn in infrastructure investments by 2016. The high cost of construction materials, limited transport infrastructure and delays on payments from the public sector will likely translate into a higher construction costs in the short to medium term. In the long term, however, the price of projects could come down. Real estate activity in Gabon has decreased slightly since 2012, but remains on an upward path nonetheless, with demand across all market segments driving growth. Recent government initiatives to cut back on red tape should help to speed up project delivery. Demand for housing is likely to continue providing opportunities for investment for local and international companies, although the implementation of projects could still face obstacles as plans for urban regeneration and expansion confront sporadic and informal urban development on the ground. This chapter contains an interview with Jim Dutton, Director-General, National Agency for Public Works.
Explore chapterRetail
Buy digital copy of this chapter - £18Kuwait’s mall culture is currently at the forefront of a resilient and growing retail sector that continues to draw the interest of both international brands and foreign investors. The number of shopping centres continues to grow and international brands find opportunities in local markets, with luxury segments showing a strong recovery and growth. The automobile industry has also performed well, with annual growth of 8-9% on the back of solid fundamentals. Recent years have seen the rapid rise of hypermarket retail, representing the sector’s most dynamic vector, with limited familiarity with modern grocery retail formats presents an opportunity for investors.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18South Africa’s construction industry has felt the impact of the post-World Cup slowdown more than any other sector of the economy. However, ongoing urbanisation trends suggest the sector may pick up in the near future, especially with regards to the social housing segment. South African construction companies have also experienced significant success in their efforts to expand into neighbouring countries. Compared to international markets, local real estate has performed relatively well. Returns, both in terms of capital and income, have on the whole stalled and flattened rather than slipped fully into negative growth. Certain elements of the sector, depending on location and class, continue to present attractive opportunities, especially commercial office property. While there is little sign of a rapid turnaround, there are some positive longer-term indicators, including potential income growth. This chapter contains interviews with Roger Jardine, CEO, Aveng Group; and Marc Wainer, CEO, Redefine Properties
Explore chapterInsurance
Buy digital copy of this chapter - £18The insurance sector has experienced significant growth in recent years as a rise in disposable income, an expansion of the formal economy, falling unemployment and gradual advancement on major infrastructure projects have helped expand demand across the spectrum of general and life insurance products. The number of insured has doubled between 2008 and 2011 and, at an average growth rate of 9.6% over the past five years, contributions from pensions and social security policies are raising the industry’s capitalisation to new levels. Low penetration rates suggest ample room for growth while new opportunities are becoming apparent in the microinsurance segment. Proposed regulatory changes, which include plans to implement International Financial Reporting Standards by 2016, are expected to further strengthen the highly concentrated sector. This chapter includes interviews with David Bojanini, President, Grupo SURA; and Raúl Fernández Maseda, President, Mapfre Colombia.
Explore chapterAqaba
Buy digital copy of this chapter - £18While most economic activity in Jordan is concentrated in Amman, the southern city of Aqaba is playing an increasingly significant role. The population of the city is expected to increase by 130% to 250,000 by 2020, making expansion of Aqaba’s infrastructure to improve air and maritime links within and beyond the region a key objective. A mix of development projects is under way to widen the city’s image. Water security will be key to infrastructure development, along with transport upgrades that are necessary to sustain this diversification. Large-scale projects in the area are set to fuel construction growth, and a number of tourism-related projects have been planned for the city, including the development of hotels, entertainment areas, shops, restaurants and cafes, and a marina, which are all aimed at increasing tourist numbers.
Explore chapterIndustry
Buy digital copy of this chapter - £18Projects aimed at expanding the metals and petrochemicals segments are underway, with the current aluminium production of 2m tonnes set to increase to 10m tonnes by 2020 and plans from the Gulf Petrochemicals Industries Company to triple output of ammonia related products. There has also been a drive to create favourable conditions for foreign investment, including numerous business parks and revamped regulation. Considerable efforts are also being made to aid small and medium-sized enterprises, with greater integration of regional supply chains and further expansion of downstream industries seen as offering them a potential boost. This chapter contains interviews with Chris Potter, CEO, Arab Shipbuilding & Repair Yard; and Tim Murray, CEO, Alba.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18After a brief dip following the onset of the global financial crisis, the telecoms sector has made a robust recovery, exceeding pre-crisis subscriber numbers in 2012. The domestic mobile network is now comparable to that of North America and Western Europe, in terms of penetration and services, with fixed-line services already reaching the majority of the population. A heavy tax regime is hampering further growth of the mobile market, but the expansion of mobile broadband services and a huge demand for smartphones have created high growth potential. The young, tech-savvy population is driving demand for new technology, and, as Turkey moves to construct an expansive 4G network across the country by the end of 2016, the mobile market is poised for strong, steady growth. This chapter contains an interview with Hakam Kanafani, CEO Turk Telekom Group, and Faruk Eczacıbaşı, Vice-Chairman, Eczacıbaşı Holding.
Explore chapterIndustry
Buy digital copy of this chapter - £18With ample energy resources, Brunei Darussalam is working to build a stronger industrial base using its access to cheap power and petroleum products. Downstream industries have already seen significant successes, and efforts are also being made in unrelated sectors, specifically in halal products, where the Sultanate has resources and expertise. High-tech industries are also attracting significant attention. Moves to address skills gaps and support innovation are also playing their part in expanding industry. Industrial diversification is now delivering improved economic productivity and the realisation of national growth objectives. While petrochemicals remains the top industrial segment to date, the coming years should see a growth in investment and output from sectors considered nascent today. This chapter contains an interview with Edward Ko, General Manager, Viva Pharmaceutical Brunei.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector achieved 4.2% growth in 2011 and has consistently contributed around 5% to 6% of the GDP over the last eight years. Public spending on infrastructure has created opportunities for both local and foreign firms in the last decade. From 2003 to 2012, the government invested nearly Dh180bn (€16m) in basic infrastructure in an effort to improve capacity and efficiency. Foreign firms hailing from the EU – especially Spain – as well as Turkey, South Korea and China have been drawn to Morocco to create large-scale, mixed-use projects. While building has slowed in some sectors as a result of the global economic downturn, strong demand for construction in housing, public services, industry and energy should continue to stimulate sector activity in the medium term. Indeed, a number of high-value commercial real estate projects have continued to attract international investment. Recent developments include efforts initiated in 2011 to create 11 new cities, a number of which are located outside of Casablanca and Rabat. The government is looking to public-private partnerships to support urban regeneration and the construction of low-income housing. In the short term, efforts to incentivise social housing construction and urban planning programmes meant to absorb sub-standard housing will continue to drive much real estate sector activity. This chapter includes an interview with Mohammed Fassi-Fehri, Director-General, CDG Development.
Explore chapterUtilities
Buy digital copy of this chapter - £18The utilities sector is enjoying huge investments into expansions and capacity upgrades, with around SR500bn ($133.25bn) to flow into the electricity and water segments in the coming decade. Saudi Arabia has ambitious plans to build up renewable electricity generation capacity, in particular solar power, to address rapidly rising energy consumption. The Kingdom is investing in water desalination plants and looking at new technologies, like solar desalination, to improve efficiency. Another marked feature of the sector, looking ahead, is likely to be more private investment. The government is implementing new policies to encourage businesses to undertake energy efficiency reforms, such as by limiting supply if firms do not meet stipulated targets. Meanwhile, construction and engineering contracts will make for plenty of opportunity for such firms for years to come.
Explore chapterTransport
Buy digital copy of this chapter - £18As it continues to develop and diversify its economy, transport is playing a central role in the long-term development of Abu Dhabi. Transport and storage contributed approximately Dh20.62bn ($5.6bn) to the emirate’s economy in 2011, or 2.6% of GDP. Aviation in particular is expanding rapidly; the UAE is set to invest $19bn on new aviation infrastructure as it positions itself as a regional business centre and attracts growing numbers of tourists. Upgraded maritime links will also boost Abu Dhabi’s commercial image and improve its global competitiveness. Lastly, key improvements to public transport look set to boost growth, while a comprehensive transport framework envisions the construction of a 17-km metro line by 2020. Not only does the growing population mean investment is required to keep Abu Dhabi City moving, but transport in the broader sense occupies a significant position in both the emirate’s economic diversification strategy. This chapter includes interviews with Abdulla Rashed Al Otaiba, Chairman, Department of Transport (DoT); and Ali Majed Al Mansoori, Chairman, Abu Dhabi Airports Company (ADAC).
Explore chapterInfrastructure
Buy digital copy of this chapter - £18With its low debt-to-GDP ratio and abundant resources, growing consumer demand, healthy political discourse and rising investment, Indonesia is set to lead the region and could become the world’s sixth-largest economy by 2030. The country has 11 commercial ports, more than 200 airports, an estimated 17,508 islands and around 245m people. The government is working to address the current lack of infrastructure with spending on roads, bridges, ports, airports and power stations, as well as by supporting public-private partnerships. If a few infrastructure deals get done in the next year, and if there is clear and verifiable progress and commitment of actual investment funds to these transactions, many more agreements could follow and a significant amount of infrastructure could be built. This chapter contains an interview with Ir. Hermanto Dardak, Vice-Minister of Public Works, and a roundtable with Arsjad Rasjid, President Director and Group Co-CEO, Indika Energy; Sinthya Rosely, CEO, Indonesia Infrastructure Guarantee Fund; and Raj Kannan, Managing Director, Tusk Advisory.
Explore chapterEnergy
Buy digital copy of this chapter - £18Developed in 2010 and initiated in 2011, the Dubai Integrated Energy Strategy 2030 aims to guide the emirate’s energy sector toward sustainability and enhanced efficiency. Like other energy importers, Dubai faces challenges, including potential price fluctuations. By investing wisely when domestic supplies were abundant, however, much has already been accomplished to solidify the emirate’s position even as oil and gas production decline. Ground was broken in 2011 on a four-unit nuclear power plant in Braka. The first of the 1400-MW reactors is expected to come on-line in 2017, and the three subsequent reactors in 2018, 2019 and 2020. Likewise, more investment in renewable energy, particularly solar, could bring about positive changes for the sector. Although the government enjoys secure gas supplies from neighbours and allies, it is already mapping steps to lead Dubai – and the region – to a more sustainable, post-fossil-fuel future. This chapter includes interviews with Saeed Mohammed Al Tayer, Vice-Chairman, Dubai Supreme Council of Energy, and Saeed Khoory, CEO, Emirates National Oil Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Mongolia’s real estate sector is likely to feature fast-rising rents, land values and sales prices for at least the next several years. Per capita GDP is forecast to triple by 2016, creating a jump in buying power that will add to an already short supply of homes in the capital. Thus Ulaanbaatar seems poised to experience major price hikes. There is an increasing demand for housing as the nation’s young population is moving from extended-family households to nuclear ones. There has been little interest in building low-cost or middle-income housing so far. According to some estimates, another 175,000 housing units are needed in the capital alone. However, the construction sector’s present building capacity is estimated at around 6500 apartments per year. Mongolia’s construction industry is young and growing and thus far has been unable to keep up the demand generated by the mining boom. Should Mongolia succeed in firming up its legal environment, it can expect a great deal more foreign interest and investment. This chapter contains interviews with D. Battur, President of Jiguur Grand Group, and J. Od, President of MCS Group.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Farming and fishing play important roles in the Omani economy: more than half the local population and some 7.8% of expatriate workers are employed in these industries. This is despite the historic challenge of an arid climate and scarcity of water for crop cultivation, which have traditionally limited development. However, the implementation of modern irrigation techniques in recent times has enabled total agricultural output to grow from 989,000 tonnes in 2005 to 1.2m tonnes in 2008. Fishing is also set for good growth. More than 36,000 Omani nationals are employed in the fishing industry using traditional capture fishing methods. The government is now offering a wide array of financial and business development incentives to encourage investment and expand the segment. This chapter includes an interview with Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth.
Explore chapterTourism
Buy digital copy of this chapter - £18With nearly 25m arrivals and $19bn in revenues in 2011, Malaysia’s tourism sector is a major contributor to employment and economic growth. Visitors are attracted by Malaysia’s cultural diversity, natural beauty, historic landmarks, and of course, the gleaming shopping malls of Kuala Lumpur. The country also offers a strong value proposition, although tourism operators are finding this something of an Achilles heel nowadays as they try to entice visitors to spend more money. Tourism promoters are hoping the “Luxury Malaysia” campaign, launched in 2012, changes these attitudes. Malaysia is also focused on attracting more Muslim travellers and improving the country’s ecotourism offerings.
Explore chapterAgriculture
Buy digital copy of this chapter - £18On the back of significant growth over the last decade, Algeria continues to witness an increase in local agricultural production owing to efforts to modernise the sector and boost investment. Growth in the sector rose from 8.5% in 2010 to 10.6% in 2011 and there are encouraging signs that increased support from the government will aid development. By virtue of the 2010-14 Public Investment Programme, a total of AD1trn (€9.9bn) will be allocated to raise local production and guarantee food security, specifically to boost output of key crops, develop rural land, and strengthen human resources and technical support. While the country is still dependent on imports to ensure food-sufficiency, the government is committed to plans to intensify production and reduce the food import bill. This chapter contains interviews with Rachid Benaissa, Minister for Agriculture and Rural Development; and Mohamed Laid Benamor, General Manager, Amor Benamor.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Nigeria’s industrial sector is quite small overall, accounting for less than 1% of GDP, but some fields are expanding rapidly. The cement segment, for example, has grown rapidly in recent years, and in 2012, the country produced enough cement to meet local market demand for the first time. Authorities are also planning to use the country’s rising natural gas output as industrial feedstock, positioning Nigeria to become a regional centre for petrochemicals manufacturing. In retail, local press reported in August 2012 that a record $1.3bn in foreign investment had come into the sector over the preceding two years. A prime example of foreign investment in the sector is the South African supermarket champion Shoprite, Africa’s largest retailer. In the clothing arena, French lingerie and swimwear firm Etam opened an outlet at The Palms in April 2011, while Spain’s Zara set up shop at Lagos’ Silverbird Galleria in February 2012. With its population of about 164.8m, Nigeria is a potentially lucrative market. This chapter contains interviews with Olusegun Aganga, Minister of Trade and Investment; Kola Jamodu, President, Manufacturers Association of Nigeria; and Oba Otudeko, Chairman, Honeywell Group.
Explore chapterConstruction
Buy digital copy of this chapter - £18With the construction industry expecting several changes in both the short and long term, contractors and developers are anticipating a steady increase in projects in late 2012 and into 2013. While the past two years have been difficult for the sector, with excessive competition driving down prices and limiting the availability of work, underlying growth factors remain strong. Although the excitement surrounding the 2022 World Cup has brought few tangible benefits to contractors yet, the capital is expected to see a number of expansion projects that should catalyse other developments. This chapter examines how sustainable building practices are at the centre of the government’s National Development Strategy 2011-16, with environmental production a key priority. The chapter also includes an interview with Ebrahim Al Sulaiti, CEO of United Development Company.
Explore chapterTransport
Buy digital copy of this chapter - £18The government has acknowledged that transport upgrades urgently need to be made to promote growth in a number of other sectors, including tourism, agriculture and extractive industries. The National Infrastructure Master Plan, which was launched in June 2012, focuses on 21 priority projects in transport, energy and housing. Current transport projects include the expansion of the ports system, which saw a 20% increase in traffic between 2010 and 2011; a €30.5m renovation of Port-Gentil’s aiport; and the expansion and paving of the road network, particularly outside of towns and urban centres. This chapter contains interviews with Dominique Oyinamono, Director-General, National Civil Aviation Agency (ANAC); and Grégory Quérel, Chairman of the Management Board, Necotrans.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The long-term fundamentals in Egypt are very attractive in just about every sector, and construction is no exception. In the wake of the revolution, a number of projects scheduled for 2012 were moved up to 2011, stimulating the economy but leaving a dearth of government approved projects for the future. With presidential elections having taken place, the construction sector in Egypt is now beginning to gear up for more work. However, while the first half of 2012 saw a revival in project activity, challenges for contractors include securing project financing and managing costs and cash flows until the political situation resolves itself and new private sector building opportunities grow. Large-scale demand and a shortage of supply in most segments has been the recent story of Egypt’s real estate sector. While the housing market is looking to have rebounded somewhat from the troubles it experienced in 2011, it seems possible developments in other areas may not have been as negatively impacted by the revolution as had been previously thought. The outlook for sales in planned communities was improving in the first part of 2012, with earnings from the first quarter showing a marked increase on numbers for 2011. This chapter contains an interview with Osama Bishai, Managing Director, Orascom Construction Industries (OCI); and a viewpoint from Mohamad Talaat, Member of the Management Committee, Helmy, Hamza & Partners (Baker & McKenzie).
Explore chapterTourism
Buy digital copy of this chapter - £18As a stable country with rapid economic growth, Ghana hopes to capitalise on its image as a well managed a peaceful West African state to attract tourists. While the sector still makes up a relatively small portion of GDP, at 2.3%, the government is hoping to increase its contribution to the economy and become a more competitive African tourism market. Ecotourism remains the foundation of the sector in Ghana, with its dense forests and wild array of wildlife habitats. Major goals for the sector include launching stronger promotional campaigns and developing industry-specific education and training – already available at several of the country’s educational institutions – in order to provide higher service quality. This chapter features an interview with Reto Wittwer, President and CEP, Kempinski Group.
Explore chapterTourism
Buy digital copy of this chapter - £18Thailand, already a tourism powerhouse, is expected to see a 6.4% annual growth of tourism’s contribution to GDP through 2020, outpacing the world average. The country will benefit from the economic development of nearby China and India, where outbound tourism is exploding. Thailand’s hope for the medium-term is to boost per-visitor revenue, encouraging luxury tourism without damaging its reputation as a value destination. It is also looking to expand its repertoire beyond the traditional offerings of beaches and temples. There are plans in the works for a Cartoon Network theme park and proposals for an ASEAN family theme park. In the sports arena, golf is an increasingly popular draw for foreign tourists, and there are plans for a Formula 1 circuit.
Explore chapterThe Guide
Ras Al Khaimah has a rich history. This chapter examines a recurring theme of RAK’s past, the emirate’s defence against foreign incursions. The area that now makes up present-day RAK was historically a popular target for invaders due to the location at the entrance of the Gulf. This maritime potential made RAK an important shipping point throughout the ages. Indeed, RAK drew military challenges from not only Islamic clans in the Gulf, but also imperial powers such as the Sassanid, Dutch, Portuguese and British empires. This chapter also includes a listing of the leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about language, weather, visas, currency and more.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18With only 20 firms listed, the Port Moresby Stock Exchange (POMSoX) is subject to volatility, but market capitalisation is on an upward growth trend. Like the country’s formal economy, the bourse is dominated by mining and energy firms, along with related sectors like financial services and transport. PNG also has a thriving primary bond market, driven by commercial banks purchasing T-bills and C-bills with a short-term maturity. The government is working with POMSox to develop a secondary bond market for these instruments, which could boost PNG’s international credit rating and make it more attractive as an investment destination. This chapter features interviews with Geoff Mason, General Manager, Port Moresby Stock Exchange (POMSoX); and Ian Mason, General Manager, BSP Capital.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although 2011 was a difficult year for the industry, the construction and real estate sector displayed encouraging signs of a rebound. This was especially the case in the residential construction segment, which saw strong demand, boosted by mechanisms such as government exemptions on property registration fees. However, fiscal constraints that were the result of the global and regional economic slowdown have led to tighter government budgets and delays in payments for commissioned projects. More positively, Jordan is benefitting from collaboration with Saudi Arabian, which has allocated funds for development projects and the hiring of several local contractors. This collaboration is further evidence that Jordan stands out in the wider Middle East for its relatively efficient and quick construction licensing and permit process, which requires roughly half the time as neighbouring countries. This chapter includes interviews with Yahya Kisbi, Minister of Public Works and Housing; and Yousef Al Nowais, Managing Director at Al Maabar.
Explore chapterTransport
Buy digital copy of this chapter - £18It has been even more clear to the Turkish transport industry in the past few years that an improved transit network is crucial to accommodate the nation’s population growth and urban migration. The government has made transportation a priority, and the private sector is responding. Turkish Airlines, the national flagship carrier, has been updating its network to improve the efficacy of both domestic and international connections. Turkey is also carrying this mission out on the ground, building new bridges and roads, and high-speed rail, while in the cities key upgrades are being made to public transport systems. Marine transportation, with collaboration from the private sector, is also being improved through the use of build-operate-transfer contracts. With the pipeline of investments set to tackle dramatic transport challenges, and improved communication between public and private sector, solutions to Turkey’s transport needs appear to be on their way. This chapter has interviews with Binali Yıldırım, the Minister of Transport, Communication and Maritime Affairs; and Temel Kotil, the CEO of Turkish Airlines.
Explore chapterProvinces
Buy digital copy of this chapter - £18This chapter looks at the role of regional government across the country. While the ruling African National Congress has largely stood for a strong central government, the capacity of local and provincial government to provide services and infrastructure to millions of South Africans has remained central to the evolution of the country during the post-apartheid period. However, a number of the smaller provinces are looking to increase their investment attractiveness, growth rates and economic diversification as well, which is helping to buttress development nationwide. This chapter contains an interview with Helen Zille, Premier of the Western Cape.
Explore chapterEnergy
South Africa’s energy landscape is defined by increasing demand and limited capacity as the country’s energy needs have risen rapidly in recent years. Underinvestment in infrastructure remains a key challenge for the sector. The government has in recent years sought to develop a long-term energy strategy and has launched major efforts to diversify electricity-generating capacity, reduce dependence on coal and seek alternative sources of hydrocarbons. The country is also looking at how to ensure demand- and supply-side management, as well as incorporate improved energy efficiency into its plans and the use of renewables, which are expected to account for 42% of additional generating sources, or a total of 17.8 GW, by 2030. This chapter contains interviews with Dipuo Peters, Minister of Energy; Brian Dames, Chief Executive, Eskom; Bonang Mohale, Chairman, Shell South Africa; and David Constable, CEO, Sasol.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Despite a challenging few years, the Bahraini construction sector looks set to grow in 2012. Local construction and development companies have reoriented towards areas of the market with the most potential, including social housing and transport infrastructure projects. The government aims to increase public transport usage from 5% to 25% of total journeys per day, planning a wealth of public transport system upgrades (including light rail, monorail, tramway and buses). Another key segment will be housing, and it has been estimated that 51,519 extra households will be eligible for social housing by 2020. Overall, in a sign of recovery from the global financial crisis, the value of contracts is forecast to grow, from $949m in 2012 to $1.49bn the following year. The private sector also appears to be going through a period of reinvigoration, with activity starting up again at projects that were previously on hold. This chapter includes interviews with Essam bin Abdulla Khalaf, Minister of Works; Aaref Hejres, Chairman, Bahrain Property Development Association; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Connecting the Philippines’ thousands of islands is a daunting logistical task, made harder by recent setbacks like US and EU downgrades of the civil aviation authority’s safety rating. The government is looking to implement its 2010 National Transportation Policy Agenda in part through a $12.8bn PPP plan unveiled in October 2011. Eight airport projects will be put to tender in 2012, and airline liberalisation is helping smaller carriers overtake the nation’s flagship. The government is also making major investments in roads and expressways, “nautical highways” and mass transit for rural areas. This section includes interviews with Lance Gokongwei, President and CEO, Cebu Pacific Air, and Doris M Ho, President and CEO, Magsaysay Group of Companies.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18A number of major developments are underway in the transport sector following the massive spending plan approved by the Kuwaiti government in 2010. Projects include the expansion at Kuwait International Airport, with a new terminal set to raise passenger capacity from 7.2m to 20m upon completion in 2017. Plans to develop a metro system are now at the feasibility stage. While defence and government services are set to decline with the withdrawal of US troops from Iraq, the energy industry has become the greatest source of demand for logistics in the country. A new port project at Boubyan brings the possibility of construction and development projects in post-war Iraq.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Mongolia’s bourse is the focus of much investor interest, given its massive resource endowment and relative obscurity. In some ways, Mongolian stocks are proxy for Chinese securities, which are unavailable to foreigners; Chinese growth is directly linked to increased demand for Mongolian coal and other minerals. The barriers to investment in the Mongolian Stock Exchange are typical of a small emerging market: low liquidity and primitive data and information systems. Upgrading the market’s infrastructure is the goal of a new partnership with the London Stock Exchange that began in 2011. This chapter features interviews with Xavier Rolet, CEO, London Stock Exchange Group (LSEG); B. Bold, Chairman, Mongolia Stock Exchange (MSE); and D. Achit-Erdene, President and CEO, MICC.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Much of Indonesia’s construction sector is awaiting the unveiling of major infrastructure projects that will be necessary to unlock the high growth potential of the domestic market. The government has pledged to spend $150bn on infrastructure projects over five years in its 2011 budget, but sector figures are looking to see results, not just promises. The industry grew at 5.3% in Q1 2011, representing a slowdown from 2009, which reinforces uncertainties about material costs, legal issues, and bureaucracy-related project delays. Real estate, meanwhile, has a bright future, highlighted by surging demand and good value but undercut by potential bureaucratic bottlenecks. Interest rates have fallen below the 10% level, offering a record number of Indonesians the chance to buy their own home. Developers have not yet shown much interest in building low-cost housing, which is still the largest source of demand, primarily because margins are low. Reforms that would help the sector include more support for low-income housing, as well as a potential loosening of laws that currently restrict foreigners from buying real estate in Indonesia. This chapter includes interviews with Muktar Widjaja, Chairman, Sinarmas Land; and Trihatma K Haliman, President Director and CEO, Agung Podomoro Land.
Explore chapterEnergy
The recent fall in oil prices means that the energy sector’s contribution to Saudi Arabia’s economic growth will be limited in 2015, with expansion to be driven more by the non-oil sector, which is forecast to increase by about 5% in 2015. Saudi Arabia’s crude oil production averaged 9.71m bpd in 2014, compared to 9.63m in 2013 and 9.76m in 2012. However, despite lower oil prices, the Kingdom has increased production in 2015, with its output climbing above 10m bpd to reach 10.3m in March. The country had proven oil reserves of 269.5bn barrels, or 15.8% of the world total, at the end of 2013, and natural gas reserves totalling 290.8trn cu feet, or 4.4% of the global total. In the face depressed prices, and in a bid to expand and diversify its offering, the sector is continuing to invest in new downstream technology, feeding state-owned Saudi Aramco’s transformation from an oil and gas producer into an integrated energy company, with a growing emphasis on oil refining and petrochemicals.
Explore chapterICT
Buy digital copy of this chapter - £22Aligned with national strategies like We the UAE 2031, Sharjah is positioning itself as a competitive ICT centre through innovative digital transformation policies and substantial infrastructure investment. The emirate has implemented advanced solutions including a digital payment mechanism to enhance accessibility to information and services for residents. The UAE's comprehensive digital government strategies, such as UAE Digital Government Strategy 2025 and Operation 300bn, emphasise its dedication to global technological leadership. Additionally, the country’s telecoms segment is seeing growth with several government-owned companies leading the way in the deployment of 5G services. Furthermore, Sharjah is actively participating in technology development initiatives, investing in 3D printing and supporting start-ups. The future outlook emphasises the interplay between digitalisation, sustainability and innovative technologies, establishing Sharjah as a prominent player in the region's digital transformation landscape. This chapter features interviews with Hussain Al Mahmoudi, CEO, Sharjah Research Technology and Innovation Park; and Najla Al Midfa, CEO, Sharjah Entrepreneurship Centre.
Explore chapterIndustry
Buy digital copy of this chapter - £22The industrial sector has remained resilient despite recent local and global economic headwinds. The country’s manufacturing base was buffeted by the global Covid-19 pandemic and the impact of measures to counter it. Disruptions in supply and production chains were then further exacerbated by geostrategic uncertainty and conflicts. Despite all this, the sector continues to prosper, providing a reliable base at a time when other areas of the economy have faced volatile pricing and long-term risk. The new 12-year national industrial strategy aims to make the country a global centre for innovative and sustainable competitive industries. Efforts are also under way to diversify the types of industrial activity in the sector.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £22Abu Dhabi holds a central role in military and defence operations in the UAE, attracting multinational aerospace manufacturers and service providers. The emirate’s focus on cybersecurity, advanced robotics and autonomous vehicles is driving international research and manufacturing partnerships. Educational programmes, meanwhile, aim to equip the local talent pool for emerging opportunities. Collaborative efforts between the public and private sectors are enhancing investor confidence, driven by expanding military manufacturing and international trade relations. Increased federal defence spending and the drive to localise production further are expected to bolster these high-value sectors, aligning with Abu Dhabi’s goal to establish itself as a regional and global centre for advanced manufacturing and technologies. This chapter includes interviews with Salem Butti Al Qubaisi, Director-General, UAE Space Agency; and Faisal Al Bannai, Chairman, EDGE Group.
Explore chapterTransport
Buy digital copy of this chapter - £22Saudi Arabia boasts extensive and increasingly sophisticated transport and logistics infrastructure, supported by significant public funding. Private investment is growing, thanks to privatisation efforts and public-private partnerships. Ambitious logistics projects, if funded and executed successfully, could position the Kingdom as a global leader in the sector. Sustainability is a central pillar of Vision 2030, the Kingdom’s overarching blueprint for diversifying the economy, and the country is seeking to harness its transport sector to enhance its reputation as a modern, advanced economy and profitable investment destination. The streamlining of governmental structures is also making processes more efficient for those investors who are looking to enter the Saudi transport market.
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ICT
Buy digital copy of this chapter - £22ICT sector development forms a central element of Bahrain’s economic growth and innovation plans, enabling the development of multiple sectors and enhancing public service provision. Owing to a favourable business environment, advanced digital infrastructure and a deep talent pool, the kingdom has emerged as an attractive proposition for international ICT companies seeking a base in the region. The local sector is now pursuing a medium-term strategy designed to propel it into the next phase of development. In response to the Covid-19 pandemic, the Bahrain Economic Recovery Plan listed ICT as a priority sector for enhancing growth, diversification and resilience. Key objectives include strengthening cybersecurity resilience and advancing the digitalisation of government services, including through the use of artificial intelligence. This chapter contains interviews with Philip Marnick, General Director, Telecommunications Regulatory Authority and Mikkel Vinter, CEO, Beyon.
Explore chapterTax
Buy digital copy of this chapter - £22Tax policies in Djibouti provide certain benefits and incentives to specific sectors through general exemptions. For instance, there are no time restrictions on carrying out remittances, facilitating ease of financial transactions. The requirements for registering a business have been streamlined, reducing the capital needed to start a company, thereby encouraging entrepreneurship and business growth. In terms of income tax, Djibouti follows a progressive system that applies to both local residents and foreigners, ensuring a fair and equitable taxation structure. These tax measures contribute to a favourable business environment, promoting economic activity and attracting investment in Djibouti. This chapter includes a viewpoint with Ramiss Houmed, Managing Partner and Owner, HLB Djibouti.
Explore chapterRetail
Buy digital copy of this chapter - £22The second-largest contributor to GDP, the retail sector has long been a driver of growth and a bellwether of Nigeria’s economic trajectory. Several challenges have impeded the sector from fully leveraging the potential of its large consumer market, such as inflation, volatility in the exchange rate and a vulnerability to external price fluctuations. However, there is room for optimism, highlighted by the continued expansion of retail real estate offerings. Although the Covid-19 pandemic had a negative impact on traditional retail activity, it also spurred a growth in e-commerce. The fast-moving consumer goods segment underpinned recovery following the pandemic, reflecting a general shift in consumer preferences that began during the health crisis and continued through 2022. With household consumption set to reach N96trn ($228.7m) by 2025, Africa’s largest consumer market is poised for considerable growth. This chapter contains an interview with Ebele Enunwa, CEO and Founder, Sundry Markets.
Explore chapterMining
Buy digital copy of this chapter - £22With mineral mining a major focal point of the government’s plans to diversify Oman’s economy, the sector has seen revitalised interest in recent years from both domestic and foreign investors. The newly adopted strategy to develop the sector through comprehensive, large-scale concession agreements is opening up more territory and streamlining the business side. New geological surveys are being conducted, while additional financing arrangements are easing market entry. With the sultanate’s economy anticipating a major injection of new investment in 2023 and beyond – and as oil and gas revenue rises, and the impact of the Covid-19 pandemic fades – growth across the economy should also boost demand for minerals. Indeed, with the sector capable of providing everything from building aggregates to gold and copper, mining in Oman looks set to see a significant increase in activity in the years to come. This chapter contains interviews with Nasser Al Maqbali, CEO, Minerals Development Oman; and Farrokh Masani, Executive Director, Mining and Quarrying, Al Tasnim Group.
Explore chapterIndustry
Buy digital copy of this chapter - £22Kuwait’s economy relies heavily on hydrocarbons-related industries, and while plans are in place to transition to more renewable sources, medium-term development strategies will see oil and gas extraction, processing and capacities ramped up, with the revenue channelled into the government’s industrial diversification drive. Downstream chemicals and petrochemicals production forms the backbone of Kuwait’s non-oil industrial output, and major capacity-expansion projects are planned. The years leading up to the Covid-19 pandemic brought significant growth for the manufacturing sector, with the government announcing its decision to make more land available for industrial activities to increase sector momentum and cater to growing demand. The government’s portfolio of proposed mega-projects is designed to invigorate cross-sector growth, with a strong focus on manufacturing and logistics, including the implementation of a number of dedicated industrial and economic zones. This chapter contains an interview with Mohammed E Al Adwani, Director-General, Public Authority for Industry.
Explore chapterTransport
Buy digital copy of this chapter - £22Saudi Arabia’s transport and logistics sector encompasses a broad range of active facilities and routes. Given the Kingdom’s position between Europe and Asia and its central role in the global energy market, as well as the current importance of imported goods for meeting basic consumer demand, transport and logistics are crucial to the economy. Plans for the sector’s future involve a transformative programme aimed at leveraging geographic advantages and providing key services to the global economy. As the country’s leadership works to implement these steps, major projects at home – including an expansive new metro system for Riyadh, one of the most highly anticipated infrastructure projects – promise to transform the options available to residents. This chapter contains interviews with Faisal Saad Albedah, Managing Director and CEO, SAL Saudi Logistics Services; and Omar Hariri, President, Saudi Ports.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22Continuing its recovery from the Covid-19 pandemic, Côte d’Ivoire’s transport and logistics sector is set to benefit from a wide range of new projects – from ports to airports, and railways to motorways. The National Development Plan (Plan National de Développement, PND) 2021-25 seeks to almost double the level of economic investment outlined in its predecessor, the PND 2016-20, and the transport sector is slated to assume a crucial role in promoting growth under the plan. With GDP expanding by an average of 8.3% per year between 2012 and 2019 – and the pandemic impacting Côte d’Ivoire less than many of its peers – economic development has occasionally outstripped the capacity of transport and logistics infrastructure. Getting the infrastructure network in-step with the country’s burgeoning needs is more crucial than ever, creating major new opportunities for investors. This chapter contains an interview with Laurent Loukou, CEO, Air Cȏte d’Ivoire.
Explore chapterEducation & Health
Buy digital copy of this chapter - £22Education and health care are important policy priorities in Bahrain’s wider drive to develop a knowledge-led economy. As the first country in the GCC region to introduce government-sponsored education, in 1919, Bahrain has a long track record of public instruction and a robust private education ecosystem that has developed in the subsequent years. Fostering the next generation of local talent and innovation is a key government objective that will continue to shape the sector in the coming years, from primary through to the higher and vocational levels. The kingdom is working to build on successive decades of gains in terms of health care outcomes, while at the same time evolving its services in response to the shifting burden of care towards lifestyle-related diseases.
Explore chapterHealth & Education
Buy digital copy of this chapter - £22The Covid-19 pandemic brought the limitations of the Egyptian health care sector under the spotlight, notably in regards to the medical staff-to-patient ratios and hospital bed numbers below the regional average. However, the health crisis has also helped to spur investment across the sector, especially in telehealth and medical technologies. Egypt is now advancing in its aim to deliver universal public health care to its entire population. In a similar line, education has been a primary policy priority for the current administration. The so-called Year of Education in 2019 has led to several large-scale changes, notably new school curricula with a greater focus on foreign languages and technology. While the pandemic negatively affected the student population by limiting access to in-person classes, it facilitated the adoption of education technology development in Egypt.
Explore chapterReal Estate
Buy digital copy of this chapter - £22A steady decline in sale and rent prices since 2016 was accelerated in 2020 amid the Covid-19 pandemic, which led to strong activity in property transactions. The lower prices – reflected in various indices – was not seen as cause for alarm in the sector, however, but a welcome market correction that is allowing Qatari properties to compete with other GCC markets on value. Healthy property trade continued into 2021. While the total value of real estate transactions was lower in 2021 than in 2020, the volume was higher. This was supported by new government rules on foreign property ownership and sustained low interest rates on mortgages. This chapter contains an interview with Sheikh Nasser bin Abdulrahman Al Thani, Managing Director, Quetaifan Projects.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22The construction sector has the potential to drive Ghana’s GDP growth for years to come. Indeed, it contributed an annual average of 7.5% to GDP between 2013 and 2020. However, this could be impaired in the short term due to the pandemic’s negative impacts on already declining global commodity prices. Nonetheless, the country’s political stability and the activation of the African Continental Free Trade Area make construction projects in Ghana an attractive proposition for investors moving forwards. In a similar vein, the country’s real estate sector has also experienced robust growth since 2018, thanks to higher transaction volumes. While sector growth has been facilitated by initiatives to address serious social issues ¬¬such as a lack of accessible housing finance options, the Covid-19 pandemic underscored the need for more reactive government interventions. This chapter contains interviews with Joseph Aidoo, Executive Director, Devtraco Group; and Kiran Daswani, CEO, The Greens.
Explore chapterHealth and Education
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While Nigeria has made notable progress on several major wellness indicators in recent years, the country is grappling with health and social consequences stemming from the Covid-19 pandemic, in addition to structural challenges related to its public health system and the rollout of universal health care (UHC). However, with Nigeria’s large and young population, the longer-term prospects for investment in the sector remain promising. As the government works to meet education financing needs, new opportunities are present throughout the sector, including improving infrastructure and providing modern teaching materials. Getting young children in school will require a multi-pronged approach by the public and private sectors in the coming years. It will become increasingly important for stakeholders to identify future industries for students to be trained in, which should help address the country’s high underemployment rates, in turn, transforming the Nigerian economy through sustainable progress.
This chapter contains an interview with Moji Adeyeye, Director-General of the National Agency for Food and Drug Administration and Control.
Tax
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This chapter examines the tax system of the Philippines, focusing primarily on the tax implications of Bayanihan 1 and 2, introduced during 2020 in an effort to mitigate the impact of the Covid-19 pandemic, as well as transfer pricing, the arm’s length principle and audit guidelines. The chapter also includes an analysis of tax compliance efforts in light of the pandemic, and commentary on the imminent Corporate Recovery and Tax Incentives for Enterprises Act. This chapter contains an interview with Protacio T Tacandong, COO, Reyes Tacandong & Co.
Agriculture & Fisheries
Buy digital copy of this chapter - £18Agriculture is a central pillar of Papua New Guinea’s economy. In 2019 it made up 25% of GDP and contributed to the livelihood of 85% of the population. PNG’s commitment to place agriculture at centre stage and promote the socio-economic development of smallholder farmers bodes well for the future. Currently, the sector remains dependent on export revenues from key crops such as palm oil, cocoa and coffee, as well as fisheries, which makes it vulnerable to changes in commodity prices. The goal of reaching self-sufficiency in food production goes hand-in-hand with the need to develop self-reliant food systems and address the concerns posed by climate change. Although the global spread of Covid-19 has highlighted long-standing transport and logistical challenges, political determination and sustained support from development partners could potentially result in an era of rapid development for the sector. This chapter contains an interview with Alan Bird, Governor, East Sepik Province.
Explore chapterAgriculture
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Agriculture has long been a critical pillar of Egypt’s economy, strengthened by the rich natural conditions around the Nile. The country produces an array of fruits, vegetables, cereals, cotton, sugar and livestock for both domestic consumption and export. Despite challenging global factors, and growing concerns regarding the effects of climate change and urbanisation on water security, the agricultural sector continues to thrive. The country continues to tap into new markets, even amid the Covid-19 pandemic. Indeed, agricultural exports are strong, and by mid-May 2020 Egypt’s exports were more than half of the whole of 2019. New research and innovation initiatives will be key in teaching the next generation of farmers and sector officials improved methods, with the hope that these technologies will in time trickle down to the country’s small-scale farmers and set up the sector for a strong future.
Transport
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Abu Dhabi has reached significant milestones across its air, land and sea transport, with more on the near horizon. The Midfield Terminal Building, which will facilitate higher visitor numbers, was scheduled to commence operations by the end of 2020, though this timeline was established before the Covid-19 pandemic broke out. Alongside the new terminal, the launch of two new low-budget airlines is set to make Abu Dhabi a more affordable travel destination. Within the emirate the green light has been given to key infrastructure projects that aim to improve the flow of traffic on road networks. In addition, the second phase of Etihad Rail’s network will start taking shape, increasing interconnectivity within the UAE for passengers and freight. Meanwhile, past investments in the development of Abu Dhabi’s seaports saw substantial increases in container traffic and cruise liner visits in 2019, with further growth anticipated in the long term. This chapter contains interviews with Falah Mohammad Al Ahbabi, Chairman, Abu Dhabi Department of Municipalities and Transport; Shareef Hashim Al Hashmi, Acting CEO, Abu Dhabi Airports; and Tony Douglas, CEO, Etihad Airways.
Retail & E-commerce
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Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive performance in recent years, it will face headwinds in the short term amid the Covid-19 pandemic. Other challenges include infrastructure issues and slow technology adoption among some demographic groups, especially in rural areas. However, the medium- to long-term outlook of the retail sector looks bright. The burgeoning e-commerce market should help weather the impact of the Covid-19 pandemic, with companies adapting their services and interactions to accommodate customers who are relying on online and mobile offerings as they practise social distancing. Given the popularity of e-commerce and ride-hailing apps, it is expected that tech-based services will continue to expand to meet shifting consumer expectations. This chapter contains interviews with Kevin Aluwi, Co-CEO, Gojek; and Muhamad Fajrin Rasyid, Co-Founder, Bukalapak.
ICT
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Côte d’Ivoire has seen some significant developments in its ICT sector in recent years. As the number of internet users continues to increase, so have the opportunities for digital service providers. Significant progress towards digitalisation in both the public and private sectors has also been realised. The government recently achieved milestones in its initiatives to digitalise official processes and services. Moving forward, demand for ICT services is set to rise, particularly as the Covid-19 pandemic in early 2020 led businesses, schools and government bodies to switch to remote working in response to travel restrictions. While this shift was already under way prior to the outbreak of Covid-19, the pandemic is likely to accelerate the development of the country’s digital economy. This chapter contains an interview with Ange Frédérick Balma, Founder and CEO, LiFi-LED; and Philippe Pango, CEO, Village of ICT and Biotechnology
Explore chapterUtilities
Buy digital copy of this chapter - £18The government is moving at pace to expand energy and water output to meet growing demand from businesses and individual consumers. Saudi Arabia’s ambitious plans to upgrade its utilities networks, while aligning more closely to market prices, make the Kingdom an increasingly attractive proposition for investors. There is an established framework for private participation and a track record of government will to increase the role played by the private sector in the Kingdom’s transformation towards cleaner and renewable sources of energy, according to targets outlined in Vision 2030. This chapter contains interviews with Mohammed Al Mowkley, CEO, National Water Company; and Khaled Al Qureshi, CEO, Saudi Water Partnership Company.
Explore chapterTransport
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The transport sector has played a key strategic role in the growth of Qatar’s economy, and in the decade since the country won the bid to host the 2022 FIFA World Cup, tens of billions of dollars have been pumped into its infrastructure. With significant new investment in its seaports and airport, the transport sector’s international gateways are set to see a step change in the volumes of cargo and passengers they are able to handle. Within the country, a system of movement that originally evolved to suit drivers, cars and lorries is rapidly being transformed into a multi-modal urban transport network that is fit for future needs. This chapter contains interviews with Abdulla bin Abdulaziz bin Turki Al Subaie, Minister of Municipality and Environment and CEO and Managing Director, Qatar Rail; and Abdulrahman Essa Al Mannai, President & CEO, Milaha.
Explore chapterAgriculture & Fisheries
The agriculture sector has grown exponentially since the implementation of the Green Morocco Plan in 2008. The plan has achieved most of its goals and increased the value of the sector through the development of traditional crops, better marketing, improved supply chains and subsidised drip-irrigation equipment. However, the slow establishment of adequate refrigeration space and transport networks to carry produce to the market in a timely manner has led to instances of spoilage. Mechanisation levels have improved, but many small-scale farming operations continue to face obstacles to finance their equipment needs. Mitigating the effects of climate change will also determine the future of agriculture in Morocco. Although government measures have helped align water-saving measures with sector practices, water management will be increasingly critical as higher temperatures become the norm and population growth puts further pressure on hydraulic resources. This chapter contains an interview Abdelhamid Aboulkassim, President, Moroccan Interprofessional Federation of Organic Agriculture.
Explore chapterTransport & Logistics
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Trinidad and Tobago’s small size and strategic location in the Caribbean makes it well positioned to serve as a regional transport and logistics hub. However, the country has faced challenges in improving its connections to both surrounding nations and wider global markets. On the domestic level, an increasingly diversified economy will require an upgrade of the country’s road infrastructure and internal connectivity in order to facilitate the growth of non-oil sectors such as agriculture and tourism. While government oversight in the form of infrastructure investment will remain crucial, the role of private operators will also form an important part of the sector’s development. The ongoing efforts to improve and expand the road network will prove crucial to boosting socio-economic growth in rural areas and, as a result, enhancing the county’s wider diversification strategy. This chapter contains an interview with Ashley Taylor, President, Point Lisas Industrial Port Development Corporation.
Explore chapterTransport
Significant spending increases in Ghana have seen the country take vital steps to reduce the transport infrastructure backlog and establish itself as a regional logistics centre for West Africa. Several large-scale projects are under way to support industrial development through more efficient connectivity, while recent expansion and modernisation works at various airports and seaports are aimed at increasing trade and trans-shipment. The construction of road and rail infrastructure projects is also supporting this vision by opening new corridors to Ghana’s landlocked neighbours and developing strategic routes that support local industries. Significant progress has been made on improving infrastructure and establishing Ghana as a regional logistics and transport centre. The country aims to cement its position by improving roads and expanding its rail infrastructure, enhancing connectivity with its landlocked neighbours. This chapter contains interviews with Mohamed Samara, CEO, Meridian Port Services; and Richard Dombo, CEO, Ghana Railways Development Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18Home to one of the region’s most unique island geographies, UNESCO World Heritage sites and the popular annual Formula 1 Bahrain Grand Prix event, Bahrain already has much to offer visitors. The capital Manama has a long-established reputation for its high-end retail and hospitality offering, providing tourists from neighbouring states, notably Saudi Arabia, with a convenient getaway destination via the King Fahd Causeway. The kingdom has also continued to benefit from its long-established reputation as a more culturally liberal state in the region, which has proven to be a draw for its leading source market Saudi Arabia. However, as the neighbouring kingdom opens up and the region becomes more competitive, further developing the country’s niche markets and attracting arrivals from further afield will prove essential.
Explore chapterMining
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Significant legislative developments in 2019 laid the groundwork for growth in Oman’s mining sector. The full extent of the country’s mineral wealth has only recently been realised, and with a number of projects under way across the sultanate, the sector has strong potential to affect positive economic diversification. At the same time, a welcoming climate for foreign investment and rapidly developing infrastructure demonstrates that companies are taking a holistic approach to the sector. Furthermore, investment in local downstream processing could lead to an increase in profits earned from raw resources. According to the Central Bank of Oman in its Annual Report for 2018, the country’s mining sector recorded the highest rate of growth among non-oil activities, at 16%.
Explore chapterRetail
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As recently as 2011, before economic liberalisation began to gain speed, Myanmar had no access to international brands. In strong contrast, in 2019 Yangon’s Junction City Mall had a 100% occupancy rate, hosting a number of popular restaurants, shopping and entertainment venues. The growth of such complexes is striking. Considering the government’s current reform-minded trajectory and the lack of tough international sanctions, Myanmar’s retail industry is unlikely to be diverted from its current path of strong and steady growth. More foreign companies are expected to enter the market as infrastructure continues to improve, with e-commerce exhibiting breakout growth if the government can strike the right legislative balance. This chapter contains an interview with Jens Michel, CEO, METRO Wholesale Myanmar.
Retail
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For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP, and is set to continue expanding. However, optimism surrounding the influx of new supply is tempered by slower economic growth brought on by lower oil prices. In this context, sector stakeholders are looking to Dubai Expo 2020 to provide a welcome boost to the sector. At the same time the growth of e-commerce is being actively supported by the government, which sees an opportunity to create a regional e-commerce centre within the logistics district in Dubai World Central. This chapter contains interviews with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free; and Patrick Chalhoub, CEO, Chalhoub Group.
Explore chapterReal Estate
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After some years of slowing growth, Kuwait’s real estate sector saw signs of a significant revival in 2018, with sales increasing and prices stabilising. At the same time, new projects are under way, with a number of large-scale, mixed-use developments nearing completion. Better economic growth overall, fuelled by rising oil prices and a government infrastructure programme, has also created a more buoyant economy, despite some global and regional headwinds. A limited supply of land is another factor increasing prices, although this has also caused bottlenecks in meeting housing demand, with Kuwaiti citizens particularly affected.
Explore chapterICT
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Despite significant progress in recent years, Mexico’s ICT sector faces certain challenges. While the 2013 reforms opened the market up to competition and investment, legislation still needs to be improved so that Mexico can fully take advantage of opportunities in the digital economy. GSMA recommends Mexico build more municipal-level antennae, lower annual spectrum fees and incentivise infrastructure development. However, the government’s efforts are primarily directed at improving mobile data and broadband internet coverage. In a show of confidence, foreign tech giants are expanding operations in Mexico. With demand for ICT services on the rise, Mexico holds exciting opportunities for foreign and local investors. If the government can keep up the reformist momentum, incentivise investment, and craft enabling laws and regulations, companies will be able to provide a more robust technology offering. This chapter contains an interview with Desmond Mullarkey, President, SAP México.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Already major contributors to the nation’s revenue base, Papua New Guinea’s industry and manufacturing sectors hold significant potential for future investment and development. As such, the administration of Prime Minister James Marape remains devoted to a course that will encourage and protect businesses while working towards a reduction in the national import bill. This policy serves to both hedge against the boom-and-bust cycle of the resource economy, and avoid the ongoing issues the country has faced in obtaining foreign currency by replacing imported inputs with domestic produce. Meanwhile, with a mood of cautious optimism, PNG’s retail sector is recovering from a period of uncertainty caused by the earthquake in Hela Province in early 2018. That same year was marked by sluggish growth, before the APEC Leaders’ Summit in November 2018 triggered an upturn in the hospitality and general retail sectors, and encouraged businesses to invest with more confidence. This chapter also contains interviews with Stan Joyce, Managing Director, South Pacific Brewery; Mahesh Patel, Managing Director, CPL; and Nathaniel Ho, Executive Director, Rimbunan Hijau Group.
Explore chapterTransport
Buy digital copy of this chapter - £18Given Tunisia’s location in the centre of North Africa and its proximity to Europe, the country’s transport sector plays a vital role in its economy, and improving the efficiency of the transport network will continue to present new opportunities. The country’s well-connected port and air infrastructure have historically formed the basis of its competitiveness in global markets as well as its ability to leverage labour cost advantages. At home, government-directed, trans¬port-focused construction projects account for a large chunk of public spending as part of a drive to mitigate regional disparities, encourage urban mobility and increase international connectivity. Growing its internal and regional trade links with its African neighbours and trading partners across the Mediterranean will build momentum, and, in the long term, the transport sector will be poised to deliver significant opportunities for future growth. This chapter contains an interview with Sana Skhiri, President, Tunisian National Federation of Airfreight Forwarders.
Explore chapterTourism
Buy digital copy of this chapter - £18Over the past decade and a half the long-kept secret of Colombia’s cultural heritage and natural beauty has spread throughout the international tourism circuit. While recent years have been challenging for Colombia’s exporting sectors, tourism has been a consistent contributor to the economy and a catalyst for development in not only large cities, but also in areas formerly controlled by FARC. As the state regains control and opens up new areas, tourism is one of the most significant opportunities to boost rural infrastructure and socio-economic well being. It will be imperative that officials maintain momentum and convert the increasing number of visitor arrivals at traditional destinations into a viable source of development for more rural areas previously considered beyond state boundaries. This chapter contains an interview with Jean Claude Bessudo, President, Aviatur.
Explore chapterAgriculture
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Increased investment and the expansion of irrigated land along the Peruvian coast has ensured the continued development of large-scale industrial agriculture for over two decades. After introducing dozens of new products, local agri-business firms have successfully expanded and diversified Peru’s agricultural export base. Meanwhile, increases in production and exports occurred despite the effects of the El Niño climatic phenomenon, which caused crop damage in 2017. Certain hurdles still need to be addressed for Peru to move from being a regional agricultural leader to a global one. In the coming years, ongoing public programmes to assist small-scale farms should help ensure that producers are more integrated into the export industry. In addition, the development of value-added services could see the sector play an increasingly important role in the future of the country’s economy. This chapter contains an interview with Édgar Vásquez Vela, Minister of Foreign Trade and Tourism.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Egypt’s natural competitive advantages should allow its agriculture sector to strengthen as the economy recovers over the near term, and recent government policy has allowed for an increase in the recommended sale prices for several crops, helping sustain the livelihoods of millions of Egyptians that depend on farming. Furthermore, the establishment of clearer quality standards is already helping to drive exports to new markets in Asia. Ongoing strategies that safeguard diminishing water resources and farmland should enhance the sector’s development, while further integration of distribution channels could assist small-scale farmers in accessing export markets. Coordination between agriculture production and processing capacity also has the potential to boost revenues. This chapter contains an interview with Alaa Diab, CEO, Agriculture Group – PICO.
Explore chapterRetail & E-Commerce
Buy digital copy of this chapter - £18A large and youthful population, a fast-rising middle class and rapid digitalisation have underpinned strong growth in Indonesia’s retail and e-commerce sectors. Indonesian shoppers are the third-most optimistic globally, with consumer confidence benefitting from a steady rise in incomes that has supported recent growth in personal consumption and retail sales. New retail supply is on the rise in Jakarta and also across secondary cities, while occupancy rates of premium-class shopping centres remain above 90%. The formal retail sector could come under pressure in the coming years, however, as rapid growth in e-commerce activities is challenging traditional retail models. Although retail activity remains concentrated in bricks-and-mortar stores and shopping malls, e-commerce growth has soared in recent years, with online sales and customer volumes recording consistent double-digit growth since 2013. This chapter also contains an interview with William Tanuwijaya, CEO and Founder, Tokopedia.
Explore chapterUtilities
Buy digital copy of this chapter - £18Amid ongoing reform of subsidies, the gradual privatisation of public assets, and ambitious plans to expand seawater desalination facilities and improve sanitation infrastructure, Saudi Arabia’s utilities sector will undergo significant changes over the coming years. In order to diversify its energy mix, the Kingdom is pursuing a series of ambitious goals to increase its solar and wind capacity, while also developing its first nuclear power station. In May 2016 a royal decree dissolved the Ministry of Water and Electricity, which had previously overseen the sector. The electricity segment now falls under purview of the newly revamped Ministry of Energy, Industry and Mineral Resources, while water is overseen by the recently established Ministry of Environment, Water and Agriculture. This chapter contains interviews with Fahad Al-Sudairi, Acting CEO of Saudi Electricity Company (SEC); Mohammed Al Mowkley, CEO, National Water Company; and Khaled Al Qureshi, CEO, Water and Electricity Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Guided by plans laid out in Qatar National Vision 2030, the country is on track to upgrade and connect its land, air and sea networks in 2019. The first trains are set to run on the new Doha Metro network, while dozens of expressway bridges, underpasses and intersections are due for completion. Organisation efforts for the 2022 FIFA World Cup have added urgency to the drive to improve transport connections while passenger and freight numbers are expected to grow at the country’s new international air and seaports. The increased traffic through these facilities is spurring the development of free zones and logistics centres, which are expected to create opportunities for entrepreneurs and investors. This chapter contains interviews with Abdulla Nasser Turki Al Subaey, President, Civil Aviation Authority; and Abdulla bin Abdulaziz bin Turki Al Subaie, Minister of Municipality and Environment; and CEO and Managing Director, Qatar Rail.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18While the construction sector witnessed substantial growth in the 24 months leading up to 2018, domestic market forces including a falling rupee, warnings of an asset bubble and political instability have stymied growth of late. However, despite market disruptions, a number of key projects forged ahead in 2018, including Port City Colombo and the Hambantota Industrial Zone. Impressive economic growth since 2009 has bolstered Sri Lanka’s property market. More employment opportunities, rising salaries and rapid rural-urban migration have all played a part in the expansion of housing and commercial properties. In recent years, increased investor appetite and a maturing economy have transformed Colombo into a dynamic modern city that still retains a sense of its past. This chapter contains an interview with Arun Pathak, Managing Director, WelcomHotels Lanka.
Explore chapterTransport
Buy digital copy of this chapter - £18With major port, airport, road network and railway projects under way, Abu Dhabi’s transportation sector has become a major focus of investment in recent years. International investors and developers are playing a central role in infrastructure planning, construction and management, which is seen as a strategic priority driving the emirate’s economic growth and diversification initiatives. Home of the country’s capital, Abu Dhabi City, and comprising nearly 90% of its land area, 30% of its population and around 60% of the national GDP, Abu Dhabi remains an important player in the administration and development of both local and national transport systems. This chapter contains an interview with Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.
Explore chapterRetail
Buy digital copy of this chapter - £18There are few destinations more closely identified with retail than Dubai. Indeed, its duty-free and low-tax shopping is one of the hallmarks of the emirate. Dubai is home to some of the world’s largest malls, most diverse retail outlets and most value-added shopping experiences, with everything from giant aquariums to ski-slopes adorning its air-conditioned retail spaces. Various substantial projects are set to come on-stream in 2019, with established centres also seeing new extensions and refits. Meanwhile, a range of special events, such as Black Friday, White Thursday and Cyber Monday, have extended the shopping calendar far beyond the original Dubai Shopping Festival, which will also extend its running time from four to five weeks in 2019. This chapter contains an interview with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free.
Explore chapterICT
Buy digital copy of this chapter - £18Economic growth, coupled with the liberalisation of the sector in the 1990s, has led to the expansion of Morocco’s ICT sector, which is also underpinned by high penetration levels, as well as policies conducive to the development of related services and their incorporation into everyday business activities. Meanwhile, a focus on e-government and the digitisation of the economy – along with improvements to mobile data services, which are playing an ever-greater role – are likely to lead to continuing positive performance. The mobile telecoms segment is the most dynamic in the industry, with mobile data services leading the way. Although it still lags behind telecoms in terms of dynamism, the IT sector will likely benefit from the implementation of the government’s Digital Morocco Plan 2020. By establishing a dedicated agency for IT development, Moroccan authorities have underlined the importance for the country’s future development of transitioning to a digital economy. However, for the strategy to succeed, efforts to bridge the digital divide and increase penetration must be kept on track. This chapter contains interviews with Saloua Karkri-Belkeziz, President, Federation of Information Technologies, Telecommunications and Offshoring, and President, Gfi Africa; and Mehdi Alaoui, Founder and CEO, LaFactory, and Vice-president, Moroccan Federation of IT, Telecommunications and Offshoring.
Explore chapterTransport
Buy digital copy of this chapter - £18A range of game-changing infrastructure projects are set to reshape Ghana’s transport sector over the next half-decade, and 2019 should be a year of redoubled investment by the government. The country’s two main ports continue to expand, the budget for road development has increased by nearly 150%, the long-awaited transformation of the railway network is progressing and a new national airline is scheduled to join Accra’s new airport terminal. Public-private partnerships are central to this expansion, and local firms are joining a growing list of partners from Asia and Europe. The efforts of successive administrations to harness the expertise, technology and capital of domestic and foreign companies continue to bear fruit, and a commitment to improving transit systems as a key to unlocking broader economic growth should create further opportunities for private partners in 2019. This chapter contains an interview with Solomon Asamoah, CEO, Ghana Infrastructure Investment Fund.
Explore chapterTourism & Retail
Buy digital copy of this chapter - £18Benefitting from a diverse portfolio of tourist draws including UNESCO World Heritage sites, the popular Formula 1 Gulf Air Bahrain Grand Prix event and a variety of high-end retail developments and hotels, Bahrain’s tourism sector has been an economic success story in recent years. Visitor numbers, revenues and investments have been on an upwards trajectory since 2016, and authorities have intensified efforts to develop the sector, channeling billions of dollars into new infrastructure, including mixed-use developments, an expansive airport upgrade and a new convention centre. Although a recent surge of new hotel rooms has weighed on occupancy and room rates, the sector remains well positioned to continue on a strong growth path in 2019, with demand set to rise as the kingdom ramps up its international marketing activities.
Explore chapterICT
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Telecoms firms in Côte d’Ivoire are increasingly tap¬ping into opportunities stemming from increased connectivity. In parallel, the private sector as well as the government are applying tech-driven solutions for socio-economic development, and working to make Abidjan a regional centre in the industry. In 2018 the country’s ongoing growth in mobile money adoption sparked financial innovation, which, along with increased internet capacity, is expected to benefit the development of local content along with value-added services. However, stakeholders will need to dedicate more efforts to digitalising private and public structures in order to optimise the sector’s economic impact going forward. This chapter contains an interview with Serge Kouakou, Director, Orange Business.
Explore chapterMining
Buy digital copy of this chapter - £18Myanmar is well known for the untapped potential of its extensive mineral portfolio. Home to the world’s largest deposits of jade and some of the most sought-after rubies, it also has substantial deposits of lucrative metals as well as industrial minerals. Despite significant deposits, foreign investment across Myanmar’s mining sector has lagged behind other key industries due to misadministration, legal uncertainty and ongoing conflict. As such, the diverse landscape of Myanmar remains largely underexplored. However, with previous legal uncertainties addressed in recently amended mining laws and rules, a multitude of prospectors are waiting in the wings, ready to extract valuable resources. This chapter contains an interview with Fred Hess, Managing Director, PanAust.
Explore chapterMining
Buy digital copy of this chapter - £18Mining in Oman is poised for growth in line with economic diversification plans, and the sector has distinct advantages over other developing markets. The country has some of the richest and most diverse mineral deposits in the world, ranging from gold and copper to potash, gypsum, chromite and limestone. Despite this, Oman’s mineral wealth remains largely uncovered. The sultanate holds a strategic location along global trade routes, and operates three ports in the north, centre and south of its territory. With planned infrastructure upgrades such as cross-country rail links and ongoing government reforms to facilitate investment, it is becoming clear that Oman is on the cusp of unlocking its mineral export potential.
Explore chapterAlgiers Smart City
Buy digital copy of this chapter - £18The Algiers Smart City initiative, established to advance multiple aspects of the tech industry, such as technology transfer, talent mobilisation and cross-sector synergies, demonstrates the benefit of approaching development from a less conventional perspective. Players in IT and other contingent sectors are increasingly aware of the opportunities created by adopting an approach to progress predicated on the adoption of leapfrog technologies and experimentation with new development models. However, the foundations for an ambitious and multidimensional project like this are only partially set, and Algeria will need to continue making conventional progress, particularly regarding its regulatory environment and economic policy strategies.
Explore chapterTransport
Buy digital copy of this chapter - £18Nigeria has seen much of its transport network fall into disrepair in the wake of unprecedented recent economic and population growth, as well as decades of underinvestment in critical transport infrastructure. Although rising passenger and cargo demand continues to strain nearly every segment of Nigeria’s transport sector, over the course of 2017 and 2018 the country has made commendable progress in alleviating urban congestion, investing in critical infrastructure projects and increasing private sector participation in the development of transport arteries. The opening of the Abuja Light Rail system, steady progress on the new terminal at Abuja’s Nnamdi Azikiwe International Airport, and rising public and private investment in the critical rail and road segments should see the transport sector become a key enabler of diversified non-oil growth, supporting Economic Recovery and Growth Plan targets as well as an ongoing macroeconomic recovery. This chapter contains an interview with Hassan Bello, Executive Secretary and CEO, Nigerian Shippers’ Council.
Explore chapterICT
Buy digital copy of this chapter - £18The government’s New Kuwait 2035 strategy has signalled ICT development as a key pillar that is expected to attract investment and boost the local economy. In 2016 telecoms accounted for 7.7% of non-oil revenue and 3.92% of total GDP at constant prices, according to the Central Statistical Bureau. Though its contribution to the non-oil sector grew to 8.2% in 2017, its GDP share dipped slightly to 3.86%; however, sector contribution to GDP is regaining momentum, with telecoms accounting for about 5% in the first half of 2018. The sector generated $1.9bn at constant prices by the end of the second quarter of 2018, a year-on-year growth of 34%, and its positive trajectory is expected to continue, backed by the expansion of three international mobile network operators in Kuwait: VIVA, Ooredoo and Zain. This chapter contains an interview with Salman bin Abdulaziz Al Badran, CEO, VIVA Kuwait.
Explore chapterTax
In conjunction with HLB Djibouti, this chapter explores the taxation system and Djibouti’s efforts to build an investor-friendly environment. It also contains a viewpoint with Ramiss Houmed, Managing Director and Owner, HLB Djibouti.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Kenya’s construction and real estate sectors experienced slower growth in 2017 than in previous years, owing in part to uncertainty surrounding the contested August general elections, which translated in part, to no major government-led infrastructure projects being announced in the second half of the year. However, while the construction sector grew by less than the 9.8% recorded in 2016, healthy expansion of 8.6% was seen in 2017 for the sector to constitute 6.4% of that year’s GDP. Steady tendering activity is continuing, particularly for irrigation, transport and housing projects that are outlined in Vision 2030, the government’s long-term strategic planning document. Specifically, the real estate sector was marked by softening prices for prime residential and commercial properties. However, the outlook is brighter for the short-to-medium term, due to the government’s commitment to housing and the post-election resumption of normal commercial activity. This chapter contains an interview with Mucai Kunyiha, Chairman, Kenya Property Developers Association.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18While some areas of transport and logistics have experienced a decline in performance in recent years due to overall sluggish economic performance, a projected turnaround in 2018 will likely have a positive impact on the industry. However, from port and airport, to road construction projects and upgrades, there still is a way to go to bring Trinidad and Tobago’s infrastructure up to speed with economic demands. Beyond financing new projects, finding ways to improve productivity and competitiveness by streamlining processes and modernising systems will be essential to elevate the sector and enable it to better contribute to the country’s diversification strategy, as well as boost overall economic growth. This chapter contains an interview with Garvin Medera, CEO, Caribbean Airlines Limited.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry has emerged as one of the bright spots in Papua New Guinea’s economy in recent years, providing a buffer against downturns in the commodity cycle. As natural gas prices fell and related businesses struggled, manufacturing held its own. The weak currency and the lack of foreign exchange that accompanied the downturn may have actually helped matters, as trouble sourcing dollars encouraged the consumption of domestic products. Efforts to reduce foreign currency outflows by encouraging self-sufficiency and curbing over-reliance on imports have also supported the sector. With a more relevant and consistently enforced legal framework, which includes the imposition of protective tariffs on products that are produced locally, PNG businesses have a better chance to compete. This chapter contains interviews with Chey Scovell, CEO, Manufacturers Council of PNG; and Ian Clough, Chairman, Brian Bell Group.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18No area of the economy has felt the turnaround from the election of President Mauricio Macri more sharply than the agriculture sector. The country’s vast agricultural plains, known as the pampa húmeda, are one of the world’s great breadbaskets, but years of state intervention in the sector have diminished crop diversity and led to falling exports. However, the new government’s pro-market stance opens the door for Argentina to again be a major grain exporter. Major infrastructure upgrades will help to expand the agricultural frontier and cut transport costs, while an eventual decline in inflation and stabilisation of the exchange rate could allow farmers to deploy capital where it is needed most. Just as Argentine agriculture proved it was at the cutting edge of technology in the 1990s, it is now showing potential to lead the way in the 2020s. This chapter features interviews with Luis Miguel Etchevehere, Minister of Agro-industry; and Gustavo Grobocopatel, Chairman, Grupo Los Grobo.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Peru’s agriculture sector has enjoyed consecutive annual expansions in recent times, with agricultural GDP growing at an average rate of 3.3% per year between 2000 and 2015 – above the regional average for Latin America, according to a March 2018 report by the World Bank titled “Gaining momentum in Peruvian agriculture: Opportunities to increase productivity and enhance competitiveness”. The country climbed two positions to 53rd in the 2017 Global Food Security Index, which ranks 113 countries according to the affordability, availability and quality of food for the population. The strength of Peruvian agriculture is due in part to its crop diversity, with coastal regions providing the majority of exports and inland production channelled towards domestic consumption. Agriculture currently constitutes 7.3% of GDP, according to the World Bank. This chapter features interviews with Adriana Giudice, General Manager, Austral Group; and Jorge Arangurí, Executive Director, Danper.
Explore chapterTransport
Buy digital copy of this chapter - £18After a few challenging years that saw air safety rating downgrades and delays in major infrastructure projects, Thailand’s transport sector is beginning to regain momentum. Significant progress has been achieved with the construction of rail and road networks, and issues around meeting international standards are being resolved as the country lays the groundwork to become a regional transport and logistics hub. Meanwhile, with the Asia-Pacific region set to be the fastest-growing market for commercial aviation over the next 20 years, Thailand is seeking to strengthen its aviation infrastructure, particularly its maintenance, repair and overhaul segment, targeting it as a high-value industry with significant growth potential. This chapter contains interviews with Arkhom Termpittayapaisith, Minister of Transport; Jin Liqun, President, Asian Infrastructure Investment Bank; and Pierre Jaffre, President, Airbus Asia Pacific.
Explore chapterGuanajuato
Buy digital copy of this chapter - £18Economic expansion in the north-central state of Guanajuato outpaced that of the nation as a whole in 2017, registering GDP growth of 4.5%, compared with Mexico’s rate of 2.1%. In order to ensure long-term growth, the state is diversifying its economy by boosting the production of metals, food products and leather goods, while also pursuing innovation, partly by strengthening ties between local industrial companies and universities. The state is also expanding its trade ties in response to broader political dynamics, with both Mexico and the US appearing uncertain about the future of US-Mexico trade relations. Guanajuato still sends the majority of its exports to the US for now, but the state is working to expand its commercial ties.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18While the geographic features of the Philippine archipelago have historically hindered the creation of an efficient transport network, given the obstacles to increased productivity and growth posed by the country’s many islands and congested road system, the administration of President Rodrigo Duterte has made infrastructure development a top priority. As a result, an array of major transport projects are being rolled out across the country under the Build, Build, Build programme, whereby the government has set about accelerating infrastructure investment, focusing on projects to integrate the archipelago’s islands and stimulate development, including major upgrades to road, railway and port systems. This chapter contains interviews with Dennis Uy, Founder and Chairman, Chelsea Logistics; and Steve Dicdican, CEO, Mactan-Cebu International Airport.
Explore chapterAgriculture
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Agriculture is undoubtedly the largest and most important sector of the Tanzanian economy, with the country benefitting from a diverse production base that includes livestock, staple food crops and a variety of cash crops. The sector’s contribution to GDP has more than tripled in the last 10 years, supported by rising cash crop production, an emerging agro-processing segment and strong domestic demand for processed food. At the same time, however, farmers and other sector stakeholders face considerable challenges in modernising the industry to increase yields, exports and value-added processing. Nonetheless, the diversity of the sector leaves it well positioned to benefit from substantial investment inflows in the coming years, with budget announcements highlighting its critical importance to employment, exports and industralisation. This chapter contains interviews with Charles John Tizeba, Minister of Agriculture; and Aranyak Sanyal, East Africa Cluster Head, Olam International.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Sharjah, as well as contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Renewed growth in Sri Lanka’s construction industry is being supported by a combination of megaprojects with international partners, strong domestic demand and public investments in infrastructure. Following a slowdown in 2015, the sector is once again enjoying double-digit growth, possessing a strong order book with international investors increasingly present. Still, costs are high and rising, and there are risks to the outlook. Additionally, consistent income growth, urbanisation, the expansion of both domestic and foreign businesses, and the burgeoning appeal of property as an asset class among local investors have all contributed to the dynamism of Sri Lanka’s real estate sector. The real estate sector’s contribution to GDP grew by 2.7% year-on-year in the first half of 2017, according to the Central Bank of Sri Lanka. This chapter contains interviews with Qitao Liu, Chairman, China Communications Construction Company; Anthony Couse, CEO, JLL Asia Pacific; and Sumedha Ratnayake, Director-General, Urban Development Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18Building upon its strong performance in 2017, the Tunisian tourism industry is poised to carry on growing both in terms of the number of arrivals and overall revenues. Since ebbing to a low point in 2015, owing to two security incidents, the sector has rebounded to nearly 2014 levels. The government has significantly improved the security situation since 2015, particularly in major tourist destinations. New markets and investors are generating meaningful gains, and both the government and private sector appear committed to the sector’s continued development, solidifying the industry’s position as an integral part of the economic future. The strong performance of the sector in 2017 and early 2018 gives the industry reason to be optimistic. This chapter contains an interview with Ahmed Khalaf, General Manager, Four Seasons Hotel Tunisia.
Explore chapterHealth & Education
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A regional leader in service delivery and speciality care, Jordan’s health sector benefits from a large skilled workforce; a high-quality, low-cost medical tourism segment; and a robust pharmaceuticals manufacturing base. Expenditure on health care provision has risen consistently over the last decade, supporting strong improvements in indicators and outcomes. Meanwhile the kingdom benefits from a well-developed, advanced education system, with literacy rates among the highest in the region, and a large, diverse population of graduate students and researchers. However, the system is simultaneously dealing with rapid population growth and rising demand for post-secondary degrees, which has strained public universities. A mismatch between academic development and labour market demands has also created a shortage of skilled tradesmen. This chapter contains an interview with Labib Khadra, President, Al Hussein Technical University.
Explore chapterMining
Buy digital copy of this chapter - £18Stretching from the Himalayas in the north to the Andaman Sea in the south, Myanmar’s diverse terrain offers a wealth of untapped mineral resources. Following the easing of international sanctions and major legal reforms, the authorities now have the opportunity to rehabilitate some of the mines that were neglected during the socialist period. Despite the risks, grey areas and bottlenecks, Myanmar’s mining sector holds significant investment potential. Given growing global demand for base metals, Myanmar has the chance to build on recent momentum in tin, tungsten and associated metal exploration. An uptick in surveying for these minerals could help to instigate broader economic growth and social development, provided the projects adopt best international practices and avoid the environmental mistakes of previous mining operations. This chapter contains an interview with U La Min Win, Managing Director, Valentis Services.
Explore chapterTourism & Retail
Buy digital copy of this chapter - £18As a leading performer in Bahrain’s economy in 2017, the tourism and leisure sector has begun measuring its success and impact in billions of dollars. The kingdom expects to see annual tourism receipts of over $1bn by 2020, by which time over $1bn will have been spent on upgrading its international airport and a further $10bn on a raft of new luxury hotel developments. By the end of 2018 the national carrier Gulf Air is set to take delivery of the first of a new $4bn-fleet of Boeing 787-9 Dreamliners. Further into the 2020s up to $5bn looks set to be spent on a second causeway to Saudi Arabia to carry cars as well as trains running on the new GCC rail network. This chapter contains an interview with Sheikh Khaled bin Humood Al Khalifa, CEO, Bahrain Tourism and Exhibitions Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In current prices, the construction sector’s value-added was equal to 5.9% of GDP in 2016, according to the BCEAO, up from 1.7% in 2010. Overall, strong demand for residential units and office space, as well as government-led social housing initiatives and falling mortgage interest rates, should underpin continuous development and sales growth over the medium term. This should be bolstered by planned investment under the 2016-20 National Development Plan, which puts a large emphasis on infrastructure construction. The real estate sector has witnessed strong activity in recent years, as stability has returned to the country and a large shortfall in property availability across market segments has attracted international investors and developers. Challenges for the sector include difficulties accessing financing and rising land and cement prices. However, measures are being undertaken to tackle some of these hurdles, including the expansion of domestic cement capacity and the launch of a national land registry.
This chapter contains interviews with Claude Isaac Dé, Minister of Construction, Housing, Sanitation and Urbanism, and Clyde Fakhoury, Administrative Director, PFO Africa.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture remains an important part of the Egyptian economy, and a long-standing priority for the government has been to shift the agricultural balance of trade, with the country possessing the second-highest agricultural import expenditure as a share of export revenues in the region, at over 35%. To this end, improvements to irrigation systems and water management protocols have been planned and are coming to fruition. Meanwhile, the renowned Egyptian cotton industry, considered the international luxury standard for centuries, is experiencing a renaissance after several challenging years. With prices and global demand both on the rise, Egypt is hoping to ride the wave of this renewed popularity to a lucrative export market. This chapter contains an interview with Ashraf Mahmoud, Chairman and Managing Director, Al Nouran Group.
Explore chapterMining
Buy digital copy of this chapter - £18Oman boasts an extensive and largely untapped mineral resource base that includes large deposits of metallic minerals, such as copper and chromite, and industrial minerals, namely limestone and marble. The country is the first GCC producer and exporter of ferrochrome, and produces large quantities of non-metallic minerals, including limestone, gypsum and marble, that support construction and infrastructure development projects around the world. Mining activities and the contribution of the sector to the economy are set to increase over the coming years, buoyed by government efforts to attract investment in mineral exploration, production, value addition and export activities from both foreign and local operators.
Explore chapterEnergy
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As operators and mobile users adopt new forms of mobile communications, the kingdom’s telecoms market is progressively moving away from the traditional voice-based business model. This is leading to new challenges in terms of regulation and market competition, but is also setting the stage for a new phase, wherein data forms a critical part of telecoms services. Despite slower growth, the industry is an important component of the economy, and not merely because of its trickle-down impact on other sectors. Morocco’s efforts to develop the ICT sector have produced noticeable results, and growing ICT and telecoms usage have allowed companies to create employment and make a larger contribution to exports. Government policy has similarly focused on increasing the role of ICT to bridge existing gaps between the state and citizens by establishing a series of e-government policies that have paved the way for business and citizens alike to interact with the state. However, improved service quality in rural areas is required for the sector to unlock further growth and expansion.
Explore chapterTourism
Buy digital copy of this chapter - £18With a significant number of new hotels set to open, a raft of private sector-led investments in leisure and business facilities, and the government’s ambitious transport infrastructure development plan well under way, Dubai’s tourism industry is poised for a period of considerable growth in 2018. While the emirate has long been a tourist destination in the Middle East and a key stopover point for international air travellers, under the government’s current sector blueprint Dubai is set to become one of the most popular destinations in the world. The emirate’s reputation is fuelled by the rising number of tourist arrivals in recent years, with many local players optimistic that Dubai will meet its medium-term target of 20m tourist arrivals annually by 2020.
This chapter contains an interview with Mohamed Almulla, CEO, DXB Entertainments.
Explore chapterTransport
Buy digital copy of this chapter - £18With the urbanisation rate and the vehicle-to-population ratio increasing steadily, and exports on the rise, there is growing pressure on transport infrastructure in Ghana. These are indicators of increased economic opportunity, but they also contribute to congestion on the roads, at ports and in the air. The overall growth of the past decade has challenged the sector to keep pace, and facilitate rapid transit of both people and commodities. In response, the government has been increasing focus on transport infrastructure, with a particular push for airport and port development.
This chapter contains an interview with Mohamed Samara, CEO, Meridian Port Services.
Explore chapterUtilities
Buy digital copy of this chapter - £18These are crucial times for Saudi Arabia’s power and water sectors as both move through a process of major reform. Privatisation is at a more advanced stage in water than in power, but the next few years should see substantial change in both markets, providing significant opportunities for investors. Projects that use a wider range of energy sources are also in the planning and development stages, while efficiency in distribution and usage is being strongly promoted, alongside a further reduction in subsidies through reorganisation of the electricity tariff system. Meanwhile, major desalination projects are under way, along with the roll out of new sewage and wastewater treatment plants, reservoirs, leakage reduction measures, transmission networks and groundwater conservation schemes. The Kingdom has set itself some ambitious short- and long-term goals for both sectors, with a shift towards a more market-oriented approach a key objective of the reforms.
This chapter contains an interview Ziyad Al Shiha, President and CEO, Saudi Electricity Company; Ali Alhazmi, Governor, Saline Water Conversion Corporation; and Thamer Al Sharhan, Managing Director, ACWA Power.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Over the past two decades, considerable progress has been made in the coverage and quality of health care services, with indicators improving steadily, alongside a decline in instances of communicable diseases. The opportunities for private sector growth and investment are strong, particularly in the pharmaceutical industry. The Ministry of Education has maintained its commitment to improving the standard of education provided to Algerian citizens. Public schooling is free and obligatory up to the lower secondary level, and tertiary education is developing rapidly, following the government opening up the segment to private sector participation.
This chapter includes a viewpoint from Mokhtar Hasbellaoui, Minister of Health, Population and Hospital Reform; and an interview from Mohammed Dib, General Manager, Groupe Général Maritime.
Explore chapterTransport
Buy digital copy of this chapter - £18Guided by the state’s long-term economic development plan, Qatar National Vision 2030, and driven by preparations for the 2022 FIFA World Cup, Qatar is investing heavily in infrastructure programmes focused on its non-oil and gas sectors. More than $500m a week is being spent across all capital projects in the country in preparation for the upcoming games, with investments of up to $13bn in infrastructure projects having taken place in 2017, covering airport and port projects, as well as road upgrades.
This chapter contains an interview with Jassim bin Saif Ahmed Al Sulaiti, Minister of Transport and Communications; and Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail.
Explore chapterIndustry
Buy digital copy of this chapter - £18As the largest economy in South-east Asia and the 10th-largest worldwide in terms of purchasing power parity, Indonesia’s vastly expanding middle-income base has enticed an influx of international manufacturers over the years. These factors have allowed the sector to perform well over the last decade, despite the global economic slowdown in consumption. Industry has long served as a vital engine of growth for the Indonesian economy, and it continues to play a pivotal role in the development of the business climate.
This chapter contains interviews with Airlangga Hartarto, Minister of Industry; Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry; and Hemant Bakshi, President Director, Unilever Indonesia.
Explore chapterTransport
Buy digital copy of this chapter - £18With Africa’s largest economy and its biggest population, Nigeria’s growth potential has been widely reported; however, long-term bottlenecks have prevented the country from realising that potential. The transport sector has been identified over the years as one of those bottlenecks. As a result of decades of poor maintenance and underinvestment in new capacity, the sector is marked by congestion, inefficiency and high overheads. Therefore, transport infrastructure and the logistics sector were identified as key elements of the March 2017 Economic Growth and Recovery Plan – President Muhammadu Buhari’s strategy for the country’s post-recession development. Officials have stated that public sector spending alone cannot address all of the challenges facing the sector, however, leading to a shift towards improving the business environment in order to attract new private investment in rolling stock, infrastructure and facility management.
This chapter contains interviews with Hadi Sirika, Minister of Aviation; and Hadiza Bala Usman, Managing Director, Nigerian Ports Authority.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Although smaller than its petroleum, mining and agricultural sectors, Papua New Guinea’s industry and manufacturing are major contributors to the nation’s revenue base, and hold significant potential for future investment and development. Manufacturers face several challenges, including high transportation, utilities and security costs, import dependency, currency depreciation, a foreign exchange shortage and land acquisition difficulties. However, the country benefits from a wealth of natural resources that holds considerable potential for value-added processing, most notably in the fisheries and agriculture segment. Long-term industrial development should also support investment in construction materials and petrochemicals, a crucial step in government efforts to reduce imports and build up a robust local production base.
This chapter contains interviews with Paulus Ain, Commissioner and CEO, Independent Consumer and Competition Commission and James Lau, Managing Director, Rimbunan Hijau (PNG) Group.
Explore chapterICT
Buy digital copy of this chapter - £18ICT sits at the heart of the government’s 2035 strategy, New Kuwait, launched in 2017, but Kuwait has already made great strides in the digital economy. In the “Global Information Technology Report 2016” by the World Economic Forum, the country was among the biggest risers, and regulatory reforms are being put in place to usher in an era where tech companies help speed up the evolution towards a diversified and knowledge-based economy. State funding is being used to create an ecosystem that will help start-ups develop, while larger firms and state agencies work to boost efficiency and productivity through a growing range of solutions that streamline processes and allow the real-time analysis of consumer behaviour. Although ICT covers all sectors of the economy, its true significance is partially captured by government data on the industry. According to the latest data available from the Central Statistical Bureau, the communications sector generated KD1.294bn ($3.92bn) in GDP in 2015, up marginally from KD1.292bn ($3.91bn) the previous year. This was equal to 5.2% of non-oil GDP and 3.2% of overall GDP at current prices.
This chapter contains an interview with Qusai Al Shatti, Acting Director-General, Central Agency for Information Technology.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18An important engine of growth for Thailand, the construction sector is acting as a hedge as many other sectors face challenges in the form of global economic weakness and tepid consumer demand. Together with tourism and, to an extent, finance, construction is keeping the slowdown from becoming too severe. The Thai real estate market is decidedly split. In general, buyers are increasingly constrained and finding it difficult to fund or finance purchases. However, in the centre of Bangkok and at the high end, the story is very different. Demand remains firm, new stock is being taken up nearly as fast as it is offered, and prices are rising to record levels. The market is bifurcated, with the lower end lagging and the upper end forging ahead. This chapter contains an interview with Naporn Sunthornchitcharoen, President, Land & Houses.
Explore chapterTransport
Buy digital copy of this chapter - £18In recent years Trinidad and Tobago’s transport sector has faced significant competition and challenges, and with government coffers squeezed by the drop in global oil prices, major infrastructure updates and the proposed creation of a multi-modal public transit system have been put on hold. In the 2016/17 budget the Ministry of Works and Transport received TT$2.09bn ($312m) in funding, far behind national security at TT$7.6bn ($1.13bn) and education at TT$7.2bn ($1.07bn). However, if government efforts to diversify industry, attract tourists and alleviate road congestion are to be successful, improvements to the country’s maritime, aviation and public transport systems should gain renewed focus.
This chapter contains an interview with Rohan Sinanan, Minister of Works and Transport.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry is set to remain an important part of Colombia’s economy, not only for its capacity to create employment, but also for its significant impact on regional development. However, manufacturers face a challenging domestic environment due to fiscal reforms, which are likely to reduce consumer expenditure in 2017. Still, the devaluation of the peso has made the country’s exports more attractive abroad – an opportunity that local manufacturers are looking to capitalise on to solidify their position in foreign markets. Given the number of FTAs the country has signed, Colombian industrialists also face greater competition, the impact of which will vary between segments. Improving competitiveness and productivity is crucial for industrial activities to compete internationally. As for retail, a plethora of new shopping malls bode well for the expansion of sales. However, much will depend on disposable income, with tax hikes set to affect consumer confidence. With the country’s GDP forecast to expand, the sector is likely to continue its rapid growth. This chapter contains an interview with Daniella Souza, President, Dow Chemical, Andean Region.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Despite the effects of El Niño in 2017, agriculture’s prospects remain positive. According to the Ministry of Agriculture and Irrigation, projections, the sector is expected to post average growth of 3-3.5% in 2017, with exports projected to increase by 20-25% to reach $6bn. In the longer term, ongoing public programmes to assist small-scale farming should help to ensure that more smaller producers are integrated into the attractive export industry, while public-private initiatives to develop Peru’s vast forestry resources could see this segment play an increasingly important role in the future of the country’s economy.
This chapter features an interview with Juan Varilias, President, Association of Exporters.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport sector in Abu Dhabi is gearing up for further progression, with a new strategy taking the emirate towards a smarter future for its airports, highways and harbours. Developments in the region are linking the emirate ever closer to its neighbours, with transport systems transforming the Gulf into a more integrated, multi-modal corridor, and Abu Dhabi into an increasingly vital hub in the global transport, warehousing and trans-shipment web.
This chapter contains interviews with Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman, Federal Transport Authority; Awaidha Murshed Al Marar, Chairman, Department of Municipal Affairs and Transport; and Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.
Explore chapterTourism
Buy digital copy of this chapter - £18With sustained double-digit growth in visitor arrivals and burgeoning foreign exchange receipts, tourism is one of the most dynamic and robust sectors of the Sri Lankan economy. The country’s growing reputation is drawing visitors from an increasingly diverse range of markets to its pristine beaches, historical landmarks and adventure-packed outdoors. Building on this success, the government is now aiming to position Sri Lanka as Asia’s leading island destination, focusing on high-value segments such as cultural tourism and tour packages for visitors aged 60 and up. The government’s Tourism Vision 2025, under discussion at time of press, aims to improve management, investment in assets and infrastructure, and draw foreign direct investment into the industry.
This chapter contains interviews with John Amaratunga, Minister of Tourism Development and Christian Religious Affairs; and Hiran Cooray, Chairman, Jetwing.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18Benefitting from an advantageous geographic position flanking critical global trade routes between North America, ASEAN and Australia, the Philippines is well positioned to transform its transport sector into a major economic growth driver in the coming years, bolstered by rising maritime trade, air passenger volumes and commuter traffic. There is plenty of room for improvement, however. Robust population and economic growth, combined with rapid urbanisation and decades of underinvestment in critical infrastructure, has exacerbated congestion across all segments of the sector, particularly within the Metro Manila area and Luzon, the country’s largest and most populous island.
This chapter contains a roundtable with Andrew R Hoad, Executive Vice-President, Asian Terminals Inc; Christian R Gonzalez, Asia Region Head, International Container Terminal Services Inc; and Jay Daniel R Santiago, General Manager, Philippine Ports Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector in Tunisia is at the beginning of what may prove to be a long-lasting recovery. In the aftermath of the 2011 revolution, contractors saw a slowdown in activity as a result of lower public investment levels, sluggish growth in the property sector and broader macroeconomic instability. However, an increase in donor-backed transport infrastructure projects and the recent announcement of Tunisia 2020 – a $60bn all-encompassing capital development programme – is painting a more optimistic picture. Although activity has been subdued in recent years, Tunisia’s construction sector is poised to rebound, with growth forecast to reach 1.54% in real terms in the 2016-20 period. Driven by fast-paced urbanisation and strong population growth, the Tunisian housing sector has expanded rapidly over the past decade. While the government continues to have a strong presence, the private sector has become the largest source of residential and non-residential development. Albeit one of the most solid in the region, Tunisia’s housing market has nonetheless been grappling with several challenges in recent years, including rising costs, land and labour shortages, and administrative bottlenecks. With construction costs outstripping property price ceilings for social housing units, most developers are catering to the mid- to higher-range segments. However, authorities are keen to re-energise the social housing segment with the introduction of new tenders.
This, in addition to the implementation of the Tunisia 2020 strategy, which prioritises the sector, could see an increase in activity in the country’s real estate sector in 2017. This chapter contains an interview with Ahmed Bouzguenda, General Manager, Société Bouzguenda Frères.
Explore chapterICT
Buy digital copy of this chapter - £18Kenya’s telecommunications sector plays an important role in the country’s economy. The industry as a whole has been on an upward trajectory over the last decade, as a burgeoning, tech-savvy middle class drives demand for smartphones and data, helping companies offset slowing growth in the voice and messaging segments. Operator Safaricom holds the dominant market share but competition has been increasing, and the rollout of new spectrum and a push to expand data services is creating new revenue-generating opportunities. As Kenyan residents increasingly embrace mobile broadband technology and data demand rises, the country’s telecommunications industry is set to remain on a mid-term growth path, bolstered by a diversified portfolio of innovative offerings. Kenya’s IT sector has risen to become an important contributor to economic growth, as the expansion of mobile broadband, WiMAX and fibre-optic networks has driven internet usage and subscribership in recent years. Increasing internet usage has also driven growth in both the e-commerce and start-up segments, with Nairobi standing as East Africa’s most vibrant technology hub. Although access gaps remain and high-speed internet availability is largely constrained to major urban centres, the combined efforts of the public and private sector should see Kenya meet its ICT goals by 2030.
This chapter contains interviews with Prasanta Das Sarma, Managing Director, Airtel Kenya; Bob Collymore, CEO, Safaricom; and Aldo Mareuse, CEO, Telkom Kenya Limited; James Mwangi, CEO and Managing Director, Equity Bank; Mike Macharia, Founder and Group CEO, Seven Seas Technologies.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With the shift towards a more market-orientated economy, Vietnam’s telecommunications market is seeing further openings for foreign investment, including the supply of telecoms services and the establishment of infrastructure networks. The government has, meanwhile, taken some broad steps in boosting competition in the marketplace by restructuring the state-owned Vietnam Posts and Telecommunications Group and paving the way for the introduction of 4G services, which is expected to generate a spike in new opportunities for investors. With a population of approximately 95m, Vietnam is an important regional market both for global technology vendors and for home-grown entrepreneurs. The latter are getting more encouragement to innovate as the country modernises and adopts international standards in areas such as communications infrastructure and education technologies.
This chapter contains interviews with Tran Manh Hung, Chairman of the Member’s Council, Vietnam Posts & Telecommunications Group; and Truong Gia Binh, Chairman, FPT Corporation.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18Mexico has long recognised the importance of research and innovation to the development of a strong and sustainable economy. To date, however, the goal of boosting research and development (R&D) spending to 1% of GDP has remained somewhat distant, with public spending across a variety of programmes having an only limited effect on encouraging the development of new technologies and innovative companies. Facing lower budgets in 2017, the government will be more selective in the projects it sponsors and is looking to incentivise further private investment in R&D. Improvements to the intellectual property framework are set to give foreigner investors additional confidence in this area. The target of spending 1% of GDP on R&D by 2018 looks out of reach; nevertheless, the belt-tightening process is likely to have positive effects on the efficiency of public R&D spending in the future. The increased focus on advanced-stage projects and closer monitoring of outcomes should lead to more demonstrable results. This chapter contains an interview with Guillermo Echeverría Miller, CEO, Vuhl.
Explore chapterConstruction
Buy digital copy of this chapter - £18As cranes tower over the skies of an ever-expanding Cairo and billboards advertising new housing developments, universities and malls proliferate throughout the city, it is clear that after several years of uncertainty Egypt is in the midst of a construction boom. Large government priority projects, such as the New Administrative Capital, the expansion of the Cairo metro and water treatment projects in Upper Egypt, continue to promote growth in the sector. The Ministry of Finance cites construction as one of the most important sectors in terms of its contribution to economic growth in the coming years. With strong demand for energy and infrastructure projects, as well as real estate, the sector is likely to see steady expansion. However, it has not been immune to the short-term economic instability in the aftermath of the currency float, posing challenges amid potential.
This chapter contains an interview with Osama Bishai, CEO, Orascom Construction.
Explore chapterThe Guide
The guide contains listings of some of the leading local hotels and resorts and contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors, first-time or regulars.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As Côte d’Ivoire continues to recover from the instability of the previous decade, construction remains a key driver of growth, with a swath of new projects either launched or planned in various sectors, including several that form part of the government’s main infrastructure programmes. There have been some bottlenecks, however, particularly in terms of project delivery. The outlook for the short and medium term is encouraging, with the government stressing capital spending and the economy posting strong figures. As is the case throughout the region, real estate demand in Côte d’Ivoire is generally high, surpassing existing offerings in most, if not all, segments. Thus, public and private initiatives to expand real estate offerings are likely to continue. Progress on the government’s large-scale social housing programme has been slow, but action on home loans may help it pick up speed. The development of the new industrial areas will also provide space for firms to set up shop. This chapter contains interviews with Stefan Heeb, Former CEO Côte d’Ivoire-Guinea, LafargeHolcim; and Kinapara Coulibaly, Director-General, National Office for Technical and Development Studies.
Explore chapterTourism & Retail
Buy digital copy of this chapter - £18With its long history as a trading centre, its wildlife and its ancient forts and mosques, Bahrain has strong appeal to draw in visitors from near and far. Made up of more than 30 islands, the archipelago is easy access for people living in the Gulf region – making it a prime destination for short stays – and visitors are able to check in to one of the increasing number of four- and five-star hotels operating in the kingdom. With the arrival of major international players and an increase in retail properties, which have established themselves as important aspects of the kingdom’s tourist landscape, not to mention cheaper and more easily obtained visitor visas, there is a lot for those involved in the tourism sector to feel positive about. This chapter contains an interview Sheikh Khaled bin Humood Al Khalifa, CEO, Bahrain Tourism and Exhibitions Authority.
Explore chapterMining
Buy digital copy of this chapter - £18Announced in January 2016, Oman’s ninth five-year plan is the final component of is long-term blueprint Vision 2020 and includes mining as one of five pillars of economic diversification being fast-tracked by the sultanate. With the government targeting 6% annual growth in the sector, and major regulatory initiatives attracting increased investor interest, mining is poised to surge in 2017-18. In 2015 the contribution of mining and quarrying activities to GDP reached $368m. The building materials segment continued to dominate the mining and quarrying sector in 2015, with production rising by 12% to reach 72m tonnes.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The state of health in Myanmar is gradually improving, with significantly higher levels of funding being allocated by the state, and foreign donors and private investors looking to participate. To ensure its 56m people have access to better care, and mindful of the challenges, the administration is increasingly open to assistance from foreign governments, NGOs and private firms. The newly installed government has also put education at the heart of its reform agenda, recognising its potential for lifting the country out of poverty. More money is being channelled into the sector as officials seek to build a 21st-century education system to help push Myanmar into the ranks of the upper-middle-income nations by 2030.
This chapter contains a viewpoint from Dr Myint Htwe, Union Minister, Ministry of Health and Sports; and an interview with Myo Thein Gyi, Minister of Education.
Explore chapterTourism
Buy digital copy of this chapter - £18As Algeria seeks to rapidly diversify its economy, the government has singled out tourism as one of five priority sectors for investment. But building a reputation as an international destination in a competitive global market, while overcoming regional security concerns, a chequered global economic landscape and a long-neglected national tourist infrastructure, will prove challenging. While the drive to spark a building frenzy appears to have finally materialised after years of limited action, auxiliary services and personnel training may still lag behind, impeding progress. Nonetheless, both local and foreign investors have shown an interest in new ventures, and many are determined to do what is necessary to continue developing Algeria’s vast tourism potential. This chapter contains an interview with Simon Stamper, Director of Operations, Africa, IHG.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Ghana’s retail sector has grown significantly in recent years, attracting a swathe of international retail chains and brands. This is thanks to a growing middle class, a largely young and urban population and a relatively underdeveloped formal retail market. With recent changing economic conditions, including high inflation and interest rates, limited and irregular power supplies, currency depreciation and a multiplication of taxes, sector growth may have slowed down, yet there is still room for expansion.
This chapter contains an interview with Seth Twum-Akwaboah, CEO, Association of Ghana Industries.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Jordan, including a look at moves under way to boost investment in export-oriented industries and a rundown of the incentives in place to promote underdeveloped sectors.
This chapter contains a viewpoint from Feras Kilani, Partner, Operational Transaction Services, MENA.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte Gabon, OBG explores the taxation system, examining Gabon’s investor-friendly environment. OBG talks to Angela Adibet, Head of Legal and Tax Department, Deloitte Gabon, about the Finance Act of 2016 and the fiscal framework.
Explore chapterUtilities
Buy digital copy of this chapter - £18With some analysts expecting Saudi Arabia’s population to expand by over 10m to reach 39.1m by 2030, alongside continued growth in the Kingdom’s energy-intensive industries, demand for electricity and desalinated water is set to rise considerably in the coming years. Estimates suggest that more than SR500bn ($133.3bn) will need to be invested in the power sector over the next 10 years to ensure that supply keeps pace with demand, while an ever-rising demand for water means that desalination facilities will need capital investments of SR65.4bn ($17.4bn) by 2020. Natural gas meanwhile is set to become the greatest contributor to the Kingdom’s energy mix, with a target of 70%. While the price of oil had rallied in late 2016, reaching $50 a barrel in October, its decline from $115 per barrel in June 2014 to below $30 in January 2016 threw the issue of subsidy reform into sharp relief, leading to various initiatives aimed at curbing energy demand and enhancing efficiency.
This chapter contains an interview with Mohammed Abunayyan, Chairman, ACWA Power.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Since its liberalisation in 1997, Morocco’s telecoms sector has experienced substantial growth driven by the entry of new operators, a rapid increase in mobile subscribers and rising consumption of voice and data services. Despite the sector’s potential, user revenue growth has slowed in recent years due to fierce price competition among the main providers. Operators seeking new springboards for growth are therefore exploring a capital-intensive push towards data offerings. In the IT sector, having made an early drive for development in the mid-1990s, Morocco has managed to carve out a sizeable niche for itself in selected areas such as offshoring and electronic payments. The government is now working on a new strategy, Plan Maroc Numeric 2020 – a successor to the previous Plan Maroc Numeric 2013 – aimed at building on the country’s international position in cost-competitive IT services, while emphasising greater diversification and entrepreneurship.
This chapter contains an interview with Nadia Fassi-Fehri, CEO, Inwi.
Explore chapterRetail
Buy digital copy of this chapter - £18The retail industry has played a key role in the rapid development of Dubai over the past four decades and remains a firm pillar underpinning economic growth. The interplay between retail, real estate, air transport and tourism is fundamental to Dubai’s value proposition for consumers and investors. The city has established itself as the Middle East’s shopping capital, but the same developers that created malls of astounding proportions on the site of Silk Road souqs are now determined to innovate and expand, generating new opportunities for investment and fresh experiences for shoppers. Dubai’s retail ecosystem is driven to a large extent by the franchise model, which brings together global brands and privately owned family firms that represent their interests in the country and region. The emirate also serves as the headquarters of regional retail and wholesale giants that may have started with a single small shop in Damascus, Basra or Manama, while brands born in Dubai itself are making their mark across the region.
This chapter contains an interview with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free.
Explore chapterICT
Buy digital copy of this chapter - £18Kuwait’s traditionally telecoms-led ICT sector saw developments in the past year that could encourage continuing expansion in telecoms and spur progress in the industry. While three telecoms operators continue to compete for the country’s high-value consumer market, they have also partnered with global ICT firms to expand their enterprise businesses. The government, for its part, has taken on a larger role in supporting the sector. In 2016 it handed key oversight responsibilities over to a new ICT regulator, the Communications and Information Technology Regulatory Authority. The government has also introduced new foreign direct investment laws and a fund to support small businesses and start-ups, adding important legal and financial incentives to boost ICT business growth.
This chapter contains interviews with Salim Al Ozainah, Chairman and CEO, Communication and Information Technology Regulatory Authority (CITRA); and Eaman Al Roudhan, CEO, Zain Kuwait.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The industrial sector of what is arguably Africa’s largest economy is a diversified group of producers and outputs. With a wide range of accessible feedstock, from agricultural products to hydrocarbons, along with Africa’s biggest consumer market, the possibilities are substantial. The volume of output is small, however, and Nigeria is forced to import most of what it consumes, including the raw materials and intermediate goods its industries use. Cyclical pressures, along with structural challenges, have contributed to a challenging environment. Yet this has not slowed capital spending, and with a large consumer market the outlook is encouraging for many industrial segments. The retail sector is based on the latent potential of Nigeria’s population, currently estimated at 184m and growing. Firms hoping to cater to that block of consumers must overcome challenges such as finding land to build retail space, importing goods and managing currency risk. The central’s bank decision to change its currency policy is currently the most important factor for the retail sector. Once retailers gain some certainty on that, the next steps will likely be to take stock of balance sheets and capital requirements, then begin the process of utilising current retail capacity at malls.
This chapter contains an interview with Okey Enelamah, Minister of Industry, Trade and Investment.
Explore chapterIndustry
Buy digital copy of this chapter - £18Historically, Indonesia’s industrial sector has long been content to target the low-hanging fruit of its sizeable captive domestic market for much of its output, while exporting primarily raw materials or low-value-added products abroad. But in line with the evolution of the country’s economy, a strategic shift has been accelerating over the past decade, which is aimed at diversifying the industrial manufacturing sector and deriving greater value from domestic resources, in addition to providing more and higher-quality jobs for the growing population.
This chapter contains interviews with Ryamizard Ryacudu, Minister of Defence; Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry; Lee Kang Hyun, President, Korean Chamber of Commerce; and Simon Linge, President-Director, Bluescope Steel Indonesia.
Explore chapterTransport
Buy digital copy of this chapter - £18Located on the eastern half of the island of New Guinea, Papua New Guinea is home to a rich supply of natural resources. However, with a geography characterised by tall peaks and deep ravines, miles of challenging coastline and a climate that encourages year-round vegetation, infrastructure can be difficult to place, install and maintain. While these topographical challenges sometimes make it problematic to move resources and people around PNG, issues around security and budgetary constraints up the ante further when it comes to creating a secure and efficient transport network for the country.
This chapter contains an interview with Robert Howden, Managing Director, Express Freight Management.
Explore chapterTransport
Buy digital copy of this chapter - £18Transport upgrades are leading construction industry growth in Qatar, following rapid expansion and billions of dollars worth of new contracts awarded in recent years. The 2022 FIFA World Cup has created an impetus to finish a number of critical transport projects on time, including thousands of kilometers of road and expressway upgrades and construction, the new Hamad Port and a major three-part rail programme. Expansion of the recently opened Hamad International Airport (HIA) also advanced in 2015 when authorities released detailed designs for the next phase of construction, which will nearly double existing capacity – a welcome upgrade, given that the airport is already operating above capacity. Under the broader Qatar National Vision 2030 (QNV 2030) development plan, these projects will pave the way for future growth across all sectors of the economy, reducing bottlenecks and traffic congestion, improving trade and investment opportunities, and supporting ongoing efforts to diversify the economy.
This chapter contains interviews with Jassim bin Saif Ahmed Al Sulaiti, Minister of Transport and Communications; and Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and Chairman of the Executive Committee, Qatar Rail.
Explore chapterTransport
Buy digital copy of this chapter - £18As the largest exporter in the Caribbean, Trinidad and Tobago’s transport network is vital to the performance of its economy. The country is already a fast-growing air passenger and cargo hub in the southern Caribbean and is now looking to spur growth in the maritime sector, where it intends to take advantage of its sheltered location below the hurricane belt and its proximity to shipping lanes serving North, Central and South America. The transport sector has not, however, been immune to the ramifications of the country’s current economic downturn. According to the Central Bank of T&T, the country’s GDP contracted by 2.1% in 2015 on the back of lower oil and gas prices. With public revenues significantly reduced as a result, the government was forced to abandon plans for a multi-billion-dollar mass transit project and to announce the phasing out of the long-standing subsidization of super gasoline and diesel.
This chapter contains an interview with Ashley Taylor, President, Point Lisas Industrial Port Development Corporation (PLIPDECO).
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18A number of large-scale infrastructure projects are currently being rolled out in Brunei Darussalam that look set to make a significant contribution to the national economy, greatly facilitating the Sultanate’s connectivity and potentially leading to further construction opportunities. In addition, several small-sized projects are under way, which promise to add to the Sultanate’s attractiveness as an investment destination and undergird its growth as a logistics and processing hub. Meanwhile, the real estate sector has gone through a series of transformations in the past few years that have altered the landscape considerably for buyers and sellers alike. These developments encompass changes to title law, loan regulations, ownership and the market itself in terms of demand and the type of housing being built to supply that demand. This chapter contains an interview with Bobby Chua, Vice-Chairman, Swee.
Explore chapterTransport
Buy digital copy of this chapter - £18The 11th Malaysia Plan lays out the government’s latest five-year development strategy, covering the period 2016-20. It is also the final five-year plan leading up to Wawasan 2020, the year by which the government’s vision to make Malaysia a high-income, knowledge-based economy is meant to be realised. For this pivotal period, the plan lays out initiatives for the transport sector including construction of a seamless transport system and facilitating enhanced mobility of people. The latter involves ensuring that 40% of transport in the Greater Kuala Lumpur-Klang Valley region is composed of public options. In the other state capitals the target is 20%. This chapter contains interviews with Ruben Emir Gnanalingam, CEO, Westports Holdings; and Mohd Azharuddin, CEO, Land Public Transport Commission.
Explore chapterTourism
Buy digital copy of this chapter - £18With rapidly rising arrivals and revenues in 2014 and 2015, Sri Lanka is currently in the midst of a tourism growth spurt, which has the potential to turn the small South Asian island nation into one of the world’s most popular tourist destinations in the years to come. In 2015 some 1.8m tourists visited the country, according to data from the regulator, the Sri Lanka Tourism Development Authority. This is up nearly 18% on the previous year. The newly elected government has made ambitious plans to attract 2.2m visitors in 2016 and 4m by 2020. This chapter contains an interview with Rajan Brito, Deputy Chairman and Managing Director, Aitken Spence.
Explore chapterTransport
Buy digital copy of this chapter - £18Abu Dhabi’s transport and logistics industry has been growing rapidly in recent years, with 2014 being an encouraging year in this respect. The transport and storage sector’s total GDP contribution stood at Dh40.5bn ($11.02bn) for 2014, equivalent to 4.3% of the emirate’s GDP, up from 3.7% in 2013 and 3.3% in 2010. The emirate has seen air traffic grow rapidly from 169,931 aircraft movements to 213,200 in 2014, of which 186,207 took place in the Abu Dhabi region and 26,993 in Al Ain. The government is now working to encourage more people to use public transport, with new infrastructure such as a 44.5-km metro line now in the pipeline, while initiatives such as the construction of dedicated cycle paths and shaded walkways have been designed to encourage more walking and cycling in the emirate. This chapter contains an interview with Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.
Explore chapterTourism
Buy digital copy of this chapter - £18In the years leading up to 2011, Tunisia was a popular destination for many European holidaymakers in search of a nearby, safe and affordable sun and sea destination. For more than 40 years, Tunisia’s resorts in beachside cities like Sousse and Hammamet had catered to a primarily package tourist crowd, attracting visitors from France, Germany, Italy and the UK. The country’s attractions are unique – from the ksours (castles) of Tataouine to the beaches of Djerba to the ruins of Carthage – however, recent years have proven challenging. The 2011 revolution led to a drop in visitor numbers in the immediate aftermath in turn exacerbating structural issues, such as a lack of diversified offerings. This was further impacted by a pair of terrorist incidents in 2015, which slowed the pace of the industry’s recovery from the 2011 revolution. However, while the short-term outlook is somewhat uncertain, the efforts adopted by the government under Vision 3+1, provide cause for optimism in the medium to long term. The ability of the sector to diversify its offerings and provide a wider selection of accommodation and activities should help buffer revenues in the future and ensure a more sustainable growth trajectory. This chapter contains an interview with Radhouane Ben Salah, President, Tunisian Federation of Hoteliers.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18In 2015 the construction sector grew by 15.8%, a significant improvement over 0.1% in 2013 and 3.7% in 2014, and the industry contributed 2.8% to GDP. Residential projects accounted for 66% of total construction area permitted in 2015, while industrial projects made up 16% of the total. Continued economic expansion, rising demand for housing and, most importantly, renewed government investment levels in public infrastructure are projected to be the main drivers of growth. In addition, the government’s tax incentives intended to attract investment from foreign companies in agriculture, renewable and alternative energies, IT and tourism should also augment construction works. Continued economic growth and Bangkok’s attractiveness to foreign businesses and individuals should sustain property demand going forward, even with new stock across all subsectors set to hit the market in the coming years. This chapter contains interviews with Kan Trakulhoon, Chairman of the Management Advisory Committee and Former President, Siam Group; and Polpat Karnasuta, President, Nawarat Patanakarn.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £18Though still trailing its neighbors, the transport sector in the Philippines is in the process of modernizing as the current government continues to fast-track relevant infrastructure projects, while also taking modest steps to improve inter-agency cooperation and good governance. The sector is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centers and cities on the archipelago. Road transport remains by far the most dominant mode of travel, and, according to the Asian Development Bank, road transport accounts for 98% of passenger traffic and 58% of cargo traffic. However, due to a lack of adequate financing, levels of servicing have fallen behind. The World Bank has predicted that the economy will grow 6.7% in 2015 – although this growth will depend on the government’s ability to improve spending and encourage public-private partnerships. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of such projects so far and must be righted so that the advantages of private sector interest can be realized. This chapter contains interviews with Maximo Mejia Jr, Administrator, Maritime Industry Authority; and Rashid Alexander Delgado, President, Transnational Diversified Group; and a dialogue with Eric Francia, President and CEO, AC Infrastructure Holdings and Jose Ma K Lim, President and CEO, Metro Pacific Investments.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Djibouti, in partnership with Cabinet Guerinot.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The tides of Colombia’s agricultural sector, which for years lagged behind neighboring countries due to landownership restrictions and underdeveloped transport infrastructure, have fast been changing. As of early 2016, several key reforms and progressive measures were beginning to allow investment to flow to the Colombian countryside. The sector expanded by 3% year-on-year in the first three quarters of 2015, and accounted for 6% of GDP. In 2016 a proposed peace deal with the FARC offers hope of a safer countryside and increased government emphasis on rural development. In late 2015 the Ministry of Agriculture and Rural Development announced funding to boost domestic production of key crops and a land reform law that would open the door to large-scale agribusiness. With new roads and ports to link Colombia’s interior to domestic and export markets, 2016 looks set to be a turning point for the agriculture sector, and a year in which an integrated agricultural policy begins to take shape.
This chapter includes an interview with Rafael Mejía López, President, Colombian Agriculture Association (SAC).
Explore chapterTourism
Buy digital copy of this chapter - £18Known in ancient times as Dilmun, the inspiration for the Garden of Eden, and more recently as Ard Million Nakhla, or the Land of a Million Date Palms, Bahrain has been welcoming visitors for centuries. In 2014 tourism receipts reached $1.4bn, accounting for 4.2% of the country’s GDP, and they are forecast to grow by 4.9% annually between 2015 and 2025. Under the Bahrain Tourism Strategy 2015-18, a new Supreme Council for Tourism was created that aims to help guide development of the sector. Hotels and serviced apartments, known as “aparthotels”, are a segment forecast to expand by compound annual growth rates of 15.2% and 11.4%, respectively, between 2013 and 2018. The MICE segment meanwhile is another important component of the industry, contributing $400m in 2013 alone thanks to major events such as the Jewellery Arabia fair, which attracts more than 50,000 visitors.
Explore chapterTransport
Buy digital copy of this chapter - £18Once a sleepy city where cars were rare, Yangon is now a bustling urban center. The spike in activity has been very positive for economic growth, but has placed pressure on infrastructure. Myanmar’s government has recognized the need to modernize transport capacity and update the legal framework that governs the sector. To that end, international experts have gathered in Yangon to plan and guide transport development of Myanmar’s largest city. Public-private partnerships are the preferred means of executing infrastructure projects in Myanmar, and it is estimated that planned improvements will cost $433bn through 2030. The completion of projects to improve airports, roads, railways and ports will be a significant step forward for Myanmar as it seeks to integrate itself into the global economy. This chapter contains interviews with U Htun Myint Naing, Chairman, Asia World; and Liew Mun Leong, Chairman, Surbana Jurong and Changi Airport Group.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18The Peruvian agriculture sector grew 1.5% in 2013 and 1.6% in 2014, according to the central bank, well below overall GDP growth of 5.8% and 2.4%, respectively. In the first six months of 2015 the sector contributed nearly 6% to GDP, and the fishing industry another 0.5%. Yet, while exports have risen strongly, sector growth in the first quarter of 2015 was just 0.5%, although this picked up to 2.9% year-on-year in the second quarter. Exports of agricultural and fish products have grown at 10-15% per annum from a base of $925m in 2000. In 2014 sector exports surpassed $5bn, a 19% increase on the figure from the previous year. This chapter contains an interview with Mario Mustafá, President, Ecosac.
Explore chapterRegions
Buy digital copy of this chapter - £18In recognition of its varied physical, ethnic and cultural landscape, Oman has long been divided into regions, with the government and the sultan keen to achieve a much more equitable and sustainable economic balance between them. Oman’s current long-term development plan includes provisions targeting this goal, as well as plans focused on greater regional authority. Special economic zones (SEZs) are at the heart of this strategy. The city of Sohar is quickly becoming an entrepreneurial centre as it encourages SMEs to locate to its free zone in order to promote sustainable economic growth in the region. Meanwhile, further south, the Port of Duqm is at the heart of the SEZ being established in the sparsely populated central region that is home to Oman’s oil and gas industry. Further south still, the Salalah Free Zone is home to one of the world’s foremost trans-shipment hubs due to its strategic location between key East African, South Asian and Gulf routes. This chapter contains interviews with Yahya bin Said bin Abdullah Al Jabri, Chairman, Special Economic Zone Authority at Duqm; and Sheikh Aimen Al Hosni, CEO, Oman Airports Management Company.
Explore chapterTourism
Buy digital copy of this chapter - £18While Egypt has faced several challenges in recent years, tourism remains one of its leading foreign currency exchange providers and the sector is a key contributor to both GDP and job creation. This breadth in the tourism offering has helped the country develop into one of the most prominent destinations in the region, which is no small feat when one considers the competition. The Egyptian tourism sector has performed well over the long term, and recent declines in terms of numbers employed and share of GDP are not characteristic of the sector’s performance. Tourism still contributes greatly to the economy and it has considerable potential. However, it may take time to win back some potential visitors, as many international tourists will want to see a period of stability before committing to a trip to Egypt.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18The ongoing push for industrial expansion, as highlighted by the government’s overarching Vision 2030 strategy, has resulted in a number of positive developments over the past year, particularly in the textiles, construction materials and food processing segments. Electricity availability and reliability have improved steadily over the past year as new renewable power plants have come on-line. SMEs contribute around 33% of value-added goods and create 80% of all new jobs, and their promotion ranks high on Vision 2030’s industrialisation agenda. As part of these efforts the government is increasingly moving to protect domestic industry, while regional and bilateral agreements have benefitted Kenyan exporters.
This chapter contains interviews with Adan Mohamed, Cabinet Secretary, Ministry of Industrialisation and Enterprise Development; and Darshan Chandaria, Group CEO, Chandaria Group of Companies.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Over the past five decades Algeria has made significant progress in the provision of health care to its citizens and tackling communicable diseases. Although basic health indicators have improved and living standards have risen, the country has witnessed an increase in chronic diseases, a common occurrence in a number of emerging markets, and these now represent the main burden on the health care system. While many countries in the region struggle to finance health infrastructure and services, Algeria – on the back of years of high oil revenues – has been able to divert significant funds into the expansion of clinics, hospitals and preventative care in a bid to improve overall health indicators. Algeria continues to pursue its ambitions to upgrade the overall quality of education nationwide. Although results are slow to come by, the sector has made some headway over the years with school enrolment rates at the primary and secondary levels exceeding 97% and illiteracy rates dropping to 14% in 2014, down from 22% in 2008. This comes on the back of sustained efforts on behalf of the government to boost schooling capacities through enhanced infrastructure, teacher training, aligning offerings with the needs of the job market, as well as reaching out and raising awareness on the importance of education in disadvantaged areas. This chapter contains interviews with Abdelmalek Boudiaf, Minister of Health; Habib Bennaceur, North West Africa President, AstraZeneca; and Mohamed Mebarki, Minister of Training and Professional Education.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework within which local and international investors operate in Jordan, including a look at a newly enacted corporate income tax, a rundown of the incentives on offer to encourage free zone investment and an explanation of the social security law amendment.
This chapter contains a viewpoint with Bishr Baker, Managing Partner, EY, Jordan and Iraq
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Despite facing fierce competition and slowing revenues in 2015, South Africa’s telecoms operators are well placed to see growth in the near to medium term. The mobile market is approaching saturation and a shift from traditional voice and SMS to data is expected to drive future growth, particularly in 4G long-term evolution (LTE) services, which are slated to expand significantly in the next several years. Although market competition remains a significant challenge, recent moves to buy out illiquid companies with sizeable infrastructure networks could indicate the beginning of a period of consolidation in the industry. This could benefit long-term profitability and boost operators’ ability to improve service offerings and capture greater market share, lending an optimistic outlook to the country’s telecoms sector. South Africa’s ICT sector has shown rapid expansion over the past two decades. The government has increasingly sought to provide support for nationwide development of internet connectivity through the National Broadband Plan, while rising data demand and the burgeoning e-commerce and mobile payment segments will further underpin sector development. At the same time, a shift away from traditional voice and SMS services into the realm of data services is prompting telecoms operators to invest heavily in new fibre-optic and next-generation infrastructure. However, the country’s delayed digital TV migration and lack of available frequency spectrum, which is critical for the rollout of 4G LTE mobile broadband services, has slowed progress. Even as the country faces near-term obstacles and delays, rising recognition of ICT’s importance to inclusive economic growth should allow the sector to remain at the forefront of digital innovation on the continent.
This chapter contains interviews with Sifiso Dabengwa, Former Group CEO, MTN; and Asher Bohbot, CEO, EOH Holdings.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18While Ghana boasts a number of advantages for manufacturers, including access to a 300m-person regional market, a host of raw material inputs and competitive labour costs, 2014 was a particularly challenging year for the industrial sector. In large part this was due to a declining currency, power shortages, limited credit and high overhead costs. Nevertheless, industry still accounts for 28.4% of GDP and generated output worth $8.5bn in 2014. The government’s goal is to increase annual revenues from non-traditional exports from $2.3bn to $5bn by 2017, as well as reduce the trade deficit. While the Ghanaian retail market is relatively untapped, rising incomes suggests its time is coming. Research indicates that over 479,000 households, or 9% of the total, will be in the $10,000-per-year-plus bracket by end-2015. With a large and growing middle class benefitting from higher disposable incomes, retail spending is expected to reach $11bn by 2019.
Explore chapterGuide
The Guide explores some of the cultural heritage on offer to visitors in RAK, as well as listings of leading hotels and resorts, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18With a more robust government strategy to support research initiatives and a private sector attuned to the benefits of investing in new product development, innovation is slowly becoming instrumental to Mexico’s economic growth. Since taking office in December 2012, the government of President Enrique Peña Nieto has taken steps to improve the environment for research and innovation in the country. Among the recent measures introduced was the establishment of a high-level advisory committee to support the science and research sector, and the creation of a National Entrepreneur’s Institute to improve the environment for business creation. With the government aiming to increase expenditure on research and experimental development from 0.4% of GDP in 2013 to about 1% of GDP by the time the current presidential term ends in 2018, the research and innovation field could be set to enter a new phase of development in Mexico.
This chapter features an interview with Enrique Cabrero, Director-General, National Council of Science and Technology (CONACYT).
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Access to the internet, especially via mobile devices, has accelerated rapidly in Kuwait since the government liberalised the telecoms and IT sector in the early 2000s. The nation now has one of the highest smartphone penetration rates in the region, at 69% of the population in 2014 after seeing 40% growth on the previous year. As one of the first GCC nations to embrace competition by allowing private sector participation in the provision of telecoms services, Kuwait has lately moved to extend oversight of private operations, approving a bill in April 2014 to create an independent telecoms regulator, a move expected to yield fresh momentum for the industry going forward. Meanwhile, despite new challenges in cybersecurity, there is optimism in the industry surrounding the opportunities for new businesses to help protect against cyberthreats.
Explore chapterUtilities
Buy digital copy of this chapter - £18In 2015 Saudi Arabia will have generated twice as much electricity as it did in 2000 as demand in the Kingdom continues to expand. Energy-intensive industries, as well as highly subsidised utilities prices for customers, look set to push demand even higher in the coming years, and the government is increasingly looking to boost private sector participation in the sector. Numerous initiatives are under way that aim to manage demand and promote energy-efficient practices, particularly in construction, where there has been a focus on implementing cleaner and more efficient technologies. Meanwhile, advances in cogeneration technologies have boosted production at the country’s two largest cogeneration facilities, at Jubail and Shuaibah – advances which have saved power while boosting the Kingdom’s overall desalination capacities.
This chapter contains an interview with Jean-Pascal Tricoire, CEO, Schneider Electric.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Estimated at around 5% of GDP, the telecommunications sector has greatly expanded over the last few years, even by emerging market standards. Mobile and internet penetration have increased on the back of reduced prices and a rise in foreign investment, with the mobile segment leading growth in usage volumes. Moreover, the government has led a push to encourage infrastructure sharing, on the back of a 2012 plan to cover 50% of the population with high-speed broadband by 2027. Indeed, the Digital Morocco 2013 plan aims to boost the use of technology by Moroccan businesses, although some constraints in implementation have caused delays.
This chapter contains an interview with Youssef Chraibi, President, Moroccan Association for Customer Relations.
Explore chapterIndustry
Buy digital copy of this chapter - £18While Papua New Guinea has a long history of manufacturing, the sector accounts for only around one-tenth of GDP, and output is mostly confined to staple goods bound for the domestic market. PNG is endowed with a number of highly traded global commodities including timber, coffee, cocoa, palm oil and fish, although currently much of this is exported in raw form. With hydrocarbons production pegged to expand the economy by 15% in 2015 and 5% thereafter, there are prospects for more advanced manufacturing to take root, and for locally extracted commodities to receive more in-country value addition prior to export. Should ongoing reforms result in improved perceptions of the ease of doing business in the country, PNG could emerge as a regional destination for the processing of a number of mid-stream and finished goods.
This chapter contains a viewpoint from Somu Bhattacharya, General Manager, Coca-Cola Amatil; and an interview with Michael Kingston, CEO, KK Kingston.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although Papua New Guinea’s construction sector contracted in 2014 after a four-year boom from the massive PNG liquefied natural gas project, industry growth is expected to pick up again in 2015. New petroleum revenues are set to support the government’s sizeable infrastructure investment programme, which is seeing major improvements to roads, ports and airports in preparation for the 2015 Pacific Games and the 2018 APEC summit. The business environment remains challenging for private contractors, particularly in terms of obtaining construction permits; however, a growing emphasis on public-private partnerships (PPPs) and rising foreign financing has improved the near-term outlook, and new efforts to supply affordable housing and expand home ownership will certainly underpin steady, long-term growth. Rising inflation, as recorded in the country’s consumer price index (CPI) housing category, saw property prices and rental rates spike between 2008 and 2013. This trend continued into 2014, suggesting that the property market is likely to remain on an upwards trajectory, reinforced by robust GDP growth and a growing urban population.
This chapter contains interviews with Marcelo Minc, Country Director, Asian Development Bank’s Papua New Guinea Resident Mission; and Andrew Potter, General Manager, Pacific Palms Property.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter covers the ins and outs of the Gabonese tax system, covering areas of particular interest to investors, including recent changes, corporate income tax, capital gains and dividends, deductions and depreciation, taxes on wages and VAT, among other topics. In addition, it also includes an interview with Nicolas Balesme, Associate, Deloitte Gabon.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms and broadcasting markets in T&T are both dynamic and profitable. The two major mobile operators – Digicel and TSTT, operating under its Bmobile brand – are benefitting from rapid growth in mobile broadband internet access. A shake-up in the duopoly is expected following a government announcement in 2014 inviting bids for a third mobile licence, as well as offering spectrum in the 700-MHz, 800-MHz and 1900-MHz bands. While industry revenues are likely to continue growing at a moderate rate, the move from a duopoly to one with three main players is expected to exert downward pressure on rates and accelerate the move from voice to VAS, with operators seeking new ways to promote mobile usage. In the ICT sector, reduced government revenues resulting from the fall in oil prices could have an impact on some of the ICT development programmes currently under way. This chapter contains an interview with Cris Seecheran, CEO, Telecommunications Authority of Trinidad and Tobago (TATT).
Explore chapterICT
Buy digital copy of this chapter - £18Panama’s dynamic ICT sector has been a key enabler of the country’s high-growth, services-based economy. Strong technical infrastructure coupled with a robust legal regime make for favourable conditions for local and international technology companies. The “Global Information Technology Report 2015”, published by the World Economic Forum, ranked Panama 51st among 143 countries in terms of the quality and potential of its ICT infrastructure. With this score, Panama is among Latin America’s leaders in the field, outranked only by Chile (38th) and Costa Rica (49th). With a favourable location, good ICT infrastructure and attractive fiscal policy, the country is in a prime position to establish itself as a call centre outsourcing hub for the region. As efforts to enhance the e-government system and introduce initiatives for the full digital inclusion of Panama’s citizens continue, the sector’s outlook remains robust.
This chapter contains interviews with Jorge A Motta, National Secretary of Science, Technology and Innovation; and Agustín de la Guardia, Executive Vice-President and General Manager, Cable & Wireless Panama.
Explore chapterRetail
Buy digital copy of this chapter - £18Home to a growing base of consumers, Indonesia has seen the rising purchasing power of its fast-expanding middle class drive the retail industry to new highs in recent years. Foreign and domestic retailers alike are investing heavily in new construction and expansion projects that will see traditional retail models increasingly supplanted by modern franchises and chains. Although retail could be set for a volatile year, with the rupiah’s depreciation expected to cut into purchasing power and increase pressure on retailers, lower inflation and rising wages should help offset this. The market remains highly attractive to foreign investors despite its stringent regulatory environment, and growth is expected in 2015 as a result of rising domestic consumption and e-commerce expansion. While retail space in Jakarta will remain limited in the medium term, rising rents will help spread industry growth across the nation. This will keep the sector robust and dynamic into 2016, as well as present lucrative opportunities to foreign and local investors.
This chapter contains an interview with Irwan Danny Mussry, President and CEO, Time International.
Explore chapterTransport
Buy digital copy of this chapter - £18Turkey has easy and direct access by road, sea and, to a lesser extent, rail to markets with 1.5bn people and a combined GDP of $25trn. In 2012 Turkey handled 1.2% of global trade, and this is expected to exceed 1.5% by 2025. The 2014 budget allocated €16.72bn to transport, of which €2.04bn was earmarked for rail, almost double that going to the road network. At €3.27bn, the Marmaray project topped the list of spending in 2014. Dozens of construction projects are on the current agenda. Among them are high-speed rail links, bridges, motorways, the world’s largest airport and a 50-km channel that will transform half of Istanbul into an island. Carrying out so many grand plans will prove costly, and inevitably some will be scaled back or scrapped altogether, but judging by what Turkey has accomplished so far, many of these projects may well be realized.
This chapter contains interviews with Turgut Erkeskin, President, Association of International Forwarding and Logistics Services Providers, and Mümin Kahveci, General Manager, Istanbul Electric Tramway and Tunnel Establishments.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Since it was liberalised in the early 1990s, Mongolia’s telecommunications sector has grown rapidly. As of the first half of 2014 the four major mobile operators reported more than 4.3m registered users in total. This figure is considerably higher than the population, which means many residents own more than one SIM card. Increases in mobile penetration have facilitated rapid technological improvements across all four mobile operators, as well as steadily rising competition. Given the growth potential in the data segment, local players are looking forward to rising revenues. Indeed, Mongolia’s nascent ICT industry – which overlaps considerably with the telecoms sector – is in the early stages of what many local firms expect to be a period of considerable innovations. Despite broader challenges facing the country, the domestic technology industry is regarded as a strategic growth area and the government has made a concerted effort to encourage the sector to invest in expansion. With this in mind, most local players see a bright future for Mongolian ICT.
This chapter contains interviews with Ts. Jadambaa, Chairman, the Information Technology, Post and Telecommunications Authority; and R. Ganbold, CEO, Unitel; and a viewpoint from P. Margad-Erdene, Executive Director, ICN LLC.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Over the past decade Nigeria has become the largest telecoms market in Africa and the Middle East, with more than 140m active telecoms subscribers in 2015, according to the Nigerian Communications Commission (NCC), the federal telecoms regulator. As is the case elsewhere in frontier and emerging markets, mobile subscribers accounted for over 99% of this total, with virtually all of that segment controlled by the country’s four GSM operators: MTN Nigeria, Airtel Nigeria, Globacom and Etisalat Nigeria. Nigeria’s overall telecoms capacity is relatively high – a number of high-capacity submarine cables come ashore in the country – but bringing this capacity into people’s homes remains a major hurdle. Yet despite the challenges, most indicators point to continued expansion. Taking into account the nation’s large population and solid economic fundamentals, most local players are counting on continued rapid telecoms uptake. In the past five years Nigeria has grown into one of Africa’s largest and most vibrant markets for ICT products and services, with an ecosystem that ranges from software start-ups to infrastructure firms. According to the Federal Ministry of Communication Technology, the federal oversight body, the nation accounts for 29% of all internet usage on the continent, and this figure is expected to rise. Despite the rapid pace of growth in recent years, the industry faces a host of challenges, including low penetration in terms of both usage and infrastructure access, high operating costs and a lack of local content. Nevertheless, most Nigerian ICT players are looking forward to continued growth ahead. This is due in part to the significant scope for expansion in terms of potential bandwidth – thanks to a total capacity of nearly 10 Tbps, most of it unused, through the existing submarine cables.
This chapter contains interviews with Omobola Johnson, Minister of Communication Technology, and Issam Darwish, Executive Vice-Chairman and CEO, IHS Group.
Explore chapterUtilities
Faced with increasing consumer demand, the water and power sector is receiving a $37.5bn injection of state funding in 2014. These projects, chiefly in power generation, will be accompanied by a restructuring of the mostly state-owned power company that accounts for 85% of public supply. Electricity subsidies remain in place, with consumer prices near production costs, making them well below global levels. Considerable efforts are also being directed at reducing consumption and increasing efficiency of power use. Ambitious targets for renewable energy have been set, and there are considerable opportunities for investors as electricity expands.
Explore chapterTransport
Buy digital copy of this chapter - £18Rapid population growth and a fast growing economy are putting high demand on Qatar’s transport sector. However, several mega projects envisioned in Qatar National Vision 2030, along with infrastructure upgrades being implemented as Qatar gears up to host the 2022 FIFA World Cup, are expected to ease this pressure moving forward. Indeed, in September 2014 the minister of transport announced the government would be investing $140bn in transport infrastructure over the next five years. Meanwhile, Hamad International Airport opened in May 2014, with the new airport’s capacity reaching 36m passengers per year, and Doha Port has undergone several expansions and now comprises nine quays and two container berths. Plans for three interlinking railway services across the country are also in the pipeline, and an estimated 240 major interchanges, ranging from conventional traffic lights to junctions with tunnels and flyovers are set to be constructed as part of the state’s expressway programme.
This chapter contains an interview with Jassim Saif Ahmed Al Sulaiti, Minister of Transport.
Explore chapterTourism
Slightly more off the beaten path than South-east Asia’s mainstream holiday destinations, Sarawak has plenty to offer those seeking a slightly less conventional travel experience. The state is positioning itself as a culture, adventure and nature destination and also looks to increase its share of the globally lucrative meetings, incentives, conferences and exhibitions market as organisers and planners pursue more unique and exotic locales to stage their events. While shortcomings in connectivity remain an obstacle to growth, the government has never pursued uncontained growth, as turning the state into a mass-market tourism destination would erode the natural attractions that appeal to visitors in the first place. Tourism has thus been identified as a vehicle to be prioritised for the contribution it can make toward a more inclusive model of economic growth.
This chapter contains interviews with Mike Cannon, Managing Director, Sarawak Convention Bureau; and Charlene Chan, Manager, Citadines Uplands Kuching.
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Utilities
Faced with increasing consumer demand, the water and power sector is receiving a $37.5bn injection of state funding in 2014. These projects, chiefly in power generation, will be accompanied by a restructuring of the mostly state-owned power company that accounts for 85% of public supply. Electricity subsidies remain in place, with consumer prices near production costs, making them well below global levels. Considerable efforts are also being directed at reducing consumption and increasing efficiency of power use. Ambitious targets for renewable energy have been set, and there are considerable opportunities for investors as electricity expands.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction and real estate sectors make up around 20% of the Philippine economy, slightly ahead of manufacturing, and as of the first quarter of 2014 accounted for 7% of national employment. The industries have been thriving in a climate of political stability and upbeat business sentiment, spurred by growth in overseas workers’ remittances, investments into business process outsourcing and government spending on infrastructure. To alleviate the financing burden and free up funds for other priorities, such as reconstruction and subsidised social housing, the government is fostering greater private participation in strategic infrastructure projects. Although growth rates for the sector are unlikely to maintain the exceptional levels of the past 24 months, the long-term prospects remain solid and balanced.
This chapter contains interviews with Manuelo Paolo A Villar, President and CEO, Vista Land; and Jose E B Antonio, Chairman and CEO, Century Properties Group.
Explore chapterTransport
Buy digital copy of this chapter - £18The transport and storage sector contributed some Dh35bn ($9.5bn) to the emirate’s economy in 2013, equivalent to 3.67% of overall GDP. Sector GDP for the year was up 7.1% on 2012 figures in real terms, with its real compound annual growth rate for the period between 2009 and 2013 standing at over 12%. Several major new infrastructure projects indicate that the rapid development and growth of the transport sector is set to continue. The current expansion of the emirate’s rail capacity is seeing the construction of 1200-km network that will connect industrial centres with sea- and airports, while the emirate’s ports, which are primarily used for cargo transport and reshipping, are now being paired with industrial zones and manufacturing centres to integrate with the logistics offering. In the aviation sector, a new terminal at Abu Dhabi International Airport will occupy a 700,000-sq-metre footprint on completion in 2017, making it the largest building in all of Abu Dhabi.
This chapter contains an interview with Faris Al Mazrouei, CEO, Etihad Rail.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With no less than six operators in a market of close to 20m inhabitants, Côte d’Ivoire’s telecommunications industry is competitive. However, with limited data usage, the scope for growth in revenues is sizeable. Mobile voice is by far the biggest generator of revenues in Côte d’Ivoire’s telecoms sector, representing close to 75% of revenues in 2013. Demand for voice services may be plateauing, but with 3G technologies deployed by the country’s biggest players, the short- and medium-term outlook is bright. Significant potential therefore remains in the sector to complement call tariffs, particularly in fixed-line and mobile internet segments. Despite high access costs, internet usage rates are gradually rising and the National Broadband Project should help further raise connection levels while at the same time putting downward pressure on tariffs. Sound growth fundamentals of the mobile money segment are testament to the potential popularity of e-services in the market and bode well for those with an appetite to deepen it. Meanwhile, fiscal and regulatory pressures aimed at optimising service standards are expected to become a more regular feature of the market, especially in light of the upcoming presidential elections in 2015 and the public drive to raise funding to complete ongoing, large-scale infrastructure projects.
This chapter contains interviews with Bruno Nabagné Koné, Minister of Post, Information Technology and Communication; and Michel Combes, CEO, Alcatel-Lucent.
Explore chapterRetail
Buy digital copy of this chapter - £18The retail and wholesale sector continues to be the largest driver of the emirate’s economy, with figures for the first quarter of 2014 showing that retail contributed $6.32bn in the first three months of the year, up 4% from the same period in 2013. Major plans were announced in 2014 for the world’s biggest mall, while the number of community-focused malls is also on the rise. Looking ahead, Dubai Expo 2020 is expected to further boost the retail and hospitality sector. Official estimates suggest tourism numbers could double from 10m people staying for three-and-a-half days to 20m tourists staying for four days.
This chapter contains an interview with Colm McLoughlin, Executive Vice-Chairman, Dubai Duty Free.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism’s total contribution to Bahrain’s GDP reached $3.26bn, or 10.2% in 2013, with this is expected to increase by 7.6% in 2014 and then by 5% each year until 2024. Continued investment in infrastructure will help drive future growth in the sector, with the $980m expansion of Bahrain International Airport due to increase capacity to 13.5m passengers per year. Meanwhile, plans to expand the country’s already vibrant hotel offering are under way, with five new five-star hotels due to open over the next few years. Additionally, the kingdom is looking to unlock its rich potential as an ecotourism destination while also boosting its reputation as a regional sporting destination, building on the success of the Formula 1 Bahrain Grand Prix, a major event on the kingdom’s sporting calendar which attracts visitors from all around the world.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Following years of poor governance, limited resources and international sanctions, much work needs to be done in order to bridge the gap between Myanmar’s ill-equipped public health system and internationally recognised norms. The government and foreign donors are ramping up efforts in the fight against HIV, malaria, tuberculosis (TB) and maternal and child mortality as well as the increasing prevalence of non-communicable disease (NCDs). After decades of isolation, the sector is now open to foreign investment, allowing 70% ownership in clinics and hospitals. Both private and public sector players are taking significant steps to adjust to the evolving landscape of the country in an effort to improve the provision of medical care. The education system is also undergoing revitalisation. With many of the country’s development goals relying on the improvement of education and the expansion of vocational training, the transformation is well under way. Although the Ministry of Education has numerous hurdles to overcome, an increased budget, growing support from the global community, and the reopening of Yangon University are all positive signs for the future of Myanmar’s education system.
This chapter contains an interview with Dr Ye Moe Myint, Hospital Administrator, Pun Hlaing Hospital; and an education viewpoint from Julie Bishop, Foreign Minister of Australia.
Explore chapterRegions
Buy digital copy of this chapter - £18The sultanate of Oman is divided into 11 governorates, and as the country pushes ahead with economic diversification goals various regions are being rapidly developed. Duqm Port’s handling capabilities are to be expanded, with plans for an additional 10 km of commercial berths, while at Salalah International Airport a new terminal capable of handling 1m passengers per year is now coming on stream with plans for expansion to 6m passengers per year in the future. Four free trade zones, including ones at Salalah and Duqm in Al Wusta, are currently up and running in the sultanate, and these have had a big impact on Oman’s regions with Duqm’s population, for example, expected to reach 100,000 by 2025, up from 5100 in 2008.
This chapter contains interviews with Saeed Khamis Al Zadjali, Acting CEO, Oman Airports Management Company; and Said bin Hamdoon Al Harthy, Undersecretary for Ports and Maritime Affairs, Ministry of Transport and Communications.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Increased domestic consumption, exports and investment have led to consistent growth in the agriculture sector for more than a decade. From 2003-12 growth averaged 4.14%, according to the Ministry of Agriculture and Irrigation. However, a decline in production volumes of key crops, in particular coffee, saw growth slow to 2.2% in 2013. The development of industrial and export-oriented agriculture, concentrated on the Peruvian coast, is leading sector growth and diversification efforts. The government has supported growth in this segment with a number of large-scale irrigation infrastructure projects that are quickly expanding irrigated land. Meanwhile, the fishing industry is facing a second year of troubled waters as supplies of anchovies, the sector’s prime catch, have fallen to a record-low. In a climate of instability, the sector is increasing diversification efforts to reduce dependence on the delicate resource.
This chapter features an interview with José Chlimper, CEO, Agrokasa.
Explore chapterHealth and Education
Buy digital copy of this chapter - £18Having made considerable gains in health care provision over the past five decades, Algeria has been undergoing a transition in terms of its health challenges. Under the current 2009-14 five-year plan, the government had pledged $6.2bn for the establishment of new health infrastructure, including 1500 new facilities. Renovation of existing facilities is also being undertaken, coordinated with a certain level of decentralisation to allow the management of health efforts to become more autonomous in the regions. Algeria continues to put a strong emphasis on improving provision of education across the country. A decade has passed since the beginning of educational reform, and authorities are now cementing new practices and aiming to understand which elements need further work. Expansion of infrastructure and continued teacher training should also help to improve standards.
This chapter contains interviews with Yiğit Gürçay, Senior Vice-President and Area Director – MENA, GlaxoSmithKline; and Abdelhak Lamiri, President, Groupe INSIM
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Four main mobile operators and two fixed-line players cater to subscribers in a market that – like much of the emerging world – is seeing slowing subscriber growth and price cuts encourage a shift towards new value-added services. Delays by government agencies were cited as the biggest problem facing mobile operators, particularly in terms of getting permission to build infrastructure. Spectrum allocation delays also inhibit industry progress. The erosion of the fixed-line market will continue as mobile penetration keeps ticking upwards. There will, however, be convergence in some areas, such as termination rates. Data will continue to dominate growth as voice revenues fall and prices get even leaner.
The ICT sector is growing rapidly in terms of numbers connected, speeds attained and services provided. The industry as a whole is by far the largest and most sophisticated on the continent, contributing around 6% to GDP. Robust growth has benefitted in part from strong government support and high levels of corporate consumption; however, it has also faced challenges with last-mile linkages and infrastructure constraints. The increasing deployment of fibre means that broadband performance is set to improve further, as fibre has latency of 1.5 to 2 milliseconds, whereas digital circuits are more than one hundred times slower. Growth in the ICT sector will continue to be robust, as strong levels of investment are maintained and SMEs sustain demand in promising subsectors like cloud computing.
This chapter contains interviews with Sipho Maseko, CEO, Telkom; and Orlando Ayala, Corporate Vice-President & Chairman – Emerging Markets, Microsoft.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism has long been an integral and major contributor to Egypt’s economy – reaching 11.3% of GDP in 2010 – as well as a ready source of foreign currency. Nevertheless, the 14.7m international visitors seen in 2010 had decreased by more than a third to 9.1m by 2013. Almost as worrying was Egypt’s 85th position among global tourism destinations ranked by the World Economic Forum. Yet, the Ministry of Tourism’s switch in emphasis to regional source markets paid off to such a degree that by mid-2014 it was forecasting 2m Arab visitors by the end of the year and an overall rise to 9.5m tourists despite a discouraging start. Continued stability is clearly key. The speed with which confidence returns to Egypt’s foreign source markets is impossible to predict. Retaining slightly over 9m tourists a year, even in the worst days, is perhaps a remarkable achievement and in any case a big base on which to build.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The drive for economic diversification has led to significant expenditure on infrastructure in areas such as industrial parks, irrigation works, telecoms and the national transport network. Public spending dominates the construction sector, and around 80-90% of works are carried out by the state. Increased government expenditure will ensure that public projects continue to drive growth, although the announcement of a number of large-scale private industrial projects in 2013 and 2014 should provide more opportunities for construction firms as well. Given the demand for housing, there could be further growth in the private residential market in the future, provided regulations governing ownership are clarified. According to official figures, the real estate sector accounted for 2.38% of GDP in 2013, worth $337m. Residential property values grew by around 10% in 2013, driven largely by the ongoing land shortage, increases in labour and construction material costs, and overall inflation.
This chapter contains an interview with Bobby Chua, Vice-Chairman, Swee.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Industry in Kenya encompasses manufacturing, construction, and mining and quarrying. Combined, these sectors accounted for 14% of GDP between 2009 and 2012. Policy is being guided by the Vision 2030 national development roadmap (V2030), the National Industrialisation Policy Framework 2012-30 (NIPF) and the Second Medium-Term Development Plan 2013-17 (MTDP2), in tandem with the East African Community Industrialisation Policy and Strategy 2012-32. Objectives outlined in V2030 and the NIPF will require improved productivity, market development, infrastructure strengthening and diversification into high value-added sectors. In retail, home-grown businesses form a significant proportion of Kenya’s modern retail sector. Competition is tight and the informal market continues to play a big role, but the sector is dynamic. Penetration of formal retail establishments remains low, estimated at 15-20% of the sector, and the market is highly fractured, particularly outside of the main urban centres, but devolution should encourage the expansion of modern retail space.
This chapter contains interviews with Adan Mohamed, Cabinet Secretary, Ministry of Industrialisation and Enterprise Development; Manu Chandaria, Chairman, Comcraft Group; Betty Maina, CEO, Kenya Association of Manufacturers (KAM); Charles Ireland, Group Managing Director & CEO, East African Breweries.
Explore chapterTransport
Buy digital copy of this chapter - £18As Ghana’s growth has accelerated in recent years, the government has sought to boost investment in all modes of transport through public and private resources. Unlike many emerging markets, Ghana’s transport backbone covers every region of the country, with heavy concentration in the most economically developed areas, such as around the capital, Accra. Oil earnings have stimulated Ghana’s economic growth and provide the resources needed to support infrastructure development. Nonetheless, as the country moves into the middle-income bracket, limitations in infrastructure are becoming increasingly apparent, and in some cases are impeding growth in select sectors. As such, the government is keen to attract more participation from private and foreign partners.
This chapter contains an interview with James Antwi, CEO, Starbow.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18ICT is one of Jordan’s fastest growing industries and penetration rates for internet and mobile phones remain high. Strong growth was recorded in 2013 in data services and smartphone sales, with 38% of the country’s mobile phone users owning a smartphone. The tech start-up sector is a leader in the Middle East but, while Jordan has been able to produce a large, skilled IT workforce, it has faced a problem of brain drain to more lucrative markets in the past. In an effort to combat this, on-the-job training initiatives and government subsidised-programmes have been put in place to help retain the local IT workforce. Moreover, the success of tech start-ups like social media platform Sowt is encouraging many young IT professionals to put their skills to use at home
This chapter contains an interview with Azzam Sleit, Minister of Information, Communications and Technologies.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Health
Covering the 2011-15 period, the National Health Strategy was launched in 2010 and aims to accelerate sector reforms by improving the overall governance of health care, reducing infant and maternal mortality, introducing free maternal health care and investing in infrastructure, especially hospitals.
The country has been rolling out its universal health care system, the National Insurance and Social Welfare Fund since 2008 as part of a broader effort to improve the standard of living. However, challenges such as a shortage of trained medical personnel remain, and the country still has much work to do to meet the goals set for its health care sector. Health spending as a proportion of GDP remains comparatively low and non-communicable illnesses linked to demographic shifts and lifestyle changes, including cancer, hypertension, obesity and diabetes are a growing concern.
Education
One of the three key pillars of the Emerging Gabon strategy is Services Gabon, which addresses the development of a skilled labour force and aims to establish the country as a regional centre for financial services, tertiary education, health and environmentally sustainable development.
Gabon increased its investment budget in 2013 as part of its plan to overhaul public infrastructure across the board. Proposed investment in education in the budget was up 53% year-on-year to €138m. Efforts to identify future economic needs and to bring tertiary education in line with the demands of the job market are vital for the economic growth of the country. Agreements with private companies looking to increase the number of qualified professionals are on the rise, with plans for several new industry-specific schools announced in recent years. The private sector and foreign cooperation will play a key role in improving the educational offering and thereby helping the nation to provide the skilled workers required by its growing economy.
This chapter contains an interview with Simon Ntoutoume Emane, Minister of Labour, Work and Vocational Training.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Mongolia faces significant challenges in manufacturing, as neighbouring China has a prominent edge in production of many goods. The northern country can also be an expensive country for manufacturers, with high transportation and labour costs. In May 2013, the minimum wage was raised from $87.75 per month to $120 per month. Government investment in textiles manufacturing in 2012 saw $68.8m directed to cashmere production, $45m to wool goods output and $13.5m to sewing operations. Still the potential for industry in Mongolia is under-appreciated. The prospects for the sector are positive, but the country must be careful. Mongolia has the right mix of wealth and income growth that will promote strong consumer demand in the medium and long term. Despite concerns about the future of high-end retail, Mongolia remains one of the most promising retail markets globally. This chapter contains an interview with S. Demberel, President, Mongolian National Chamber of Commerce and Industry.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Rising capital values, favourable interest rates and strong demand have created a promising environment for Indonesia’s real estate sector, which posted impressive expansion numbers in 2013. While the US and EU have struggled with the lingering effects of the global financial crisis, South-east Asia has powered on, with Indonesia topping the list of the world’s fastest growing luxury real estate markets in terms of price. A new loan-to-value ratio introduced in 2013 aims to protect against a property bubble, in part by requiring first-time home buyers to make a down payments of 30% of the purchase price, with this rising to 40% and 50%, respectively, for those purchasing a second or third home. Rapid population expansion, growth of the middle class and increasing road congestion in Jakarta mean that demand for properties in the city centre is expected to continue rising. Demand for office rental space, as well as for retail and hotel property, is also expected to continuing rising. Indonesia’s young population and growing consumer class will provide growing demand for property in the years ahead, and, as the country continues to strengthen its appeal as a location for doing business, the real estate market should remain an attractive option for investors over the longer term. This chapter contains interviews with Michael Widjaja, Group CEO, Sinar Mas Land; Santoso Gunara, President Director, Danayasa Arthatama; and Eddy Sindoro, Paramount Enterprise.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18With the country continuing its telecoms development, Thailand’s internet connectivity is about to improve exponentially. Wireless speeds are on their way up and wireless access is expanding rapidly. In 2001 the passing of the Telecommunications Business Act established three types of licenses: one for internet service providers without a network, one for those with infrastructure, and one for private networks. In the second quarter of 2013 Thailand’s broadband adoption rate was up 191% quarter-on-quarter. In addition, the country ranked 39th in the world in terms of broadband adoption and 22nd in terms of connection speed. The local data centre business is forecast to expand by 21% in 2013 to around $56m, due to the adoption of cloud computing, the need for disaster recovery and the increasing connectivity within the ASEAN region. The outlook for the telecoms sector is more positive than it has been in years. Given the 3G auction and the bright prospects for 4G, companies are set to see their business improve, and customers will likely benefit from better performance. This chapter contains interviews with Anudith Nakornthap, Minister of Information and Communication Technology; Pete Bodharamik, CEO, Jasmine International; and Jon Eddy Abdullah, CEO, Total Access Communication.
Explore chapterConstruction
Buy digital copy of this chapter - £18The construction sector grew by 13% y-o-y in third-quarter 2013, driven primarily by spending on transport infrastructure. With more than $222bn of projects in the pipeline, sector growth has been forecast at 15% for 2014, while spending on infrastructure is set to reach $150bn in the run-up to the 2022 FIFA World Cup. The scale of construction activity in the region has created some challenges that Qatar, in particular, will have to address to meet its targets. The demand for building materials and bottlenecks in transport and logistics, for instance, are driving up the cost of construction. This chapter contains interviews with Sheikh Abdul Rahman bin Khalifa Al Thani, Minister of Municipality & Urban Planning; Essa Mohammed Ali Kaldari, CEO, Lusail Real Estate Development Company; and Khalid Al Rabban, Chairman, Qatar Primary Materials Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The UAE overtook Saudi Arabia as the Gulf’s largest construction market in terms of contracts awarded in 2012. In 2013, the UAE construction market continued to post growth, led by Abu Dhabi’s capital investments in infrastructure, housing and health care facilities. The value of the UAE’s construction sector was forecast to grow by 4.5% in 2013, reaching $41bn, and is expected to continue to expand going forward, topping $50bn and 10% of GDP by 2016. The emirate’s current investments are intended to lay the foundation for the development of an increasingly diverse economy in the years ahead, and the municipality’s regulations should go a long way towards realising its ambition of making the capital a leading international city.
Explore chapterTourism
Buy digital copy of this chapter - £18One of four key pillars of economic growth in the Strategic Economic Plan 2010-14, the tourism sector has experienced rapid development in the past decade. According to the World Travel & Tourism Council, the sector contributed an estimated 13.1% to national GDP and was responsible for 12.4% of total employment. Panama City has seen a surge of international hotel chains enter the market in recent years, while the high-end beach and luxury segment is set to receive significant government investment. Moreover, Panama’s strong biodiversity lends itself to a nascent ecotourism sub-sector. Although hotels in Panama City are facing short-term pressure in the form of lower occupancy rates and reduced prices, this is expected to be temporary. Increased investment and major infrastructure projects promise to boost visitor numbers to the capital and ensure long-term growth, especially as incomes rise throughout South and Central America. This chapter features an interview with Ernesto Orillac, Deputy Minister of Tourism.
Explore chapterTourism
Buy digital copy of this chapter - £18While many sectors of Myanmar’s economy have great potential, the tourism sector is already highly profitable and growing rapidly. Flights to Myanmar have dramatically increased in number since 2010 as business visitors and leisure travellers flock to the frontier that until recently was isolated by international sanctions. In just four years, visitor numbers surged from 20,000 per year in 1992 to 200,000 per year in 1996, and they reached 2.04m in 2013. Given the dearth in hotel accommodations and other facilities to meet the surging demand, many operators have doubled or even tripled prices and investors are scrambling to build. Growing at a sustainable pace is key for the sector’s long-term success, and the government has made a decision not to overdevelop too quickly and to respect the landscape and cultures that attract tourists in the first place. This chapter contains interviews with U Htay Aung, Union Minister, Ministry of Hotels & Tourism; and Frank Janmaat, Group General Manager, Amata Hotels and Resorts.
Explore chapterEnergy
Buy digital copy of this chapter - £18The hydrocarbons sector accounts for about 80% of all government revenues in the UAE. However, the sector’s GDP share varies substantially, from over 50% in Abu Dhabi to less than 6% in Dubai. Given its modest hydrocarbons endowment, Dubai continues to import most of its energy feedstock. The emirate is working to diversify its energy mix on both the supply and demand side. With 70% of electricity use in the emirate’s buildings committed to cooling, developing efficiencies in this market segment is a main focus of the demand side management strategy, and as a result of this, the district cooling service market is expected to reach 30% penetration at the individual level. Meanwhile, an expansion in production capacity at desalination plants looks set to meet growing demand for water.
This chapter contains interviews with Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority; Saeed Khoory, CEO, Emirates National Oil Company; and Ahmad bin Shafar, CEO, Empower.
Explore chapterRetail
Buy digital copy of this chapter - £18Regular rises in the minimum wage, the most recent of which took place in July 2013, have increased overall purchasing power in the sultanate. Other factors, such as a rising number of expatriates and tourists, the growing appeal and awareness of international trends, low market saturation, political stability and high oil prices have attracted major investments by international retailers that see strong potential for the Omani marketplace. The ongoing influx of hypermarkets and supermarkets is likely to see retailers, both domestic and foreign, continuing to penetrate the country’s interior as the coastal population centres become saturated. These dynamics are likely to shape the retail sector – and the investment opportunities available – in the short to medium term. This chapter contains interviews with Pankaj Khimji, Partner-Director, Khimji Ramdas; and Said Al Ka’abi, Chairman, Public Authority for Consumer Protection.
Explore chapterRetail
Buy digital copy of this chapter - £18The second-largest contributor to GDP after construction, the retail sector reported 6.7% year-on-year growth in 2012, and continued to post 5% growth in the first half of 2013. The rapid development of the sector has meant a significant advantage for retailers that established a presence in the country in the early 2000s, and as a result a few conglomerates have dominant stakes across various retail segments. Land availability in Peru’s biggest cities remains a challenge, as does infrastructure, particularly in more remote regions. With the industry’s fundamentals set to continue to support growth in the coming years, retail should retain its high ranking in terms of both investment and contribution to national GDP, while the sophistication of consumer loans, which have grown six-fold over the past decade, is also expected to help spur development.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18From expansion of 18.4% in the last quarter of 2012 to 32% in the first quarter of 2013, the construction industry has shown consistent double-digit growth of late. According to the Philippine Development Plan 2011-16, the government intends to increase infrastructure spending to almost 5% of GDP by 2016. Rapid urbanisation and the pace of construction are likely to add to increasing demand for water, energy, roads, airports, and other transport developments. The outlook for the real estate sector looks positive as demand for quality housing, office and retail space is expected to remain high in step with economic growth. Amidst optimism in the sector, however, there are concerns that increasing property prices could create a bubble and drive up inflation. To some degree, demand-side pressure could be eased as new office and residence projects are completed and more space becomes available throughout the country. This chapter contains interviews with Don H Lee, President, Lafarge Holdings (Philippines); Michael Cosiquien, Chairman & CEO, Megawide Construction Corporation; and Ambassador Amable R Aguiluz V, Chairman, Picar Development.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18Over the past decade Nigeria’s ICT industry has grown to become one of the largest and most dynamic in Africa, with total mobile internet subscribers topping 30.9m at the end of the second quarter of 2012, accounting for the majority of the country’s 48.4m internet users. While the government has taken a prominent position on driving basic penetration, private operators have been influential in expanding local content and buttressing demand, particularly on the corporate side. Mobile phones dominate the telecoms sector, with four GSM operators providing services for more than 114m subscribers as of July 2013. Data services are considered a key driver of future growth in the sector, though insufficient bandwidth and low data speeds are challenges. To this end, local operators have been investing in infrastructure to improve quality of service and expand coverage areas. This chapter contains interviews with Omobola Johnson, Minister of Communication Technology; Pfungwa Serima, CEO, SAP Africa; and Manoj Kohli, Managing Director and CEO International, Bharti Airtel.
Explore chapterTourism
Buy digital copy of this chapter - £18Although the tourism sector currently makes up 2% of GDP and attracted nearly 982,000 tourists in 2012, the government hopes to raise the sector’s GDP contribution to 5% by 2015 and boost visitor numbers to 2.5m. The 2009 Complementary Finance Law introduced a number of fiscal incentives aimed at increasing sector activity, such as cheaper access to government land and better interest rates on loans used for tourism developments. Proposed hotel and infrastructure projects will potentially raise the number of hotel beds to 75,000 by 2015 and create 30,000 new jobs. In parallel with efforts to expand tourism facilities, a number of initiatives are also aimed at ensuring that the country has sufficiently skilled human resources capacity. This chapter contains an interview with Pierre-Frédéric Roulot, President and CEO, Louvre Hotels Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Aided in part by the large domestic market, a spate of new industrial facilities, competitive labour costs and increasing urbanisation, the fundamentals of the Egyptian construction market look promising. The Egyptian real estate sector has continued to see growth, which has helped to support some contractors, but companies relying on work in the infrastructure segment, particularly those dependent on government contracts, have been suffering. Although the sector has been buoyed by positive population demographics and a mild backlog of public projects, rising costs and disputes over land ownership continue to pose challenges. However, the continued and long-term need for investment in housing and infrastructure means that diversified construction groups will certainly survive, if not thrive, over the medium to long term. The real estate market continues to exhibit potential, despite facing many challenges in the near term. Some of these, such as uncertainty, are the result of the turbulence following the 2011 revolution, while others, such as issues relating to the availability of land, date back several decades and will require sustained government action to resolve. In spite of an uncertain macro environment, the Egyptian real estate industry has managed to thrive over the past year and looks set to continue doing so. This is thanks to very propitious demographic fundamentals and a trend towards using property as a safe haven investment. This chapter contains interviews with Dasha Badrawi, Managing Director, Sixth of October Development and Investment Company (SODIC); and Magued Sherif, CEO, Hyde Park.
Explore chapterThe Guide
This chapter highlights two forts in the emirate, one of which now serves as the National Museum. The Guide also contains listings of some of the leading hotels and resorts and features contacts details for government offices and services. It also contains useful tips and information for business and leisure visitors alike.
Explore chapterMining
Buy digital copy of this chapter - £18Hydrocarbons are not the only underground resource to yield billions of dollars of profit in Saudi Arabia. The mining of metallic ores, phosphates, bauxite and construction materials is an area of growth that the government hopes will become the third pillar of the economy, after oil and petrochemicals. Indeed, Saudi Arabia encompasses geologically diverse areas that contain a wealth of resources, including some of the world’s largest ore deposits. Furthermore, in recent years the Kingdom has made fundamental changes to its business climate for the sector, while the emergence of a new railway infrastructure should further increase investor interest. This chapter includes an interview with Sultan J Shawli, Deputy Minister for Mineral Resources.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As mobile subscriber numbers are nearing saturation, future growth will be driven by the expansion into new products and services. In anticipation, mobile operators are working to introduce value-added services and improve overall network quality. In the meantime, operators are working to expand their infrastructure networks ahead of the switch to 3G. The current absence of 3G services means that the Gabonese market has considerable room for growth, despite the small size of the population. With the arrival of the Africa Coast to Europe (ACE) fibre-optic cable and rising demand for digital services, Gabon’s IT sector is on the cusp of considerable growth. The increased bandwidth offered by the cable should drive down domestic costs for data access. Public investment in ICT has jumped in the last two years, in line with government aims to make the country a digital economy by 2016. State support is crucial to the success of these goals, but it is up to the private sector to develop the service offering in this relatively untapped market. This chapter contains interviews with Alex Bernard Bongo Ondimba, President, National Agency for Digital Infrastructure and Frequencies (ANINF); and Manoj Kohli, Managing Director and CEO International, Bharti Airtel.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Kuwait is forging ahead with infrastructure upgrades as part of its $107bn National Development Plan to support all modes of transport. Home to 6% of the world’s oil reserves, hydrocarbons continue to define Kuwait’s current transport infrastructure, yet contemporary strategic goals – in line with Vision 2035 – look to develop the entire sector with diversification as the central focus. If political stability endures then the sector can expect to reap substantial rewards as mega-projects receive government approval in the near term. This chapter contains an interview with Marwan Boodai, CEO, Boodai Group, and Chairman, Jazeera Airways.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Once the industrial engine of post-colonial West Africa, Côte d’Ivoire still retains a commercial and manufacturing fabric that is enviable by regional standards, although its lead over its neighbours has all but disappeared recently. As with other areas of the economy, industry has suffered from the years of political turmoil and economic stagnation from 1999 to 2011. Recovery has been rapid and impressive since 2011, however, and Ivoirian industrialists are optimistic about a return to sustained growth.
Explore chapterGauteng
Buy digital copy of this chapter - £18Despite having the smallest land area of South Africa’s nine provinces at 16,548 sq km, Gauteng is the largest contributor to the national economy contributing around $85.33bn and growing at a rate of 3%. The tertiary sector is the main driver of the local economy and makes up 71% of Gauteng’s GDP, led by finance, real estate, and business and government services. While Gauteng accounts for most of South Africa’s economic output, with opportunity comes the challenge of population migration and urbanisation, placing a strain on the provision of public services and employment. This chapter contains interviews with Nomvula Paula Mokonyane, Gauteng Premier; and Siphiwe Ngwenya, Group CEO, Gauteng Growth and Development Agency (GGDA).
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18The energy sector reached a milestone in 2012 as crude oil production surpassed 1m barrels per day. Colombia’s current generation capacity of 14,420 MW is supplied primarily by hydroelectric power, which accounts for just over two-thirds of the total, with the remainder coming primarily from natural gas- and coal-fired thermoelectric plants. Since 2008 natural gas production has seen private sector output grow at 22.9% year-on-year. The sector has also seen the emergence of a biofuels industry as legislation mandating the use of biofuel mixes created domestic demand for the alternative energy source. Deficient infrastructure and security concerns continue to pose a challenge to the sector. This chapter includes interviews with Frederico Renjifo Vélez, Minister of Mines and Energy; Juan Esteban Calle, Empresas Públicas de Medellín; and Germán Arce Zapata, President, National Hydrocarbons Agency.
Explore chapterTourism
Buy digital copy of this chapter - £18A major airport expansion, along with the addition of new international air routes, is expected to boost tourism and ease bottlenecks in the near term. Niche markets like medical tourism and ecotourism are offering promising avenues for sector expansion. The industry resumed brisk revenue growth in 2012, marking its continued recovery from the regional slowdown. The meetings, incentives, conferences and exhibitions segment is expected to continue to grow, and several medium-sized venues already exist in Amman for these purposes, further helping to boost tourism’s contribution to the economy.
Explore chapterTourism
Buy digital copy of this chapter - £18Events have been planned to celebrate Bahrain’s year as the Capital of Arab Tourism in 2013. MICE venues, such as the Bahrain Exhibition and Conference Authority’s complex at Sanabis, seek to offer a diverse range of meeting spaces, often in conjunction with hotels. Cruise ships are expected to further boost visitor numbers: the kingdom saw a record number of cruise ship arrivals for Bahrain in the 2011-12 season, and an estimated 70,000 cruise tourists are expected during the 2012-13 season. The authorities are also looking to upgrade the quality of accommodation on offer at the lower end of the market to broaden appeal to families.
Explore chapterTourism
Buy digital copy of this chapter - £18With official figures from 2012 showing foreign arrivals continuing to edge upwards, year-on-year, Turkey has maintained its status as a leading global tourism destination. Collaboration at the public, private and non-governmental levels is seen as key to improving professional standards in the sector, and to meeting the goals outlined in the Tourism Strategy 2023. There are still challenges, however, not least of which is the threat posed by rapid growth to the integrity of environmental, cultural and historical sites. Turkey is seeking to broaden its image as a destination by promoting its diverse landscapes and cultural heritage, with efforts under way to develop infrastructure to support golf and winter sports tourism as well. The Tourism Strategy 2023 is ambitious, with the 50m-visitor target around 20m higher than current figures. The target may be achievable, as numbers have grown at a heady rate in recent years, rising 170.7% between 2001 and 2011, for example.
Explore chapterTourism
Buy digital copy of this chapter - £18With a near-pristine environmental record and more than 70% of its territory covered by tropical rainforest, Brunei Darussalam has strong potential to capture a sizeable share of the growing Asian ecotourism and family holiday market. The country is host to an abundance of natural attractions, from rainforests to beaches, rare wildlife to the legacy of tribal cultures, and a rich vein of Islamic history. Despite these strengths, the industry remains relatively small as a share of the Sultanate’s overall economy. There is recognition by the government and various stakeholders that the current tourism model is unlikely to contribute much towards economic growth, and efforts moving forward will focus in particular on high-end and low-volume tourism with a minimum impact on the Sultanate’s environment and local culture. This chapter contains an interview with Mariani Haji Sabtu, Acting Director, Tourism Development Department.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture contributed 13.2% of GDP in 2011, up slightly from an average yearly contribution of 13% of GDP between 2006 and 2010. Poor weather conditions in the first quarter of 2012 significantly reduced the seasonal output of many crops. However, efforts to boost investment, restructure the sector and modernise agricultural practices should help to protect against future shocks. The sector is expected to continue expanding in the coming years as domestic demand grows and progress is made on the sector’s development strategy, the Green Morocco Plan (Plan Maroc Vert, PMV). By 2020, the PMV’s first pillar aims to increase the value of agricultural exports from €711m to €3.9bn, primarily by developing high-value crops such as citrus, fruits and vegetables, and olives. To meet its ambitious targets, the kingdom will need to generate considerable investment from the private sector.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After a period of rapid growth in 2008 and early 2009, the construction sector has settled into a more moderate pattern in recent years. However, 2012 began on a positive note; in January 2012 the Executive Council announced that it had approved a range of projects, including some that had previously been put on hold, covering housing, health care and education, in addition to major transport infrastructure development. In real estate, a number of commercial and residential projects have come onto the market, bringing prices down to a level more comparable with those in neighbouring Dubai. Abu Dhabi’s retail and industrial segments are also expanding; mall space is expected markedly by 2015, while industrial real estate has much potential for growth thanks to the government’s focus on establishing the emirates as a centre for industrial activities and transport. This chapter includes an interview with Majid Al Mansoori, Chairman, Department of Municipal Affairs (DMA).
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Transportation and logistics in Indonesia are sectors of great opportunity, but also pose immense challenges. As the economy booms and travel increases, related businesses have grown and relevant infrastructure is being built. At the same time, the transportation networks and systems are put under stress as the economy expands rapidly. This is especially an issue in Indonesia, where existing infrastructure is often poor and the process of adding capacity can be slow and inconsistent. Over the next few years, transportation and logistics promise to develop quickly, although not always in a balanced way. Connectivity should improve, bringing some corridors up to international standard, though gaps may remain. This chapter contains interviews with Emirsyah Satar, President and CEO, Garuda Indonesia; and Richard Lino, President Director, IPC II.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Leveraging its tremendous economic growth and high per capita income, Dubai has developed a robust health care system that provides a high level of medical services to its citizens. The Dubai Health Authority, responsible for the regulatory and strategic oversight of health services in the emirate outside the health care free zone, is further strengthening the sector through strategic partnerships to develop health care-related education facilities. However, while UAE health care expenditures are significant, at around $1450 per capita in 2010, they still lag behind global averages for OECD countries. Indeed, although the UAE accounted for 20% of the total GCC health care expenditures in 2009, this represented only around 3% of GDP. More positively, free zones are attracting investments and have seen tremendous growth of private clinics and specialised service centres. This strategy has also opened up a strong potential for medical tourism. This chapter includes interviews with Princess Haya bint Al Hussein, Chairperson, Dubai Healthcare City Authority; and Abdulla Al Karam, Chairman and Director-General, Knowledge and Human Development Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18Endowed with isolated, unspoilt nature and nomadic Buddhist culture, Mongolia has managed to develop a small but potentially profitable tourism sector that is expanding through support from the government and a focus on the adventure and nature segments. The country’s main sources of genuine leisure tourism over the past decade have been more affluent countries, including Japan, South Korea, North America and Western Europe. Tourist arrival numbers have fluctuated in recent years, although the country continues to attract visitors from across the globe. Some 460,360 tourists arrived in 2011, up 0.9% from 2010. The expansion of tourism may have been overshadowed by fast economic growth, but it remains a tribute to the country’s vibrant private sector and the attractions of the pristine landscape. While the development of new hotel infrastructure in Ulaanbaatar is necessary to cater to growing business travel, the government will certainly need to pay close attention to supporting smaller ecotourism projects and initiatives in the countryside in order to preserve options for tourists. This chapter contains interviews with Ts. Oyungerel, Minister of Culture, Sports, and Tourism, and U. Jalsa, President and CEO, Nomadic Expeditions.
Explore chapterCulture, Youth & Sports
Buy digital copy of this chapter - £18Oman’s cultural heritage is renowned throughout the region and beyond, and much of the government’s effort in relation to it has been exerted on its preservation and ensuring that the sultanate’s young population is imbued with the richness of its past. The nation’s youth are also the principal target of a drive to enhance Oman’s sporting infrastructure and proficiency, a strategy that has already established the sultanate as a growing destination for international sporting events. Indeed, a significant level of government funding has been set aside for sport development, with the 2011-15 five-year plan investing some $64m in infrastructure development, including improvements to sports complexes and clubs, as well as for new facilities.
Explore chapterIndustry
Buy digital copy of this chapter - £18Malaysia has developed competitive industries in a number of key fields, from agriculture-based products like rubber and halal food, to petroleum and chemical products, to high-tech electrical and electronics manufacturing. The government’s strategy for turning Malaysia into a high-income economy includes shifting from low- to high-value production, emphasising sectors like bio-technology and pharmaceuticals that require more talent and R&D inputs. Along these lines, many firms are looking to upgrade their offerings, with medical device manufacturers moving from disposable rubber products to more high-tech equipment, and electronics manufacturers building their own tablets. Challenges for the sector include a new minimum wage introduced in 2012, although defenders of the policy say it will encourage a shift toward higher-value labour. This chapter includes interviews with Mustapa Mohamed, Minister of International Trade and Industry (MITI); and Wong Lai Sum, CEO, Malaysia External Trade Development Corporation (Matrade).
Explore chapterTourism
Buy digital copy of this chapter - £18Algeria is looking to develop its tourism sector as it aims to ease dependence on hydrocarbons revenues by pursuing more sustainable sources of growth, capitalising on attractions such as its extensive desert and a coastline that stretches more than 1200 km. The National Tourism Development Plan is targeting an increase in sector revenues, from the current annual average of €344m to €480m by 2015. Tourism is also being developed as a year-round business to evolve around five niches: Saharan, business, seaside, cultural and wellness. Almost 1.5m tourists visited Algeria during the first half of 2012, and a total of 3m are expected by the end of the year. With the rise in foreign visitor numbers and increased investment in hospitality, the country seems to be on track to deliver an attractive and competitive sector. This chapter contains interviews with Mohamed Benmeradi, Minister of Tourism; and Karim Cherif, President, National Federation of Algerian Hôteliers, and Managing Director, Eden Hotels.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture makes a significant contribution to the economy, accounting for 40% of GDP at the end of the fourth quarter of 2011 and employing 60% of the population. Sector policy is guided by the Agricultural Transformation Action Plan (ATAP), which aims to diversify the economy and support rural areas while also reducing the cost of food imports. Some $8.3bn is spent on importing staple foodstuffs annually, a figure that is rising by 11% a year. Under the ATAP strategy, the government wants to boost domestic production for staple crops such as rice and cassava, as well as cash crops like palm oil, cocoa and cotton. Yet significant obstacles remain in the form of finance, infrastructure and land availability. This chapter contains an interview with Akinwumi Adesina, Minister of Agriculture and Rural Development.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms market is still relatively young in terms of market-driven competition. The market entered a new phase in 2009, when Vodafone Qatar began to operate as the second telecoms provider, bringing an end to Qatar Telecom’s (Qtel) monopoly. The resulting competition has sparked more innovation and brought higher-quality service. Indeed, mobile penetration rates now stand at 142%. Landline network has grown too: between 2002 and 2011 the number of landline telephone subscriptions jumped from 176,519 to 308,655. More recently, this has been useful in propelling the use of broadband internet. However, a new $550m public fibre network initiative is set to provide more than 95% of the state’s population with connection speeds up to 100 megabits per second by 2015. This chapter includes interviews with Hessa Al Jaber, Secretary-General of the Supreme Council of Information and Communication Technology (ictQATAR); Sheikh Saud bin Nasser Al Thani, CEO, Qatar Telecom; and Rashid Al Naimi, Chairman of the Board of Directors, Meeza.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms industry is being redefined by a move toward mobile technology. Mobile subscriptions reached 2.37m in 2011, an increase of 112% since 2007. The mobile market is highly competitive, with four competing operators. With the penetration rate currently reaching the saturation point, operators will have to begin offering new services such as mobile broadband at lower rates to maintain a competitive edge. While a 3G licence has already been awarded, no services have as yet been rolled out. If the eventual introduction of 3G services is successful and affordable for mobile customers, it is expected that these will contribute to the continued steady expansion of the sector. Major changes are under way in the IT sector, with significant investments taking place in digital infrastructure. The installation of a second fibre-optic cable is expected to reduce the cost of access to broadband internet – a move which should help solve the problem of low internet penetration, which currently stands at approximately 18%. The government is also planning for the creation of seven IT flagship zones, which are intended to serve as incubators for small businesses, and is also facilitating a switch toward e-government services. This chapter contains an interview with Alex Bernard Bongo Ondimba, President, National Agency for Digital Infrastructure and Frequencies (ANINF).
Explore chapterAgriculture
Buy digital copy of this chapter - £18Once considered the breadbasket of the Roman and Byzantine Empires, Egypt today continues to be an agricultural powerhouse. Rising domestic demand supports local producers, and it has also led to the country becoming a net food importer. Although aggregate cereal production reached 22.3m tonnes in 2011, a 9.3% increase on the previous year, domestic supply cannot meet demand, making Egypt the world’s largest buyer of wheat. Meanwhile, a number of export-oriented niches, including citrus fruits, are on the rise, and growers are now looking to move up the value chain. The largest agricultural export is citrus, with the country ranking 7th in the world in 2010 for orange production and 5th for tangerines, mandarins and clementines. However, the sector faces serious challenges, particularly shortages of land and water. Much farming is inefficient, due to fragmentation and a lack of technical development. This chapter contains an interview with Musa Freiji, Chairman, Wadi Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Fuelled by public infrastructure maintenance and expansion, private real estate development and individual residential construction, Ghana’s construction industry has been growing steadily, with sector output increasing by 91.8% between 2006 and 2010. With demand for individual family houses – particularly in the low-income bracket – on the rise and plans in place to develop a number of new cities in the Western Region, this trend looks set to continue. Additionally, with the rise of a middle class in the country, it seems the real estate sector – traditionally a very limited market – is beginning to pick up. The housing demand is high and there is a current annual supply gap of 30,000 residential units. This chapter contains interviews with Stephen Jennings, CEO, Renaissance Group; and Emmanuel Botchwey, Executive Chairman, Regimanuel Gray.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The education system will need serious improvement if it is to break out of the classic “middle-income trap”. Reforms on the table call for a move to learner-centred teaching and greater use of IT in the classroom, including a “One Tablet Per Child” programme. Neither will be a panacea; observers cite a chronic disregard of secondary education in favour of funding the primary and tertiary sectors. In the health sector, a decade-old universal coverage scheme is the bedrock of government policy. But several aspects of the system are ripe for reform, including an expensive fee-for-service model covering civil servants, and a government monopoly on a passel of pharmaceutical drugs. This section features interviews with Reverend Brother Bancha Saenghiran, Rector, Assumption University; and Prasert Prasarttong-Osoth, President, Bangkok Dusit Medical Services (BDMS).
Explore chapterTable of Contents
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Insurance
Buy digital copy of this chapter - £18PNG’s insurance sector is seeing strong growth from a low base, with general insurance assets rising from PGK700m ($333m) in 2006 to PGK1.2bn ($571m) in 2009. Given the relative newness of insurance products to the country’s populace, non-life premiums outweigh life. High-volume subsectors include property, motor and civil construction insurance, but most of the major projects that fuel PNG’s economy are too big to be covered by local insurers. The industry is looking at motor and life insurance as growth areas, but penetrating the rural, unbanked majority of the country’s population will be difficult.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18Well-educated IT graduates and low operational costs mean that Jordan is emerging as a key regional IT centre. Indeed, part of the country’s appeal for foreign ICT firms looking to relocate is its workforce, which tends to relatively inexpensive. Moreover, driven by new technologies, rapidly rising domestic internet penetration is boosting the segment. In 2011 a rapid uptake of mobile broadband helped contribute to a significant increase in access to the internet. Information and communications technology has, in turn, become a key element of the economy, accounting for 14% of GDP. Going forward, planned regulatory changes are set to boost the domestic market as the kingdom cements its reputation as a regional centre for content and software development. This chapter includes interviews with Basem Rousan, Minister of Information and Communications Technology; Abdelmajeed Shamlawi, CEO of the Information and Communications Technology Association of Jordan; Usama Fayyad, Executive Chairman of OASIS 500; and John Chambers, Chairman and CEO of Cisco.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Despite declines in the agriculture sector’s share of GDP since the early 2000s, Turkey still has prominent enough resources and the right climate for agriculture to be a leading sector of the economy. Turkey is the world’s seventh-biggest agricultural producer. While production is somewhat restrained by GMO regulations, the country remains ahead of EU competitors in this regard and is the Middle East’s biggest food exporter. Turkey attracts agricultural investment, with the significant potential for small-scale farms to consolidate on the back of the government’s investment plans. While agriculture’s contribution to the economy is still not ideal, because of trade- and production-distorting measures, with continued research and development there is substantial room to improve efficiency and output. The agriculture chapter has an interview with Recep Konuk, the President and Chairman of Konya Şeker.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18South Africa’s real estate sector felt the full force of the global economic crisis in 2008. The sector has been hit by a lack of demand stemming from weakened consumer confidence, rising inflation and obstacles to credit growth. However, the market is benefitting from the growth in urban middle-class consumers, a fact reflected in the emerging property supply and prices. South Africa’s young, and increasingly wealthy, population should offer many opportunities for investors and developers in all facets of the real estate sector in the next decade. The construction sector remains a critical component of the economy. The contribution of the sector to GDP was estimated at 3.2% in 2010. However, as the economy slowed and the flow of work linked to the hosting of the FIFA event dried up, growth came to an abrupt halt and contractors were left to make do with a dwindling list of projects. Developer caution persists, suggesting that this trend may remain for some time. As such, contractors are looking to the government and its ambitious infrastructure programme for future work. This chapter contains an interview with Samuel Ogbu, Chief Executive, Liberty Group Properties.
Explore chapterTelecoms
Buy digital copy of this chapter - £18A decade has passed since Bahrain’s telecoms sector was revolutionised by the liberalisation of the industry and the formation of an independent regulator. Fixed and mobile telephony and broadband services reach nearly every household, and many mobile users maintain multiple SIM cards, giving a mobile penetration rate well over 100%. Within such a highly competitive sector, telecoms companies are constantly pressed to find innovative ways to keep their share of the market. A continuously evolving regulatory regime is ensuring that few barriers exist to customers who wish to change telecoms service providers. While investors in the sector face a saturated market with a high degree of competition, the relatively underdeveloped mobile broadband segment holds great potential for growth. This chapter includes an interview with Mohammed Ahmed Al Amer, Chairman, Telecommunications Regulatory Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector looks set to benefit from a major PPP initiative that should see its first big projects go to tender in 2012. Meanwhile, Manila is seeing robust growth, and the BPO boom is driving office development in Cebu City and beyond. There is demand for housing at all incomes levels, and while developers have typically focused on the high-margin luxury housing, affordable housing could yet be an attractive business. Furthermore, the Philippines’ underdeveloped tourist market gives developers and construction firms an opportunity to construct resorts and other infrastructure for visitors. This section features interviews with David Consunji, Chairman, DMCI Holdings; Joseph M Yap, CEO, Filinvest Land; and Jacques Dupasquier, Chairman, The Net Group.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18With logistics costs among the highest in ASEAN at around 25-30% of GDP, transportation improvements are high on the priority list when it comes to boosting Indonesian growth. Indonesia is investing in plans to boost the road network from 4400 km to 8666 km of roads by 2015. Rail is set for a similar upgrade, with plans that include the Trans-Java high-speed railway. Meanwhile, with 17.6% growth in traffic at Jakarta’s international airport, capacity expansion is highly necessary. The airport opened a third terminal in 2011 and will renovate the existing two, although rumours of a new airport are gaining momentum. Many of these expansion projects will be funded under public-private partnership agreements, which have been the focus of political contention over apparent delays. This chapter includes interviews with Emirsyah Satar, President & CEO, Garuda Indonesia; and Shanti L Poesposoetjipto, Chairman, Samudera Indonesia Group.
Explore chapterIndustry
Buy digital copy of this chapter - £18While the contribution of oil to the economy has fallen in recent years, due in part to the global downturn, hydrocarbons still make up nearly half of Kuwait’s GDP and provide the government with around 95% of its annual revenue. Indeed, under the New Development Plan, launched in 2010, oil production is set to rise. However, like all Gulf economies, Kuwait has adopted a long-term strategy of economic diversification to reduce its dependence on hydrocarbons. As part of its Vision 2035 goals, Kuwait seeks to transform itself into a regional and financial centre. Under this scheme, both upstream and downstream segments are undergoing a process of expansion guided by a national five-year plan that also calls for investment in the nascent non-oil industrial sector. Small and medium-sized enterprises (SMEs) are seen as key drivers of this future growth, with 84% of firms in the non-oil sector being SMEs. Manufacturing is also being expanded to reduce reliance on the oil sector, with a wide range of large projects and infrastructural upgrades in the pipeline.
Explore chapterMining
Buy digital copy of this chapter - £18Mining is the driving force of the Mongolian economy, contributing 30% of GDP, and upcoming projects will surely increase this ratio. The two biggest are Tavan Tolgoi, a massive coal mine, and Oyu Tolgoi, a copper and gold mine, which should both be in full operation by 2013. In addition, Mongolia has potentially viable deposits of rare earth minerals, although extraction has yet to begin for these. The sector faces a number of key challenges, however, particularly with an unclear regulatory environment. The issuing of new licences has been stalled through 2012, and the government has drawn criticism for trying to renegotiate the Oyu Tolgoi contract after it had been signed. This chapter features interviews with D. Zorigt, Minister of Mineral Resources and Energy; Tom Albanese, CEO, Rio Tinto; B. Enebish, CEO, Erdenes Tavan Tolgoi; and G. Battsengel, CEO, Mongolian Mining Corporation (MMC).
Explore chapterInsurance
Buy digital copy of this chapter - £18The insurance sector, like that of many emerging markets, is small, undersubscribed, poorly staffed and confusingly regulated. However, Mongolia’s growth story has driven annual premium growth of around 20%, and new initiatives should help the industry grow further. Motor insurance, for example, became mandatory on January 1, 2012. Eight firms dominate the sector, with legacy provider Mongolia Daatgal commanding a 30% share, and foreign-owned companies beginning to appear on the scene. One unique product being offered now is livestock insurance, which seeks to mitigate the losses frequently suffered by rural farmers during intensely cold winters, or dzuds. This chapter features an interview with S. Ganbold, Insurance Market Department Director, Financial Regulatory Committee (FRC).
Explore chapterUtilities
In 2015 Saudi Arabia will have generated twice as much electricity as it did in 2000 as demand in the Kingdom continues to expand. Energy-intensive industries, as well as highly subsidised utilities prices for customers, look set to push demand even higher in the coming years, and the government is increasingly looking to boost private sector participation in the sector. Numerous initiatives are under way that aim to manage demand and promote energy-efficient practices, particularly in construction, where there has been a focus on implementing cleaner and more efficient technologies. Meanwhile, advances in cogeneration technologies have boosted production at the country’s two largest cogeneration facilities, at Jubail and Shuaibah – advances which have saved power while boosting the Kingdom’s overall desalination capacities. This chapter contains an interview with Jean-Pascal Tricoire, CEO, Schneider Electric.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, helpful tips for business and leisure travellers and other useful suggestions for travel to Sharjah.
Explore chapterICT
Buy digital copy of this chapter - £22The New Kuwait 2035 long-term development plan focuses on reducing the country’s oil dependency by fostering economic diversification and building up the private sector. Among other goals, the plan seeks to establish the country as a prominent global ICT centre. This involves prioritising work on digital infrastructure to elevate the country’s global standing. Increased ICT expenditure is expected to be drive by the further adoption of 5G, artificial intelligence and the internet of things. Digitalisation has already transformed many government services, and the country’s emphasis on IT development is expected to boost national technology expenditure and create opportunities for integrating technological solutions into ancillary industries. This chapter contains interviews with Omar Alomar, Chairman and CEO of the Communication and Information Technology Regulatory Authority; and Maziad Alharbi, CEO of stc Kuwait.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £22Abu Dhabi’s real estate and construction sectors performed well in 2022, contributing significantly to the emirate’s non-oil growth. Construction expanded by 7.6%, reaching Dh86bn ($23.4bn), or 7.8% of Abu Dhabi’s total GDP. At the same time, the real estate market witnessed an 8.5% increase in transaction values and a 27.2% rise in transaction volumes, reflecting strong market activity. Several anticipated real estate projects are under way, bolstering the market’s international appeal and adding to supply forecasts for the coming years. Business confidence remains high, creating an environment conducive to further investment in the sector. Opportunities abound in both the residential and commercial segments, driven by a robust project pipeline, increased foreign direct investment, infrastructure development and the resurgence of tourism. This outlook reflects a dynamic market catering to diverse preferences, benefitting investors, developers and residents. This chapter contains interviews with Hamad Hareb Al Muhairi, Director-General, Abu Dhabi Housing Authority; Majed Odeh, CEO, Q Holding; and Talal Al Dhiyebi, Group CEO, Aldar Properties.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £22Saudi Arabia’s economic rebound following the Covid-19 pandemic and the progress made on Vision 2030 projects have created a favourable set of conditions for real estate and construction activity. In September 2023 the Riyadh International Convention and Exhibition Centre is set to host the Saudi Infrastructure Expo, an event at which an estimated $1trn worth of smart city, tourism and clean energy projects will be presented to investors and local stakeholders. Meanwhile, the country’s estimated 5200 ongoing projects, totalling $819bn, continue to attract global construction talent and equipment. Demand for construction-related services remains high, driven by economic growth, oil revenue and giga-projects. While supply constraints may increase price pressures, public sector financing in construction projects is expected to remain robust in the years ahead. This chapter contains an interview with Fabrice Susini, CEO, Saudi Real Estate Refinance Company.
Explore chapterHealth & Education
Buy digital copy of this chapter - £22Bahrain was the first Gulf country to establish government-sponsored education in 1919 and it continues to invest in strengthening its education system. With Bahrain Economic Vision 2030 – the country’s national economic diversification blueprint – and the Bahrain National Higher Education Strategy 2014-24 guiding the kingdom’s schooling strategy, Bahrain is expanding its public education infrastructure, and backing technical and vocational education and training programmes to upskill its workforce for the future. In the health care space, Bahrain has a long life expectancy and its disease burden is mostly related to non-communicable diseases, a trend common among wealthier countries. With continued investment in both public and private health care, the kingdom continues to improve its health service delivery. This chapter contains interviews with Dr Sheikh Mohammed bin Abdullah Al Khalifa, Chairman, Supreme Council of Health and Ghassan Fouad Aouad, Former President, Applied Science University
Explore chapterThe Guide
The Guide contains listings of some of the leading hotels and resorts in Djibouti and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £22With the sector recovering from the stresses of the Covid-19 pandemic and the government’s key financing schemes experiencing notable success, Nigeria’s construction landscape is beginning to look brighter. While the real estate sector has enjoyed a rebound since pandemic-related restrictions began to ease, the lack of affordable housing is a growing concern that has been exacerbated by inflation, volatility in the exchange rate and the rising cost of building materials. To bridge the gap, the government could mobilise private sector investment by implementing land reform and measures to manage construction costs. The future success of the government’s economic diversification measures are likely to play a significant role in determining the long-term health of the property market. This chapter contains interviews with Attahiru Bala Usman, Managing Director, Allott Nigeria; and Kingsley Muwowo, Managing Director, Shelter Afrique.
Explore chapterTransport
Buy digital copy of this chapter - £22Oman’s geographical location and cordial regional diplomatic relations offer multiple strategic opportunities that, if skillfully harnessed by the government, could see the sultanate become a regional and global transportation and logistics centre. Indeed, strengthening transport capacities and capabilities is central to Oman Vision 2040, the government’s overarching socioeconomic development plan. Significant infrastructure expansion works have taken place across the transport sector, with roads, maritime ports and airports receiving sizeable investment, while plans to build a national railway that would connect with a broader GCC-wide network appear to be advancing following years of uncertainty. The sultanate’s recently improved public-private partnerships law is expected to help attract additional private finance into upcoming projects. This chapter contains an interview with Sheikh Aimen Al Hosni, CEO, Oman Airports.
Explore chapterICT
Buy digital copy of this chapter - £22Technology development is central to Kuwait’s long-term plans to diversify the economy, with the government attempting to position the country as a regional leader in ICT and financial services. The competition in those spaces across the GCC is fierce, and countries such as the UAE and Saudi Arabia are making concerted investment in ICT infrastructure and financial technology. The highly competitive local telecommunications market is proving beneficial to Kuwait’s plans, as is the country’s active and engaged consumer market, particularly in the mobile sector. Consolidation has been a trend in recent years as major tech players move to strengthen their market positions and diversify their services.
This chapter contains an interview Maziad Alharbi, CEO, stc Kuwait.
Construction & Real Estate
Buy digital copy of this chapter - £22The Saudi real estate and construction sectors have been experiencing a period of rapid expansion due in part to a string of giga-projects and an economy rebounding from the Covid-19 pandemic. Indeed, the Kingdom is currently engaged in some of the largest construction projects in the world, including NEOM, the $500bn new city in the north-west, and developments on the Red Sea coast and in the capital city, Riyadh. At the same time, population growth and a young demographic are pushing demand for a range of real estate options and supporting infrastructure such as mass transit. All of this is taking place within the framework of Saudi Arabia’s long-term socio-economic development plan, Vision 2030, which seeks sustainable growth and economic diversification. This chapter contains an interview with Gautam Sashittal, CEO, King Abdullah Financial District.
Explore chapterTourism
Buy digital copy of this chapter - £22Côte d’Ivoire aims to establish tourism as the third pillar of its economy, with a target of attracting 5m foreign tourists per year and creating 700,000 jobs in the sector by 2025. These goals seek to build on the substantial gains the sector has made since the political and security situation stabilised in 2012. Tourism has grown steadily in the subsequent years, with international tourist arrivals rising 10-fold in 2011-19. The sector’s contribution to GDP increased from 0.6% to 8.5% over that same period, indicating robust recovery. Despite the Covid-19 pandemic and the imposition of global travel restrictions in early 2020, the government is forging ahead with investment plans to establish Côte d’Ivoire as a regional tourist destination. This chapter includes an interview with Siandou Fofana, Minister of Tourism.
Explore chapterTax
Buy digital copy of this chapter - £22Bahrain is now home to a rapidly evolving tax landscape, with several notable tax and reporting regulations introduced since 2017. The country is well established as a financial centre in the region, and in recent years the authorities have diversified the economy to include technology, manufacturing and logistics. Bahrain welcomes overseas investment, allowing 100% foreign ownership in many sectors. Adding to its draw, the kingdom is consistently ranked as one of the best places in the GCC for expatriates to live and work. This chapter contains a viewpoint from Mubeen Khadir, Head of Tax and Corporate Services, KPMG Bahrain.
Explore chapterLegal Framework
Foreign investors looking to establish a business in Egypt – whether directly or through a joint venture – can enter the market by establishing a legal entity, the structure of which would depend on the needs and the scope of business involved. The government continues to work to attract investment, especially in several mega-projects in fields such as electricity, energy, industry, agriculture, health care and construction. Investment Law No. 72 of 2017 grants general incentives and guarantees for companies incorporated under its remit, as well as special incentives for projects that are prioritised by the government. These guarantees include equal opportunities for all investors – irrespective of their nationality. This chapter contains a viewpoint with Girgis Abd El Shahid, Managing Partner, Shahid Law Firm.
Explore chapterICT
Buy digital copy of this chapter - £22Qatar is prioritising the development of its ICT sector as it aims to transform into a knowledge-based economy in line with Qatar National Vision 2030. Human resource development is critical to the authorities’ goal of becoming a regional leader in ICT, and local talent stands to benefit from partnerships between educational institutions and global tech firms aimed at bolstering innovation. Growth in ICT will be driven by the country’s extensive pipeline of large-scale, government-led infrastructure projects in transport and energy, as well as by innovation in the financial services, retail and health sectors. Chief among these developments is the Lusail smart city project.
Explore chapterTransport & Infrastructure
Buy digital copy of this chapter - £22Ghana’s transport infrastructure has undergone significant upgrades over the course of recent years, boosting the country’s logistics, tourism and industrial capacity. Continued expansion of the industrial sector is a cornerstone of the government’s plans to revamp the economy to make it less dependent on commodities and tax revenue. Inadequate rural-urban connectivity and insufficient urban transport remain major hindrances to broader economic growth, but the government’s concerted efforts to remedy the underlying issues could see the transport sector become a key component in attracting greater inflows of foreign direct investment. Looking ahead, improved connectivity for rural areas is also high on the government’s transport agenda, as the authorities have identified the need for more bridges to connect rural villages and towns with the main arteries. This chapter contains an interview with Miishe Addy, Co-founder and CEO, Jetstream Africa.
Explore chapterKaduna
Buy digital copy of this chapter - £22The state of Kaduna was founded in 1912 by British colonial ruler Lord Frederick Lugard. Throughout its colonial history, it served as the political, administrative and economic centre of the north of Nigeria. As an academic centre with many tertiary educational institutions, Kaduna earned the nickname “the Centre of Learning”. In recent years state authorities have worked to develop Kaduna’s business climate. The Kaduna State Infrastructure Master Plan is the state’s long-term strategy for coordinated infrastructure development. The plan lays out interventions in the key sectors of transportation, housing, education, health, water and sanitation, and agriculture, with total projected expenditure amounting to N20trn ($53.4bn). The plan aims to ensure that Kaduna becomes a model for urban development by 2050 as it leverages its strategic location in the northern urban corridor. This chapter contains an interview with Nasir Ahmad El-Rufai, Governor of Kaduna State.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22This chapter examines the legal system of the Philippines, focusing largely on the stipulations of Bayanihan 1 and 2, which were passed into law in March and September 2020, respectively, to address the economic and health impacts of the Covid-19 pandemic. The chapter also outlines new guidelines on remote participation, corporate donations, corporate debt vehicles and draft guidelines for the licensing of digital banks, alongside various other changes to tax laws and regulations, labour-related laws and regulations, and regulations for the filing and submission of securities deposits that were implemented during the pandemic period. This chapter contains an interview with Raoul Angangco, Partner, Villaraza & Angangco Law.
Explore chapterICT
Buy digital copy of this chapter - £18The laying of two subsea fibre-optic cables – one international and one domestic – are among the recent and promising ICT developments in Papua New Guinea. There is optimism that these will help expand access and reduce costs in rural areas, which are home to over 80% of the country’s 8.6m-strong population. To keep pace with these developments, moves have been made to enhance data protection and cybersecurity, improve quality and pricing, and guide the progress of PNG’s digital networks. The government has also prioritised digital literacy and the upskilling of personnel to equip the country with a workforce capable of adapting to an increasingly digital world. These efforts will help PNG better capitalise on improved ICT infrastructure and leverage technological advancements for the benefit of the wider economy. This chapter contains an interview with Paul Komboi, Managing Director, DataCo.
Explore chapterTourism
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After years of recovery following the 2011 revolution, Egypt is once again a sought-after tourist destination. In 2019 the sector contributed LE496.4bn ($30.6bn) to GDP, representing around 9.3% of the total, a 0.2% increase on the previous year. Although the spread of Covid-19 significantly impacted the industry in the first half of 2020, it is expected that growth will resume in 2021. Rising visitor numbers will be supported by the construction of Capital International Airport, which will serve the new capital city starting in late 2020 or early 2021. In addition, new flight routes are expected to open, connecting the country’s resorts and archaeological sites in order to draw in more leisure tourists, which account for around 86% of total visitor spending. It is hoped that the move to establish Egypt as a world leader in antiquities tourism, alongside the development of traditional sun-and-sea offerings, will reinvigorate the sector.
Real Estate & Construction
Buy digital copy of this chapter - £18Investment in energy and infrastructure has resulted in the development of various mega-project opportunities for construction and engineering companies in Abu Dhabi. These include strategic projects such as the Midfield Terminal Building at Abu Dhabi International Airport and the Barakah Nuclear Power Plant, both of which are due to become operational in 2020. Real estate, meanwhile, has remained a buyers’ or renters’ market as the delivery of new retail, office and residential properties coincide with a softening of demand. This could change, however, as the government amends laws to allow foreigners to own freehold property in designated investment zones. Looking ahead, while the construction pipeline remains robust in the medium and long term, the broader economic slowdown related to the Covid-19 pandemic in early 2020 may impact the pace of projects in the near term. This chapter contains interviews with Talal Al Dhiyebi, CEO, Aldar Properties; and Saleh Al Mazrouie, Acting CEO, Abu Dhabi General Services Company (Musanada).
Explore chapterConstruction & Real Estate
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Indonesia’s economy averaged 6% annual GDP growth in the years following the 1997-98 Asian financial crisis. However, by 2013 approximately one-third of the budget was being channelled into unprofitable fuel subsidies at the expense of infrastructure development. This meant that industry and transportation did not develop in line with economic gains, stunting growth of the construction sector in turn. Moreover, a deceleration in economic growth in 2014-15, coupled with rising property prices, ignited fears of a property bubble. This prompted the central bank to impose higher interest rates and larger minimum down payments for mortgages, while also curtailing lending for second-home mortgages to prevent an accumulation of housing debt. However, a commodity price rebound in early 2019 saw several incentives introduced to reinvigorate the property market. These included lower interest rates, a relaxed loan-to-value ratio and smaller minimum down payments, while mortgage lenders also implemented schemes to entice the growing young middle class. This chapter contains interviews with Wong Heang Fine, Group CEO, Surbana Jurong; and Niko Safavi, President Director, Mowilex Indonesia.
Explore chapterTourism
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High levels of economic growth beginning in 2012 and the government’s efforts to make Abidjan a destination for regional conferences have allowed business tourism to flourish, resulting in rapid development of the hospitality industry. As of mid-April 2020 the full extent of the impact of the Covid-19 pandemic on Côte d’Ivoire’s tourism sector remained unclear; however, the crisis is expected to significantly affect tourism numbers on a global scale in 2020. Nonetheless, the government’s ambitious plans to develop the leisure segment demonstrate the clear political will to make the sector a key driver of the economy in the long term. To succeed, Côte d’Ivoire will continue to develop its infrastructure – especially in the interior of the country with roads and airports – and diversify its offerings in terms of beach destinations, as well as cultural and nature tourism. This chapter contains an interview with Siandou Fofana, Minister of Tourism.
Explore chapterIndustry
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Industry is widely regarded as a promising area for business growth that can provide additional private sector employment for citizens in the decades ahead. The sector is embarking on an agenda based on Industry 4.0, a more efficient and educated workforce, and investment and skills transfer from the private sector to support industrial clusters, expand mining operations and further leverage petrochemicals activity. The industrial sector is guided by the National Industrial Development and Logistics Programme. This chapter contains interviews with Bandar Alkhorayef, Minister of Industry and Mineral Resources; Ibrahim Almojel, CEO, Saudi Industrial Development Fund; and Khalid Al Salem, Director-General, Saudi Authority for Industrial Cities and Technology Zones.
Explore chapterConstruction
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Despite some concerns for Qatar’s construction industry surrounding a narrowing pipeline for 2022 FIFA World Cup-related projects and a more general global economic slowdown, there is much reason for optimism within the sector in the years ahead. While Qatar’s economy continues to rely on hydrocarbons revenue, the construction sector is playing an important role in increasing diversification. Qatar’s 2020 budget demonstrates that there will be plenty of investment opportunities going forward, especially regarding infrastructure projects. Though the tournament’s flagship projects, such as stadiums, are nearing completion, Qatar still has a solid line-up of infrastructure and hospitality projects to prepare itself for the large influx of visitors in 2022. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority.
Explore chapterTourism
Morocco’s geographical variety, combined with favourable weather conditions and its proximity to key European tourist markets, have made it one of the most attractive and competitive destinations in Africa. The country’s attractiveness as a tourist hot-spot has been strengthened by its consistently stable political and economic situation relative to the region. Like most critical sectors in the Moroccan economy, tourism has benefitted from a dedicated sector development strategy, the most recent of which is Vision 2020. However, while arrival figures have been improving, overall results have remained below expectations. This has triggered a re-evaluation of sector policy as the kingdom attempts to increase the sector’s weight in the economy. Continuous investment to promote the country’s brand to both established and new source markets will be essential going forward. This chapter contains an interview with Nadia Fettah Alaoui, Minister of Tourism, Air Transport, Handicrafts and Social Economy.
Explore chapterTourism
With the ingredients of a typical Caribbean sun, sea and sand destination, an ecotourism centre and MICE gathering point, Trinidad and Tobago has significant potential to develop its tourism sector further. After a slow start following the creation of two organisations that will promote the islands as independent but culturally interconnected international destinations, progress is starting to be seen. Investment in hotel infrastructure by established global operators and the construction of a new terminal at ANR Robinson International Airport in Tobago is also hoped to spur additional foreign investment. Furthermore, the development of niche tourism through sporting events and ecotourism is likely to attract a new market of travellers looking for something beyond the traditional beach-centric model. This chapter contains an interview with Randall Mitchell, Minister of Tourism.
Explore chapterConstruction & Real Estate
Click here for our 2022 analysis of Ghana’s Construction and Real Estate sectors
Ghana’s construction sector is growing, led by the development of affordable housing and critical infrastructure such as roads, railways, ports, hospitals and schools. It has also been bolstered by a steadily growing economy, which is expected to continue at a GDP growth rate of 6.8% in 2020. Improvements in land registration and permit systems reflect the authorities’ efforts to address structural challenges. There is significant potential in Ghana’s real estate sector as the government implements initiatives aimed at increasing the affordable housing stock and establishing a robust mortgage market. After continued expansion in excess of 3% per year in real terms between 2015 and 2017, a slowdown in 2018 reflected weaker demand across the residential, commercial and retail segments, according to a 2019 report from the Ghana Statistical Service. This chapter also contains an interview with Nana Kwame Bediako, CEO, Kwarleyz Group.
Explore chapterEducation
Buy digital copy of this chapter - £18Bahrain’s public education system marked its centenary in 2019, making it the longest-running institution of its kind in the GCC. Since its inception, a range of primary, secondary and higher education institutions have evolved in the country, delivering strong student outcomes. In addition, the government is working closely with universities and the private sector to increase research and development, and improve connections between academia and the business community. The major challenge ahead will be ensuring the sector is able to incorporate emerging technologies and methodologies, so that students at all levels of the education system have the skills and knowledge needed to support the country’s economic diversification strategy and competitiveness.
Explore chapterTransport
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Oman benefits from a strategic location, particularly for the movement of goods and people by sea and air. As a result, transport and logistics has been identified in Vision 2040 – the government’s national development strategy – as one of five key areas in the sultanate’s efforts to diversify away from dependence on hydrocarbons. Transport infrastructure is also critical to the success of other sectors and economic efficiency as a whole, and is therefore a major source of public funding. With an upgraded airport terminal opening in Muscat in 2018 and new multi-lane highways crossing the country, Oman has invested heavily in the sector in recent years. This chapter will contain interviews with Abdulrahman Al Hatmi, CEO, Oman Global Logistics Group; and Sheikh Aimen Al Hosni, CEO, Oman Airports.
Explore chapterAgriculture
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Myanmar boasts diverse ecological conditions, fertile soil, and promising fisheries and aquaculture. The current administration has centred its vision for future economic prosperity and its drive to alleviate poverty around agriculture. Demonstrating the sector’s significance, agriculture accounted for 38% of GDP and 70% of the workforce in 2018. While Myanmar was once the world’s largest exporter of rice, the post-independence era saw state support for agriculture decline and productivity levels drop. Today, however, efforts to enhance crop diversity and increase output are being introduced, bolstered by the June 2019 opening of the Myanmar Productivity Centre. Even so, major upgrades to storage and processing facilities, rural electrification and transport infrastructure are needed to strengthen the position of producers in the farm-to-market value chain and help them gain additional revenue. This chapter contains an interview with U Ye Min Aung, Secretary-General, Myanmar Rice Federation; and Managing Director, Myanmar Agribusiness Public Corporation.
Explore chapterEnergy
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While upstream oil and gas revenue provided much of the financing for Dubai’s early development, the emirate’s road to modernisation has been built around economic diversification. Having historically relied upon natural gas imports for its electricity, Dubai is gradually reducing its dependence on hydrocarbons imports by investing in a range of power generation projects. This includes a number of plans to develop renewable energies, particularly solar power, as the emirate seeks to position itself as a regional and global centre for clean energy solutions. This chapter contains interviews with Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority; and Ahmad bin Shafar, CEO, Empower Dubai.
Explore chapterICT
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With Kuwait’s national strategy focused on establishing the country as a global and regional knowledge and communications hub, ICT development has gained significance in the country’s shift away from an economy based on hydrocarbons. The adoption of 5G technology has been key to achieving these goals, as is the earmarking of financial and human resources to create a wider and deeper IT ecosystem. Technology start-ups are being encouraged, and private sector jobs and initiatives are seen by the government as an important part of the drive to diversify the economy while attracting higher levels of international investment. This chapter contains an interview with Salim Al Ozainah, Chairman and CEO, Communication and Information Technology Regulatory Authority.
Explore chapterTransport & Logistics
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Both the current and previous administrations have shown a commitment to updating and expanding the capacity of the transport system. Nevertheless the country is facing increasing overcapacity at its ports, rural roads remain unpaved and developers are struggling to find suitable locations for new warehouses. Certain segments face specific challenges, notably in terms of security concerns for road freight. With rising domestic consumption and a growing manufacturing sector, demand for Mexico’s transport network appears set to rise further over the medium and long term. Therefore, addressing these challenges and charting a clear policy path, one that combines public investment with policies designed to increased private sector involvement in transport, will be necessary for the ongoing growth of the sector. This chapter contains interviews with Aby Lijtszain Chernizky, Executive President, Grupo Traxión; and José Zozaya, CEO, Kansas City Southern México.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Prime Minister James Marape is intent on putting agriculture, forestry and fisheries at the forefront of the government’s development agenda, with an eye to boost downstream processing of farmed resources. As attempts to galvanise the sector spur the development of Papua New Guinea’s key crops and catches, reforms are under way to ensure the country maximises the potential of its rich soil and biodiversity. The government is also taking steps to increase PNG’s self-sufficiency in food production. Furthermore, PNG must promote agricultural development and encourage its population to participate in reaching this goal. Efforts should be channelled towards structural reforms aimed at improving the ability of state institutions to work with the private sector. Solving issues of landownership will improve investor confidence and encourage domestic and international players to support PNG’s potential for agricultural development. This chapter also contains an interview with Graham King, General Manager, Hargy Oil Palms; and a viewpoint from Goodwill Amos, Former Managing Director, Papua New Guinea Forest Authority.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Despite major economic headwinds in 2018, Tunisia’s construction sector looks to be on the upswing. Over the past few years increasing global oil prices coupled with the depreciation of the Tunisian dinar have seen demand for projects decrease and the cost of materials rise. Additionally, upcoming parliamentary and presidential elections in late 2019 are likely to temporarily stoke uncertainty. However, through a number of infrastructure tenders, the state is helping to underpin industry demand. Driven by a growing middle class, rising urbanisation and some of the most attractive prices in the Mediterranean region, Tunisia’s real estate sector offers some of the best potential in North Africa. However, other long-standing structural challenges also continue to weigh on the market. These include administrative and infrastructural blockages, tightening liquidity, political uncertainty and increasing land scarcity. As such, investors will need to look beyond the short term for returns. Jamel Ksibi, President, National Federation of Construction and Public Works Entrepreneurs.
Explore chapterConstruction & Real Estate
The Philippines’ construction industry is entering a period of strong growth, supported by government spending led by President Rodrigo Duterte’s signature Build, Build, Build (BBB) infrastructure programme. BBB is leading to ancillary construction and development around airports and seaports, especially residential and retail projects, providing the momentum stakeholders need to confidently plan for the future. The Philippines’ real estate sector has enjoyed robust growth in recent years, fuelled by remittances, rapid economic expansion and a comprehensive public infrastructure programme that has opened up new opportunities beyond Metro Manila and the affluent business districts of the capital. Actions set to further strengthen activity in the sector include reforms to the tax system and the establishment of a new regulator. This chapter also contains interviews with Jose Leviste Jr, Chairman, Atlantic, Gulf & Pacific; and Robbie Antonio, Founder, Revolution Precrafted Properties.
Explore chapterHealth
Buy digital copy of this chapter - £18In recent decades Colombia’s health sector has gone through substantial changes and improvements, shifting from being underdeveloped to one of the highest ranked in the region. The sector continues to struggle with structural issues related to liquidity. However, the government is hoping that a boost in general health spending and a targeted infusion of financing will help alleviate some of the financial pressure the system is experiencing. Meanwhile, efforts to universalise coverage and shift the focus of the system to the patient are expected to result in access and quality improvements. It remains to be seen over the long term what effect the 2015 health law will have on overall health outcomes, but improved indicators in recent years and increased funding are positive signs for the future.
Explore chapterTourism
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While Peru’s rich and diverse cuisine continues to attract visitors, demonstrated by a range of quality eateries in Lima and the proliferation of Peruvian restaurants around the world, Machu Picchu remains the number-one attraction for visitors. Named the “World’s Leading Tourist Attraction” for 2018, the historical site is seeing faster-growing tourist rates than the country overall. Herein lies the main challenge for the industry: diversification. Greater connectivity and infrastructure efforts in other regions – particularly the north – is hoped to pull tourists to different parts of the country and see them engage in adventure and nature tourism in addition to visiting cultural sites. This chapter contains an interview with Eduardo Ibarra, Hotels Business Unit General Manager, Grupo Los Portales.
Explore chapterTourism
Buy digital copy of this chapter - £18Following a turbulent period from 2011 to 2016 the Egyptian tourism sector has experienced consistent growth. The industry recorded gradual growth in arrivals and revenue in 2017 and 2018. Although visitor numbers have not yet been restored to their pre-2011 levels, occu¬pancy rates have increased across the country, with Cairo experiencing its highest occupancy levels since 2010. New source markets are continuing to grow while traditional markets are returning, raising optimism in government and among investors that the sector will flourish throughout 2019 and beyond. This chapter contains an interview with Rania Al Mashat, Minister of Tourism.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Supported by strong fundamentals, Indonesia continues to break ground on major construction projects. Fuelled by a comprehensive public infrastructure agenda, large-scale developments have become the norm. However, while the construction sector remains an important pillar of the country’s economy, project development is still hindered by domestic obstacles, including a lengthy land-acquisition process. On the back of a massive infrastructure agenda, new real-estate projects have driven growth in Indonesia’s property sector in recent years. A colourful mix of cultures has influenced the architectural layout of the capital city Jakarta, which is one of the many features that have attracted investors from around the world. While the government of Indonesia has pursued initiatives to bolster property investment, however, currency depreciation, political uncertainty and rising interest rates constrained growth in 2018. This chapter also contains interviews from Basuki Hadimuljono, Minister of Public Works and Housing, and David Cheadle, Managing Director, Cushman & Wakefield.
Explore chapterIndustry
Buy digital copy of this chapter - £18The sweeping changes announced in Vision 2030 aim at giving rise to a reinvigorated and prosperous private sector, driving growth through broad industrial development. By the time the G20 summit convenes in Riyadh in 2020, four years after the Vision 2030 announcements, the country’s leaders will be able to showcase some of the first results of the new agenda, as detailed in the National Transformation Programme (NTP). There are high expectations of the individual reforms, as policymakers work to meet key performance indicators outlined in the NTP’s second iteration, dubbed NTP 2.0. Mega-projects such as the Sadara Petrochemicals Complex are producing raw materials that can spawn new manufacturing plants, while the consumer habits of a growing, young and affluent population are creating fresh markets for innovative service industries. This chapter contains an interview with Khalid Al Salem, Director-General, Saudi Authority for Industrial Cities and Technology Zones.
Explore chapterConstruction
Buy digital copy of this chapter - £18Qatar’s construction industry has flourished over the past five years to become a key engine of the economy. Although activity remains robust, the wider economic squeeze brought about by the 2014-16 oil glut has been felt in the sector, as the effects of lower oil and gas revenue trickled down to impact government expenditure and investor confidence. A narrower project pipeline and increased competition for contracts has forced contractors to cut margins and take on greater risk. Nonetheless, with the 2022 FIFA World Cup just three years away, a partial rebound in energy prices, and the government turning its attention to new developments in the energy and defence sectors, figures are hopeful for 2019. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18The spotlight is very much on Sri Lanka’s tourism sector in 2019, after globally recognised company Lonely Planet named it as the number-one travel destination for the year. As the country embarks on a year of ambitious goals to attract more visitors, the sector is also at a critical juncture. Successful, sustainable growth will rely on a delicate rebranding of the destination’s reputation, from budget beach trips to a place where visitors are willing to pay all price points, including at the luxury level, and are well served. It is also important that growth is not achieved to the detriment of the island’s natural assets, both environmental and human. This chapter contains an interview with Hiran Cooray, Chairman, Jetwing Hotels.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although it has become a strong contributor to economic diversification, Abu Dhabi’s real estate sector is being put under pressure by slower growth, brought on by low global oil prices that started in 2014. Spending cuts since 2015 have been reflected in capital value, with rental rates declining to their lowest levels since 2013. However, the slowdown has masked encouraging developments in the sector, with a series of Abu Dhabi government reforms unveiled in 2015 with a view on protecting against the emergence of another property bubble. Private developers are becoming more responsive to market demand with regard to product offering, and have begun exploring alternative projects, such as real estate investment trusts and joint ventures. This chapter contains interviews with Talal Al Dhiyebi, CEO, Aldar; and Falah Al Ahbabi, Chairman, Department of Urban Planning and Municipalities.
Explore chapterEnergy
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Although Dubai’s growth and prosperity have been fuelled by its proximity to oil, its own modest hydrocarbons endowment accounted for just 1.3% of the emirate’s GDP in 2016. Energy’s contribution to national GDP in recent years has averaged around 45% for the UAE as a whole, but only about 5% in Dubai. Still, Dubai operates as a centre for oil and gas trade. The emirate has diversified activities to become a global financial and trading hub, and hydrocarbons continue to have a major impact on economic activity. At the same time, Dubai is right at the forefront of what might be called the new emerging cleaner energy world, by developing and promoting disruptive technologies. This chapter contains interviews with Saif Humaid Al Falasi, Group CEO, Emirates National Oil Company; and Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority.
Explore chapterTourism
Buy digital copy of this chapter - £18Morocco is amongst the best-developed tourism markets in Africa, benefitting from its close proximity to Europe, a wide variety of landscapes and attractions, year-round warm weather in parts of the country, and a more stable political and security environment than some of its regional competitors. The years since 2016 have seen healthy rises in tourism arrivals, though over the longer term growth has failed to meet the authorities’ targets, prompting work that is currently under way to revise the national strategy for the sector’s development. New transport infrastructure such as the high-speed train line linking Casablanca to Tangier launched in late 2018, and the development of new hotels in the high-end segment highlight the confidence in the sector felt by private developers and the government. Moreover, growth in local tourism and rising numbers of visitors from emerging source markets further underscores the broadly positive outlook and potential of the industry. This chapter contains interviews with Mohammed Sajid, Minister of Tourism, Air Transport, Crafts and Social Economy; and Laila Mechbal, CEO, Air Arabia Maroc.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18A budget prioritising infrastructure investment, one of the world’s fastest-growing economies and strong demand from demographic growth are the main factors driving the Ghanaian construction and real estate industries. In the construction sector public projects to build and improve roads, railways and social infrastructure are in the pipeline, in addition to the $5bn in UN-backed investment in affordable housing to address the country’s shortage. The sector’s growth has led to renewed calls for the establishment of an official body to regulate and promote construction business, particularly to support domestic companies and tackle malpractice. As for the real estate sector, thanks to a robust economy and the government’s reform programme, various segments, from high-end residential real estate to industrial and logistics property, are performing strongly. Growth is set to continue through 2019, though investors are keeping an eye out for downside risks and segments in which there is oversupply.
Explore chapterEducation
Buy digital copy of this chapter - £18Bahrain’s education sector benefits from regionally strong and improving student outcomes, rising K-12 and private school enrolment, and an expansive, ongoing reform agenda aimed at improving the quality of teaching and infrastructure across all levels. Investment in the sector is set to soar over the medium term, bolstered by the high-potential pre-school and kindergarten segments, as well as rising demand for private primary and secondary instruction. Nevertheless, the sector faces flat public spending, a strained public university system, worsening gender disparity at the K-12 level, and a mismatch between post-secondary preferences and labour market needs. Still, education foundations remain solid, with expanded inspection programmes and a potential resurgence of expatriate students expected to support a steady near- and mid-term growth outlook. This chapter contains an interview with Jeff Zabudsky, CEO, Bahrain Polytechnic.
Explore chapterTourism
Buy digital copy of this chapter - £18The Ivorian government made tourism a priority in its National Development Plan 2016-20, and wants to make it one of the top-three contributors to GDP by 2020, with the goal of attracting up to 5m tourists by 2025. Moreover, the country ranks third in Africa for business tourism, behind Nigeria and Morocco. However, Côte d’Ivoire remains untouched by mass tourism, which could give it a unique advantage compared to other African desti¬nations, and enhance its attractiveness for tourists looking for authentic and preserved places. In this regard, the country is particularly conducive to niche tourism segments such as ecotourism. The improvement of connectivity to the country’s interior, especially via the rehabilitation and construction of a quality road network and additional health infrastructure, is a prerequisite to the development of leisure tourism outside the business district of Abidjan.
Explore chapterTourism
Buy digital copy of this chapter - £18Myanmar has emerged in recent years as a sought-after tourist destination in a region known for its tourism attractions. Since the country opened its doors through political reform in 2011, many have been attracted to its diverse landscapes, rich culture and heritage. While infrastructure challenges remain, and low hotel occupancy rates affect small businesses, a decline in visitors from Western countries has had the biggest impact on the industry recently. However, damage has been limited by increased tourist numbers from elsewhere in Asia, aided by policy developments offering visas on arrival and visa-free entry to visitors from many Asian countries. Sitting at the crossroads between India, China and South-east Asia, Myanmar is well positioned to capitalise on tourist flows from and through these huge markets. This chapter contains interviews with U Aung Myo Min Din, Chairman, Myanmar Hotelier Association; and U Ohn Maung, Minister of Hotels and Tourism.
Explore chapterTransport
Buy digital copy of this chapter - £18Almost three years into its ninth five-year plan for 2016-20, Oman is beginning to reap the rewards of efforts to restructure and expand its transport and logistics sector. The Central Bank of Oman’s latest annual report notes that transport, storage and communications is one of the economy’s best performing categories, with the growth rate reaching 9.6% in 2017. The sector’s expansion is being driven by private investment, with the government having steadily decreased its current and development expenditure every year since 2014. This chapter contains an interview with Abdulaziz Saud Al Raisi, CEO, Oman Air.
Explore chapterTourism
Buy digital copy of this chapter - £18A diverse land of thermal springs, mountains, historic sites, vast desert and unspoilt Mediterranean coastline, Algeria offers a remarkable variety of activities for travellers. However, a decade-long civil war ending in 2002 and an antiquated transport infrastructure network have curtailed growth in the tourism sector, alongside negative perceptions abroad and a cumbersome visa regime. The flip side of underdevelopment is that the sector has massive potential to grow with the right sort of political will in place. As evidence of the latter, the government is currently implementing its long-term development blueprint for the sector. Known as the Tourism Development Masterplan 2030, it seeks to increase the sector’s share of GDP to 10%. Four new hotels are to be opened in the wilaya of Algiers in 2017, bringing the total there to 182, and growth in room numbers has been recorded across the country. In short, Algeria seems to be making the right moves to ensure that the capacity is there to support rising guest numbers. This chapter contains an interview with Abdelkader Benmessaoud, Minister of Tourism and Handicrafts.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Although currency volatility and a recession in 2016 impacted private sector investment, public spending on new infrastructure has surged in recent years, and is expected to rise again for the remainder of 2018 and into 2019. However, public funds do not suffice to close the country’s widening infrastructure deficit, something that has led the government to increasingly target private sector investment to launch new projects. In addition to successful bond issuances that should relieve budgetary constraints and boost transport spending, the authorities have moved to increase the deployment of public-private partnerships to deliver big-ticket projects, a strategy that has had considerable success, and should keep the industry on the path towards positive growth going into 2019. Meanwhile, the real estate sector is set to stabilise in 2018 as markets absorb new supply, and macroeconomic indicators improve. The 2018 budget boosted public spending by 16% from 2017 levels, with a significant portion of funding channelled into new projects under the Federal Ministry of Power, Works and Housing, as well as the Federal Ministry of Transportation. This chapter contains interviews with Babatunde Fashola, Minister of Power, Works and Housing; and Paul Onwuanibe, CEO, Landmark Africa.
Explore chapterIndustry
Buy digital copy of this chapter - £18As Kuwait tries to curb its dependency on hydrocarbons, which accounted for over 90% of state revenues in 2017, other industries are coming into focus. Excluding refined petroleum products and nuclear fuel, manufacturing industries’ contribution to GDP rose by 6.2% in 2017 to $5.6bn, according to the central bank. Meanwhile, refined petroleum products and nuclear fuel’s portion of GDP expanded by 18% to $3.3bn in 2017 from $2.8bn the year before. Much of this recent performance is due to implementation of the country’s national development plan, New Kuwait 2035, which prioritises infrastructure upgrades and economic diversification as part of 164 programmes, projects and initiatives that aim to transform the country into a centre of finance and industry. This chapter contains an interview with Faisal Awwad Al Khaldi, Deputy CEO, Kuwait Steel.
Explore chapterLegal Framework
This chapter introduces the reader to the different aspects of the legal system in Djibouti, in partnership with Cabinet Guérinot. It also contains a viewpoint with Melanie Guérinot, Lawyer and Managing Director, Cabinet Guérinot.
Explore chapterTourism
Buy digital copy of this chapter - £18After some challenging years, Kenya’s tourism industry is recovering, with the country becoming an increasingly attractive destination as stability and confidence return, travel connections improve and relevant government programmes come into effect. The authorities are adopting increasingly innovative policies to encourage growth, which appear to be yielding results, with tourism arrivals and sector earnings both on the rise in recent years. However, connectivity is an area with potential for development and diversification must also be taken into account. In an effort to achieve this diversification, the country is looking to offer a more contemporary experience, combining traditional attractions with new offerings.
Explore chapterTourism
Buy digital copy of this chapter - £18T&T remains one of the least developed destinations in the Caribbean. Although tourism has not historically been a priority for the government, increased pressure to diversify away from oil and gas has made tourism a viable development alternative. Higher oil prices in 2018 could provide the country with much-needed revenues to amplify diversification efforts. Meanwhile, ongoing efforts to expand source markets and establish a policy framework and regulatory authority bode well for the sector, especially as global tourism is set to continue rising over the next decade. With a unique and diverse cultural heritage and strategic setting outside of the hurricane belt, T&T has the opportunity to move its tourism offerings forward. This chapter features an interview with Janelle Commissiong, Chairman, Tourism Trinidad Destination Management Company.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Papua New Guinea’s fertile soils are instrumental in the lives of the country’s residents, both as a source of income and nutrition. The agriculture sector has constituted between 25% and 40% of GDP over the last four decades, while supporting the livelihoods of around 85% of the population. Despite the sector’s importance, however, the evolution of farming has long been restricted by insufficient foreign investment, limited public spending of around 2% of GDP per annum, ambiguous land policies, major infrastructure gaps and a lack of access to credit at the smallholder level. This chapter contains interviews with Greg Worthington-Eyre, CEO, Trukai Industries; and Ritche Rivera, Vice-Chairman, RD Corporation.
Explore chapterInnovation & Technology
Buy digital copy of this chapter - £18Investments in R&D and innovation have been on the rise in Argentina, driven largely by greater government commitment to sector development. It was to this end that the Ministry of Science, Technology and Productive Innovation was created in 2007. Public investment growth has been repaid in terms of institutional strengthening and increased private sector interest, resulting in improved innovation and global competitiveness rankings. Between 2006 and 2015 spending on public research and development increased by some 279% at current prices, from roughly $1.1m to $4m. As Argentina’s economy continues to open up, greater international exposure will require commensurately increasing levels of R&D and innovation in order to achieve a greater degree of competitiveness. This chapter contains interviews with Hugo Sigman, CEO, Grupo Insud; and Martín Migoya, CEO, Globant.
Explore chapterTourism
Buy digital copy of this chapter - £18Peru’s tourism sector is ranked 46th out of 185, in terms of relative importance of travel and tourism’s total contribution to GDP, according to the World Tourism & Travel Council’s “Economic Impact 2018 Peru” report. According to the same report, in 2017 Peru’s travel and tourism sector was directly worth PEN26.5bn ($8.2bn), or 3.8% of GDP, a figure which is forecast to rise by 4.5% in 2018, and expand by an average of 4.7% per year over 2018-28 to reach PEN43.7bn ($13.5bn), or 4.2% of total GDP by 2028. The sector’s total contribution — direct plus indirect — was PEN68bn ($20.9bn) in 2017, a considerable 9.8% of GDP. This is forecast to rise by 4.7% in 2018 and 4.5% per year to PEN110.8bn ($34bn) and 10.6% of GDP in 2028, highlighting the continued importance of the tourism sector to the overall Peruvian economy. This chapter includes interviews with Virgilio Martínez, Head Chef and Owner, Central; and Jorge Melero, CEO, Hoteles Libertador.
Explore chapterConstruction & Real Estate
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Although the construction industry contracted somewhat in 2017 following a strong performance in the previous two years, the prospects for the sector remain broadly positive. Work progressed on many fronts, despite a few projects not launching as planned. Commuter rail initiatives advanced, double tracking works on intercity lines began, high-speed rail track was laid, and plans for the transformational Eastern Economic Corridor were promoted. The real estate market in Thailand is becoming one of selective opportunity. In the residential segment, international investors are still active in the high-end market and healthy uptake is evident in the mid range. In all property categories, resilience is seen in assets that are located near related infrastructure, such as transportation routes and schools, as well as those that offer unique features. This chapter contains interviews with Anutin Charnvirakul, Former President, Sino-Thai Construction; and Visit Malaisirirat, CEO, Magnolia Quality Development Corporation.
Explore chapterICT
Buy digital copy of this chapter - £18Mexico’s telecoms sector is the second largest in Latin America after Brazil in terms of subscriber numbers, contributing approximately 2.4% to GDP in the third quarter of 2017. Penetration of products and services, such as mobile phones, broadband internet and pay-TV, are also on the rise, having ranked well below the global average until 2015. The rollout of a 5G network demonstrates Mexico’s expanding wireless and mobile data market, though it may take some time before 5G can be effectively monetised in a segment with little room for new subscriber growth. Furthermore, Mexico’s IT services and software sector reported a compound annual growth rate of 12% between 2010 and 2016, with its market value estimated at $11.3bn in 2016. In addition, Mexico placed 13th out of 65 countries in terms of the best locations to provide IT, business process outsourcing and call centre services. The uncertainty surrounding a new North America Free Trade Agreement deal and the slowdown of investment in certain sectors is unlikely to have a significant impact on IT and telecoms; however, the outcome of the elections may lead to uncertainty until Obrador’s new administration’s investment plans are unveiled. This chapter features an interview with Sergio Rosengaus, CEO, KIO Networks.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Favourable government policies and a growing, increasingly urbanised population have created fertile ground for the expansion of the Philippines’ construction sector in recent years. Driven by major investments in transport networks, residential complexes and social housing, the construction industry grew at an average annual rate of 12% from 2012 to 2016. The annual growth rate more than halved in 2017, falling from 12.1% to 5.3%, but as of the first quarter of 2018 growth was registered at 9.3% year-on-year. A confluence of economic forces has also bolstered real estate demand in recent years, with an influx of outsourcing firms, rising incomes, cash-laden investors and the liberalisation of key sectors all playing a part. This chapter contains interviews with Edgar Injap Sia II, CEO and Chairman, DoubleDragon Properties; and Willie J Uy, President and CEO, 8990 Holdings.
Explore chapterTourism
Buy digital copy of this chapter - £18Tanzania’s tourism industry is expected to be among one of the world’s fastest growing over the next decade. With 1.28m tourist arrivals in 2016, the country is already one of the most-visited destinations in sub-Saharan Africa, and attractions such as the Serengeti National Park and Zanzibar have an increasingly prominent global profile. The government aims to attract 3m annual visitors by 2022, and is in the process of drawing up the first new national tourism strategy in nearly two decades, which is expected to include a focus on high-value segments and infrastructure development. Private investment in hotels and resorts is driving growth, while government infrastructure investment is opening up new areas of the country to tourism. However, the industry continues to face challenges, including the recent imposition of value-added tax and the effects of austerity on business demand. This chapter contains an interview with Nura-Lisa Karamagi, CEO, Hotels Association of Tanzania.
Explore chapterTable of Contents
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Tourism
Buy digital copy of this chapter - £18As Sri Lanka’s second-largest industry after textiles and garments, tourism represents an opportunity to generate revenue and create jobs. The country is fast becoming a popular destination for international travellers, as well as for expatriates returning home to visit friends and family, suggesting that Sri Lanka is in the process of moving from the margins of global tourism to becoming a primary destination in its own right. The World Travel & Tourism Council put the sector’s overall contribution at LKR1.4trn ($9.1bn), or 11.4% of GDP in 2016, with an estimated increase of 5.5% in 2017. This chapter contains an interview with Sutheash Balasubramaniam, Managing Director, Sri Lanka Tourism Promotion Bureau.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture plays an important role in the Tunisian economy which consists mostly of olive oil, cereals, dates, fruits and vegetables. Together with fishery, it accounted for 9.1% of GDP in 2016, generating €3.1bn. The sector has had to deal with several challenges, including land fragmentation, which contributes to poor access to credit; a considerable technology gap; climatic fluctuation and weak irrigation infrastructure, which has led to low productivity. In the face of increasingly constrained public funding, the government has chosen to lay the groundwork for attracting further private investment to help modernise the sector, with raising access to irrigated water one of the top priorities in the Tunisia 2020 strategy. This will be to the sustainable growth of Tunisia’s agriculture. This chapter contains an interview with Chokri Bayoudh, CEO, Office Nationale de l’Huile d’Olive.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Jordan including a look at the changes to the tax code that are currently underway and a breakdown of the investment incentives available in the country’s special economic zones. This chapter contains a viewpoint from Osama Shakhatreh, Assurance Partner, Ernst & Young Jordan.
Explore chapterTourism
Buy digital copy of this chapter - £18Myanmar is slowly emerging as a tourism destination in a region that is a favourite among travellers worldwide. It has a wealth of attractions to draw visitors from abroad, including Yangon’s Shwedagon Pagoda and many other diverse cultural and historical sites. One of the main challenges is developing the accompanying tourism infrastructure and ensuring an adequate skills base to keep pace with the sector’s growth. This has proved difficult in the past for some of Myanmar’s neighbours, and many wonder if the country has the foundations in place to do a better job of balancing growth with sustainability and conservation. This chapter contains interviews with Daw Moe Moe Lwin, Director, Yangon Heritage Trust; and Jean Michel Romon, Managing Director, Balloons over Bagan.
Explore chapterEducation
Buy digital copy of this chapter - £18The public education system of Bahrain is poised to mark its centenary in 2019, but the main focus in the country’s schools and universities is further in the future. New institutions are being built and opened in both the public and private sectors to serve young people from nursery age through to postgraduate study. According to international indices, Bahrain’s schools are outperforming many in the region, and results are improving, but there is still some way to go if they are to match the best in the world.
This chapter contains an interview with Riyad Y Hamzah, President, University of Bahrain; and Ahmed Al Shaikh, Director, Bahrain Institute of Banking and Finance.
Explore chapterICT
Buy digital copy of this chapter - £18In line with economic development, the telecoms industry has undergone a period of significant growth. On top of a strong increase in the penetration of mobile communications services over the past few years, the market is now being revitalised with the expansion of 4G networks, combined with a rising focus on the provision of data services by the three mobile network operators. With investment in infrastructure set to continue and data usage expanding, the industry should maintain its positive performance over the medium-term.
This chapter contains an interview with Bruno Nabagné Koné, Minister of Communications, Digital Economy and the Post.
Explore chapterTourism
Buy digital copy of this chapter - £18After a difficult few years following the 2011 revolution, there is renewed hope for Egypt’s tourism sector, with 2017 bringing the industry back to growth. While there were positive signs for tourism in 2013 and 2014, before a relapse in 2015, the flotation of the currency in November 2016 has made the Egyptian market more competitive, and the government has also expended significant energy and capital to bring added resilience and revenue streams to the sector. A new assertive strategy to market the country both locally and internationally and upgraded security protocols are combining to give the industry a significant boost. Indeed, the state is helping to build a stronger tourism industry, less reliant on a handful of source markets and more attuned to the diverse revenue opportunities in underutilised segments.
This chapter contains interviews with Gerald Lawless, Chairman, World Travel & Tourism Council (WTTC); and Ibrahim El Missiri, CEO, Somabay.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Bolstered by steady investment from a government cognisant of its potential, Oman’s transport and logistics sector has continued to expand even as the impact of lower oil prices continues to be felt. The sector’s real growth rate registered at 1.1% in 2015 after rising 9.4% in 2014, giving it a value of OR1.7bn ($4.4bn), according to the latest available figures from Central Bank of Oman. It has been sustained by robust growth in passenger arrivals by air, and of cargo by land and sea. With a coastline of 2100 km at the mouth of the Gulf, and a history of friendly relations with its neighbours, Oman has a unique opportunity to become the logistics gateway to the GCC’s more than 50m consumers, as well as a key trans-shipment centre between Europe and Asia.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Supported by housing demand and infrastructure plans, Morocco’s construction companies have been able to maintain steady performances despite the negative effects of a host of local and international factors. The economic downturn in Europe and regional instability have dampened investment flows to the sector in recent years, while lower levels of credit to the real estate industry from banks have posed additional challenges for mixed-use projects. The Moroccan real estate sector has seen a steady recovery from the 2008 financial crisis. While high-end housing and luxury developments took a hit, prices for quality developments have remained steady as foreigners and Moroccans living abroad continue to look to real estate as a secure investment with long-term prospects. The government has pushed to increase the number of affordable homes through a series of incentives for developers, while commercial and office space developments have become increasingly important.
This chapter contains interviews with Tarafa Marouane, Chairman, SOMED Group; and Selma Belkhayat, Managing Director, Aswaq Management Services Morocco.
Explore chapterRetail
Buy digital copy of this chapter - £18Dubai is one of the world’s leading shopping capitals, and the retail and wholesale sector is the biggest single contributor to the economy. Local iconic malls are constantly reinventing themselves, searching for new brands and experiences to attract global consumers to spend on fly-and-buy excursions. The relationship between retail, real estate, air transport and tourism is key to the emirate’s value proposition for consumers and investors. The market’s ecosystem is driven for the most part by the franchise model, which integrates global brands and privately owned family firms to represent their interests in the country and region. The emirate also serves as the base of operations for regional retail and wholesale giants that may have started with a single small shop in Damascus, Basra or Manama, while local brands are using the location to spread across the region.
This chapter contains an interview with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Ghana’s slowdown had a noticeable impact on the construction sector. However, its prospects appear to be brightening, with sizeable capital allocations in the government’s budget and growth of 3.7% targeted for the industry in 2017. New government initiatives and increased oil revenues are hoped to bring further opportunities for infrastructure and real estate projects, with a range of factory, roadway, airport and railway initiatives in the pipeline. Since 2007 Ghana’s real estate market has followed a cyclical trajectory, booming when headline growth is strong, but slowing in recent years in line with the commodity price drop in 2014. However, the country is expected to see increased activity in the property market in the medium term, following government efforts to boost the sector and the abolition of the 5% value-added tax on all real estate sales in 2017.
The chapter contains an interview with Karim Ibrahim, Managing Director, Dream Realty.
Explore chapterIndustry
Buy digital copy of this chapter - £18Bold strategies to use industry as an engine of economic change could see new gold mines, plastics factories and medical laboratories boost growth, prosperity and jobs. While raising the profile of private enterprise, the government is planning to inject capital into promising sectors, but it is also setting ambitious targets for itself and for industry. Though the launch of Vision 2030 coincided with a difficult year for many industries in the Kingdom, it has served to galvanise industrialists and government ministries as they work towards recovery and future growth. The shift towards privatization and the increasing focus on SMEs are both positive indicators of the government’s commitment to implement the much-needed structural changes outlined in the development plan.
This chapter contains an interview with Khalid Al Mudaifer, President and CEO, Ma’aden; Mohammed Al Badr, Managing Director, Saudi Chemical; and Khalid Al Amoudi, CEO, Saudi Red Bricks.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel.
This chapter contains an interview with Samy Laghouati, Partner, Gide Loyrette Nouel, on recent changes to the legal code and investment regulations.
Explore chapterConstruction
Buy digital copy of this chapter - £18A quick look at the Doha skyline reveals just how much activity there is in Qatar’s construction sector currently. Activity in the capital is just one aspect of the work being done, however, with highways, housing estates and hypermarkets now also being built around the country. A huge amount of investment is going into Qatar’s infrastructure, along with its real estate, providing some of the largest contracts of recent decades for construction companies. Despite this flurry of activity, there are still challenges as the sector faces an economic slowdown. Falling oil and gas revenues have affected government spending, with many of the mega-projects currently under construction seeing reprioritisation, while new contracts have become scarcer. The blockade imposed on Qatar in June 2017 by some of its regional neighbours has also had notable effects on the economy. Nonetheless, Qatar remains a global centre for the industry as it gears up for 2022 FIFA World Cup. Indeed, sector players now expect a flurry of smaller contracts in the second half of 2018 and beyond, as the country’s plans for the tournament are realised and major projects are speeding up to meet pre-2022 deadlines This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority (Ashghal); and Eisa Al Hammadi, CEO, Qatar Primary Materials Company (QPMC).
Explore chapterRetail & E-Commerce
Buy digital copy of this chapter - £18In the wake of pro-business reforms and infrastructure development commitments, some of the world’s largest retailers have been expanding their presence in Indonesia. At the same time, the continued liberalisation of the sector has brought decreased levels of risk and increased market penetration. Today, Indonesia is home to a mix of modern and traditional retail outlets, with an uptick in e-commerce activity, which is both advancing the growth of the modern retail sector and creating new opportunities for entrepreneurs.
This chapter contains interviews with Hans Prawira, President Director, Alfamart; Kusumo Martanto, President Director, BliBli.com; and Florian Holm, CEO, Lazada Indonesia.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following a difficult 2016 the Nigerian construction sector showed signs of stronger growth in the first half of 2017. The uptick in activity comes on the back of a low base, however, as the country’s first recession in 25 years affected private investment in real estate building and oil companies had to scale back investment plans due to lower global oil prices. The stabilisation of the naira, the utilisation of new contract structures and an increase in local suppliers are now helping to provide fertile ground for activity. While public sector tenders remain limited compared to the booming years of the 2000s, the increase of private development in the residential and commercial building segments offers promise. Nigeria’s real estate sector has traditionally been defined by an abundance of demand and relatively limited supply, whether in residential, commercial or retail space. Since 2015, however, the situation has changed for some segments. In the office market, for example, supply is beginning to catch up or even outstrip demand. The real estate sector continues to account for around 7% of GDP, but the return on investment for developers is far less than it was five years ago, as Nigeria’s first recession in 25 years hit in 2015. The government’s efforts to boost middle-income home ownership should bear fruit in the longer term.
This chapter contains an interview with Igbuan Okaisabor, CEO, Construction Kaiser.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18With a seemingly endless supply of fertile land, the agriculture sector in Papua New Guinea has enormous potential to strengthen the economy and increase the prosperity of local farmers. While a number of challenges stand in the way of these opportunities, PNG’s organic and fair trade credentials are gradually opening high-value niche markets and bolstering export figures. As such, the advancement of crop production is a major priority for the government. As the largest employment sector and the third-largest export revenue generator, agriculture is widely recognised as the country’s best means of diversifying its basket of goods and easing reliance on extractive industries.
This chapter contains interviews with Ilan Weiss, Chairman, Innovative Agro Industry and Sir Brown Bai, Director, New Britain Palm Oil.
Explore chapterICT
Buy digital copy of this chapter - £18Thailand is quickly going from being a secondary player in the world of technology to a regional, if not global, leader. The relevant sectors are rapidly beginning to take off with the introduction of 4G and the build-out of fixed-line assets. Greater bandwidth, higher speeds, lower latency and increased consumer demand have led to a burst of activity. The country is now arguably the centre of ICT in ASEAN, with a significant percentage of regional traffic and the most active smartphone users. Meanwhile, the government is supporting technology with official policies and programmes. Its goal is to transform not only specific sectors, but also the economy and the country as a whole. This chapter contains an interview with Sanpachai Huvanandana, President, CAT Telecom.
Explore chapterTelecoms
Buy digital copy of this chapter - £18Characterised by high penetration rates, early adoption of new technology and healthy average revenue per user, the Kuwait telecommunications sector is a small but profitable market in which three major regional providers compete. Faced with the erosion of traditional voice and text revenue streams, all three companies are focusing on strategies to improve services while also monetising data as they seek to carve out new roles in the digital lifestyle economy. Kuwait is a mature market where each of the three operators know success will likely depend on how they adapt to – and generate revenues from – the next generation of change in an increasingly digitised society. A new industry regulator could also further shape the business practices of major players as they build connections with international technology partners to gain a competitive edge.
This chapter contains an interview with Salman bin Abdulaziz Al Badran, CEO, VIVA Kuwait.
Explore chapterTourism
Buy digital copy of this chapter - £18As efforts to restore macroeconomic stability and diversify Trinidad and Tobago’s economy gather pace, the political emphasis on tourism is likely to continue, along with increasing private sector pressure to boost marketing. Tourism contributed 2.9% of GDP in 2016, generating $806.4m. The mixed performance of recent years could continue in the near term. However, the sector is expected to undergo significant change in the medium term, with private stakeholders leading the way. Examples include ride-hailing app Uber launching in Trinidad in January 2017, the presence of homestay network Airbnb and Sandals’ proposed site in Tobago. Long term, a move towards an open skies agreement, coupled with incentives for firms to move into the regional travel niche, presents a vital opportunity to unleash immense potential.
This chapter contains an interview with Adam Stewart, Deputy Chairman and CEO, Sandals Resorts International.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Poised to grow at an exponential rate, Colombia’s agriculture sector will be the first to see the benefits of the signing of a historic peace agreement between the government and FARC. Vast untouched areas that have been inaccessible and unproductive for decades could well become the motor of growth the sector needs. Well-targeted investment could increase agricultural production by 8-10%. Many in the country believe the development of agro-industry will have the potential to promote rapid growth and a much needed restructuring of the agriculture industry. These and other ingredients make Colombia one of the most attractive countries for investment, and agri-business opportunities abound as the country’s role as a global food supplier continues to grow. This chapter features interviews with Roberto Vélez Vallejo, CEO, Colombian Coffee Growers Federation; and Rafael Mejía López, President, Colombia Commodities Exchange.
Explore chapterTourism
Buy digital copy of this chapter - £18Thanks to its unique historic and cultural offering, including one of the world’s most exciting cuisines, Peru is the fastest-growing tourism destination in the region. International tourism inflows rose by 7.7% in 2016, according to the “Economic Impact 2017 Peru” report by the World Tourism and Travel Council (WTTC), posting faster growth than anywhere else in the Americas, and above the global average of 3.9%. According to the WTTC, Peru’s travel and tourism sector was directly worth PEN25.7bn ($7.6bn) in 2016, or 3.9% of GDP, a figure which is estimated to rise to 5% of GDP within a decade. The sector’s total contribution was put at PEN66.2bn ($19.6bn), a considerable 10.1% of GDP. This is forecast to reach almost 12% of GDP by 2027, making tourism one of the country’s critical sectors.
This chapter includes an interview with Eduardo Ferreyros, Minister of Foreign Trade and Tourism
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Abu Dhabi’s office, residential and retail markets, long buoyed by undersupply, now face the opposite challenge, with a host of large-scale new completions coming on-line in recent years. This weighed heavily on sales prices and rental rates in 2016, although bright spots remain in the mid-market residential segment, as well as in prime up-and-coming neighbourhoods and commercial districts. In addition renewed demand for more affordable housing in Abu Dhabi has strained rents in the high-end residential sector with developers now shifting their strategies to include new mid-market developments. This has enabled double-digit returns on rental yields for some, making the mid-market segment a bright spot in an otherwise subdued residential market.
This chapter contains an interview with Mohamed Khalifa Al Mubarak, CEO, Aldar.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18With strong economic growth and an expanding population, Sri Lanka faces increasing demand for cost-efficient and clean energy. Similarly, the expansion and modernisation of the country’s cities, towns and villages is also placing higher demands on water and sewerage services, with investment in these vital utilities needed for successful future development. In a bid to meet these challenges, the current government has adopted a business-friendly approach to energy and utilities, with public-private partnerships and foreign investment seen as having a key part to play in upgrading these services. Therefore, the sector is one of the most promising for overseas interests, offering plenty of opportunities and a strong demand for action.
This chapter contains an interview with Anura Wijayapala, Chairman, Ceylon Electricity Board.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Nowhere are the effects of the Philippines’ sustained economic growth more apparent than in the construction industry, which is benefitting from pent-up demand and a positive outlook for future growth. This momentum has driven the industry to one of the highest growth rates in the country, with the Philippine Statistics Authority reporting growth of 11% in 2014, 10.4% in 2015 and a jump to 14.6% in 2016. Years of investment and strong economic development have fostered a robust real estate sector that now extends beyond Metro Manila and into secondary markets. Economic development and a growing middle class continue to fuel demand for new, high-grade residential units, while commercial investment drives an ever-increasing amount of retail and office space.
This chapter contains interviews with Bernard Vincent Dy, President and CEO, Ayala Land; and Alberto C Agra, Chairman, Philippine Reclamation Authority.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Although its share in Tunisia’s economy has declined over the past few decades, agriculture contributes 9% of GDP, employs 16% of the workforce, and accounts for 9% of investments and exports. During the post-revolution years, the sector has appeared as one of the most resilient of the economy. It has experienced double-digit investment growth, and is expected to boost value added in strategic segments such as cereals and olive oil. The growth of the agriculture sector, however, will largely depend on the government’s ability to prepare for a series of upcoming challenges, including droughts brought on by climate change, farmers’ growing debt loads and land fragmentation. The country’s capacity to accelerate the development of new agri-business subsectors, such as bottled olive oil and processed dates and vegetables, is also key.
This chapter contains an interview with Abdelmajid Ezzar, President, Tunisian Union of Agriculture and Fisheries.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Kenya’s construction industry has been accelerating at a rapid pace and making a substantial contribution to the country’s strong GDP growth figures on the back of major public works projects and rising demand for mixed-use and residential developments. However, the market is not without its challenges, and the funding and financing environment at all stages of project execution is tough, creating negative cost implications and a potential obstacle to the industry’s long-term, sustainable growth. Given the strong growth in the sector and the number of projects in the pipeline, it is unsurprising that there is significant interest in penetrating the local market. While there are challenges in terms of funding for the government and financing and cash flow for contracting firms, there are also substantial opportunities. However, in the longer term, the sustained growth of the sector will be dependent upon the ability to bring more private funding into projects on the ground. As one of the major markets of sub-Saharan Africa, Kenya is of increasing interest as a real estate investment destination. The 44.2m-person country and its 4.2m-strong capital Nairobi act as a gateway to a regional East African market, which is approaching 150m people. Domestically, the economy has been outperforming much of the world, the population is expanding and incomes are on the rise. Given these basic demand trends, it is hardly surprising that Kenya, like much of the sub-Saharan Africa region, is piquing the interests of a range of international funds and institutional investors. While there is undoubted potential in Kenya, the ability to tap into it is somewhat constrained, and affordability remains a concern.
This chapter contains interviews with Andrew Saisi, CEO, Nairobi Housing Corporation; and Ronald Ndegwa, Managing Director, Savannah Cement.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Mexico’s transport sector has witnessed rapid growth in recent years, although question marks over economic integration with the US – one of the driving forces of transport growth – are introducing a period of relative uncertainty. However, the fundamentals remain positive for the sector, based on demographic growth, rising living standards, a growing middle class, and the expansion of manufacturing and consumer services. In recent years the transport sector has tended to grow at higher rates than the Mexican economy as a whole. Transport GDP grew by 4.3% in 2015, slowing to 2.8% in 2016, while total GDP growth in 2015 was 2.6%, falling to 2.3% in 2016. Most stakeholders in Mexico’s transport and logistics sector recognise that protectionist headwinds in US-Mexican trade could have a negative impact on their industry during the course of 2017. However, fundamentals in the industry are still positive, and there is room to increase efficiency and competitiveness. This chapter features an interview with Andrés Conesa Labastida, CEO, Aeroméxico.
Explore chapterTourism
Buy digital copy of this chapter - £18The tourism industry in Egypt is continuing its drive to regain its international reputation as a world-class destination and to further develop non-traditional tourism niches, as the government remains determined for the sector to retain its position as a key driver of the economy and critical source of foreign currency, even after five challenging years. Indeed, with a variety of government-led initiatives, as well as regional and international support, operators are still hopeful the sector can regain momentum. However, given lingering security and currency issues, it is difficult to predict exactly what the coming years will hold for Egypt’s tourism sector. The industry would benefit from an extended period of peace and stability to enable tourist inflows to rebound. Yet with the government’s commitment to revive the industry through investing in both conventional and niche tourism, and its efforts to promote the country as an attractive destination, there is plenty of scope for long-term growth.
Explore chapterTable of Contents
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ICT
Buy digital copy of this chapter - £18With high headline growth opening up new business opportunities, Côte D’Ivoire’s telecoms sector continues to grow on the back of newly inaugurated 4G networks, expanding coverage and a series of regulatory reforms, which include the revocation of some licences for smaller operators and the issuance of a licence for a new entrant. These moves are helping to reshape a market and sector that had previously been hampered by high competition, limited infrastructure and inconsistent service. In parallel, a government-led plan to expand broadband infrastructure across the country is helping to improve fixed and backbone connectivity. Improving conditions for domestic IT companies will help ensure that the expansion taking place in the sector can be maintained for the coming years. This chapter contains an interview with Bruno Nabagné Koné, Minister of Communications, Digital Economy and the Post.
Explore chapterEducation
Buy digital copy of this chapter - £18As Bahrain continues to move from an oil-dependent economy to a more knowledge-based one, education is taking a driving seat in training the next generation of young Bahraini citizens in how to prosper in this new landscape. While education has long been a priority, the focus right now is on raising overall standards, from primary education on up. Perhaps the biggest changes taking place are in the field of higher education, with a new accreditation system being put in place by the Bahrain Higher Education Council, and the arrival of foreign universities offering courses both in partnership with domestic universities as well as at their own local campuses.
This chapter contains an interview Riyad Y Hamza, President, University of Bahrain.
Explore chapterTransport
Buy digital copy of this chapter - £18Strategically situated at the head of the Indian Ocean and bordering Saudi Arabia and the UAE, Oman is a gateway to the GCC region – a re-distribution point and transit hub for shipments to and from Asia, the Indian subcontinent, and East and Central Africa. Transport and logistics has emerged in recent years as a pillar of the sultanate’s development and a critical driver of its economy, benefitting all sectors. Seeking to develop Oman as a leading logistics centre in the region and reduce its dependence on hydrocarbons, the government continues to generously fund logistics infrastructure programmes. This chapter contains an interview with Paul Gregorowitsch, CEO, Oman Air; and a roundtable discussion with Mark Geilenkirchen, CEO, Port of Sohar; David Gledhill, CEO, Port of Salalah; and Reggy Vermeulen, CEO, Port of Duqm.
Explore chapterTransport
Buy digital copy of this chapter - £18Spanning a vital geographic area and sharing borders with India, China, Thailand, Bangladesh and Laos, Myanmar is poised to see its transport sector post double-digit growth in the coming years. The sector is bolstered by surging air passenger and trade volumes, and rising urbanisation. Additionally, ageing road and rail networks, urban and port congestion, and a lack of multi-modal connectivity have made rising transport costs a major impediment to new foreign investment. The government is moving to address these challenges through delivery of its National Transport Master Plan, which should see huge public investment in new transport infrastructure in the coming years.
This chapter contains an interview with U Than Tun, CEO, Myanmar National Airlines.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Algeria has made significant strides to improve access to quality medical care and tackle communicable diseases. While basic health indicators are very good, the changing socioeconomic landscape and improved living standards have coincided with a rise in chronic diseases such as diabetes and cancer. Years of accumulated oil revenues have enabled the government to fund the health care system generously and invest heavily in clinics, hospitals and preventative measures. Yet despite the progress made, there is still room for improvement given the country’s changing health issues and health care needs. This chapter contains interviews with John Chrosniak, President, DuPont; and Dow R Wilson, CEO, Varian Medical Systems.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Public-private partnerships continue to play key role, government encourages local production of materials. Construction is the largest subsector of industry Growth begins to stall in the real estate market
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Jordan, including an outline of sectors in which foreign ownership is restricted and a look at recently promulgated legislation for public private partnerships.
This chapter contains a viewpoint from Khaled Asfour, Managing Partner, Zu’bi Advocates & Legal Consultants.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Gabon, in partnership with Deloitte Gabon.
OBG talks to Nicolas Balesme, Managing Partner, Deloitte Gabon, about the governance and benefits of public-private partnerships (PPPs).
Explore chapterIndustry
Buy digital copy of this chapter - £18In recent years an emphasis has been placed on growing the Kingdom’s non-oil private sector by bringing in manufacturing and other industries to diversify the economy. The National Transformation Programme has replaced the Kingdom’s 10th Development Plan and establishes the means by which the country will meet the objectives set out in Vision 2030, whose main goal is to diversify the economy away from oil. With value-added industry and mining set to play substantial roles, importance has been placed on projects that will utilise the Kingdom’s raw material wealth, including petrochemicals, metals and phosphates, and develop a full chain of upstream and downstream opportunities for both local and international firms.
Explore chapterCasablanca
Buy digital copy of this chapter - £18Already by far Morocco’s largest city and its economic capital, Casablanca is currently going through a major period of redevelopment. Planned large-scale works include substantial improvements to infrastructure, construction and renovation of leisure and cultural facilities, and expansion of the public transport network to make the city a more attractive place for residents and tourists alike. Launched in late 2014, a major new growth strategy, the 2015-20 Casablanca Strategic Development Plan, outlines a vision for the city as a well-connected and inclusive financial centre that is also an appealing place to live and visit. New industries are also emerging in the city.
This chapter contains interviews with Abdelaaziz Omari, Mayor of Casablanca; and Mohamed Aouzai, Governor of Urban Agency of Casablanca.
Explore chapterEnergy
Buy digital copy of this chapter - £18It has been 50 years since Dubai first struck oil in the Fateh field, but in 2016 the emirate’s determination to ensure it did not become dependent on petroleum wealth is paying dividends. Although the impact on its neighbours of lower global oil prices may have an indirect impact on Dubai’s fortunes in the years to come, in the immediate future its energy policies revolve around reducing consumption and diversifying the mix of primary energy sources it uses to generate power and desalinated water for its citizens. Technological innovation and commercial acumen are driving the adoption of solar solutions, so much so that in 2016 Dubai’s energy planners announced that they expected renewables to account for 25% of the emirate’s needs by 2030. In 2014 its renewables targets were 1% by 2020 and 7% by 2030.
This chapter contains interviews with Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority (DEWA); and Saif Humaid Al Falasi, Group CEO, Emirates National Oil Company (ENOC).
Explore chapterIndustry
Buy digital copy of this chapter - £18Economic diversification is at the heart of Kuwait’s long-term development strategy, as is establishing the country as a gateway to the northern Gulf and Middle East. The industrial sector has a central role to play in this, as the state looks to develop export-oriented businesses that can supplement hydrocarbons income and broaden the revenue base. Under the Kuwait Development Plan (KDP) 2015-20, which lays out a strategy for large-scale investments in infrastructure and energy, and includes a strong emphasis on private sector involvement, the government aims to raise the non-oil sector’s contribution to GDP to 64% in 2015-20, up from an average of 45.1% in 2010-13. The chemicals sector is already strong in Kuwait and is expected to raise output strongly in the coming years, leveraging the country’s wealth of resources and spurring a wave of investments. Other industries with potential include construction materials, demand for which is rising as Kuwait ramps up infrastructure projects, and food, where domestic demand and a strategic location are important upsides.
This chapter contains an interview with Ghosson Ghassan Al Khaled, COO, ACICO Industries Company
Explore chapterAgriculture
Buy digital copy of this chapter - £18While oil may be Nigeria’s breadwinner, agriculture remains the most important component of the country’s economy. The sector is the largest employer and accounts for 23.9% of GDP. And yet for many years the agriculture industry took a back seat to hydrocarbons, with Nigeria rising to be a key global producer. However, with the fall in the price of oil, the country’s high dependence on imports and a weakening currency, domestic agricultural is taking centre stage once again. In the coming years, the West African nation is likely to become a substantial producer of staple food crops, such as wheat and rice. At the same time, moves are afoot to rejuvenate traditionally strong segments like cassava and cocoa. While it remains to be seen whether the government can meet many of the ambitious targets it has set for these crops, the commitment to reducing imports and inflationary pressures, and boosting lending should ensure that production continues to increase, edging Nigeria closer to self-sufficiency and strong export growth.
This chapter contains an interview with Audu Ogbeh, Minister of Agriculture and Rural Development.
Explore chapterRetail & E-Commerce
Buy digital copy of this chapter - £18Now comprising a mix of traditional markets and modern retail outlets, Indonesia’s retail sector has been swiftly evolving since the late 1990s, when the country’s economic development began to accelerate. Gross national income per capita at current prices grew from $570 1999 to $3440 in 2015, more than a 500% increase over 15-year period, according to World Bank data. Fuelled by this economic explosion, a large domestic consumer base, second to none in South-east Asia, and a burgeoning middle class, the retail sector has emerged over the same time as a force in its own right and as a result has attracted substantial investment from domestic and international sources over the past decade and a half.
This chapter contains an interview with Hadi Wenas, CEO, MatahariMall.com.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Often overshadowed by the extractive industries, Papua New Guinea’s industrial manufacturing, down¬stream processing and value-added sectors in fact serve as the largest formal employer in the country and continue to attract investment despite fiscal challenges presented by the current operating environment. Beyond employment, sustained long-term growth for PNG industry will be crucial for the country to steer clear of negative consequences associated with “Dutch disease”, which is incurred from relying too heavily on mining and energy. Developing local industry to offer more import replacement goods will also be essential to eventually lowering the cost of goods and services.
This chapter contains an interview with Stan Joyce, Managing Director, South Pacific Brewery.
Explore chapterConstruction
Buy digital copy of this chapter - £18Although growth has slowed following a banner year in 2014, Qatar’s construction industry remains one of the most vibrant and fast expanding in the Middle East, and a key driver of non-oil growth. Major infrastructure projects including the Doha Metro, Long Distance Rail, Hamad Port, the next phase of expansion at Hamad International Airport (HIA), and a network of new roads and drainage systems are expected to keep the industry on track in 2016, while new builds in the health, education, real estate and hospitality segments will further augment growth. Many of these projects benefit from enhanced government spending aimed at delivering critical projects in time for the 2022 FIFA World Cup, which should help offset some of the challenges contractors are facing as a result of project delays, high build costs, delayed payments and lack of available labour.
This chapter contains an interview with Nasser bin Ali Al Mawlawi, President, Public Works Authority (Ashghal).
Explore chapterTourism
Buy digital copy of this chapter - £18As Trinidad and Tobago continues to feel the impact of lower energy receipts, the tourism sector is emerging as a strategic development priority. Elected in September 2015, the government of Keith Rowley is placing a renewed emphasis on economic diversification to help the TT$175.99bn ($27.1bn) economy weather the downturn in the global energy market. Tourism, along with agriculture and manufacturing, has been identified as strategic in that quest. Despite the recessionary environment, T&T saw an upsurge in visitor arrivals – which increased by 6.6% in 2015 to reach 439,749 visitors – highlighting the sector’s resilience. The US accounted for 39% of international arrivals, followed by Canada (13%), the UK (9%), Scandinavia (2%), Ger¬many, Austria and Switzerland (2%), India (1%), the Caribbean (18%) and the rest of the world (16%). To accelerate growth a number of efforts are under way to raise the profile of key tourist sites, improve service standards and develop human capital.
This chapter features an interview with Shamfa Cudjoe, Minister of Tourism.
Explore chapterAgriculture
Buy digital copy of this chapter - £18In 2007-08 South-east Asia was hit by an unprecedented shortage of staple food products. A number of factors have been blamed for this event, including droughts, a surge in costs, low stockpiles, increasing demand from growing middle-class populations and speculation over commodity prices. In response, the governments of many countries in the region embarked on efforts to ensure that they would not be caught out by food shortages again. Brunei Darussalam was no exception to this, with the Sultanate moving quickly to priorities food security and increased self-sufficiency as key aims of its economic development plans. Since then, agriculture and fisheries, agri-business, aquaculture, and food research and development (R&D) have all been prioritized, with impressive results in some sub sectors. At the same time, Brunei Darussalam has also been working to make a name for itself globally as a key halal food center, bringing a rigorous examination and certification program to the international halal table. This chapter contains an interview with Dato Ali Apong, Minister of Primary Resources and Tourism.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Over the years, large-scale public and private projects have dominated the activities of the Malaysian construction sector, driven by governmental and investor efforts to implement successive five-year plans aimed at becoming a developed nation. The 11th Malaysia Plan (11MP), covering 2016-20, focuses on transforming the construction sector, among other economic areas. Detailed under four main strategies, its goals for the sector include the continuation of a separate Construction Industry Transformation Programme, covering the same five-year period, which is meant to help the sector meet market demand and propel the industry into the international arena. Although 2016 is forecast to be a flat year for the real estate sector, there are excellent deals to be had for forward-looking investors and those able to invest without a bank loan. This chapter contains an interview with Mohamad Salim, Group Managing Director, Malaysia Resources Corporation.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18In 2015 and early 2016 the state rolled out a series of reforms and initiatives aimed at shoring up the country’s energy industry, including expanding the national electricity grid, particularly in rural areas; developing new renewable energy sources; opening up the hydrocarbons sector to greater foreign investment; and working to introduce a new fuel pricing formula, which has the potential to improve the economics of the domestic energy business dramatically. These and other changes have been put forward as part of a sector development plan covering 2015-25 conceived by the Ministry of Power and Energy (MoPE). Along with a number of additional medium- and long-term strategies for the sector the MoPE’s efforts are expected to contribute to an uptick in energy sector investment in Sri Lanka. Indeed, the 2015-25 plan is a key step towards achieving the government’s objective of 100% energy self-sufficiency by 2030.
This chapter contains an interview with Damitha Kumarasinghe, Director-General, Public Utilities Commission of Sri Lanka.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Real estate development in Abu Dhabi is dominated by large, mostly local government-backed companies, several of which are responsible for the master development of various emerging areas of the city including Yas Island, Al Maryah Island and Zayed Sports City. Meanwhile, the value of construction sector activity in Abu Dhabi increased to $24.9bn in 2014 from $23.3bn a year earlier. Sector activity also grew 3.3% in 2014 at constant prices over the previous year, up from growth of 0.6% in 2013. Transport infrastructure in particular is helping to drive activity in the sector, with a number of projects planned or under way for rail and urban transport infrastructure as well as the airport segment. This chapter contains an interview Mohamed Al Mubarak, CEO, Aldar.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture performed strongly in 2015, driven by outstanding production and olive oil exports, which generated nearly 920m in revenue. The sector, which accounts for around 10% of GDP, has not been spared the instability affecting the country since the 2011 revolution, prompting efforts to initiate structural reforms, including enhanced organisation to boost productivity and stabilize output. Profitability is also a concern, as farmer debt is soaring amid rising input costs. Given the role that the sector has come to occupy in securing foreign revenues and bolstering the country’s trade balance, Tunisia is set to further tap into existing assets, such as its geographical location and favorable climate, to boost exports to Europe. There is also significant potential to enhance exports to neighbouring Libya and Algeria, where non-tariff barriers are less of an impediment to trade than they are in Europe’s case. This chapter contains an interview with Abdelaziz Makhloufi, CEO, CHO Company.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The Thai telecom market is changing quickly. 4G has been introduced and a new player may now be competing, bringing the total number of major operators to four. In the short term, telecoms must pay for their spectrum, and going out they will be developing their networks and building their customer bases. This is sure to be a challenge in terms of fund-raising and profitability, and it seems that creative solutions in terms of infrastructure sharing and financing are on the cards. A convergence of factors, including the rollout of 4G nationwide, government support and better user understanding of the offerings is resulting in improved IT and telecoms infrastructure and increased demand.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction and real estate sectors make up around 20% of the Philippine economy, slightly ahead of manufacturing. Over the past few years, construction in the Philippines has been flourishing amid a climate of political stability and upbeat business sentiment, spurred by growth in overseas foreign worker remittances, inbound investments into business process outsourcing, rising numbers of tourist arrivals, and government spending on large- and small-scale infrastructure. Although growth rates for the sector are unlikely to maintain the exceptional levels of the past 24 months, the long-term prospects remain solid and balanced. Positive trading conditions for the residential, office, retail and hospitality segments point to robust demand for private-sector-led building. This chapter contains interviews with Chito Cruz, Chairman, Housing and Urban Development Coordinating Council; and J J Atencio, President and CEO, 8990 Holdings.
Explore chapterThe Guide
The guide includes information on hotels, government offices and other services, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18The 2015 Global Innovation Index ranked Colombia 67th out of 141 countries for its innovation potential, below Chile (42nd), Costa Rica (51st) and Mexico (57th), but ahead of Brazil (70th) and Peru (71st). In a bid to strengthen its competitiveness in international markets, the Colombian government plans to double expenditure on science, technology and innovation (STI) from 0.5% of GDP in 2015 to 1% of GDP by 2018. As a regional comparison, Brazil spends 1.74% of GDP on STI activities, while Mexico spends 0.73%, according to the Ibero-American and Inter-American Network for Science and Technology Indicators. Even lower is the country’s annual expenditure on research and development activities, which reached 0.19% of GDP in 2014, according to the Colombian Observatory for Science and Technology. Authorities are now implementing legal measures to encourage expenditure on research and innovation activities in the private sector, including improving access to financing for research for small and medium-sized enterprises.
This chapter includes an interview with Daniel Quintero Calle, Executive Director, Innpulsa.
Explore chapterEducation
Buy digital copy of this chapter - £18With the first modern school in the Gulf set up in the country in 1919, and the first girls’ school opened in 1928, Bahrain has one of the longest histories of education in the region. Greater investment in the sector aims to improve quality across the board while matching graduates’ skills with the needs of the labour market. The nation’s public schools continue to perform well with the National Authority for Qualifications and Quality Assurance of Education and Training rating twice as many public schools as “outstanding” compared to private institutions. Steps are being taken to integrate technology into the classroom, with the education ministry engaging major IT firms to promote technology as a teaching tool. Meanwhile, as part of its push for the Bahrainisation of the workforce, the government is supporting a number of on-the-job training initiatives. Funding schemes, such as Tamkeen, have also set minimum industry quotas to be filled by Bahrainis and are redoubling efforts in vocational training.
Explore chapterTourism
Buy digital copy of this chapter - £18Hundreds of thousands of foreign tourists have visited Myanmar since 2010 when relations with the West thawed and the country began to open up to the outside world. While some are eager to experience the South-east Asian nation’s rich culture and heritage, others are simply curious to see the once isolated country before it changes forever. At the same time, economic development is expanding the market for domestic tourists, as their economic situation improves, allowing them to explore their country’s varied destinations. The year 2016 has been designated “Visit Myanmar Year” by the Ministry of Hotels and Tourism and will provide an opportunity for the country to step up its international marketing campaigns to encourage people to visit. With significant hotel capacity and new transport infrastructure needed, the challenge will be to manage the expansion of the tourism sector in a sustainable way so that all parties can benefit. This chapter contains interviews with U Yan Win, Chairman, Myanmar Tourism Federation; and Anders Aeroe, Director of the Division of Market Development, International Trade Centre.
Explore chapterTourism
Buy digital copy of this chapter - £18In recent years, Peru has established itself as one of the world’s most unique tourism destinations, with much of the sector’s growth resting on the Incan ruins of Machu Picchu. According to the Ministry of Foreign Trade and Tourism, international arrivals increased from a total of 993,706 in the period between January and September 2004 to 2.6m during the same nine-month period in 2015. Sector revenues have also seen a gradual increase, reaching $3.8bn in 2014. The government expects to attract up to 5.1m visitors annually by 2021 and generate income of close to $7bn. To accelerate expansion over the coming years, tourism authorities and the private sector are simultaneously increasing promotional efforts and developing the country’s touristic products. Meanwhile, an inflow of private capital into the growing hospitality sector and infrastructure development is opening up other regions of the country to domestic and international visitors. This chapter contains an interview with Magali Silva Velarde-Álvarez, Minister of Foreign Trade and Tourism.
Explore chapterTransport
Buy digital copy of this chapter - £18Oman’s public authorities are in the midst of a multi-billion-rial investment programme designed to expand and improve the country’s transport and logistics capacities across land, sea and air. Salalah, the country’s largest port, has recently shifted its focus towards import/export traffic, with a new 20-year master plan launched in 2011 aiming to establish multi-modal links at the port and boost logistics facilities at the nearby free-zone. Meanwhile, the government is currently working on completing the $3.9bn Batinah Expressway, which will be an extension of the Muscat Expressway and continue for 265 km to the UAE border, while the nine-segment national rail project is planned to cover a total of 2135 km at a cost of $15.5bn, with 1414 km under tender so far and $6bn already invested. Elsewhere, expansion works at Salalah Airport have been completed, with $765m invested in a new passenger terminal, air traffic control tower, ancillary buildings and connecting roads. This chapter contains an interview with Peter Young, Director, Oman Logistics Centre; and Abdulrahman Al Hatmi, Director, Oman Rail.
Explore chapterRetail
Buy digital copy of this chapter - £18The retail environment in Egypt is set for a transformation over the coming decade. While it has always been a key facet of the country’s economy, with household consumption expenditure accounting for 82.8% of GDP in 2014, it is likely to become all the more formalised over the next 10 years. The sector has remained intact in the face of economic uncertainty because it has largely been geared to mass-market essentials and value products fuelled by the informal sector. However, given the strong demand fundamentals in the market, a number of international brands, retail franchise operators and mall developers are now targeting the market. With a young and technologically literate population, many retailers are expecting to generate an increasing proportion of their sales online in the years to come.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Kenya’s largest contributor to GDP faced significant hurdles in 2015. Exports were hit by a slowdown abroad, and the continued depreciation of the shilling led to a jump in production costs. However, rising demand both at home and regionally and increased production levels are contributing to greater foreign investment, enabling the sector to maintain its economic importance. Plummeting global commodity prices have had a serious impact on tea export revenues; imports of critical crops like sugar and maize have risen as a result of inefficiencies in these subsectors; economic slowdowns in Europe and Asia have weakened global demand for horticulture exports; and the shilling’s ongoing depreciation has exacerbated the sector’s rising production costs. However, the government and private industry are aware of the challenges and have been working to address them.
This chapter contains an interview with Mohammad Abu-Ghazaleh, Chairman and CEO, Fresh Del Monte Produce.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. OBG talks to Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars, on Algeria’s voluntary tax compliance programme.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework within which local and international investors operate in Jordan including a look at the new investment law, a rundown of the revised incentives being offered, as well as an examination of the recent tax reforms that have been put in place.
Explore chapterTourism
Buy digital copy of this chapter - £18South Africa’s tourism sector has come to rival the country’s mining industry in terms of overall contribution to GDP, with 2014 witnessing record levels of foreign arrivals, drawn in by the country’s natural beauty, outdoor attractions, food and culture – and increasingly by its business and conference facilities. The sector faced a significant decline in 2015, however, with stringent new visa regulations impacting visitor figures and threatening the loss of thousands of jobs and millions in revenues. In spite of the regulations’ expected impact on the industry, a significant number of positive indicators, particularly in the Cape Town area, could help some operators weather the worst of the near-term shocks.
This chapter contains an interview with Clifford Ross, CEO, City Lodge Hotel Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Growing year-on-year as a contributor to the economy, Ghana’s construction sector is increasingly dynamic and led by private sector participants. While parts of the real estate market have slowed in recent years, demand for low-cost housing remains as strong as ever. Government investment is a major driver of growth, with a substantial pipeline of projects in transport infrastructure in particular expected to be rolled out in the coming years, often using public-private partnership models. Construction activity contributed $3.8bn to GDP in 2014 at current prices, according to the Ghana Statistical Service. This was equal to 12.7% of GDP and up 26.9% from $2.9bn in 2013. The sector has grown strongly over the past decade, up from $280.3m in 2006, and has become of increasing importance to the broader economy, more than doubling as a contributor to GDP from 5.7% in 2006.
Explore chapterTable of Contents
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Tourism
Buy digital copy of this chapter - £18Two straight years of record growth in Mexico’s tourism sector have solidified its importance as a motor for economic growth. Tourism contributes over 8.7% to Mexico’s GDP, employs 3.6m people directly and is the fourth most important source of foreign currency. The sector exceeded growth expectations for 2014, registering a record number of international tourist arrivals, at nearly 29.3m, and generating revenues of nearly $16.2bn, enabling the country to reclaim its spot among the top 10 tourist destinations in the world, according to the UN World Tourism Organisation. The outlook for the industry is particularly positive. Rising demand for accommodation is driving growth in the hotel market and raising investor interest, while government efforts to boost the competitiveness of tourist destinations and increase promotional efforts should see greater diversification of both the tourist offering and source markets in the coming years.
This chapter features an interview with José Luis Castro, CEO, CTS (Corporate Travel Services).
Explore chapterIndustry
Buy digital copy of this chapter - £18A programme to boost oil production in Kuwait has stimulated growth in construction and petrochemicals. After hydrocarbons extraction and refining, the petrochemicals industry is the largest in Kuwait, with the bulk of production exported to Asia. Manufacturing, meanwhile, is set for continued growth as the country makes a greater push to diversify its industrial base – efforts that will be boosted by a significant influx of funds allocated to transport upgrades as part of the National Development Plan 2015-20. Local pharmaceutical companies are also poised to benefit from rising demand for health care services in the coming years, driven by high birth rates, an ageing population and sustained immigration.
This chapter contains an interview with Ahmad Al Jemaz, CEO, Kuwait Aromatics Company.
Explore chapterIndustry
Buy digital copy of this chapter - £18The abundance of hydrocarbons in the Kingdom has led to a proliferation of downstream petrochemicals businesses. The natural gas that is allocated to producers at a subsidised price forms a significant part of Saudi Arabia’s value proposition to foreign investors. Demand from rapidly expanding markets in Asia, as well as steady sales to established Asian centres, should ensure that the Kingdom’s petrochemicals industry strengthens its position in the medium term. Meanwhile, the country continues to focus efforts on diversifying non-oil growth, with the combined contribution of mining and non-oil manufacturing rising from 7.6% of GDP in 2012 to 8.2% in 2013 and 8.7% in 2014, while the Kingdom’s steel production increased by 15% from 2013 to 2014, the second-highest rise anywhere in the world. Four new economic cities are due for completion by 2020 in line with the country’s 10th Development Plan, which aims to deliver more even distribution of industrial development across the country.
This chapter contains interviews with Mohammed Al Kathiri, Secretary-General, Riyadh Chamber of Commerce and Industry; and Mohanud Helal, Secretary-General, Economic Cities Authority (ECA).
Explore chapterEnergy & Environment
Buy digital copy of this chapter - £18As the only country in North Africa without commercially relevant oil or gas reserves, Morocco relies heavily on foreign energy imports to meet domestic demand. To counter this dependence, the government has embarked on a range of reforms to boost renewable energy sources. These efforts are concentrated around solar, wind and hydroelectricity, which together are expected to comprise 42% of the national energy mix by 2020. This new emphasis on renewables is also set to develop new industries and generate employment. At the same time, the government has sought to source hydrocarbons closer to home, attracting investment from small-scale oil and gas exploration companies. This chapter contains interviews with Stephen Jenkins, Chairman, Circle Oil; and Nasim Khan, Vice-President for Africa, First Solar.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18While overshadowed by energy and mining investments, Papua New Guinea’s agricultural sector is a key earner of foreign currency and a primary employer for many of its citizens. The country’s fertile land makes the sector and its downstream processing and value-added spin-offs the most viable option for absorbing its growing workforce, while continuing to provide potential for the economy in the long term. The palm oil industry dominates the sector, accounting for two-thirds of all agriculture exports excluding the forestry and fisheries industries. While the smaller fisheries benefit the country by supplying local markets with fish and modest exports when their respective fisheries are healthy, the sector remains largely reliant upon the tuna trade. The government has allocated significant funding for agriculture development, which should help the industry become more cost competitive in the long run. Growth will come from several subsectors, including improvements in the cultivation of coffee and cocoa as a result of yield-boosting initiatives.
This chapter contains interviews with Pedro Celso, CEO, RD Tuna; and John Nightingale, Managing Director, Agmark.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of the Gabonese legal system, including the general legal environment and the legal framework for investment, touching on sector-specific incentives in tourism, agriculture and mining, among other areas.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Buoyed by revenues from the oil and gas industry, education is one of T&T’s strengths. In its “Global Competitiveness Report 2014-15”, the World Economic Forum ranked T&T 44th for the general quality of its education system, 43rd for primary education, 35th for maths and science, and 33rd for its management schools, out of 144 countries. Unsurprisingly, the government has made education a priority, allocating 15% of total spending to the sector in the 2015 fiscal year. Meanwhile, as the prevalence of non-communicable diseases rises, T&T’s public health care system is working to expand services while coping with labour shortages. A move to a National Health Insurance System, in which health care is largely funded by a levy on the working population, is being contemplated by authorities. In the meantime, deficiencies in the public system are likely to generate opportunities for health insurers as wealthier Trinbagonians seek better and faster care.
Explore chapterTourism
Buy digital copy of this chapter - £18Buoyed by expanded connectivity and increasing investment, Panama’s tourism sector has experienced unprecedented growth in the past few years. Today, it is a pillar of economic development, generating more revenues than transit fees from the Panama Canal ($1.92bn) or the Colón Free Trade Zone ($1.9bn). According to the Tourism Authority of Panama, visitor numbers have grown every year since 2002, save for a slight contraction of 0.8% in 2009, with total arrivals exceeding 2.3m in 2014. Sector revenues have followed a similar upward trend, growing by 7.3% in 2014 to nearly $5.5bn, up from $5bn in 2013 and a five-fold increase on the $1.1bn generated in 2005. The current’s government’s policy of diversification is set to usher in a host of new developments outside the capital likely to strengthen key tourism subsectors, in particular the ecotourism and “sun, sea and sand” segments.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms sector in Turkey has long been viewed as a rising star, with a young, digitally adept population and rising personal incomes driving demand in the mobile voice and data segments. In recent years, the industry has been affected by macroeconomic issues, including a weaker lira, as well as some restrictive regulatory changes. Even so, Turks spent more than TL35.5bn (€12.5bn) on telecoms in 2014, up from TL32.2bn (€11.34bn) in 2013, according to the Information and Communication Technologies Authority. Turkey’s IT sector is benefitting from the rapid, widespread development of internet services, infrastructure investment and e-commerce activity. Internet growth is being driven by fibre-optic expansion, increased adoption of 3G mobile internet and planned nationwide 4G network services that will require significant investment from the public and private sectors. Internet speeds are increasing and Turks are embracing the latest offerings in record numbers. Infrastructure investment by domestic and foreign firms is on the rise, buoyed by demand from a young and tech-savvy population, and all signs suggest that the telecoms and IT sectors are poised for expansion in 2015 and beyond.
This chapter contains an interview with Mehmet Nalbantoğlu, CEO, KoçSistem.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £182014 was a challenging year for Indonesia’s telecommunications sector, as operators faced fierce competition and market saturation, and average revenue per user (ARPU) continued to decline. The IT sector, however, showed promising growth, which is expected to continue on the back of the burgeoning data centre, cloud computing and e-commerce segments, with an increasing number of private players benefitting from a tech-savvy consumer base. Although the mobile market faces considerable challenges in adapting to shifting consumer trends, Indonesia’s solid economic fundamentals and thriving digital marketplace have created lucrative opportunities for private players of all sizes.
This chapter contains interviews with Alex Sinaga, President-Director, Telekomunikasi Indonesia; and Dian Siswarini, President-Director and CEO, XL Axiata.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Holding up during difficult times and helping to take the edge off the commodity cycle, industry in Mongolia has contributed significantly to the economy. While resource prices have been dropping and related economic activity and foreign direct investment are not at expected levels, manufacturing and processing have been growing, with industrial production up almost 15% in 2013, providing a measure of countercyclical support. More investment is needed in the industry and retail sectors, and many of the most promising industries have been largely ignored by investors and the government, crowded out by mining and minerals opportunities. Still, the events of recent years have demonstrated that a more diversified economy is needed and manufacturers are evolving to capture new opportunities.
This chapter contains interviews with M. Oyunchimeg, CEO, Mongolian National Chamber of Commerce and Industry; and Ts. Erdenebileg, CEO, APU Company.
Explore chapterIndustry
Buy digital copy of this chapter - £18In spite of the country’s traditional reliance on hydrocarbons, Nigeria’s industrial sector is diversified and growing, ranging from food and beverages to building materials. After a decades-long slump in manufacturing output, triggered by the scaling up of oil production in the 1970s, the country is working to reverse the trend and enable manufacturing and heavy industry to play a larger role in the economy. In the short and medium term, the government’s focus is on import replacement and addressing primary sector blockages, such as power, transport infrastructure and financing. The country’s solid fundamentals, including rising purchasing power, a growing population and limited penetration, make it an attractive long-term bet, as evidenced by the spate of new investments in recent years and the strong performance of companies in the FMCG, auto and building material segments.
Explore chapterIndustry
Following two years of double-digit industrial growth in 2010 and 2011, non-oil output rose by 4.9% in 2012 and 4.7% in 2013. The Kingdom may still have a negative trade balance for industry – with exports of $35.08bn and imports of $103.35bn in 2012 – but with access to raw materials set to expand, foreign investors are showing interest in lighter segments. With the government making room for new segments in the industrial sector, expansion of capacity for fertilisers and phosphates, as well as new production plans for pharmaceuticals, the sector looks set to see considerable diversification in manufacturing. This chapter contains interviews with Abdulrahman Al Zamil, Chairman, Riyadh Chamber of Commerce and Industry, and Saleh Al Rasheed, Director-General, Saudi Industrial Property Authority.
Explore chapterConstruction
Buy digital copy of this chapter - £18Construction represents Qatar’s fastest-growing sector, with the government having pledged $200bn of investment as part of a vast infrastructure expansion scheme. As a result, opportunities for contractors abound, particularly in the transport, retail, real estate, tourism, and education sectors, not to mention the eight multibillion-dollar stadia being built in preparation for the 2022 FIFA World Cup. With such rapid growth, however, the sector has faced numerous challenges, including late payments, inflation and project delays. Labour conditions in the sector have also come under considerable international scrutiny. The state is working to address these issues however, with the government having announced plans for far-reaching labour reforms that will improve its work visa and salary payment schemes.
This chapter contains an interview with Nasser bin Ali Al Mawlawi, President, Ashghal (the Public Works Authority).
Explore chapterEducation & Training
The Malaysian government is committed to transforming the country’s education system to produce a cadre of graduates armed with the creative and critical thinking skills necessary to thrive and lead in the 21st century’s increasingly international workplaces. The approach is tailored to each area of the country. In Sarawak, which has a higher proportion of rural schools than Peninsular Malaysia, the ministry is prioritising support by providing funds for upgrades to the state’s education infrastructure, among other programmes. Policymakers and educators are clearly on course in planning for the changes Sarawak Corridor of Renewable Energy and other projects will bring to the people of Sarawak. Implementation is key and it is crucial that all of the state’s people gain from the private and public investment now being made in the state’s education system.
This chapter contains interviews with Professor Abdul Rahman Arshad, Chancellor of UCSI University; and Mohamad Abu Bakar bin Marzuki, Director, Yayasan Sarawak.
Explore chapter
Industry
Following two years of double-digit industrial growth in 2010 and 2011, non-oil output rose by 4.9% in 2012 and 4.7% in 2013. The Kingdom may still have a negative trade balance for industry – with exports of $35.08bn and imports of $103.35bn in 2012 – but with access to raw materials set to expand, foreign investors are showing interest in lighter segments. With the government making room for new segments in the industrial sector, expansion of capacity for fertilisers and phosphates, as well as new production plans for pharmaceuticals, the sector looks set to see considerable diversification in manufacturing. This chapter contains interviews with Abdulrahman Al Zamil, Chairman, Riyadh Chamber of Commerce and Industry, and Saleh Al Rasheed, Director-General, Saudi Industrial Property Authority.
Explore chapterBPO
Buy digital copy of this chapter - £18Having grown at a compound annual growth rate of around 10% over the past decade, the BPO sector has become the country’s largest source of private employment and the second-largest contributor of foreign exchange earnings after remittances. By 2020 the global BPO industry is forecast to be worth $250bn and the Philippines is seeking to cement its position as a preferred global service offshoring hub and expand and diversify its share in this lucrative, yet highly competitive field. Ongoing efforts to revamp the education system and better match the industry’s technical requirements should bolster its prospects.
This chapter contains an interview with Maulik Parekh, President & CEO, SPi Global
Explore chapterIndustry
Buy digital copy of this chapter - £18Manufacturing is playing an increasingly important role in the emirate as it pushes ahead with efforts to build a long-term growth path that is less dependent on hydrocarbons. In 2013 manufacturing contributed 5.7% to the emirate’s GDP, up from 5.3% in 2012 with the sector accounting for 12.6% of the country’s non-oil GDP in 2013. Meanwhile Abu Dhabi’s petrochemicals industry has a number of competitive advantages, such as the emirate’s vast crude oil reserves and gas resources, the UAE’s location and significant local demand. Local producers of construction materials are set to benefit from the upcoming construction projects in the emirate, which include projects in the oil and gas, infrastructure, transport and chemical sectors. Retail construction is also on the rise with Abu Dhabi’s retail stock growing strongly in recent years, from 1.7m sq metres of gross leasable area in 2011 to 1.8m in 2012 and 2.2m in 2013. Growing competition in the sector is expected to see players start to diversify their retail mix as more malls open in the coming three to four years.
This chapter contains an interview with Suhail Mubarak bin Athaeeth Al Ameri, CEO, Senaat.
Explore chapterTourism
Buy digital copy of this chapter - £18After years of neglect due to political instability, the tourism industry in Côte d’Ivoire is expected to enjoy a steady recovery as government efforts lead the rejuvenation of the country’s hotel, transport and national attractions infrastructure. Numerous transport and hotel projects currently under way are expected to boost national capacity and help connect travellers to attractions throughout the country. Meanwhile, the introduction of the new tourism code in 2015 will strengthen the position of formal travel agencies and reduce the operations of informal entities. In terms of boosting visitor arrivals, the significant reduction in the price for tourist visas is likely to have a positive effect, as is the shift to the online visa application system.
This chapter contains an interview with Wolfgang M Neumann, President and CEO, the Rezidor Hotel Group.
Explore chapterEnergy
Buy digital copy of this chapter - £18Hydrocarbons continue to meet the large bulk of Dubai’s energy needs, with the UAE sitting on 5.8% of the world’s crude oil reserves. However, the UAE Vision 2021 sets out goals including the reduction of the emirate’s carbon footprint and a desire to play a pioneering role in the development of energy-efficient technologies. The 1200-MW Hassyan clean coal power plant is expected to come on-stream by 2021, while solar power has also begun to play an increasingly prominent role in the sector. The first 13-MW solar plant opened in 2014, and a further 200 MW is anticipated by 2016, with the whole solar park expected to have a capacity of 1000 MW by 2030. In March 2014, new green building regulations were introduced, which included requirements that 50% of external glazing must be north-facing, 5% of construction materials should be recycled, and smart meters should be used for water and electricity.
This chapter contains interviews with Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority (DEWA); Ahmad bin Shafar, CEO, Empower; and Saeed Khoory, CEO, Emirates National Oil Company (ENOC).
Explore chapterEducation
Buy digital copy of this chapter - £18Bahrain was the first country in the region to start developing universal education and today this continues to form a central tenet of government policy. The World Economic Forum currently ranks Bahrain 48th worldwide in terms of the quality of its education system, and the kingdom has a literacy rate of 91%. In June 2014 the Higher Education Council approved Bahrain’s first National Strategy for Higher Education and Scientific Research. The strategy focuses on six priority areas for reform and improvement, including the development of quality teaching, increasing student engagement and the enhancement of higher education institutions, while work placement schemes and vocational training aimed at matching skills with high-growth areas are also key elements. Government goals to attract greater private sector participation present a bright outlook for investors looking to target the segment.
This chapter contains an interview with Solveig Nicklos, Director, Bahrain Institute of Banking and Finance.
Explore chapterTransport
Buy digital copy of this chapter - £18Building a modern transport network will be necessary if the government is to accomplish its ambitious development plans, with a host of air, rail and shipping upgrades planned for the coming years. Major projects include the proposed $1.1bn Hanthawaddy International Airport project, which will be able to accommodate 12m passengers with a plan to increase numbers to 30m per year, over 10 times the country’s current capacity. The existing network threatens to limit growth if air, rail and port facilities are not successfully upgraded in the coming years. The capital needed for improvements is significant, but Myanmar has great incentive to push for economic reforms and to further engage private parties and international development agencies. The state aims to be a major logistics player in the region, and given Myanmar’s strategic geographic position within the region, many believe this vision can be realised with sufficient injection of capital and international cooperation.
This chapter contains interviews with U Nyan Tun Aung, Minister of Transport; and U Si Thu, Managing Director, Myanmar Airways International (MAI).
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Oman continues to capitalise on its geographical position, increasingly establishing itself as a major trans-shipment centre for traffic between Europe, Africa and Asia with ongoing development and expansion plans at various ports in the sultanate, particularly at Duqm where a new port and dry-dock are being developed. Coordinating this maritime-based growth with land and air-side growth is also under way, with the 2011-15 five-year development plan earmarking $15.5bn for the national rail project; $6.2bn for airport expansion; and $3.1bn for road network development. Plans to connect the national railway project with the GCC-wide rail network will boost integration in the region, while airport and road expansions will solidify Oman’s growing reputation as a logistics hub and encourage the sultanate’s growing tourism sector. This chapter contains interviews with Ahmed bin Mohammed bin Salim al Futaisi, Minister for Transport & Communications; and Paul Gregorowitsch, CEO, Oman Air.
Explore chapterTourism
Buy digital copy of this chapter - £18With the Peruvian government intent on diversifying the economy away from mineral resources, the tourism sector is slowly becoming a strategic economic contributor. The sector has experienced unprecedented development in the past decade. According to the Ministry of Foreign Trade and Tourism in 2013 international arrivals increased 11% to 3.16m, a growth rate above the regional (5.1%) and world averages (4.6%) as measured by the World Travel and Tourism Council. Peru hopes to reach 3.5m foreign visitors in 2014. Sector revenues also rose by an impressive 28% in 2013, from just over $3bn in 2012 to $3.9bn, making tourism the third-most-important source of revenue to the national economy. Government efforts to bridge the transport infrastructure gap are set to improve connectivity significantly, while rising demand for accommodation and services, in large part fuelled by a growing meetings, incentives, conferences and events segment, is driving investment in the hotel industry.
This chapter contains an interview with María del Carmen de Reparaz, Vice-Minister of Tourism.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. OBG talks to Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars, on encouraging research and development.
Explore chapterKwaZulu-Natal
Buy digital copy of this chapter - £18Renamed KwaZulu-Natal (KZN) in 1994 following the merging of Natal province with KwaZulu, KZN is South Africa’s second largest provincial economy, serving as a strategically important base for manufacturing and exports. Though it occupies only 8% of the country’s land, KZN is responsible for 26.9% of its agricultural output, 21.6% of its manufacturing and 22.3% of its transport, storage and communications facilities. As home to Africa’s largest and busiest container port and bulk terminals, and sharing borders with Mozambique, Swaziland and Lesotho, the province plays a lead role in facilitating the country’s flow of trade. Developments now under way to convert greenfield sites near Durban’s King Shaka International Airport into a designated free zone and air freight hub are set to deepen the province’s integration and further unlock its potential for multi-modal logistics.
This chapter contains a viewpoint with Senzo Mchunu, Premier of KwaZulu-Natal; and an interview with Zamo Gwala, CEO, Trade & Investment KwaZulu-Natal.
Explore chapterAgriculture
Buy digital copy of this chapter - £18A major employer and contributor to GDP and export earnings, Egypt’s agriculture sector thrives despite limitations imposed by geography. The country has been one of the breadbaskets of a range of great empires, and the fertile Nile Delta is one of the region’s most important agricultural areas. Agriculture, forestry and fishing generated 14.5% of GDP in 2013, making it the third-largest contributor behind extractive industries and manufacturing. The agriculture sector grew by 3% in the fiscal year 2013 (July-June), edging very slightly up from 2.9% in 2012, according to Bank Audi. The bank expects a similar figure for the 2014 fiscal year, once data are in, following 2.9% growth in the early months. Egypt will continue to balance agricultural production for its large, growing population, and export-oriented output, like citrus, that is an important earner of foreign currency and attracts foreign investment. Investors should see growing opportunities in Egypt’s moves to boost output by increasing desert cultivation and yields, alongside efforts to consolidate and improve infrastructure.
This chapter contains an interview with Adel El Beltagy, Minister of Agriculture and Land Reclamation.
Explore chapterIndustry & Agriculture
Buy digital copy of this chapter - £18The 2014/15 budget allocated $92.9m, out of a total of $902.4m, for the industry and trade sector under the 10th National Development Plan. Much of the current manufacturing sector is built around downstream energy applications, such as petrochemicals, although the country continues to encourage growth in other light industry and knowledge-based segments, including ICT and niche halal products. The Sultanate is focusing development on some of its key strengths, such as its young and well-educated workforce, developed infrastructure and abundance of energy. Agriculture, forestry and fisheries contributed just 0.73% to GDP in 2013 with $114.8m, requiring the import of around $470m worth of food each year. Recent strategic shifts have placed a new premium on reaching self-sufficiency in food production, including a new $3.14m project entailing the construction of an agricultural industrial park. Development of agro-industry and processing capacity with a bent towards exports is expected to provide long-term value for the sector, provided it can continue to attract investment. This chapter contains interviews with Pehin Dato Yahya Bakar, Minister of Industry and Primary Resources; Vijaya Rajendram, CEO, Neptune Bio-Innovations; and Feby Latip, Deputy CEO, Ghanim International Food Corporation.
Explore chapterAgriculture
Buy digital copy of this chapter - £18As the country’s largest employer and contributor to foreign exchange, agriculture is a critical pillar of Kenya’s society and economy, and the sector has grown steadily in recent years, despite facing a host of challenges. Although staple crops and subsistence farming are critical to maintaining food security, Kenya is also the world’s largest exporter of black tea, and the country’s horticulture and floriculture segments have seen rapid expansion in international markets. Sector objectives in the president’s 2013-17 manifesto include introducing affordable state loans to subsidise fertiliser and equipment, establishing a viable national irrigation scheme to cover 1m acres of land, and doubling and diversifying food reserves from 22% to 40% of annual consumption. The sector has shown promising growth, with far-reaching government development strategies expected to see production and output improve in the coming years.
This chapter contains interviews with Moses Changwony, Managing Director, Sasini Tea & Coffee; and Jane Ngige, CEO, Kenya Flower Council.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Infrastructure development in Ghana has seen a healthy progression over the past decade, mainly as a result of the Jubilee oil field discovery in 2007. Demand for construction surged in 2011-12 as the government commenced various large-scale infrastructure projects. However, the sector is not without its various challenges. Following the oil discoveries, local financing was readily available. As revenue began to slow and, more recently, the value of the cedi slid, depreciating by 27% against the US dollar from January to July 2014, a number of local banks became reluctant to fund large-scale infrastructure projects, as turnover requires a long-term investment. The recently established Ghana Infrastructure Fund intends to facilitate private investment, with a new public-private partnership (PPP) infrastructure law expected to be passed in late 2014. Capital generated by Ghana’s energy-led aggressive growth from 2010 onwards has both helped attract high-end real estate offerings, largely funded by foreign investors, and stoke home-grown demand. Returns on commercial property are steady but the real growth opportunity lies in the provision of affordable housing to the urbanised middle-income earners.
This chapter contains interviews with David Adjaye, Principal, David Adjaye Associates; and David Morley, Partner and Head of Real Estate, Actis.
Explore chapterHealth
Buy digital copy of this chapter - £18Jordan’s health care spending as a proportion of GDP was 9.8% in 2012, a high figure by regional standards. Just over 40% of the population has health coverage from the Civil Health Insurance Programme, while 27% have military-provided insurance. Currently, private health coverage stands at 9% but the sector is witnessing a wave of expansion driven by the need for additional capacity. Meanwhile, Jordan’s medical tourism sector continues to grow making Jordan the leading medical tourism destination in the Middle East with around 255,000 patients coming for treatment in 2013, up from 240,000 in 2012 and 180,000 in 2009.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Gabon’s investor-friendly environment. This chapter contains an interview with Nicolas Balesme, Partner and General Manager, Deloitte Touche Tohmatsu Gabon.
Explore chapterCountry Profile
As a major global oil producer, Kuwait has come a long way in recent decades to overcome several key financial and political challenges. By continuing with efforts to diversify the national economy and reduce dependence on oil revenues, the country is also adding increased momentum to several large infrastructure projects. The authorities are also working to further integrate the country into the global economy in order to meet the needs of the growing population. This chapter contains interviews with Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah; Sheikh Jaber Al Mubarak Al Hamad Al Sabah, Prime Minister of Kuwait; Lim Hng Kiang, Singapore Minister for Trade and Industry; Pham Binh Minh, Deputy Prime Minister & Minister of Foreign Affairs for Vietnam; and a viewpoint from Christine Lagarde, Managing Director, IMF.
Explore chapterCountry Profile
Some 80% of Papua New Guinea’s population lives in rural areas, which includes huge rain forests, rugged mountains and steep river valleys. Indeed, the difficulty of the terrain is a major reason why there are some 850 different native languages in the country, as clans and tribes have inhabited territories that are often close, but largely inaccessible, to each other. Comprising the eastern half of the largest tropical island on earth, PNG is home to a wide range of peoples, languages and cultures, as well as significant biodiversity. In addition, the country is an important exporter of valuable natural resources, including gold, copper and hydrocarbons. It is also a key producer of agricultural products: the nation’s cash crops include coffee, oil palm, cocoa, coconut and, to a lesser extent, tea and rubber. The country is expected to become a major exporter of natural gas in coming years, which will provide a significant boost to the size and strength of the economy. This chapter contains an interview with Prime Minister Peter O’Neill.
Explore chapterCountry Profile
Malaysia consists of 13 states across a total land area of 330,000 sq km; its capital, Kuala Lumpur, is located approximately 300 km from Singapore. According to the Department of Statistics, Malaysia’s population reached 29.95m in 2013, with an average growth rate of 1.45% between 2012 and 2013. “Malaysia Truly Asia,” the country’s tourism slogan reflects who Malaysians are: an amalgamation of ethnicities, religions, cultures and languages. While the government aims for Malaysia to reach developed nation status by 2020, the key to reaching this goal lies in its handling of political and social challenges. Keeping the country’s different ethnicities and faith communities together in a workable social contract and balancing the impact of changing times with the need for continuity and respect for tradition will ensure impressive results. This chapter contains a country profile viewpoint from Prime Minister Najib Razak.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture, which accounts for 16% of GDP and 40% of employment, benefitted from good climatic conditions in the first half of 2013, allowing the industry to grow 20.6% year-on-year. The government has concentrated its efforts on developing the sector in a sustainable fashion with a series of programmes such as the Mongolian National Livestock Programme and the State Policy on Food and Agriculture, which are expected to run until 2021 and 2020, respectively. While Mongolian producers have historically been able to meet the domestic demand for meat, consumption has been on the rise and, since 2009, meat prices have increased while exports have fallen. Mongolia is estimated to be 60% self-sufficient in vegetables and 100% self-sufficient in potatoes. The government and the private sector alike are working to transform Mongolia into a producer of high-end luxury agricultural products, which will likely be initially marketed in the West. Achieving this goal will require a series of investments in local processing, technology, transport networks and training. So long as these issues are addressed, the sector could potentially become a major and sustainable source of export revenues. This chapter contains an interview with U. Boldsaikhan, President, Ensada Holding.
Explore chapterTourism
Buy digital copy of this chapter - £18The 26.7m international arrivals in 2013 represented a 20% rise on 2012. China was the top source of visitors with a 6.9% increase to 4.7m. Next came Malaysia (2.99m), Russia (1.73m), Japan (1.53m), South Korea (1.29m), Laos (1.1m) and India (1.04m). The Tourism Authority of Thailand set 28.01m visitors as the goal for 2014. The Tourism Council of Thailand is more optimistic, forecasting 29.92m foreign tourist arrivals, with revenue up 18% to $44.1bn, over 2013’s estimated $37.9bn. Visitor numbers are expected to continue to grow, so maintaining infrastructure development will be key to ensuring the industry keeps up. The long-term relationships within the ASEAN Economic Community, and Thailand’s role as the largest and strongest tourist market in the region, will likely be on the agenda of many meetings. This chapter contains an interview with Manit Boonchim, Executive Director, Planning Department, Tourism Authority of Thailand.
Explore chapterInfrastructure
Buy digital copy of this chapter - £18A result of decades of underinvestment, creaky infrastructure has long been the Achilles’ heel of the Indonesian economy. Around $6.8bn will be spent on power and some $29bn on water utilities and other services under the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development. The government is expected to fund 28% of the cost, with the rest coming from the private sector. The government aims to meet 2% of the country’s power demand from nuclear energy by 2017. In February 2014 it confirmed plans to build a 30-MW nuclear power plant in western Java. Although private sector involvement in water services remains limited to date, the government has envisaged that nearly 70% of water infrastructure investments between 2010 and 2014 will come through public-private partnerships, community participation and the private sector. Improving infrastructure will continue to be a priority with Indonesia’s sovereign rating upgraded to investment grade and its economy growing at a steady pace. This chapter contains interviews with Djoko Kirmanto, Minister for Public Works; Stuart Dean, CEO, General Electric ASEAN; and Bobby Umar, Chairman, Indonesian Engineers Association.
Explore chapterReal Estate
Buy digital copy of this chapter - £18With data from the Qatar Central Bank showing that real estate prices rose by 103% between July 2009 and September 2013, the local market shows signs of steady recovery from the global financial crisis in 2008. The increase in prices points to growing confidence in the market and strong supporting fundamentals. Much of this growth can be attributed to government reforms that relaxed the rules for foreign real estate investments in 2004. Rapid population growth will continue driving demand for housing and office space, while the strong economy is likely to support retail outlets. Over the longer term, new space – particularly in retail – is set to come onto the market and will likely soften prices. This chapter contains interviews with Badr Mohammed Al Meer, Acting CEO, United Development Company; and Hamad bin Ali Al Hedfa, CEO, Mazaya Qatar Real Estate.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18In a bid to develop a sustainable and diversified economy, non-hydrocarbons industry is becoming increasingly important, and the government of Abu Dhabi has set ambitious growth targets for the sector over the coming two decades. The emirate is developing the infrastructure to achieve these aims, with the objective of creating an attractive environment for industrial investment across a range of sectors. Rising wages are supporting growth in the retail market, with workers paid a total of $44.67bn in 2012. Consumer lending is also on the rise, increasing by $4.16bn across the UAE in the first six months of 2013. Domestic demand drives the market, though the tourism sector also offers opportunities for retailers. Additional retail supply over the coming year is expected to shake up the sector. Mall operators and retailers recognise that this may cause some short-term turbulence, but that the sector’s longer-term prospects are more than encouraging. This chapter contains interviews with Mohammed Al Qemzi, CEO, ZonesCorp; Khaled Salmeen, CEO and Managing Director, Khalifa Industrial Zone Abu Dhabi; and Saeed Abdul Jalil Al Fahim, Chairman, Al Fahim Group. It also contains viewpoints from Suhail Mubarak bin Athaeeth, CEO, Senaat; and Saeed G Al Romaithi, CEO, Emirates Steel.
Explore chapterAgriculture
Buy digital copy of this chapter - £18According to the National Institute of Statistics and Census, the agriculture sector grew 6% in 2011 and 3.9% in 2012. However, its contribution to GDP fell from 8% at the start of the millennium to 2.5% in the third quarter of 2013. One of four key pillars of economic growth in the Strategic Plan 2012-14, the sector has faced a number of challenges. The rapid pace of urbanisation, accompanied by a surge in real estate, has led to a gradual reduction of cultivated surface area and a rise in land prices. Delays in road infrastructure development have also affected profit margins. This has been further compounded by adverse climatic conditions and a rise in crop disease. Government initiatives to improve financial support for local farmers, as well as efforts to expand trade agreements with strategic markets, should bring some dynamism to the sector. Meanwhile, regulations mandating the use of biofuels should encourage new investments and add to the country’s export portfolio.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the Myanmar tax system, geared toward those interested in doing business in Myanmar. It also contains a viewpoint with OBG tax partner, Chris Woo, Managing Director, Tax Services, PwC Myanmar.
Explore chapterEducation
Buy digital copy of this chapter - £18Dubai continues to develop the strong foundations upon which to build a knowledge-based economy. The emirate has built a unique education system to fit its population’s needs by harnessing the capacity of the private sector, while also continuing to develop a more sophisticated regulatory framework to ensure every school is delivering quality education. Enrolment in private schools has grown by an average annual rate of 7.3% over the past 10 years, with 34 new schools opening in the past five years. Growth has been strong and steady, and if projections are correct, there will be a need for continued investments in the development of new schools and the expansion of existing ones in the near and medium term.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Given rapid growth in other sectors of the economy, fishing and farming’s relative contribution has decreased in recent years, falling from 2.8% of GDP in 1995 to 1.1% in 2012, however the government is aiming to spur sector growth and boost this to 5.1% of GDP by 2020. Steady increases in crop and livestock yields have raised self-sufficiency levels; as of early 2013, Oman produced 75% of its fruit and vegetables needs. Levels for poultry are lower, at around 40%, meaning there is plenty of room for local firms to boost production. Water management aided by dams & desalination plants, combined with significant potential for growing crops in the Dhofar region further aids the potential for expansion in this sector.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Increased domestic consumption, exports and investment have led to consistent sector growth since 2004, averaging 4.2% per year in GDP terms from 2003-12. In 2012 the agriculture and livestock sector grew 5.1%, with agricultural activity comprising 60% of the sector’s total growth, though its contribution to GDP declined to 7.2% as the pace of growth in other sectors rose. In the first half of 2013 agricultural production expanded by another 1.9% year-on-year. Most key agricultural exports experienced growth, except for coffee, which fell by 7.3% due to a combination of adverse climatic conditions and a drop in global prices. In the short term, growing domestic demand alongside expansion of the amount of irrigated land and improved production techniques should help support output growth. In addition, upward movement of prices for export produce, the commercialisation of which is facilitated by a rising number of FTAs, bodes well for revenues.
Explore chapterBPO
Buy digital copy of this chapter - £18Exhibiting nominal growth rates of approximately 20% every year, business process outsourcing (BPO) is the Philippines’ most successful major sector. It tripled in size between 2004 and 2007 as a result of the global financial boom, growing from 100,000 to 300,000 employees and achieving revenues of $4.8bn. While accounting for only about 2% of national employment in 2012, the sector still makes an oversized contribution to the country’s GDP and especially to growth – directly and indirectly – as it creates demand for office space, telecoms services and the consumerist lifestyles of its young employees. Growth in 2013-14 could be especially hurt by the collapse of the Indian rupee in mid-2013, which will make India’s BPO sector formidably competitive. The Philippines will need to aggressively position itself as a provider of premium quality service to retain and continue to draw cost-sensitive, fleet-footed BPO clients. This chapter contains an interview with Jose Mari Mercado, President & CEO, Information Technology and Business Processing Association of the Philippines (IBPAP).
Explore chapterTransport
Buy digital copy of this chapter - £18Underinvestment has led to a shortage of capacity for a country of nearly 170m people, and as GDP growth continues to surpass 7%, the resulting increase in both consumption and production means there is sizeable scope for investment in roads, ports, bridges, airports and other facilities. The government has thus embarked on the process of eliminating institutional obstacles and incentivising private investment, with the hope for steady improvement for the long term. Concessioning at the ports has been a successful early step, for example, as is a revitalised railway system. This chapter contains an interview with Peter Kieran, President, CPCS.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Access to health care is expected to improve as the government embarks on an ambitious programme of investment in health facilities. Between 2010 and 2014, the authorities plan to invest AD619bn (€5.69bn) to enhance the sector, with plans to renovate 320 health facilities and build 172 hospitals, 45 specialised centres, 377 polyclinics and 17 paramedical schools. In 2010 the government launched a five-year plan that would see AD852bn (€7.84bn) invested in the education sector. Reforms to expand the number of vocational training courses on offer to students at the secondary level are helping to alleviate the high youth unemployment rate. This chapter contains interviews with Tarek Rabah, Middle East and Africa Vice-President, AstraZeneca; and Abdelatif Baba Ahmed, Minister of Education.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture directly accounts for about one-third of employment and provides income for over half of the population. Exports have risen rapidly in recent years and there is large potential for growth. The total value of exports of foodstuffs was estimated at $1.08bn in 2011/12, a decline from the $1.18bn recorded during the previous year. This will, however, require better harnessing the potential of the small-scale farmers who dominate the sector but suffer from problems like fragmentation of land use and a lack of access to market intelligence. Traditional farming is conducted largely along the Nile River at some 4m mostly small-scale farms. These operations comprise over 95% of the sector. In terms of production value, rice was the second largest crop in 2011, at $151m. Some 4.25m tonnes were produced in 2011/12.
Explore chapterTable of Contents
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Tourism
Buy digital copy of this chapter - £18Increasingly aware of the need for economic diversification, Gabon is paying unprecedented attention to the development of its tourism sector. Within the Emerging Gabon strategy, the Green Gabon plan demonstrates recognition of the fact that sustainable development will be key to growth. The upgrading of hospitality options and promotion of Gabon in the ecotourism market should soon boost the sector’s contribution to GDP. Enhanced air connections, better training of human resources, the arrival of international development projects, along with the government’s focus on sustainability, is set to accelerate development efforts.
Explore chapterIndustry
Buy digital copy of this chapter - £18Significant national budget surpluses provide ample funding to invest in industry and support the goals of the National Industrial Strategy 2015-35. The development of technology parks and a focus on electronics and electrical goods can boost the sector. Manufacturing remains the segment’s backbone, though the utilities segment also grew by an impressive 75.2% from 2006 to 2011. While the construction sector looks set for strong growth, the precise scale of immediate opportunities has yet to be determined. This chapter contains an interview with Anas K Al Saleh, Minister of Commerce and Industry.
Explore chapterEnergy & Mining
Buy digital copy of this chapter - £18To meet 10% growth in local electricity demand and benefit from the rising regional need for power, Côte d’Ivoire will have to make significant investments in all parts of the power supply chain as well as prioritise increasing natural gas and oil production. With an advanced power infrastructure by regional standards and ample energy resources for electricity production, the country is well positioned to become a power-producing centre for the area, particularly within the framework of the West African Power Pool (WAPP).
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18South Africa has a sizeable “digital divide”, with urban areas benefitting from a range of modern technologies while rural areas tend to be less connected. However, with a renewed draft broadband policy, South Africa now has a framework for developing the ICT infrastructure that will help its economy modernise and thrive. In the sphere of backhaul infrastructure, the private sector has a strong presence and is increasingly extending high-quality services to areas of high demand. Competitive as it is, South Africa’s telecoms sector continues to see growth and attract the attention of foreign investors. Average revenue per user has stabilised recently, and operators are pushing for greater take-up of data services to bolster margins. Options for potential new entrants to the market include launching a mobile virtual network operator or acquiring a smaller player already in operation. Building up a new network is considered unlikely due to the cost, although infrastructure sharing could bring this down. This chapter contains an interview with Andile Ngcaba, Chairman, Dimension Data; and a roundtable with Alan Knott-Craig, CEO, Cell C; Karel Pienaar, Group Chief Strategy Officer, MTN SA; and Shameel Joosub, CEO, Vodacom.
Explore chapterMining
Buy digital copy of this chapter - £18The past decade has seen something of a reawakening for the mining industry, as improved security and political support have resulted in increased investment and mineral production. While still a relatively small percentage of the wider economy, revenues from mining exports have risen dramatically over the past decade. Mining activities expanded 6.3% in 2012, largely thanks to the 19% expansion in the mining of metallic minerals. The current administration has high hopes of expanding production of its primary mining exports – coal and gold – while formalising the vast number of informal operations and ensuring a stable and secure environment for private firms. This chapter includes interviews with Beatriz Uribe, President, Mineros; and Maria Constanza García, President, Agencia Nacional de Minería.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Subscriber numbers among the four mobile operators have continued to grow in recent years. Operating costs have risen somewhat and profits have fallen, due mostly to heightened competition. The outlook for this sector remains positive – the kingdom’s telecoms industry is progressing toward a more IT-oriented future, as data demand grows and network operators ramp up their mobile broadband and mobile content offerings. As one of the most productive sectors of the Jordanian economy, ICT accounts for some 14.1% of the kingdom’s GDP, with operators continuing to invest in infrastructure. Further, the highly skilled local labour force, stable business environment and government support have helped to support IT sector growth. This chapter contains a roundtable with Jean-François Thomas, CEO, Orange; Ihab Hinnawi, CEO, Umniah; and Ahmad Hanandeh, CEO, Zain.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Between 2000 and 2011, the number of students enrolled in higher education institutions doubled. According to a recent study, this increase should reduce the probability of a middle-income slowdown. The stakes for reform are high, given the key role the school system must play in facilitating the country’s transition to a more knowledge-oriented economy. With primary school enrolment up from 95.3% in 2000 to 98.4% in 2010, the republic has shown that it is on track to meet the UN Millennium Development Goal of universal enrolment by 2015. While enrolment is up, ensuring equal regional access will be more difficult to achieve. This is not lost on the current administration, which has boosted school investment in underserved areas. This chapter contains interviews with Umran Inan, President of Koç University, and Yücel Altunbaşak, President, Scientific and Technological Research Council of Turkey.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Brunei Darussalam’s universal health care system has helped it meet most of the health care targets set out in the UN Millennium Development Goals by the World Health Organisation. The country has the second-highest life expectancy rate among ASEAN countries. Non-communicable diseases like cancer are now the biggest concerns and, as the price of health care rises, the Sultanate is in the process of balancing the rising cost of care provision while maintaining the quality of its services. Moves toward extending its activities to pharmaceuticals production and health tourism in tertiary cardiac care, cancer and rehabilitation facilities bode well for the sector. One of the key objectives of Brunei Darussalam’s vision for development, Wawasan Brunei 2035, is for its people to be educated and highly skilled. The system is designed to meet the challenges of an ever-changing, competitive and knowledge-based global economy, as well as encouraging lifelong learning and achievement in sport and the arts. This chapter contains interviews with David Willetts, UK Minister for Universities and Science; and Pehin Dato Abu Bakar Apong, Minister of Education.
Explore chapterEnergy
Buy digital copy of this chapter - £18As a rapidly growing country with only modest energy resources, Morocco’s dependence on external power supplies continued to increase over 2012, with the value of energy imports jumping 11.9% year-on-year from 2011 to 2012. With 96% of energy needs met by fossil fuel imports, especially oil and coal, the country is in a precarious fiscal position as government budgets grapple with elevated oil prices. As one of the most underexplored countries worldwide for oil reserves, authorities are seeking to raise incentives for international firms through a number of schemes, including a 10-year corporate tax break for new discoveries. Greater interest from international energy groups by way of new licences for drilling rights has led to a higher volume of offshore exploration. The search for domestic hydrocarbons resources is being complemented by a focus on developing renewable energies and increasing energy efficiency, which – in addition to creating opportunities for local and foreign investors – looks set to reduce costly imports and ensure that supply keeps pace with demand. In short, Morocco’s diversification of energy sources has created a number of promising prospects for growth. This chapter includes interviews with Ali Fassi-Fihri, Director-General, National Office of Electricity and Water Supply (ONEE); and Amina Benkhadra, General Director, National Hydrocarbons and Mining Office (ONHYM).
Explore chapterIndustry
Buy digital copy of this chapter - £18With plans in the pipeline to inject significant investment into expanding its output of metals, petrochemicals and plastics over the next several years, Saudi Arabia continues to dominate the region’s industrial activity. This should keep the Kingdom at the forefront of the world’s industrial exporters, at a time when global economic uncertainties are subduing demand for many commodities. As for downstream manufacturing, the government hopes to expand this sector rapidly over the next couple of decades, taking care to tailor new upstream and midstream activities accordingly. Not everybody is sure that Saudi Arabian manufacturers can compete internationally in the long run, but the fact that investments – both Saudi Arabian and foreign – have continued to be announced in 2012 suggests the Kingdom is still seen as a land of opportunity. This chapter includes an interview with Hussein A Al Athel, Secretary-General, Riyadh Chamber of Commerce and Industry.
Explore chapterAl Gharbia
Buy digital copy of this chapter - £18As government plans come to fruition, Al Gharbia – the western region of Abu Dhabi – will be a model of responsible and sustainable development for desert and arid coastal environments. Indeed, under Plan Al Gharbia 2030, the region’s economy is forecast to double in size, and the population set is to increase from 185,000 in 2010 to 450,000 by the end of the plan. Already a hive of activity in the energy and industrial sectors, other areas of the economy – notably tourism, logistics and agriculture – are proactively being positioned for healthy growth. More specifically, the region is home to extensive hydrocarbons reserves, 7% of global oil reserves and 3% of natural gas deposits. At the same time, energy developments in the region are focusing on solar and nuclear power plant plans, major areas in which Al Gharbia will change the energy landscape of Abu Dhabi. This chapter includes an interview with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18With one of the most competitive telecommunications markets in the world, prices have been dropping year after year as Indonesian operators fight for customers. The result has been rapid growth in subscriber numbers and especially high penetration rates in major cities such as Jakarta. The intense competition and falling prices have also led to under-investment in some parts of the network, inconsistent service quality, and a lack of commitment to research and development. However, economic realities are taking hold, and, as pricing stabilises, the market consolidates and leadership emerges, quality should improve as margins widen, and significant investments are likely to be made. Indeed, many of the weaknesses in the market are expected to be addressed as the business becomes more profitable and providers start to compete on quality.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Dubai is well placed to capitalise on emerging trends in the ICT sector to drive economic growth. Indeed, information and communications technology is central to the emirate’s strategy to develop further as a knowledge-based economy. As a result, IT expenditure is expected to continue to expand rapidly, with a compound annual growth rate exceeding 11% until 2016. Digital storage solutions, computer hardware and IT services will likely drive much of this growth. Meanwhile, Dubai’s telecoms sector is also well positioned to continue growing rapidly. Boasting almost 13m mobile telephone connections, 1.9m fixed telephone connections and nearly 1m internet users, the sector plays an important role in the economy, contributing almost 5% of GDP and employing more than 10,798 people in 2011. Going forward, the sector is now at a turning point where the focus looks likely to shift from building infrastructure to developing content and services to leverage the hardware segment. This chapter includes interviews with Osman Sultan, CEO, Emirates Integrated Telecommunications Company (du); and Ahmad bin Humaidan, Director-General, Dubai eGovernment.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Forty per cent of Mongolia’s population is employed in the agricultural sector, which makes up 15% of GDP. The sector, which involves the raising of livestock for meat and wool, as well as the cultivation of grains and vegetables, has the biggest impact on the lives of average Mongolians. What is particularly encouraging for Mongolia is the possibility of becoming self-sufficient in terms of food, but agriculture can do more than simply meet domestic needs. It is a major source of export revenues, second only to mining and minerals. Issues surrounding foreign investment in the mining sector have thrown a spotlight on the importance of developing a diverse economic base that will enable sustainable progress. Agriculture plays an important role in this economic model. This chapter contains an interview with T. Nasankhuu, President of Monfresh Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Over the past 40 years, Oman’s telecoms market has transformed from a state monopoly to a multi-player market, one that has been marked by an increasingly fast pace of development. As more players have entered the market, fierce competition among operators has helped keep prices down. The sector has enjoyed good growth in recent years; mobile subscribers almost tripled between 2005 and the second quarter of 2012, increasing 274% from 1.33m to 4.98m. Looking ahead, the market has several strengths, including an evolving regulatory framework, multiple competitive players and a steadily growing customer base. The market, however, could hit some stumbling blocks as it matures. Regulation has come quite far in the past few years, but communication among state entities, private operators and consumers is set to be crucial to ensure that legislation continues to accommodate growth. This chapter includes an interview with Salim Sultan Al Ruzaiqi, CEO, Information Technology Authority (ITA).
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Malaysia’s media scene is dominated by cross-platform conglomerates such as Media Premia, which operates the country’s most popular free TV channels and has a commanding presence in print, radio and online as well. Other groups include Star Publications, Sin Chew Media and the Redberry Media Group. Meanwhile Astro Holdings, which relisted on the KL bourse in 2012, dominates the pay-TV sector and owns various radio and magazine outfits. Print media continues to command the largest share of adex, at 42%, although this has slipped slightly with the growth of pay-TV and the internet.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18With significant improvements in education over the past decade, Algeria now has a primary enrolment rate over 95% and has made considerable progress in eliminating illiteracy, the rate of which is now under 8% for those aged 15-24. However, with more than 70% of the population under the age of 30, the number of students entering the school system every year is expected to continue to rise. The private sector is also taking on an increasing role in providing specialised degrees and absorbing the rising number of higher education students. In health care, significant improvements have been made since independence and more are under way to increase access to quality services and align the sector with international standards. However, demographic growth, increased urbanisation and changes in lifestyles have resulted in a rise in chronic diseases. Therefore, Algeria will invest AD619bn (€5.94bn) under its five-year plan (2010-14) to improve health care access and quality, including upgrading existing hospitals and building specialised infrastructure. This chapter contains interviews with Brahim Benabdeslem, Director, Algiers Management Development Institute (MDI); and Abdelaziz Ziari, Minister of Health, Population and Hospital Reform.
Explore chapterAnambra
Buy digital copy of this chapter - £18Anambra State has a population of 4.7m, making it the eighth most populated state in the country and the second most densely populated. In a region known for dominant oil operations and related security challenges, Anambra State has kept on a steady course towards economic diversification in the last few years. The conclusion of sizeable deals with various companies in agriculture, manufacturing, production and petrochemicals bodes well for those hoping to tap into the state’s investment potential. With clear development goals and a number of industries on the rise, Anambra’s economic growth model is likely to attract considerable interest from local and foreign business communities.
Explore chapterIndustry
Buy digital copy of this chapter - £18Exploiting its competitive advantage in energy and, to a lesser extent, labour and land, Qatar’s industrial base has continued to show impressive growth throughout 2011 and into 2012. The oil and gas sector, buoyed by high hydrocarbons prices, has reclaimed its place as the mainstay of the economy, accounting for 51.7% of nominal GDP in 2010 and 57.7% in 2011. The petrochemicals sector continues to have a significant competitive advantage over its counterparts thanks to the state’s vast reserves of available gas. At the same time, the non-hydrocarbons sector continues to flourish. In 2010, manufacturing expanded by 22.4%, making it the fastest-growing non-hydrocarbons sector that year. Going forward, the National Development Strategy 2011-16 identifies enterprise creation, research and development, and science and technology as the key components to diversify the industrial base.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Under the national health policy, adopted in 2010, Gabon is seeking to provide better quality care to its citizens. Plans to upgrade and build new health care facilities are under way, while a national health insurance scheme being rolled out will increase access to health care throughout the country, providing free care and access to medicine. The government hopes to offer universal health care by 2025. Under a new plan for education, the government will spend more than €2.5bn between 2010 and 2020 to construct and upgrade schools and educational facilities and train teachers. Goals for the sector include increasing enrolment rates and access to pre-school programmes. The government is also emphasising technical and vocational training to bring the education sector’s offerings in line with the country’s needs. This chapter contains a viewpoint by Dr Lachlan Forrow, President, International Foundation of the Albert Schweitzer Hospital, on improving health care.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Over the past decade, Egypt has made significant progress in terms of improving education quality and outreach, thanks to an increase in private schools, new technical and vocational curriculum and greater local engagement. Public education is free and literacy rates for those between ages 15 and 44 in the 10 years from 1996 rose by almost 15%. However, underfunding, overcrowded classrooms and post-matriculation employability – which is especially acute in the face of high youth unemployment – remain a significant concern, particularly at the tertiary level. Egypt’s top-down state-driven model of health care has helped improve a number of health indicators, particularly in terms of infectious diseases and childhood mortality. Three decades worth of extensive reforms and significant public investment have helped expand capacity and accessibility, but childhood nutrition, insurance coverage and preventative care remain a concern, particularly with the rise in lifestyle diseases. This chapter features a dialogue with Lisa Anderson, President, American University in Cairo and Hossam Kamel, President, Cairo University.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18Broad activity has increased dramatically over the past several years with the establishment of three new undersea links: the West Africa Cable System, Main One and Glo-1. While the pace of IT development is strong, particularly in comparison with other countries in the region, more efforts must be made to ensure connectivity outside of urban centres, which will mean lowering the prices of broadband and hardware to make these technologies more accessible to the average Ghanaian. The country’s telecoms market, too, is one of the most competitive on the continent. Mobile penetration has soared from 2.4% in 2001 to 84.9% in 2011, well ahead of the developing world average of 78.8%. Providers are seeking to boost revenues with non-voice services, though penetration is still relatively low. This chapter includes an interview with Herman Chinery-Hesse, Founder, The SOFTtribe.
Explore chapterAgriculture
Buy digital copy of this chapter - £18With one in every three Thais making their living in the sector, agriculture is key to the country’s social makeup, even if its importance to the formal economy has diminished. The growth of industry has helped transform agriculture, and agro-manufacturing exports like processed sugars and cereals, and canned fish and fruit are multibillion dollar industries. Rice is the traditional staple, but a legacy of subsidies has distorted costs and harmed the export competiveness of Thai rice. Meanwhile, high prices over the past several years have tripled the value of Thai rubber exports, by far the most lucrative crop. The government is pushing to expand the acreage devoted to rubber plantations.
Explore chapterEnergy.
Buy digital copy of this chapter - £18The energy sector in PNG, which has seen declining production for decades, is set to become a major driver of the economy as new investments come online. Gas is now the focus, with the $15.7bn ExxonMobil-led PNG LNG project due to start production in 2014. The megaproject has driven construction growth and set off a real estate boom in the nation’s capital thanks to an influx of foreign contractors and consultants. Oil investment is also picking up: given falling production at PNG’s mature fields, companies are exploring hard-to-reach oil fields, and license approvals by the regulator are at a peak. Meanwhile, the state-run PNG Power is battling geographic and funding obstacles to expand access to electricity. This section features interviews with Peter M Graham, Managing Director, Esso Highlands; Phil E Mulacek, Chairman and CEO, InterOil; and Tony Koiri, CEO, PNG Power.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism is a crucial element of the economy, accounting for 14% of GDP in 2010. Petra remains the country’s major tourist attraction, with 459,629 visitors to the site in the first nine months of 2011. However, the tourist industry was hit hard by regional unrest in early 2011, and many joint package trips to Jordan and neighbouring countries were cancelled. Economic woes in parts of Europe have also contributed to a drop in visitors. Nevertheless, there are some signs of recovery and efforts continue to develop the sector, which benefits from the diversity of the country and the wide range of tourism products on offer in a relatively small area. This chapter includes an interview with Nayef Al Fayez, Minister of Tourism and Antiquities.
Explore chapterTelecoms & IT
Having broken the monopoly of the Turkish Post Telegraph and Telephone Company (PTT) and with the privatisation of Turk Telekom, the prospects for telecoms in Turkey was radically altered. Rapid growth in internet use and the steady uptake of data-capable mobile phones has resulted in a convergence of telephony and internet services that is stressing telecoms infrastructure. However, firms are responding with the installation of fibre-optic lines to boost speed, while new offerings of apps and technologies are also a front for heavy competition. The government’s support offers technoparks incentives, including tax and duty exemptions, aid in construction and rent subsidies, in order to attract increased domestic and foreign investment. With sounder technology and infrastructure, more and more public services are being transported to the internet, and the emergence of a significant web culture is likewise driving new avenues for profit. This chapter has interviews with Gökhan Bozkurt, the CEO of TurkTelekom; and Süreyya Ciliv, the General Manager of Turkcell.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecommunications sector in South Africa is among the continent’s most developed. It tends toward encouraging data-heavy services by shifting from voice to data services, increasing smartphone usage, expanding localised content, and adding both private and public sector capacities to lay the groundwork for fourth-generation (4G) and long-term evolution (LTE) networks. As of the third quarter of 2011, there were approximately 57m active mobile subscriptions, and with 20% of subscribers holding more than one SIM card, the mobile penetration rate stands above 100%. This compares with an overall fixed-line subscriber base of roughly 4m users, a rate that has been on a slow but steady decline in recent years. South Africa is bursting with opportunities for growth in information and communications technology (ICT). The country has about 6m internet users and studies conducted by Research ICT Africa show that 15% of South African households have a working computer and that 5% have an internet connection. Prices for broadband internet connectivity have fallen in recent years, and the landing of multiple international cables on South African shores in 2012 will likely lower prices further. Continued expansion of South African firms, such as logistics companies, retailers and distributors, could strengthen demand for inventory management software, cloud computing services and other technological solutions. This chapter contains interviews with Alan Knott-Craig, CEO, Cell C; Karel Pienaar, Managing Director, MTN South Africa; Pieter Uys, CEO, Vodacom South Africa; and Robert Venter, Chief Executive, Altron.
Explore chapterIT
Buy digital copy of this chapter - £18The Kingdom’s tradition of innovation continues to makes it one of the most vibrant IT centres in the region. Sustained investment from the public and private sectors has seen businesses and government services move online, bringing cost-saving gains in efficiency. Throughout 2011, which saw many Bahraini businesses challenged by decreased investor confidence and consumer spending, the IT sector has proved to be one of the most resilient, with the market growing some 8.1% year-on-year. One of the main factors driving growth is public investment in the eGovernment programme, which aims to simplify access by moving public services online. The initiative is an important facet of the Kingdom’s Economic Vision 2030, the country’s long-term development plan. In a push towards greater diversification of its economy, the Kingdom is also investing heavily in its human capital by introducing funding and a number of IT training programmes. This chapter includes an interview with Abdul Razak Jawahery, Vice-Chairman and Managing Director, Menatelecom.
Explore chapterMining
Buy digital copy of this chapter - £18Mining companies have flocked to these islands for years to take advantage of the country’s vast mineral resources. The Philippines ranks third in gold reserves, fourth in copper, and fifth in nickel worldwide. However, an upsurge in anti-mining and environmental awareness has contributed to a difficult regulatory environment, with some jurisdictions imposing local mining bans. Investment in the sector at present is a high-risk, high-reward venture, which has pushed some multinationals to countries with looser restrictions. This section features interviews with Ramon J P Paje, Secretary, Department of Environment and Natural Resources (DENR); and Artemio Disini, Chairman, Chamber of Mines of the Philippines.
Explore chapterHealth and Education
Buy digital copy of this chapter - £18Free health care is widely regarded as a civic privilege in Kuwait. However, a growing population means that health care provision is starting to strain state finances. A new scheme is therefore underway to encourage private-sector participation to reduce the burden of state care. The Kuwait Health Assurance Company (KHAC) will be launched by 2015, with a mandate to manage the health care needs of all expatriates living in Kuwait (the number of whom is estimated to rise to 2.23m by 2024). Other new schemes, such as the National Development plan and Mobile Health, aim to expand the health sector and provide improved access to – and provision of – health care. In education, the government plans to upgrade public schools, training institutes and universities, both in terms of facilities and curricula. The Ministry of Education, under the Vision 2030 strategy, also plans to build up to 182 schools. This chapter includes an interview with Dr Kazem Behbehani, Director-General, Dasman Diabetes Institute and former Assistant Director-General, World Health Organisation.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18As a landlocked and historically underdeveloped country, Mongolia’s transport challenges are steep. Airports are dilapidated, roads are cracking, and railways need updating. The government is planning major investments on all fronts, including upgrading roads to serve the huge freight trucks that travel to and from mining sites, rehabilitating Ulaanbaatar’s urban network. Some $5bn will be spent on expansions to the railway system, connecting mining sites to the export destinations of China and Russia. Meanwhile, the aviation sector is set for a boom, particularly in charter flights, as mining employees will need transport in and out of remote locations. This chapter features an interview with Kh. Battulga, former Minister of Roads, Transportation, Construction and Urban Development.
Explore chapterEnergy
Buy digital copy of this chapter - £18Mongolia’s energy sector has long depended entirely on the one resource it possesses in abundance: coal. This paradigm is unlikely to change drastically in the near future, but the country is looking to diversify its energy portfolio while modernising infrastructure. Solar and wind power are candidates for development, given Mongolia’s 257 cloudless days per year and its wide, open spaces. With major reserves of uranium, moreover, nuclear power is another potential avenue to be pursued, albeit in the long-term. In the short term, Mongolia is focused on building out its electricity grid to handle the energy demands of various mining projects and the increasing adoption of modern amenities in its cities. This chapter features interviews with John Rice, Vice-Chairman, GE; and D. Enkhchimeg, CEO, Petrovis.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18With estimates that only about half of Indonesia’s 240m people use a mobile phone, there is great potential for growth. The three main players in the mobile segment have engaged in a price war since 2007 as voice costs have dropped precipitously, although forecasts expect them to grow on the strength of new subscribers. Future revenue growth will also rely on data and value-added services. These trends will be enhanced by the adoption of smartphones, which are out of reach cost-wise for most Indonesians at the moment, but an influx of cheaper Chinese phones should begin to bridge this gap. Meanwhile, low computer penetration is the primary issue facing the IT sector. Ownership grew from just 4% in 2006 to 8% in 2008, and the percent of the population with “access” to a computer is 20% at most. Providing access across the country will be especially challenging with Indonesia’s geography. Given physical and economic constraints, then, the government is placing its tech bet on the growth of mobile phones, to which far more people have access. E-government is also an emerging trend, and the state has adopted online systems for tasks such as procurement. This chapter features interviews with Rinaldi Firmansyah, President Director, Telkom; and a roundtable with Erik Aas, President Director & CEO, Axis; Hary Sasongko, President Director, Indosat; Sarwoto Atmosutarno, President Director, Telkomsel; and Hasnul Suhaimi, President Director, XL.
Explore chapterIndustry
The abundance of hydrocarbons in the Kingdom has led to a proliferation of downstream petrochemicals businesses. The natural gas that is allocated to producers at a subsidised price forms a significant part of Saudi Arabia’s value proposition to foreign investors. Demand from rapidly expanding markets in Asia, as well as steady sales to established Asian centres, should ensure that the Kingdom’s petrochemicals industry strengthens its position in the medium term. Meanwhile, the country continues to focus efforts on diversifying non-oil growth, with the combined contribution of mining and non-oil manufacturing rising from 7.6% of GDP in 2012 to 8.2% in 2013 and 8.7% in 2014, while the Kingdom’s steel production increased by 15% from 2013 to 2014, the second-highest rise anywhere in the world. Four new economic cities are due for completion by 2020 in line with the country’s 10th Development Plan, which aims to deliver more even distribution of industrial development across the country. This chapter contains interviews with Mohammed Al Kathiri, Secretary-General, Riyadh Chamber of Commerce and Industry; and Mohanud Helal, Secretary-General, Economic Cities Authority (ECA).
Explore chapterTable of Contents
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Education & Health
Buy digital copy of this chapter - £22Kuwait’s education landscape is poised for notable change as the sector awaits the publication of a new national education development plan designed to align learning outcomes with the evolving needs of the economy. The health care sector, meanwhile, is on the cusp of significant transformation, with the Health Assurance Hospitals Company ready to assume responsibility for the medical needs of the country’s large expatriate population, which should boost the efficiency and quality of public sector facilities. As these initiatives progress, the government has prioritised providing quality education, aligning health care outcomes with New Kuwait 2035 objectives and managing resources for sustainable development. This chapter contains an interview with Ahmad Nasrallah, CEO of Dar Al Shifa Hospital.
Explore chapterAgriculture & Food Security
Buy digital copy of this chapter - £22Abu Dhabi, occupying 84% of the UAE’s landmass, plays a crucial role in agriculture and food security. The emirate is investing significantly in strengthening supply and value chains to enhance food-production systems and meet the population’s nutritional needs. The Covid-19 pandemic and global geopolitical tensions have prompted a re-evaluation of food security strategies, emphasising localised supply chains. Abu Dhabi is central to this discussion, given its resources and geographic location. The agriculture sector is undergoing transformation, driven by collaboration between public and private entities, which presents opportunities for international investors, aided by improvements in investment legislation. The emirate’s focus on agri-tech development offers an opening for start-ups to contribute to sector growth. This chapter includes an interview with Saeed Al Bahri Salem Al Ameri, Director-General, Abu Dhabi Agriculture and Food Safety Authority.
Explore chapterEducation & Training
Buy digital copy of this chapter - £9Saudi Arabia has consistently prioritised the education sector, with significant government spending and wide-ranging reforms that seek to improve learning outcomes and revise curricula to meet the needs of the current and future economy, in line with the goals of the Vision 2030 socio-economic development blueprint. The focus is on preparing the workforce for the technology-driven global economy by enhancing technological proficiency and critical-thinking skills. Technology is being integrated into education, expanding access to high-quality learning through interactive software and online programmes. The Kingdom’s strategic approach combines centralised policy-making with decentralised implementation to empower local education offices. Ongoing education reforms are set to boost economic dynamism, global competitiveness, innovation and digitalisation. As the education system improves, opportunities are opening up for private investment to raise standards and strengthen infrastructure.
Explore chapterTax
Buy digital copy of this chapter - £22Bahrain has long enjoyed its status as a tax-free jurisdiction prior to the introduction of excise tax in late 2017, followed by the introduction of value-added tax (VAT) in 2019. The kingdom is now home to an evolving tax landscape, with several notable tax and reporting regulations introduced since 2017. Bahrain is well established as a financial leader in the Middle East, and in recent years the authorities have diversified the economy to include technology, manufacturing and logistics. The country welcomes international investment, allowing 100% foreign ownership in various sectors. Additionally, Bahrain is consistently ranked as one of the best places in the GCC for expatriates to live and work. This chapter contains a viewpoint from Mubeen Khadir, Head of Tax and Corporate Services, KPMG Fakhro.
Explore chapterContents
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Explore chapterTransport & Logistics
Buy digital copy of this chapter - £22The increasing integration of the transport sector with the growing economy is underscored by the need to move huge amounts of natural resources and merchandise to support mining, agriculture, energy and manufacturing. Efforts to bridge such infrastructure gaps, particularly in road and railway systems, has led successive governments to allocate funds to transport projects. Despite the governance challenges and budgetary constraints, several large-scale projects have boosted Nigeria’s capacity to move goods and people between inland communities and growing coastal cities. Addressing security challenges and leveraging institutional financing for project development are expected to be crucial to the expansion and maintenance of the road, rail and air links that underpin the sector. This chapter contains an interview with Adetayo Bamiduro, CEO and Co-Founder, MAX.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £22With 3200 km of coastline and swathes of cultivated land, agriculture and fisheries are key economic activities across the sultanate, providing employment opportunities, and supporting the country’s economic diversification and food security efforts. These were vital industries prior to the discovery of hydrocarbons, particularly for coastal communities. The climate allows for year-round fishing, and Oman is the only net exporter of fish in the GCC, accounting for over 31% of the region’s fisheries production. Increased government support under Fisheries and Aquaculture Vision 2040, a long-term plan for the sector announced in December 2015, seeks to turn it into a profitable, sustainable industry. To complement its food procurement policies, Oman has increased its investment and partnerships with private players to boost local food production, increase productivity and encourage the adoption of new technologies. This chapter contains interviews with Mohammed Al Harthy, CEO, Oman Food Investment Holding; and Nabil bin Salim Al Bimani, Group CEO, Fisheries Development Oman.
Explore chapterEducation & Health
Buy digital copy of this chapter - £22With one of the largest relative youth cohorts in the Gulf – the share of the population under 35 stood at 50% as of 2022 – Kuwait has a vested interest in achieving positive learning and health outcomes for nationals and foreign residents alike. As was the case around the world, the Covid-19 pandemic posed specific and immediate challenges for educators and medical workers in the country, which the government is working to address in parallel with ongoing efforts to achieve the development targets set by New Kuwait 2035, the long-term development roadmap launched in 2017. The so-called education gap experienced after many young students were forced to adjust to online learning virtually overnight is a particular concern for policymakers, and a mix of in-person and online solutions are being explored to help learners catch up.
This chapter contains an interview with Thamer Arab, CEO, Dhaman.
Education & Training
Buy digital copy of this chapter - £22In recent years Saudi Arabia’s education sector has received the highest proportion of government spending of all areas of the economy. In line with the goals of Vision 2030, the country’s overarching development strategy, the government has rolled out multiple reform programmes aimed at raising the quality of teaching and curricula, and improving student attainment levels. The education system is being revamped to better prepare the national workforce to compete in the increasingly technology- and information-driven global economy. Instilling technological proficiency alongside critical thinking, problem solving and analytical capabilities will be key to equipping the population to thrive in a shifting global economic landscape. This chapter contains an interview with Hamad Al Sheikh, Former Minister of Education.
Explore chapterHealth & Education
Buy digital copy of this chapter - £22After the return to political stability and peace in 2012, the health care sector has been an area of focus for the government and the private sector alike. In recent years, the government has worked to expand hospital infrastructure alongside universal access to health care. Greater regulation and integration of private sector players is also a top priority of the government, particularly given continuing gaps in access to care outside of urban centres. There has been significant progress on rebuilding the country’s education system, with various initiatives bearing fruit. This is evidenced by the number of new schools, the recruitment drive for teachers and legislation making school compulsory for children aged six to 16. In the longer run, the government seeks to expand the sector’s capacity by implementing innovative education technology solutions and encouraging students to explore technical and vocational education and training institutions. This chapter contains interviews with Pierre Dimba, Minister of Health, Public Hygiene and Universal Health Coverage; and Moussa Diaby, Director-General, Institut National Polytechnique Félix Houphouët-Boigny.
Explore chapterTable of Contents
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The Guide
The Guide contains listings of accommodation options throughout the capital city for both business and leisure travellers. Helpful information is provided on visa regulations and business etiquette, as well as public and private transport options for navigating the country during your stay.
Explore chapterThe Guide
The Guide contains listings of accommodation options in Cairo for both business and leisure travellers. Helpful information is laid out on visa regulations and business etiquette, as well as on public and private transport options for navigating during your stay.
Explore chapterTourism, Culture & Sport
Buy digital copy of this chapter - £22Travel and tourism was one of the hardest-hit sectors globally in 2020 and early 2021 as the Covid-19 pandemic swept around the world, and the situation in Qatar was no different. However, reflecting the gains made in the tourism industry in previous years, the opening months of 2020 saw a strong performance in terms of arrivals – so much so that when travel began to normalise in 2021, total arrivals for the first three quarters were still higher in 2020 than in 2021. Despite subdued sector activity for most of 2020 and 2021, Qatar has been gearing up for what is expected to be a banner year for tourism in 2022 – starting with a full cruise schedule at Doha Port for the 2021/22 season. This chapter contains interviews with Sheikh Faisal bin Qassim Al Thani, Chairman, Al Faisal Holding; Nasser Al Khater, CEO, 2022 FIFA World Cup Qatar; and Ahmad Al Namla, CEO, Qatar Museums.
Explore chapterTourism
Buy digital copy of this chapter - £22As the third-largest contributor to GDP and a recipient of increasing levels of foreign investment each year, tourism is an important driver of economic growth in Ghana. International arrivals reached 411,000 in the first nine months of 2021, outpacing the 355,000 arrivals seen in 2020 – hinting at a recovery from the pandemic. The country also has the potential to boost its domestic tourism – as well as to develop niche tourism segments such as surfing and other water sports – by leveraging interest in its more well-known historical sites, national parks and wildlife reserves. Taken together, these efforts are expected to help the West African county attract a diverse demographic of visitors in the coming years. This chapter contains an interview with Akwasi Agyeman, CEO, Ghana Tourism Authority.
Explore chapterThe Guide
The Guide contains listings of leading hotels and resorts in Nigeria for both business and leisure travellers, helpful information for new arrivals to the emirate and details on current visa requirements for tourists.
Explore chapterThe Guide
This chapter contains selected listings of some of the top hotels in Metro Manila and Baguio, helpful tips for business and leisure travellers, and other useful suggestions for travel to the Philippines. This chapter contains an interview with Bárbara Apráiz de Encío, Executive Director, Spanish Chamber of Commerce.
Explore chapterTourism
Buy digital copy of this chapter - £18Successive governments have identified tourism as a promising avenue for Papua New Guinea to diversify its economy away from a reliance on extractive industries. PNG’s biodiversity and rich cultural traditions offer a range of tourism opportunities that stand to be unlocked by improved infrastructure and effective marketing strategies. Prior to the Covid-19 pandemic, the country seemed poised to reap longer-term benefits from hosting the 2018 APEC Leaders’ Summit, which placed it under the international spotlight. Moreover, visitors who made the trip to PNG largely reported positively on their experiences: more than 90% of visitors in 2018 stated they would return. Tourism, however, is expected to be among the final industries to recover from the pandemic. When international travel picks up again, the challenge will be to make a wider range of destinations accessible, while also ensuring that they are protected from overdevelopment and environmental damage. This chapter contains an interview with Tony Honey, Owner, Tufi Resort.
Explore chapterHealth & Education
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Both the health and education sectors are in the process of significant reform. A universal health insurance (UHI) plan is currently being implemented, which promises widespread change to the nation’s administration of care. Although Covid-19 has placed a considerable strain on health infrastructure, the pandemic provides Egypt with an opportunity to streamline reforms and strengthen weak spots in the system. The rollout of the UHI scheme, alongside the growth of the local pharmaceuticals industry, should also help to attract investment. Meanwhile, for the next decade, the Ministry of Education is focused on implementing a major reform programme known as Education 2.0. The initiative plans to overhaul K-12 schooling by introducing student-centred teaching and competency-based learning, with a strong focus on technology. Although the country’s schools still face challenges of overcrowding and poor-quality infrastructure, the authorities’ increasing openness to international and private investment should ensure that the outlook remains bright.
Industry & Retail
Buy digital copy of this chapter - £18Abu Dhabi’s industrial sector continues to be a key contributor to GDP and the drive for diversification away from oil- and gas-based growth. The sector has also widened its industry portfolio in recent years, with companies based in Abu Dhabi now ranging from steel production to high-tech manufacturing, among other areas. Many of these outfits are located in the emirate in order to take advantage of the investor-friendly approach adopted by Abu Dhabi’s industrial and free zones. Companies are able to leverage the emirate’s geostrategic location via a wide range of air and shipping routes, enabling them to conduct export and re-export activities. Meanwhile, in 2019 Abu Dhabi’s retail sector continued to adapt to a 5% value-added tax that came into force in early 2018, with consumer confidence picking up as residents began to factor the new levy into their purchasing behaviours. Malls continue to dominate the retail space, which saw some 200,000 sq metres of gross leasable area added to the emirate’s stock in 2019. Meanwhile, developments like the construction of a digitally enabled smart shopping mall on Reem Island indicate Abu Dhabi is positioning itself at the forefront of innovation in the retail sphere. Though these types of malls are well placed to compete with the growing tide of e-commerce, the Covid-19 pandemic led to the shuttering of many physical retailers around the world in the first half of 2020, prompting consumers to shop online. This chapter contains interviews with Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports; and Saeed Al Remeithi, CEO, Emirates Steel.
Explore chapterEmerging Cities
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Indonesia is characterised by substantial cultural diversity, comprising more than 17,000 islands and 267m people. Until the turn of the new millennium, economic development policies were strongly skewed towards Indonesia’s main island of Java and the capital Jakarta; a series of decentralisation policies have since aimed to spread out authority and investment across the country’s diverse regions. August 2019 saw the government announce that a new capital city would be built in the province of East Kalimantan on the island of Borneo. The new location will provide a more accessible economic and commercial centre for Indonesia’s eastern inhabitants, and is expected to attract major investment – transforming a region known for its agricultural and mining activities into the country’s administrative centre. This, alongside the emergence of a number of cities as increasingly key economic players, is opening up a wealth of business opportunities beyond Java. This chapter contains an interview with Isran Noor, Governor of East Kalimantan.
Explore chapterHealth & Education
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Côte d’Ivoire has made a concerted effort in recent years to improve access to health care, rehabilitate and build facilities, and develop technical platforms aligned with international standards. There remains room for improvement in terms of quality, especially as universal health coverage is rolled out. Even so, efforts to expand access have been key to addressing the challenges brought on by the Covid-19 pandemic that emerged in early 2020. Efforts to boost access to education have had positive results at the primary level, where attendance surged. Despite investment aimed at recruiting teachers and building facilities, the situation continues to be more challenging at the higher levels. Access to secondary education remains limited and classes in public high schools overcrowded. While demo-graphics place significant pressure on the system and will necessitate more investment in all levels, plans to build more public universities, develop new trainings and reform vocational education bode well for the future. This chapter contains an interview with Eugène Aka-Aouélé, Minister of Health.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18Saudi Arabia is in the midst of restructuring the defence sector and expanding its military industry to ensure more value can be brought to the national economy. The realisation of Vision 2030 requires the development of new high-value-added industries, and the security, aerospace and defence sector stands to become a key element of this strategy. Central to the achievement of these diversification and localisation goals is the development of an advanced domestic industrial and research capacity that generates sustainable employment. Ongoing efforts to foster international partnerships and attract investment will prove vital in this endeavour. Moving forwards, key priorities will continue to be the advanced protection of both the country’s airspace and cyberspace from threats, while ensuring that defence spending delivers the highest returns.
Explore chapterReal Estate
Buy digital copy of this chapter - £18The real estate market in Qatar saw a boom between 2013 and 2017, and after some turbulence in recent years, has begun a period of recovery, with 2019 reflecting stabilisation. As developers continue to fulfil requirements for the 2022 FIFA World Cup, the real estate pipeline is likely to reach its peak between 2020 and 2022, after which new supply will fall back to earlier levels. There are promising signs of fresh demand, driven in part by greater affordability which will absorb the new supply and allow the sector to return to higher growth. While new hydrocarbons projects are expected to reinvigorate the economy, the effect that Covid-19 will have on the country’s real estate industry remains to be seen. This chapter contains an interview with Abdulrahman M Darwish, CEO, KBM Group Qatar.
Explore chapterHealth & Education
Morocco’s growing insured population and middle class is likely to incentivise additional investment in private health facilities and pharmaceutical production units. At the same time, the government has demonstrated progress in meeting goals set by Santé 25, which is likely to continue given the increase in the Ministry of Health budget in 2020. However, the public health sector will likely continue to face pressure to address the ongoing shortage of health professionals. Equipped with a new education law and an ambitious budget for 2020, Morocco is well positioned to reform its education system. The new law, puts into motion proposals recommended in its 15-year plan for the education sector, which runs from 2015 to 2030, and includes the recruitment and training of 200,000 new teachers. The plan bases the need for reform on the education system’s weaker areas, such as the economic difficulties faced by graduates. This chapter contains interviews with Amine Benabderrazik, President, Association of Multinational Pharmaceutical Companies in Morocco.
Explore chapterHealth & Education
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Investment in the construction of several new health care facilities across the country and the upgrade of ageing infrastructure demonstrates that the public sector is on the right path. However, challenges persist as out-of-pocket spending remains high, partly due to elevated medicine costs. Moreover, greater funds will have to be invested in the training of medical professionals if locals are to fill staffing gaps. Public investment in the education system remains the highest of any sector, while student enrolment across universities and vocational institutions has increased significantly over the last decade. However, slow economic diversification and the oversaturation of certain university programmes have led to a mismatch between graduate skills and the availability of opportunities in the labour market. Focused government funding could encourage the uptake of subjects and the development of skills required in the contemporary labour market. This chapter contains an interview with Gillian Paul, President, College of Science, Technology and Applied Arts of Trinidad and Tobago.
Explore chapterTourism
Ghana’s tourism sector is playing an increasingly important role in the country’s development, contributing to both economic growth and job creation. The results of the World Economic Forum’s “Travel and Tourism Competitiveness Report 2019” indicate that Ghana has significant opportunity to build competitiveness through its history, culture and abundance of natural sites, raising the country’s international profile as a tourism destination. Tourism provides a significant source of foreign exchange in Ghana, contributing to the government’s tax revenue, economic growth and job opportunities. The Ministry of Tourism, Arts and Culture estimated that the sector accounted for 4.9% of GDP in 2018, making it the fourth-largest contributor after cocoa, gold and oil. Tourism supported 602,425 direct and indirect jobs that year, up 10% compared to 2017, when the sector employed 550,000 people. This chapter also contains an interview with Akwasi Agyeman, CEO, Ghana Tourism Authority.
Explore chapterHealth
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With its first hospital dating back to the 1890s and a universal health care system in place since the 1960s, Bahrain has long had solid fundamentals for care provision. The coming years will be characterised by the continued rollout of Sehati national insurance system. Further infrastructure development will also remain a focus as the King Abdullah Bin Abdulaziz Medical City takes shape. The kingdom is enhancing its research and development capabilities with initiatives from the Ministry of Health to establish the Bahrain Genome Project, a specialised centre for genetic analysis, and plans to open the $1bn King Abdullah Bin Abdulaziz Medical City in 2021.
Explore chapterAgriculture & Fisheries
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Given that fishing and agriculture have historically formed central parts of Oman’s economy and society, it is not surprising that the country has the highest rate of food self-sufficiency in the GCC. Targeted investments to further enhance food security have seen the sector advance on all fronts – but most notably in terms of technology – as the government seeks ways to sustain a growing population and foster a more diverse economy. Support for innovative state-backed dairy, red meat and poultry projects continue to boost production and provide investment opportunities, while niche segments such as organic farming need more robust regulation. This chapter contains an interview with Saleh Mohammed Al Shanfari, CEO, Oman Food Investment Holding Company.
Explore chapterMining
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Endowed with rich deposits of jade, ruby, copper, lead, zinc, tin, tungsten, silver, gold, antimony, nickel and barite, as well as a long history of mining that dates back to the 15th century, Myanmar’s mining sector has significant potential. While these rich and varied reserves indicate a bright future for the industry, there are numerous regulatory, infrastructural and societal challenges that need to be addressed before the mining sector can reach its full potential. The long-term outlook for the industry remains generally optimistic: at least seven international mining companies are looking to exploration activities and, given its potential, Myanmar is likely to continue to attract investment. This chapter contains an interview with U Ding Ying, Chairman, DELCO.
Explore chapterHealth
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Medical tourism, pharmaceutical production and changes to insurance billing are the chief talking points in Dubai’s health sector at present. The private sector has led rapid growth in recent years, and while high average health spend and a favourable regulatory environment continue to encourage new hospital operators to enter the market, a tilt in the supply-demand balance means providers must closely watch market needs. In the long term a growing population, supportive governance and a focus on non-communicable diseases are likely to continue to create opportunities for both international and local players.
Explore chapterIndustry
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The non-hydrocarbons industrial sector has long played second fiddle to oil and gas in Kuwait. As the economy pivots towards easing its dependence on hydrocarbons, manufacturing is one of the key sectors the government is looking to further develop. Sector stakeholders are welcoming the increased availability of industrial land, as construction continues in the Al Shadadiya Industrial Zone and plans take shape for the ambitious multi-sector Silk City in the country’s north. At the intersection of hydrocarbons and industry, the petrochemicals segment has received considerable attention and investment, while technology manufacturers are winning lucrative contracts to serve the government’s goals of adding greater efficiency to its oil and gas production. This chapter contains an interview with Abdulkarim Taqi, Director-General, Public Authority for Industry.
Explore chapterConstruction & Real Estate
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The country’s potential in this area is highlighted by its rank of 49 out of 140 countries in terms of infrastructure in the “Global Competitiveness Report 2018” published by the World Economic Forum. Despite this, between 2017 and early 2019 the sector faltered due to a slowdown in civil engineering projects and uncertainty about Mexico’s trade relationship with the US. Although uncertainty clouds the outlook for the national economy, opportunities exist at the local level. State and local governments have helped boost infrastructure investment and industrial development, and the dynamism of these industrial hubs is likely to continue to spur demand. According to industry insiders, after 20 years of significant economic growth and major investments in new infrastructure and multi-use developments, Mexico’s real estate sector is resilient enough to weather short-term concerns and uncertainties. This chapter contains an interview with Fernando Romero, CEO, FR-EE.
Explore chapterICT
Buy digital copy of this chapter - £18With the completion of two undersea fibre-optic cable projects due in the near term, Papua New Guinea’s ICT industry is on the cusp of significant change. The new infrastructure should bring down costs, improve internet speeds and reliability, and galvanise the ICT sector through the proliferation of digital and cloud-computing industries. Internet costs in PNG are among the highest in the region, with many businesses paying extra to have a combination of fixed-line, satellite and microwave wireless plans to ensure continuity of service in the event of disruption. As service provision improves in the coming years, funds previously allocated to securing a stable connection will be channelled towards other investments. In this light, the government has identified the digital economy as a primary area of focus. Solid foundations should allow small and medium-sized enterprises to tap global e-commerce channels, while enabling digital businesses to flourish across the broader economy. This chapter also contains an interview with Paul Komboi, Managing Director, DataCo.
Explore chapterHealth & Education
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With a growing demand for services from both nationals and foreigners, the health sector remains a crucial pillar of Tunisia’s economy. The country’s low health care costs are a key competitive advantage, attracting patients from Africa and Europe. However, many challenges need to be addressed before the sector can realise its full potential. To this end, the raft of investments is expected to improve the quality and provision of care. As enrolment rates decline due to social and demographic changes, the education sector must shift its focus to raising the standard of teaching, ensuring young people remain in education and improving student performance. The demographic transition may also help to ease graduate unemployment rates, acting as a catalyst for changes to education policy. This will prove essential to matching graduate qualifications to the needs of the job market. This chapter contains interviews with Sara Masmoudi, President, National Chamber of Pharmaceutical Industries; and Houbeb Ajmi, Regional CEO, Honoris Group.
Explore chapterBPO & Creative Industries
Ranking consistently among the top global providers of business process outsourcing (BPO), the Philippines is working to widen and deepen its portfolio of third-party digital services. Foreign companies delegating operations to providers in the Philippines generate roughly one-10th of the country’s GDP, indicating the degree to which BPO is fundamental to the stability of the economy. The industry is the primary avenue of employment and training for the middle class; the second-largest source of foreign currency earnings after remittances; and the driving force behind a network of ancillary transport and retail businesses. Thus, the BPO industry often acts as a bellwether for the country’s overall economic health. This chapter also contains interviews with Lito Tayag, Country Managing Director, Accenture Philippines; and Chair of the Board of Trustees, IT and Business Process Association of the Philippines; and Paolo Mercado, Founder and President, Creative Economy Council of the Philippines.
Explore chapterEducation
Buy digital copy of this chapter - £18Colombia’s education sector has a number of hurdles to overcome before it can reach its objective to permanently boost outcomes. First and foremost, the government’s obligation to provide extra funding for the sector will need to remain sustained and highly targeted, to increase participation rates and close the divide between rural and urban areas. In addition, it is important for higher education establishments to identify and act on both private sector necessities and new trends. These changes will help to ensure that students are prepared for an increasingly dynamic and digitalised economy. This chapter contains an interview with Alejandro Moreno Salamanca, CEO, Inalde Business School.
Explore chapterICT
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A highly competitive market has ensured mobile usage has expanded rapidly, and companies continue to invest in the networks, despite finding their margins squeezed. In some ways, Peru is playing technological catch-up. Key indicators lag behind similar economies in the region, and slow progress in rolling out regional fibre-optic networks has stalled the government’s plans to digitally connect the entire country. However, a competitive market pushing operators to improve services and lower prices means that there has been progress in mobile coverage. With one of the most positive economic outlooks in Latin America, stable domestic demand and impressive growth in new segments such as agri-business, Peru certainly has the potential to be a centre for innovation. More agile government policy, including digitalising the state apparatus itself, could see Peru become a major player in the Fourth Industrial Revolution. This chapter contains an interview with Mariana Costa, CEO and Co-founder, Laboratoria.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Though the Egyptian health care system is character¬ised by a pluralistic mix of public facilities, it has been strained by rapid population growth and relatively low levels of funding. Consequently, most Egyptians opt for private facilities, fuelling high levels of out-of-pocket expenditure and increasing desire for private insurance. In response, the government has initiated several reforms aimed at improving quality and access to health care services for its population. Demand for medical equipment, pharmaceuticals and health care facilities are likely to follow, offering continued private sector growth and opportunity. In the same manner, Egypt’s burgeoning population and a high num¬ber of new entrants to Egypt’s education system have generated growing demand for facilities. However, strain on the public system has led to challenges in producing internationally competitive graduates. In an effort to improve the quality of its human capital, the government has begun to overhaul the pre-university education system and has opened the higher education segment to international universities. Additional funding and private sector support are required to assist the Egyptian government in achieving its targets. This chapter contains an interview with Mohamed El Kalla, CEO, Cairo for Investment and Real Estate Development.
Explore chapterEmerging Cities
Buy digital copy of this chapter - £18Stretching 5120 km from the shores of Aceh to the mountains of Papua, Indonesia encompasses 17,000 islands – around 6000 of which are permanently inhabited – and comprises 34 different provinces, each with its own capital city. Within these islands, 300 distinct ethnic groups exist, speaking more than 700 languages between them. Until the turn of the new millennium, centralisation was seen as the best way forward, and economic development policies were strongly skewed towards Indonesia’s main island of Java, where the country’s capital Jakarta is located. After the resignation of former President Suharto in 1998, however, successive administrations have implemented decentralisation policies, aiming to more evenly distribute authority and investment throughout the country’s many diverse regions. This chapter also contains an interview with Tri Rismaharini, Mayor of Surabaya.
Explore chapterSecurity, Defence & Aerospace
Buy digital copy of this chapter - £18As the world’s largest military spender per capita, Saudi Arabia is committed to maintaining the balance of power in the Middle East. It is also examining ways to balance its books by ensuring that a growing percentage of spending is on hardware locally produced within the Kingdom. Vision 2030 aims to localise spending on military equipment from its 2017 level of 2% to more than 50% by 2030. In the 2019 fiscal budget, 27% of spending was earmarked for defence and security, the highest allocation given to any sector. The government is also encouraging the development of advanced manufacturing in the Kingdom, and the aerospace segment in particular is a major target for increased investment. This chapter contains an interview with Andreas Schwer, CEO, Saudi Arabian Military Industries.
Explore chapterReal Estate
Buy digital copy of this chapter - £18As a key driver of diversification efforts, the real estate sector has been an important contributor to economic growth in recent years. According to a 2018 report, non-mining and quarrying sectors registered a combined compound annual growth rate (CAGR) of 6.8% between 2013 and 2017, which was largely attributed to four sectors: construction, health care, insurance and real estate, with the last registering a CAGR of around 7.6%. Despite this positive performance, early 2018 saw growth moderate, most likely influenced by a regional blockade that saw Saudi Arabia, the UAE, Bahrain and Egypt sever diplomatic ties with Qatar in July 2017. However, the effects were short-lived, and the sector is back on track and poised for growth. This chapter contains an interview with Nasser Al Ansari, Chairman and CEO, Just Real Estate.
Explore chapterICT
Buy digital copy of this chapter - £18Following years of steady growth, the ICT sector is embracing a period of fast-paced innovation. While the telecoms and business process outsourcing industries in Sri Lanka are reaching maturity, efforts are being focused on developing more innovative and high-end products. The sector’s organic growth is benefitting other industries, such as agriculture, manufacturing and tourism, and supporting the emergence of technology-focused small and medium-sized enterprises and start-ups, which in turn are creating jobs and value in the economy. At the same time, government and private sector stakeholders are trying to promote the country as a technology hub for international firms and investors. However, despite the progress made, recent political uncertainty and ongoing regional disparities in ICT infrastructure need to be addressed to ensure the sector’s momentum does not stall. This chapter contains an interview with Lakmini Wijesundera, CEO, IronOne Technologies.
Explore chapterIndustry
Buy digital copy of this chapter - £18Sixty years after Abu Dhabi’s first oil discovery at the Murban Bab oilfield, industry is proving to be an engine of growth and economic diversification in 2019, as Emirati entrepreneurs explore and nurture new opportunities to reduce reliance on the volatile energy sector. Their efforts to diversify include vertical development into downstream industries such as petrochemicals, plastics and by-products like sulphur; horizontal moves into energy-intensive manufacturing of steel and aluminium that in turn feeds production clusters; and lateral shifts into the technologies of the future that are expected to shape the Fourth Industrial Revolution. This chapter contains interviews with Jamal Salem Al Dhaheri, CEO, Senaat; and Abdulla Jassem Kalban, Managing Director and CEO, Emirates Global Aluminium.
Explore chapterHealth
Buy digital copy of this chapter - £18One of the most rapidly expanding markets in the region in recent years, Dubai’s health care sector is set for further growth, driven by an expanding and ageing population, changing medical needs and a determination by the government to provide all citizens with the best possible health care. Both inpatient and outpatient markets are widely forecast to see double-digit expansion in the run-up to 2022, while subsectors such as medical tourism continue to gain momentum. At the same time, investment in new technologies is gathering pace, with Dubai seek¬ing to become a global leader in high-tech medical applications and digital services, like telemedicine. This chapter contains an interview with Humaid Al Qutami, Director-General, Dubai Health Authority.
Explore chapterAgriculture
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The agriculture sector remains the main driver of economic growth, contributing 19% to GDP. The Green Morocco Plan, which was launched in 2008 and runs until 2020, is the national agricultural policy. The plan is responsible for generating sector growth as well as preparing for future challenges, such as food security, climate change and an increasingly competitive global market. Although the sector has seen positive performances in the 2018/19 season, there is still room for growth. There are two years left to complete the objectives of the plan, and further financing will be required to achieve these. Moreover, Morocco will need to position itself strategically to be able to endure the impact of climate change and unpredictable weather conditions, and ensure the agriculture sector’s resilience and continued growth, as well as the country’s food security. This chapter contains an interview Mohammed Fikrat, President, National Federation of Agribusiness, and CEO, Cosumar.
Explore chapterTourism
Buy digital copy of this chapter - £18With significant potential to drive economic growth and job creation, the tourism sector is increasingly an area of focus for investment in Ghana. While the Bank of Ghana lists the sector as the fourth-highest foreign currency earner behind gold, cocoa and remittances, Ghana still has some way to go to become a destination of choice on the continent. Significant funding has therefore been committed to developing the sector through investments in infrastructure and skills development. With hotel capacity set to increase and a prominent profile in international circles as a safe and investment-friendly destination, Ghana’s tourism sector looks on track to continue growth. For sustained development, however, Ghana must address some key infrastructure bottlenecks. Chief among these is the road network outside of the Greater Accra Region, which must be developed and expanded to improve access to other parts of the country. This chapter contains an interview with Catherine Afeku, Minister for Tourism, Arts and Culture.
Explore chapterHealth
Buy digital copy of this chapter - £18Although major health indicators have improved in recent decades, a growing and ageing population, an elevated incidence of non-communicable diseases and rising care costs have weighed on Bahrain’s health sector in recent years. The government is currently making major strides in addressing these challenges, however, most notably through the planned rollout of a national health insurance system, as well as a flagship inspection and accreditation programme aimed at improving patient outcomes and quality of care. Bolstered by rising out-of-pocket expenditure and the development of large-scale, integrated medical infrastructure, investment in the sector is set to rise in the coming years, supporting steady and sustainable expansion. This chapter contains an interview with Dr Mariam Al Jalahma, CEO, National Health Regulatory Authority.
Explore chapterHealth & Education
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A renewed focus on health has brought with it a number of improvements. The authorities have rehabilitated hospitals and health centres, developed technical platforms for facilities in line with international standards and improved access to services. Although main health indi¬cators have improved significantly over the years, challenges remain with regard to maternal, neonatal and infant health. The universal health care plan is set to improve provision, with commitments to boost operational infrastructure, increase the work¬force and manufacture more local generic pharma¬ceutical drugs. Education has also become a national priority. Despite a demographic boom, the implementation of compulsory schooling and increased federal spending on education testifies to the will to improve the education system. Many challenges remain, however, as educational institutions struggle to absorb a rapidly growing youth population and equip them with the skills needed in the labour market. This chapter contains an interview with Eugène Aka-Aouélé, Minister of Health.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Since Myanmar’s democratic transition began in 2011, the education sector has undergone a significant transformation under successive administrations. Higher government spending and the easing of restrictions on foreign investment in private schools have paved the way for increased enrolment rates and improvements in education infrastructure. Despite these developments, notable demographic and regional disparities remain. Closing these gaps and ensuring equal opportunities is necessary to improve the country’s education system. Myanmar’s health care sector has grown considerably in recent years as a result of higher public expenditure and increasing foreign direct investment. Aside from implementing a range of reforms, the Ministry of Health has been proactive in delivering programmes aimed at fighting both communicable and non-communicable diseases nationwide. However, as the country gears up to achieve universal provision by 2030, significant issues still remain. This chapter includes an interview with Dr Watson Aphiwatanakoon, CEO and Hospital Director, Ar Yu International Hospital.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18A combination of food security concerns and a focus on economic diversification have made agriculture and fisheries an area of priority government investment in recent years. Agricultural self-sufficiency continues to grow in the sultanate. Despite the irrigation challenges presented by limited rainfall and decreasing ground reserves, 2019 will see food production receive a significant boost with the launch of new facilities for dairy, red meat and poultry. Fisheries, a priority sector under the ninth five-year development plan (2016-20) of the Oman Vision 2020 strategy, is also poised for take-off. This chapter contains an interview with Saleh Mohammed Al Shanfari, CEO, Oman Food Investment Holding Company.
Explore chapterHealth & Education
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Opportunities to invest in the health care sector continue to increase as the population grows at an annual rate of 2.1%, applying pressure on existing hospital infrastructure, especially in the urban centres where 72% of the population resides. The health infrastructure has made considerable strides in recent years in a number of important areas, nevertheless, there are still challenges in providing equal access to care across Algeria’s vast territory and overcoming the shortage of medicines. In line with a sustained government budget allocated to health, attracting new investment from the private sector will be critical for meeting the growing demand for health care. In regards to education, Algeria has maintained a high level of investment in recent years, despite the general economic contraction caused by the collapse of the hydrocarbons market in 2014. While the Ministry of National Education continues to focus on improving education practices and reforming teacher training, the Ministry of Higher Education and Scientific Research is concentrating on extending existing networks and institutions. This chapter contains interviews with Amine Sekhri, Country Manager, Roche Algérie; and Tahar Hadjar, Minister of Higher Education and Scientific Research.
Explore chapterICT
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Nigeria’s ICT sector has faced several challenging years, with rapid currency depreciation and a macroeconomic slowdown weighing on profitability. However the sector remains a critical non-oil growth driver and major contributor to the economy, supported by a sizeable young population and the rapid adoption of mobile internet services. Dominated by four large mobile operators, the telecoms industry remains on a steady growth trajectory, as rising smartphone penetration and investment in mobile internet networks supports a shift towards data-driven growth models. In the IT sector government efforts to boost broadband penetration have begun to gather steam, although the country will face a number of challenges in achieving its ambitious mid-term expansion targets owing to issues in deploying new fibre-optic infrastructure. This chapter contains an interview with Umar Danbatta, Executive Vice-chairman and CEO, Nigerian Communications Commission.
Explore chapterRetail
Buy digital copy of this chapter - £18Retail and wholesale trade accounts for a sizeable percentage of Kuwait’s non-oil GDP – at 9.1% as of February 2018 – and there are solid growth forecasts for the coming year. Kuwait has one of the highest per capita incomes in the world at $68,500 in 2017, according to the World Bank, and there is strong demand for luxury and imported goods among wealthy locals and foreign residents, who now make up around 70% of the population. Kuwait’s retail sector saw significant growth in 2017 as new and old players rushed to adapt to changing tastes and demands. Innovative malls and increased competition from e-commerce retailers have started reshaping the local market. These trends are expected to continue into 2019 as stable macroeconomic fundamentals and government infrastructure programmes boost growth and encourage investment.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Given that the country has one of the youngest populations in the world by average age, Kenya is aware that investment in health and education will be a key component in supporting the Vision 2030 goals of transforming the nation into a middle-income country. For instance, the new Health Act, 2017 further codifies constitutional protections and mandates the provision of minimum basic services. Yet while the domestic health industry performs solidly in comparison to its regional peers, there are substantial obstacles standing in the way of progress. In regard to education, significant reform is under way to make the Kenyan education system more efficient and better able to train workers for the modern economy. The government is upgrading the curriculum, expanding coverage and placing an added focus on technical and vocational education and training. While long-term prospects are positive, doubts have risen about the costs and effectiveness of the incoming framework. This chapter contains an interview with Vimal Patel, Managing Director, Cosmos.
Explore chapterHealth and Education
Buy digital copy of this chapter - £18In a show of commitment to the well-being of citizens, the government allocated TT$6.03bn ($894.4m) to the health sector in the FY 2018 budget, placing it in the top-three publicly funded areas of the economy behind education and national security. While this figure represents a decline from FY 2017, when the allocation was TT$6.25bn ($927m), health funding has risen since 2010. Meanwhile, the human capital requirements of globalisation and the information age are placing great demands on economic and educational structures in Trinidad and Tobago. The government therefore confirmed its commitment to developing a knowledge-based economy with a TT$7.3bn ($1.1bn) allocation for education and training in the FY 2018 budget, which was the largest of any sector. The contribution of education to GDP in 2017 is estimated at 2.7%, which is marginally higher than the 2016 figure of 2.6%. This chapter contains an interview with David Dulal-Whiteaway, CEO, Arthur Lok Jack Graduate School of Business.
Explore chapterICT
Buy digital copy of this chapter - £18While still lagging behind many of its neighbours in the Asia-Pacific region, the ICT sector in Papua New Guinea has seen significant progress in recent years, which has helped ensure expansion of coverage and offerings. An increase in sector investment has helped both local and international companies expand into rural areas, while telecoms providers have also been able to bring more affordable and faster services to a greater share of the population. However, isolated parts of this large and sparsely populated country are still having difficulties in achieving connectivity. To address these challenges the government is looking to improve infrastructure in rural communities and upgrade the mobile data network from 3G to 4G in more parts of the country. This chapter contains an interview with Jacky Xu Qiang, CEO, Huawei Pacific.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18An increasingly open market and policies to boost inclusivity are benefitting construction in Argentina. For example, a more transparent measure to subsidise mortgages for homebuyers has replaced supply-side stimulus packages, which should help disadvantaged populations. Meanwhile, efforts are being made to bridge the infrastructure gap and formalise labour. Public works and other construction projects are expected to continue throughout 2018 and gather pace in 2019, with government investment in infrastructure reaching $709m in 2018. Meanwhile, the real estate market in Argentina has been undergoing a transformation as a result of the measures taken by President Mauricio Macri’s administration. The Greater Buenos Aires region, for example, is home to a wide variety of residential, retail, office and industrial offers that make up a diversified property market. The sector accounted for 10.2% of GDP in 2017. This chapter features an interview with Gonzalo Monarca, President, Grupo Monarca.
Explore chapterICT
Buy digital copy of this chapter - £18Since the market entry of new operators in 2014, competition, investment and consumption have risen, boosting the dynamism of the telecommunications sector. These positive trends continued into 2017 as the regulatory framework was strengthened, with a particular focus on driving competition, reducing costs and protecting the interests of consumers. In 2017 Peru’s ICT sector represented 2.6% of GDP, according to industry consulting firm Ovum. Political instability and an unfavourable regulatory environment are the main factors affecting the country’s competitiveness in terms of ICT adoption, according to the World Economic Forum. Furthermore, there is plenty of room for improvement regarding the country’s online security measures. With the bold expansion of internet access to rural areas and the renewed focus on strengthening cybersecurity measures, the Peruvian ICT sector is starting to establish itself as an emerging market in the region. This chapter features an interview with Rafael Muente Schwarz, President, OSIPTEL.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18While Thailand has been successful in expanding access to education, the sector faces some challenges. The country is falling behind in the quality of provision, and policy has been slow to adapt to global labour market trends. Nevertheless, there are signs that this is changing: the government has set about pursuing an education strategy with clear goals, and efforts are under way to streamline administration and assessment. Thailand has been reaping the benefits of an expanding global health care industry, as its large number of internationally accredited hospitals and qualified practitioners continue to attract clientele from both developing and developed countries. At the same time, the universal coverage framework has succeeded in providing health care to nearly the entire population. This chapter contains interviews with Teerakiat Jareonsettasin, Minister of Education; Pailin Chuchottaworn, Former Chairman of the Council, Vidyasirimedhi Institute of Science and Technology; and Gordon Cameron, Vice-president, Asia-Pacific Area, Takeda Pharmaceuticals International.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Mexico’s transport sector is undergoing major expansion, providing increased investment opportunities. Among the ongoing projects is a $13bn international airport in Mexico City, which was originally slated for completion in 2020 but is likely to be delayed until 2023. Work is also under way on a new urban metro system in the capital, and upgrades to the railway and road system. In addition, freight capacity has been expanded at the Pacific seaports of Lázaro Cárdenas and Manzanillo, and major expansion projects are being undertaken at the port of Veracruz. While concerns remain over the impact of the North America Free Trade Agreement renegotiation, the outlook for the Mexican transport and logistics sector remains solid. Mexico has already achieved significant increases in capacity across all segments of its transport system, and while inefficiencies and security concerns will not be resolved overnight, there is momentum to overcome these challenges. This chapter includes an interview with Federico Patiño Márquez, CEO, Mexico City Airport Group.
Explore chapterBPO
Buy digital copy of this chapter - £18Ranking consistently among the top global providers of business process outsourcing, the Philippines is now undertaking a significant widening and deepen¬ing of its portfolio of third-party services. The sector has begun its transition to higher-skilled and more value-added operations, while also adapting to the challenge of new technologies such as artificial intel¬ligence and robotic process automation. Meanwhile, the industry continues to be a major employer and significant source of revenue for the country. It has also become a key facet of regional development, as companies move away from traditional centres like Manila to lower-cost provinces and second-tier cities. This chapter contains an interview with Travis Coates, Managing Director, Teleperformance Philippines.
Explore chapterEducation and Health
Buy digital copy of this chapter - £18As Tanzania seeks middle-income status, strengthening the education system has become a high priority. The past 20 years have seen substantial progress in improving access to education and enrolment rates. In 2015 the government abolished fees for public secondary schools, which led to a surge in enrolment, while service provision by the private sector has also expanded significantly. International partners and private contractors are playing an important role in supporting universal education, particularly with regards to raising educational quality. Although Tanzania’s education targets are still a way off, efforts to progress towards them are well under way. Tanzania is gearing up for an overhaul of its health care sector that could prove transformational by ensuring universal insurance coverage and greatly broadening the opportunities for outside service providers. The past decade-and-a-half has seen considerable successes in public health, with major communicable diseases brought under control and steady rises in expenditure. Primary care has also grown, bringing the system closer to citizens. However, gaps remain and provision has lagged behind the changing demographics of an urbanising country and an increasingly dynamic economy. The government’s latest strategy looks to address these shortcomings and build a more efficient system that focuses resources on those in greatest need. This chapter contains interviews with Sulaiman Shahabuddin, Regional CEO, Aga Khan Health Services, East Africa; and Dr Matshidiso Moeti, Regional Director for Africa, World Health Organisation.
Explore chapterICT
Buy digital copy of this chapter - £18Sri Lanka was the first country in South Asia to roll out a nationwide 4G network, its mobile market is highly competitive and it is home to a number of major tech companies. Connectivity is improving quickly, the environment for innovation is undergoing a positive transformation and the government is starting to make significant investments in e-governance. While Sri Lanka may not have the critical mass of places like India and China, it has – as with manufacturing – been able to establish a strong regional position and lay the groundwork for future development. This chapter contains an interview with Jeevan Gnanam, CEO, Orion City.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Investing in Tunisia’s health and education sector has been a major priority for the government. In recent times, Tunisia has witnessed strong improvements in key health outcomes, thanks in part to the provision of health care coverage to the bulk of the population. Also, the private health care industry is growing rapidly, bolstered to some extent by a well-established medical tourism sector. In the education sector, industry figures point to ample room for investment and expansion, provided the country continues to make progress in areas such as gaining international accreditation for local institutions and improving transport links with promising source markets. This chapter contains an interview with Hatem Ben Salem, Minister of Education.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Jordan including an outline of workers’ rights and employer regulations and a summary of the types of company for investment. This chapter contains a viewpoint from Khaled Asfour, Managing Partner, Zu’bi Advocates & Legal Consultants.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18To capitalise on the potential of its young and education-hungry population, the Myanmar government is working to rebuild its public education system at every level. Passing the appropriate legislation as well as further opening the sector up to new international partnerships and foreign investors will likely be necessary to achieve this, as will continued investment in infrastructure and learning resources, particularly in rural and more marginalised regions. Driven by demand for better services from the expanding middle class and bolstered by higher levels of public expenditure, growth in Myanmar’s health care sector is expected to accelerate. This comes during a time of regulatory relaxation, with the government drafting reforms intended to streamline the processes through which local and foreign companies are able to able to invest, incentivising private investment and stoking competition. This chapter contains interviews with U Pho Kaung, Rector, University of Yangon; and Dr Aye Aye San, CEO, Victoria Hospital; and General Secretary, Myanmar Private Hospitals Association.
Explore chapterHealth
Buy digital copy of this chapter - £18With the pending introduction of a national health insurance scheme, and an administrative transformation that promises to bind the kingdom’s hospital system more closely together to improve transparency, efficiency and patient care, the short-term prognosis for health care in Bahrain is positive. The government has devoted more of its national wealth to the sector than any of its Gulf neighbours in recent years and its health reform agenda is designed to ensure the most efficient use of that expenditure, while also opening the door for wider participation by private providers. Unlike other countries in the region, the kingdom can draw on a deep pool of home-grown professional talent, with Bahraini doctors and nurses outnumbering expatriates in its hospitals and clinics.
Explore chapterTourism
Buy digital copy of this chapter - £18Inbound travel has increased considerably since 2011, and Côte d’Ivoire boasts strong potential in terms of natural beauty and a culture of hospitality. The government has also chosen tourism as one of its priority sectors, with the Ministry of Tourism implementing a strategy to make it one of the top-three contributors to GDP by 2020. A stark rise in business tourism has been a significant feature of the sector’s post-conflict evolution. The business tourism segment currently surpasses that of leisure, with spending making up 65.6% of tourism’s contribution to GDP in 2016, reaching 1.4bn, while leisure tourism contributed 34.4%, or €724.6m. The draw of business tourism has led leisure tourism stakeholders to call for more integration between the segments.
This chapter contains an interview with Siandou Fofana, Minister of Tourism.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18As the Egyptian population grows and the government continues to develop and promulgate legislation to achieve universal health coverage by 2030, there will be an increasing need for services and facilities, presenting widespread opportunities for the provision of goods, services and training in both urban and rural settings. With Egypt seeking to jumpstart its economy after the political turbulence of recent years, educational reform is to play a vital role in preparing a skilled and educated workforce. Although challenges persist – especially as institutions and personnel are struggling to meet the needs of a rapidly growing population – the increased demand has created opportunities for a variety of players to fill critical gaps.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Targeted investment has seen Oman’s agriculture and fisheries sector make advances as the government seeks ways to sustain a growing population and foster a more diverse economy. According to the Ministry of Agriculture and Fisheries, in 2016 production rose by 4.3% for agriculture and 8.7% for fisheries to 1.87m and 280,000 tonnes, respectively. Production is estimated to increase further given ongoing state support in areas ranging from dairy and aquaculture, to livestock and produce. Although Oman is in a strategic location between the vast markets of Europe and Asia, it is constrained in the types of products it can easily make commercially viable due to its arid climate, soil salinity and water scarcity. Still, the sultanate forges ahead with development plans by leveraging technology to open up new pathways to growth and self-sufficiency. This chapter contains an interview with Fuad bin Jaafar bin Mohammed Al Sajwani, Minister of Agriculture and Fisheries Wealth.
Explore chapterTransport
Buy digital copy of this chapter - £18Improved connectivity is a key pillar of Morocco’s economic development strategy. The strategic decision to locate special economic zones close to the main intercontinental ports has boosted activity, and there are calls to develop additional zones beside the country’s airports. Moreover, internally, road and rail links can improve the business environment by reducing transport costs and spreading economic development nationwide. Upgrades will prove particularly effective in bringing investment to more isolated regions. With the kingdom’s beneficial location on the crossroads between Africa and Europe, Morocco is emerging as a continental transport and logistics hub.
Explore chapterEnergy
Buy digital copy of this chapter - £18The economy of Dubai may be considered an outlier for the region, for although its growth and prosperity has been fuelled by its proximity to oil, its own modest hydrocarbons endowment accounted for just 1.3% of GDP in 2016. While its oil-rich Gulf neighbours have long recognised the need to diversify their economies, Dubai’s leaders understood decades ago that the emirate could only prosper by innovating and tapping a range of revenue streams. Dubai operates as a centre for oil and gas trade and is home to many companies servicing the energy industry. Its government-owned oil and gas companies have an international footprint with upstream developments at home and overseas, as well as dozens of downstream ventures. Outside of hydrocarbons, Dubai has set ambitious targets to boost the share of renewables in its energy ecosystem, while striving to set an example for curbing consumption.
This chapter contains an interview with Saeed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority; and Saif Humaid Al Falasi, Group CEO, Emirates National Oil Company.
Explore chapterTourism
Buy digital copy of this chapter - £18Ghana’s new administration is looking to further capitalise on tourism as a source of foreign exchange. The 2017 budget set specific goals for the sector, including ensuring sustainable tourism development, increasing participation in international conferences and developing standards for new tourism enterprises. With a number of promotion initiatives under way, the sector is making a dedicated push to turn the country into a leisure tourism destination. At the same time, ongoing projects, including airports and road upgrades, are expected to generate a further boost.
This chapter contains an interview with Akwasi Agyeman, CEO, Ghana Tourism Authority.
Explore chapterSecurity, Defence & Aerospace
Buy digital copy of this chapter - £18With the creation of a new defence holding company and clauses requiring that local manufacturing and job creation be written into new contracts with international suppliers, the Kingdom’s aerospace, defence and security sector is primed for growth. The defence and security market in Saudi Arabia is among the most lucrative in the world, as exemplified by the more than $110bn worth of defence contracts signed during US President Donald Trump’s May 2017 visit to Riyadh. Shares in several major US defence firms soared following news of the agreements, and President Trump highlighted the boost for jobs in the US. However, the new deal also included pledges for new factories and employment prospects for people in Saudi Arabia itself.
This chapter contains an interview with Ahmed Al Khateeb, Chairman, Saudi Arabian Military Industries; and Advisor to the Minister of Defence.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, OBG explores the taxation system in Algeria.
This chapter contains a viewpoint from Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria, on the new investment law.
Explore chapterReal Estate
Buy digital copy of this chapter - £18The built environment of Qatar has seen some spectacular changes in recent years, with rapid growth and a range of iconic towers, malls, gated communities, hotels and luxury villas coming onto the market. Swift expansion has transformed the skyline and propelled the country into the top ranks of the global real estate market. However, the fast-paced build-up of various segments is beginning to show signs of outstripping demand, and the sector may face some challenges in the short to medium term as the rest of Qatar’s economy plays catch-up with robust real estate expansion. Opportunities remain, however, as the need to fill out the housing, hotel and retail portfolios with more mid-range options persists, while a pipeline of major infrastructure projects reaching completion in the run-up to hosting the 2022 FIFA World Cup should see a revaluing of a great number of Doha’s neighbourhoods. At the same time, a shift to higher-quality, lower-cost developments is also being brought on by current market conditions, as tenants demand more for their money. This chapter contains an interview with Nabeel Mohammed Al Buenain, Group CEO, Qatari Diar.
Explore chapterICT
Buy digital copy of this chapter - £18Driven by rising demand for new, affordable technology products and services among the nation’s large youth population, as well as increased investments by both the state and the private sector, Indonesia’s ICT sector expanded rapidly in 2016 and the first half of 2017. By January 2017 Indonesia’s mobile connectivity penetration rate – a measure of the number of mobile subscriptions as a percentage of total population – stood at 142%, which was among the highest in the region and up considerably from as recently as two years ago.
This chapter contains interviews with Anthony Tan, Group CEO, Grab; and Safdar Khan, Division President for Indonesia, Malaysia and Brunei, Mastercard.
Explore chapterRetail
Buy digital copy of this chapter - £18Given Nigeria’s demographics, the country’s retail sector holds significant potential. However, in line with many other African economies, formal retailing remains nascent and accounts for just 5% of all shopping. With 189m consumers in the country, there is ample room for growth, but navigating domestic hurdles has proven difficult. Currency depreciation and rising inflation, combined with a recession in 2016 and an increase in parallel market activity, have made the future of the retail industry difficult to predict. Nigeria’s recent economic troubles have had an impact on the immediate prospects for retailers, but these challenges do not weaken the long-term potential of the sector thanks to the country’s tantalising demographics. While projections may be difficult given the inherent challenges of measuring the informal sector and predicting currency movements, the opportunity for significant growth remains clear.
Explore chapterICT
Buy digital copy of this chapter - £18Papua New Guinea’s ICT market is in the midst of a dynamic restructuring. Over the last decade the sector has experienced significant growth. However, despite advancements, pockets of isolated communities remain unconnected. As a result, the government has set out to expand the National Transmission Network, and along with the amalgamation of key state entities expected to encourage competition, the cost and availability of ICT services are set to briskly improve. Since the arrival of international competition in 2007, PNG has experienced a major shift in communications technology. Nevertheless, affordability remains a pressing issue and mobile adoption lags behind regional penetration rates, with PNG’s penetration rate representing one of the lowest in the South Pacific region.
This chapter contains an interview with Mahesh Patel, Chairman, Telikom PNG.
Explore chapterIndustry
Buy digital copy of this chapter - £18The state-owned oil industry is by far the largest sector in Kuwait’s economy, representing more than half of GDP, 95% of exports and roughly four-fifths of state revenues. As oil and its byproducts are used to make more than 300,000 products globally, the country’s petroleum-based industries and petrochemicals hold significant growth potential. By comparison, non-petroleum industrial manufacturing is limited, as Kuwait lacks many of the natural resources necessary to establish alternative major industries. Relative security, political stability, economic performance, infrastructure projects and proximity to labour markets in Asia are all positive factors supporting the growth of Kuwait’s industry, but challenges include its domestic market size, limited supply of industrial land, production costs and considerable licensing and permitting issues. However recently announced government plans to boost Kuwait’s industrial output by 25% in the next few years bodes well for sector growth.
This chapter contains an interview with Faisal Awwad Al Khaldi, Deputy CEO, Kuwait Steel.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism remains one of the primary drivers of economic growth in Thailand. While manufacturing and exports are sluggish and consumer demand weak, visitor numbers were up in 2016 and are expected to hit new records in 2017. After a slight dip in 2014, the upward trend seems to have been re-established. Looking ahead, tourism will remain an important part of the Thai economy and is expected to become an increasingly large component of GDP. Thailand is an attractive destination drawing guests from a diverse range of countries. Chinese and Russian tourists continue to come in great numbers, but at the same time more visitors are coming from ASEAN member states. Flows from the US and Europe are holding steady. Thailand’s government remains highly supportive of the sector, making visits easier, investing in infrastructure and, importantly, choosing policies to encourage inflows. This chapter contains interviews with Weerasak Kowsurat, Chairman, Thailand Convention & Exhibition Bureau; and Leanne Harwood, Vice-President of Operations for South-east Asia and Korea, InterContinental Hotels Group.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18While Trinidad and Tobago’s health care system has displayed strong results when dealing with existing communicable diseases, such as HIV and Zika, work is still urgently needed to develop a long-term strategy to deal with rising non-communicable diseases in the nation. The switch to a national health care insurance system – with increased focus on portability of services, record-keeping and primary care – combined with an expanded role for cost-efficient private sector clinics and surgeries, would provide a strong foundation on which to build health care policy for the future. Meanwhile in education, following years of high oil revenues, a generous system of grants for students studying a wide range of subjects has developed. However, the economic downturn has focused minds on achieving improved performance with slimmer budgets. Tighter restrictions on funding provided by the Government Assistance for Tuition Expenses programme will help cut the fat on the tertiary education system, and the involvement of the private sector should help funnel students towards programmes that are a better fit for the development of the economy long term.
This chapter contains an interview with Brian Copeland, Pro Vice-Chancellor and Principal, The University of the West Indies.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18Despite the difficulties in securing long-term financing for research, Colombia’s innovation environment is starting to benefit from structural measures. Efforts to raise IT usage in companies and households is supporting innovation efforts and galvanising domestic entrepreneurs. Modernisation schemes targeting industrial clusters are helping to develop a culture of innovation within established firms. However, plans to boost expenditure on research and development (R&D) activities are falling behind stated objectives. As the support for entrepreneurship activities becomes more robust, linking it to national research activities remains a challenge. This chapter contains an interview with Marta Losada, President, Antonio Nariño University.
Explore chapterICT
Buy digital copy of this chapter - £18As economic growth has slowed in recent years, weighed down by a combination of volatility and relatively weak demand in the primary and extractive sectors, strength in Peru’s ICT industry has been a constant bright spot. The telecommunications sector has been particularly dynamic, spurred by increased competition, investment and consumer use. The early signs are that these trends have carried over into 2017, with growth remaining in the double digits, more new players entering the market and progress continuing to be made toward rolling out next-generation fibre-optic infrastructure nationwide. At the same time, the regulatory framework continues to be strengthened, with a particular focus on boosting competition, bringing down prices and otherwise protecting the interests of Peruvian consumers.
This chapter features an interview with Gonzalo Martin Ruiz Díaz, Former President, OSIPTEL.
Explore chapterIndustry
Buy digital copy of this chapter - £18Encompassing everything from petrochemicals to food processing and aerospace to automotive parts, Abu Dhabi’s industrial sector has branched out significantly in recent years. Guided by the Abu Dhabi Economic Vision 2030 and its 2016 update, the Abu Dhabi Plan, along with its own sector-specific development strategy, industry is now at a key turning point, as it begins to implement the next stage of its development. The year 2017 will see the public unveiling of a new 2016-20 plan for industry, which promises to increase the focus on private-sector development, furthering the integration of the major corporations of Abu Dhabi’s industrial world with the raft of micro-, small and medium- sized enterprises that form the backbone of manufacturing – and employment – in the emirate.
This chapter contains an interview with Saeed Ghumran Al Remeithi, CEO, Emirates Steel.
Explore chapterICT
Buy digital copy of this chapter - £18After years of strong economic growth and population expansion, Sri Lanka’s telecoms and IT sectors face increasing demand for a wider range of services. At the same time, a more tech-savvy populace has increasing expectations of service standards and quality, as technological changes reach greater numbers of people. With a dedicated government ministry ensuring that the activities of the country’s ICT institutions under its purview are aligned with national objectives and connecting research and development with industry requirements, the country is on the right path in having a good pair of hands at the ICT helm. This is underscored by the digital economy’s growth, which is in turn enabled by Sri Lanka’s excellent access to undersea cables and a new cable system that is significantly speeding up the country’s connectivity.
This chapter contains interviews with Dileepa Wijesundera, Group CEO, Sri Lanka Telecom; and Madu Ratnayake, Executive Vice-President and General Manager, VirtusaPolaris.
Explore chapterBPO
Buy digital copy of this chapter - £18The Philippines’ business process outsourcing (BPO) sector is an economic powerhouse and one of the largest white-collar employers in the country. It benefits from over a decade of pro-investment policies, a young and well-educated workforce, and rising foreign investment in both third-party contact centres and global in-house call centres. The industry will soon surpass foreign remittances as the single largest contributor to GDP, driven by growth in the emerging segments of health care, analytics and financial services outsourcing. Although rising levels of automation and advancements in robotics and artificial intelligence pose a threat to low-level BPO jobs, strengthening development ties between industry and academia should see growth in high-value-added positions over the medium term.
This chapter contains an interview with Maria Cristina Coronel, President, Pointwest Technologies.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Health care has been a national priority for the Tunisian government since the country gained independence from France in 1956. A focus of continued investment, the health care sector has since seen the development of a nationwide network of public hospitals and health centres, with the country quickly becoming a model in North Africa. The combination of private sector investment and public sector reforms positions the sector for continued growth. In recent years, private health care has taken the lead in terms of investment, with the construction of a number of new health clinics. This development is set to help the country to solidify its position as a regional medical tourism destination. In the decades following independence, Tunisia was among the countries with the highest investment in education in the region. This enabled it to introduce important legal changes, such as compulsory basic education, which led to high enrolment and literacy rates. However, in the face of deteriorating quality standards and high unemployment rates among young graduates, authorities are now looking to overhaul the education and vocational training system with a series of upcoming reform measures that could significantly reshape the face of Tunisia’s education system in the coming years.
This chapter contains an interview with Tahar Ben Lakhdar, Co-founder and CEO, Esprit.
Explore chapterTourism
Buy digital copy of this chapter - £18Home to 60 national parks and reserves, a broad offering of cultural and historic attractions, and over 500 km of sunny coastline, Kenya has seen its tourism sector rise to become the second-largest foreign exchange earner in the country. However, a spate of terror attacks since 2011, the 2014 Ebola outbreak in West Africa and ongoing security concerns have weighed heavily on the sector, with 2015 marking the fourth consecutive year of declining visitor arrivals and earnings. However, 2016 saw a return to form for the industry, as the sector recorded 17% growth in earnings, on the back of increased international visitor numbers from a diverse array of countries, including the US, China and India. Recognising the critical role tourism plays in employment and earnings, the government has moved to support the sector with the launch of its tourism recovery programme, a 10-point strategy emphasising marketing, infrastructure development and private sector investment. Combined with rising numbers of regional and domestic travellers, and intensifying efforts to develop the meetings, incentives, conferences and exhibitions segment, the sector is expected to gradually recover in 2017, with ongoing marketing initiatives helping to boost it to full recovery by 2018.
Explore chapterTransport
Buy digital copy of this chapter - £18Occupying a unique position along the Pacific Ocean, Gulf of Thailand and Gulf of Tonkin, along with shared land borders with China, Laos and Cambodia, Vietnam is well-positioned to become a dominant regional transportation centre. Rapid trade, economic and population growth have made transportation upgrades a critical priority for Vietnam. Although many major planned projects face a funding gap which could hamper their timely implementation, recent reforms to the national public-private partnership framework have left the sector well-positioned to capture a larger share of private investment in the coming years. This will be especially critical for major planned highway and aviation projects, where rapid passenger growth has strained existing facilities, lending a sense of urgency to near-term development plans.
This chapter contains interviews with Truong Quang Nghia, Minister of Transport; and Wong Heang Fine, Group CEO, Surbana Jurong.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Mexico’s construction industry is changing gears in 2017. It is the fourth-largest value-added activity in the country and constitutes 8% of GDP. A young, growing population and a rising middle class continue to drive demand for homes, shops, factories and offices. The infrastructure industry is preparing for a future where private sector funding takes over from the public sector and becomes the key engine of growth. Furthermore, profits at Cemex, Mexico’s multinational cement company, have reached record levels, and the project to build Mexico City’s new airport – which is now under way – is the biggest of its kind in Latin America. Furthermore, Mexico’s real estate sector is preparing for a period of moderately increased uncertainty over interest rates, inflation and trade. Despite some apprehension, sales continue and medium-term market fundamentals remain positive. There were 10 real estate investment trusts trading on the Mexican stock exchange in 2016, with a combined capitalisation of some $13.3bn. Some property specialists say worries over inflation and a weaker peso may actually create new investment opportunities, and underline the value of property as a secure, long-term holding. This chapter contains an interview with Jerónimo Gerard Rivero, CEO and Founder, Mexican Retail Properties.
Explore chapterAgriculture & Agro-industry
Buy digital copy of this chapter - £18Despite steadily increasing urbanisation in recent years, the agriculture sector remains a cornerstone of Egypt’s economy, both in terms of overall value-added output and employment. Egypt produces a wide range of crops and other agricultural products, including cereals such as wheat and corn rice, fruits and vegetables, sugar, cotton, dairy products, livestock and fish, among others. Solid support for agricultural activity on the part of the government and new opportunities for domestic and foreign investors alike point to an expansion of the sector in the coming years. However, Egypt’s agriculture sector still faces a range of challenges. High and rising rates of inflation are an issue, with the annual food and beverage inflation rate at 13.8% as of October 2016, up significantly from 11% a year earlier. The current government has set out a series of focused agriculture-focused programmes in a bid to address these issues.
This chapter contains an interview with Ahmed El Rashidi, Managing Director, El Rashidi El Mizan.
Explore chapterTourism
Buy digital copy of this chapter - £18With a varied offer and clear development potential, Côte d’Ivoire is attracting large sums of capital investment to its travel and tourism industry. While business tourism and domestic spending continue to represent the largest shares of sector contributions to GDP, there are ambitions to develop leisure tourism and increase international tourist arrivals in coming years. However, additional investment in transport infrastructure and tourism accommodation is required to facilitate access to tourist sites and improve the quality of accommodation in line with international norms. This chapter contains an interview with Georges Philippe Ezaley, Mayor of Grand-Bassam.
Explore chapterHealth
Buy digital copy of this chapter - £18A rise in population is slowly putting pressure on Bahrain’s public health care sector, which is the oldest in the GCC region, with the first modern hospital in the Gulf established in Bahrain in 1902. The health care sector in Bahrain has historically been heavily dependent on government-run facilities and public money, but moves in recent years have set in motion the growth of the private sector. With new legislation allowing for 100% foreign ownership of private health care facilities, coupled with the arrival of a national health insurance scheme, there is now a drive for more involvement by private sector players in the near future, which will further push the development of the sector.
This chapter contains an interview with Sheikh Mohammed bin Abdullah Al Khalifa, Chairman of the Supreme Council of Health.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Bold plans to improve food security and production in Oman are being driven by investment in agriculture, horticulture, aquaculture and sea fishing as the country looks for sustainable solutions that will enable it to support a growing population. The sultanate’s long coastline and diverse landscapes support a rich variety of fish, livestock, crops, fruit and vegetables. However, the country’s farmers have historically faced significant challenges in managing a limited, though replenishable, supply of water in a predominantly hot desert climate. As Oman increases food production targets, new technologies and farming systems look set to play a crucial role in complementing traditional production techniques. At a time of lower oil prices, the government has identified agriculture and fisheries as sectors that can expand to account for a greater share of GDP.
Explore chapterTourism
Buy digital copy of this chapter - £18When Myanmar recently began opening its doors to the outside world, tourists rushed at the chance to see a country that had not only been closed to them for decades, but that also boasted a rich culture and heritage. The next phase of growth will demand better marketing, improved data collection and facilities capable of offering visitors not only sights, but compelling experiences. Change has already begun, and improvements to ageing infrastructure continue, but with hotel rates dropping to historic lows, the coming years could provide the sector with a difficult but necessary reckoning.
This chapter contains an interview with U Nay Aung, Founder, Oway Group.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. The chapter includes a viewpoint from Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria, on corporate income tax rates.
Explore chapterTourism
Buy digital copy of this chapter - £18Abundant greenery, an unspoiled coastline, diverse cultural and historical heritage, and a friendly and welcoming population are some of the main attributes underlining Ghana’s attractiveness as an African tourist destination. That said, these assets remain largely underexplored by foreign visitors, many of whom come to the country to investigate business opportunities. The past couple of years have proven particularly challenging for Ghana’s tourism industry, with the global decline in energy prices, the Ebola outbreak in West Africa and heightened uncertainty associated with regional instability weighing heavily on foreign arrivals. Nevertheless, the nation’s relative stability, combined with its favourable business environ¬ment and the 2016 general elections, should help speed up economic recovery and provide investors and policymakers with a boost in their efforts to realise the sector’s development goals.
Explore chapterThe Guide
This section contains listings of some of Jordan’s leading hotels and resorts, contacts for important government offices and services, and useful information for visitors.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterHealth
Buy digital copy of this chapter - £18With more physicians per head than the UK and a lower mortality rate for children under five than the US, Dubai can boast of a world-class health care system by some measures. However, in the face of rapid population growth and the quest for a more comprehensive offering of clinical specialities, much is left to be done in Dubai’s health care system. As of the first quarter of 2015, health officials said 18 private hospitals were under construction, and it has been predicted that if the pace of growth in the commercial health sector is maintained, an additional 1500 beds will be required by 2020. In September 2016 Dubai will welcome its first co-educational cohort of students to a new university medical college. The year will also mark the final stage of the introduction of the emirate’s mandatory health insurance scheme. This chapter contains an interview with Princess Haya Bint Al Hussein, Chairperson, Dubai Healthcare City Authority; and Humaid Al Qatami, Chairman and Director-General, Dubai Health Authority (DHA).
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18Saudi Arabia has long been a major investor in its military, with defence outlays representing a significant portion of the national budget. Despite the drop in oil prices since mid-2014, which in the short term is having a noticeable impact on the government’s military spending, defence outlays are likely to continue to grow, with multi-billion-dollar contracts still being signed. While contracts with foreign military suppliers will remain a key part of the Saudi military composition, an increased emphasis has been placed on developing a domestic defence sector, with strategic partnerships and the funding of research facilities. There is currently a growing industry of domestic defence-related firms in Saudi Arabia, many of them tied to the aeronautics segment.
This chapter contains an interview with Ghassan Al Shibl, Senior Advisor to the Board of Directors and Former CEO, Advanced Electronics Company.
Explore chapterRetail
Buy digital copy of this chapter - £18While Morocco’s retail sector remains fairly limited, an expanding middle class, increasing urbanization and a more competitive formal sector are set to drive the industry in the coming years. Strong economic growth has seen malls and supermarkets proliferate, drawing an increasing number of foreign brands and franchises into the country. Although the traditional, informal sector continues to dominate – particularly in rural areas – changing consumer habits and a heightened awareness of quality bode well for the industry’s future.
Explore chapterRetail
Buy digital copy of this chapter - £18The retail sector in Kuwait has achieved rapid growth in recent years, with retailers benefitting from strong economic fundamentals, evolving consumer tastes and a relatively unsaturated market. These factors are set to continue underpinning further growth and diversification over the coming years.The retail market, including wholesale, was worth $5.8bn in 2013, or 3.3% of GDP. While the trend has been a positive one, growth has fluctuated in recent years. In 2009, as the global economic crisis struck, year-on-year market growth fell by 23.4% before surging back by 16.5% in 2010. Declines of 8.7% and 3% followed in 2011 and 2012, respectively, but in 2013 the market recovered again, expanding by 11.9%. The sector’s compound annual growth rate (CAGR) is forecast for 6.7% between 2013 and 2018, with the supermarket and hypermarket segment set for a CAGR of 9.6%.
Explore chapterMining
Buy digital copy of this chapter - £18During the 1970s Nigeria had a prosperous, export-orientated mining industry. Before the discovery of oil, the West African nation had developed strong production operations for coal, tin and columbite. The discovery of hydrocarbons eclipsed these activities and relegated mining to an economic footnote. However, with the recent decline in the global price of oil and reductions in production due to violence in the oil-producing Delta states, the government in Abuja is looking to revive the country’s mining sector. The government is becoming aware of the latent prospects of the industry and, as such, is putting in place a strong regulatory and taxation environment that should reassure investors about the security and potential of their capital in Nigeria. Nevertheless, given the paucity of mineral data and the high capital requirements of exploration in this nascent market, foreign entrance into the sector is likely to come from acquisitions and partnerships in the short to medium term.
This chapter contains an interview with Kayode Fayemi, Minister of Mines and Steel Development.
Explore chapterICT
Buy digital copy of this chapter - £18In terms of ICT connectivity, Indonesia is currently in the midst of a national transformation. Over the past decade the country has seen dramatic improvements in telecommunications availability; technology awareness and usage; investment in digital infrastructure by both the government and private sector players; regulatory oversight; and development planning. These trends have been driven by rapidly expanding demand for ICT products and services among the large population and thriving business community. Following on the heels of a challenging year in 2014, the ICT sector recovered somewhat in 2015 and the first half of 2016, primarily on the back of rising investments in data hosting services and e-commerce. On the telecoms side, late-2015 saw the rollout of 4G LTE high-speed data services by the country’s mobile operators.
This chapter contains a viewpoint from Rudiantara, Minister of Communications and IT; and an interview with Nadiem Makarim, CEO, GO-JEK.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Building on the momentum generated by the successful launch of the Papua New Guinea Liquefied Natural Gas project, the government continues to take the lead in stimulating construction activity in PNG, with various opportunities across the board from ports and road projects to a range of residential and commercial developments open to both domestic and foreign companies for participation and investment. With only 3% of land available to the government to build on and develop, the real estate sector in Papua New Guinea operates in a unique environment. Despite the majority of land being under customary ownership, with ownership rights held by extended family groups, there are still a number of opportunities for foreign investors and development in the sector, with more on the horizon if government-backed legislation, currently pending, opens up more of PNG’s land for development.
This chapter contains interviews with Dominic Avenell, Managing Director, Avenell Engineering Systems; Gudmundur Fridriksson, CEO, Paga Hill Estate; and Frank Kramer, CEO, Kramer Ausenco.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Still an important and robust driver of non-hydrocarbons growth, Qatar’s real estate sector is nonetheless beginning to feel the impact of falling oil and gas prices, which have negatively affected the office and residential markets. There are also rising concerns about an oversupply of high-end residential and commercial space, with dozens of new projects still in the pipeline expected to come on-line in the medium term. Oversupply will be a major long-term concern for nearly all segments of the market, with the stock of retail, hotel and office space surging as developers rush to capitalise on population growth and rising tourist arrivals. Despite these challenges, smaller transactions have kept the market steady in early 2016, and although land prices and rental rates remain high, muted economic growth should help reduce inflationary pressures that have priced many middle- and lower-income families out of the market.
This chapter contains an interview with Abdulla Hassan Al Mehshadi, CEO, Msheireb Properties; and Ibrahim Jassim Al Othman, President and CEO, United Development Company.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18While education remains one of the great strengths of Trinidad and Tobago’s economy, a scenario of negative growth is raising questions of quality, cost effectiveness, efficiency, and the relevance of higher education and skills training for the country’s changing labor market and broader macroeconomic environment. To assess the state of the education system, the newly elected government launched a National Consultation on Education (NCE) in early 2016, an initiative authorities hope will enable the country to arrive at a strategic vision to guide successful future sector development. Meanwhile, a push for comprehensive health care reform could see the country’s health care sector undergo significant changes in the medium term, with Rowley pledging to lead the country’s transition to a comprehensive national insurance system by 2018.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Tourism operators in the Sultanate have experienced an eventful few years. A government reshuffle in late 2015 seemed aimed at increasing the focus on the tourism sector, lending hope to many private sector operators that the government would increase support for the growth and expansion of the industry. In tandem with this, however, the appreciation of the Sultanate’s dollar, which is pegged to the Singapore dollar, has seen many potential visitors taking their business to Malaysia instead of Brunei Darussalam. However, bright spots remain for the Sultanate’s tourism operators. As low oil prices continue to weigh on the government’s budget and reserves, many eyes are looking to the tourism sector to add vibrancy to the non-oil economy. This chapter contains an interview with Mario Hardy, CEO, Pacific Asia Travel Association (PATA)
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Crucial to Malaysia’s economic development is the continued transformation of its industrial base into one predicated on high value-added products and driven by innovation, automation and increased productivity. Such a shift is important to ensure the country is well-placed to compete in an increasingly competitive and open global market, a trend exemplified by the commencement of the ASEAN Economic Community in 2015 and the signing of the Trans-Pacific Partnership agreement in February 2016. While hypermarkets, convenience stores, and traditional markets and stores all jostle for position in the country’s cities, towns and villages, online retail is also developing apace. Despite short-term challenges, the sector continues to offer great potential, as more innovative retail experiences and the rollout of modern shopping centres continue to characterise the market. This chapter contains interviews with Mohd Yusoff Sulaiman, President and CEO, Malaysian Industry-Government Group for High Technology; and Gary Brown, CEO, 7-Eleven Malaysia.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Sri Lanka’s vibrant telecommunications industry has benefitted from two decades of market liberalisation, with five competing mobile operators driving retail tariffs to some of the lowest levels worldwide. End users and operators benefit from the country’s position as a swing point between Europe and East Asia, and its advantageous geographic location atop a host of high-capacity submarine cable networks. With national ICT policies and development dating back to the early 1980s, Sri Lanka’s IT sector stands at the regional forefront today, and is slated for further expansion on the back of both the government and the private sector’s intensifying focus on increasing exports and employment within the sector. Although unable to compete with its regional competitors in terms of size and volume, Sri Lanka’s ICT sub-segments – most notably business process outsourcing– have risen to become major employers and economic strengths, with the country targeting niche services in a bid to expand its global IT reach.
This chapter contains interviews with Hans Wijayasuriya, CEO, Dialog Axiata; and Mack Gill, CEO, MillenniumIT.
Explore chapterIndustry
Buy digital copy of this chapter - £18With proven crude oil reserves of 98bn barrels and an established downstream infrastructure, which has positioned the UAE as the sixth-largest petroleum producer in the world, the country’s industrial landscape is dominated by hydrocarbons activity. In 2014 the Investment Development Bureau identified several targets for future development, including building materials, petrochemicals, metals engineering, iron and steel, plastic, aluminium and food industries. Meanwhile, aerospace, aviation and defence, for which Abu Dhabi already has core infrastructure in place, will also be the focus of much investment over the coming years. Elsewhere specialised economic zones covering an area of 50 sq km have been developed, which taken together are the source of nearly 50% of manufacturing GDP. This chapter contains interviews with Jamal Salem Al Dhaheri, Acting CEO, Senaat; and Badr Al Olama, CEO, Strata.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18A national priority since independence, Tunisia’s health care system has been the focus of continued public investment that has seen an extensive network of public hospitals and health centres established nationwide. In recent years, however, the country’s private health care sector has taken the lead in investment, with the construction of new clinics intended to make the country into a regional medical centre. As a whole, Tunisia’s health care system can rely on its solid foundation, blossoming private sector and qualified workforce. However, according to the World Health Organisation, health system reform is needed in order to implement an integrated approach that is focused on primary care, prevention and provision of palliative care in order to better respond to the increase in non-communicative diseases. In addition, the government is focusing on policies aimed at identifying medium- to long-term reform measures that will reduce health inequalities and improve the system’s responses to the evolving demographic and epidemiologic situation. In the aftermath of decolonisation, Tunisia was among the top investors in education in Africa, promoting socio-economic development and boosting human capital, which led to rapid progress in literacy, access to primary education and high enrolment figures. Today, the authorities are focusing on overhauling the educational and vocational training system, as well as bolstering private education, as a means to uplift educational standards and cut the rising unemployment rate among young graduates. Although Tunisia has continued to prioritise investment in education, it has paid too little attention to the requirements of the labour market. This has led to a mismatch between qualifications and the needs of the employment market. The authorities will have to continue overhauling Tunisia’s higher education system by providing improved career guidance and ensuring better employability for new graduates. This chapter contains interviews with Saïd Aïdi, Minister of Health; and Chiheb Bouden, Minister of Higher Education and Scientific Research.
Explore chapterTourism
Buy digital copy of this chapter - £18Endless white sandy beaches, inexpensive accommodation, tasty cuisine, exotic jungle treks and friendly locals have all propelled Thailand to its reputation as a quintessential tropical tourism destination, not only within the region but across the globe. Marketing campaigns headed by the Thai government and private sector have helped cement the industy’s position as the fourth-biggest contributor to GDP. Well-developed transport and communication infrastructure and a generous offering of luxury accommodation, gourmet restaurants and modern retail centres attract clients from the meetings, incentives, convention and exhibition, and shopping tourism segments, while an assortment of unique ecosystems ranging from tropical forests to coral reefs continues to draw in adventure and eco-minded tourists. All this is complemented by the rich cultural and religious attractions that can be found throughout the country. Thailand’s wide range of offerings has provided the travel and tourism industry with a leg up on its competitors at a crucial developmental point, when the growing number of tourists in the region display increasingly varied holiday interests and preferences. This chapter contains interviews with Nopparat Maythaveekulchai, President, Thailand Convention & Exhibition Bureau; and Patrick Basset, Chief Operating Officer, AccorHotels Upper Southeast & Northeast Asia.
Explore chapterBPO
Buy digital copy of this chapter - £18The global BPO industry is forecast to be worth $250bn by 2020 and the Philippines is seeking to cement its position as a preferred global service offshoring hub and expand on and diversify its share in this lucrative, yet highly competitive field. Having grown at a compound annual growth rate of around 10% over the past decade, the BPO sector has become the country’s largest source of private employment and the second-largest contributor of foreign exchange earnings after remittances. It has also fueled the growth of other sectors, as the salaries paid out have augmented household consumption and anchored the expansion of the property and retail sectors. Since 2004, the Philippines has tripled its global market share of BPO business, from 4% to 12.3% in 2014. It is estimated that this could rise to 19% by 2020. This chapter contain an interview with David Rizzo, Asia Pacific President, Teleperformance.
Explore chapterTable of Contents
TOC
Telecoms & IT
Buy digital copy of this chapter - £18Following the macroeconomic expansion of the past decade, Colombia’s telecommunications industry has experienced significant growth. The weight of the sector nearly doubled from 1.6% of GDP in 1994 to 3.14% in 2014, according to the Mobile Industry Association of Colombia, while annual revenues reached $7.99bn in 2014 and are expected to jump to $8.6bn by 2018. An increase in regulatory oversight has helped ensure service quality and a reduction of average communications prices, though market players are now operating in an increasingly competitive arena. Meanwhile, governmental implementation of IT policies under the Vive Digital plan has helped broaden the use of IT across all levels of society. According to Colombian think-tank Fedesarrollo, as of mid-2015 the ICT sector accounted for 7.5% of GDP and had been expanding by an annual average of 9.9% for the past decade.
This chapter includes an interview with Seong Hyun Lee, President, Samsung Colombia.
Explore chapterHealth
Buy digital copy of this chapter - £18Home to the first modern hospital in the region, Bahrain has one of the oldest health care sectors in the Gulf. Sustained investment in the sector has seen outcomes improve considerably for the majority of the population, with life expectancy rising from 71 in 1983 to 77 in 2013 and infant mortality dropping from 21 per 1000 births in 1985 to five in 2013. The sector continues to see new investment from both public bodies and private investors, with recently opened and prospective new facilities including centers for blood disorders and cardiology. Meanwhile, in order to better balance rising costs in line with deficit reduction goals, the government is considering shifting from a state-sponsored health system to an insurance-based model.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Over the last few years, gradual progress has been made in the overhaul of Myanmar’s medical framework, and for the first time many rural communities are benefiting from the expansion of the nation’s health care budget. The government is focusing on health care development in an effort to reach the ambitious national goal of achieving universal health coverage by 2030. As the country’s health system matures, the sector promises to be one of Myanmar’s most dynamic over the next few years. The education budget has also increased significantly and will continue to do so under the new government. The National League for Democracy is seeking to address a number of issues, including ethnic discrimination, overcrowding and a lack of qualified teachers. In the long term, the education system looks set to gain significant momentum, particularly under a government that is determined to increase the amount of graduates and improve the quality of degrees. This chapter contains interviews with Dr Gershu Paul, CEO, Pun Hlaing Hospital; and Sardar Umar Alam, Head of UNESCO, Yangon Office.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Peru’s economic growth of the past decade has spurred significant changes to the country’s telecommunications and IT sectors. In addition to four full-fledged telecommunications operators fighting for market share, the sector anticipates the entrance of mobile virtual network operators in the near future. Meanwhile private investment is being deployed into 4G-network infrastructure across the country in response to the rising use of mobile data. Government plans to improve the reach of broadband through a new fibre-optic network are also helping to bring telecommunications services to more remote areas. Increased competition has brought about a new level of dynamism to the market, encouraging investment by operators and putting downward pressure on profits. A dynamic telecommunications sector is encouraging the expansion of smartphone technology, which has allowed small and medium-sized enterprises to access software and increase IT usage to sustain expansion at affordable costs. This chapter contains an interview with Gonzalo Ruiz, President, OSIPTEL.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Oman’s agriculture & fisheries sectors are slated for significant expansion in the years to come as authorities aim to build them up into major contributors to the economy, key employers and significant sources for export earnings. Oman’s Vision 2020 sets the target of raising the agricultural sector’s contribution to GDP to 3.1% by 2020, with annual growth topping 4.5%. It also intends to boost the fishing sector to around 2% of GDP by 2020, with growth of 5.6% per annum. Oman’s is a predominately dry climate, meaning the preservation and efficient use of water is a key priority. To this end, the ministry announced plans in July 2015 to introduce smart meters for projects requiring large amounts of water.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Characterised by the predominance of smallholders, Egypt’s agriculture sector is currently witnessing greater investor interest, including capital injections for large-scale projects and a nationwide emphasis on land reclamation for agricultural development. Constraints on Egypt’s agriculture sector over 2015 include evolving subsidy reforms (beginning in July 2014), which has meant a rise in fertiliser prices of between 33% and 50%, along with the impact on distribution due to the higher cost of natural gas, leaving domestic production of fertiliser unprofitable. Inconsistent Customs procedures add to inefficiencies and delays. Insecurity, though improving, has also added to delays. However, high-quality exports are expected to lead the way. The agriculture export sector has come out healthy following the political unrest beginning in January 2011 and is still standing on its feet. It remains well positioned within the wider Egyptian economy as a sector that commands a competitive advantage and significant future potential.
This chapter contains an interview with Alaa Diab, CEO, Agriculture Group - PICO; and Member of the Board, Agriculture Export Council.
Explore chapterTourism
Buy digital copy of this chapter - £18The tourism industry is going through a challenging period, as security concerns have taken a toll on the leisure segment. The government and private investors are working to improve security and, in the meantime, the sector is diversifying and focusing on areas such as business tourism and the domestic segment.
Kenya has one of the biggest and most diverse tourism industries in East Africa, with offerings in a range of niches including the meetings, incentives, conferences and events (MICE) segment and safari ecotourism. Following two high-profile terrorist attacks, there was some pressure placed on visitor numbers and hospitality revenues. In response, the government and a number of private investors are taking steps to improve security and re-establish Kenya as a safe, attractive destination for visitors.
This chapter contains interviews with Mahmud Janmohamed, Managing Director, Serena Hotels Africa; and Robert Muriithi Ndegwa, Managing Director, Kenya Tourism Board.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. This chapter contains a viewpoint from Samy Laghouati, Partner, Gide Loyrette Nouel.
Explore chapterGuide
This chapter contains an overview of the tax framework within which local and international investors operate in Jordan, including a look at a newly enacted corporate income tax, a rundown of the incentives on offer to encourage free zone investment and an explanation of the social security law amendment.
This chapter contains a viewpoint with Bishr Baker, Managing Partner, EY, Jordan and Iraq.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Contributing more than $15bn per year to the national economy, South Africa’s agriculture sector has historically been one of the strongest on the continent. Diversified and increasingly export-oriented, it enjoyed a strong year in 2014, on the back of a healthy maize crop and demand from abroad. However, 2015 looks set to be a more difficult year for parts of the sector, particularly maize and the related livestock segments, though this is largely due to climate conditions across Southern Africa. A steady recovery is expected once the drought passes, with the most competitive segments of the sector well placed for an eventual resurgence in agricultural commodity prices. Citrus fruit and other higher-value, export-oriented cash crops and niche products are expected to continue their strong performance, particularly as the weaker rand makes South African goods more competitive.
This chapter contains an interview with TP Nchocho, CEO, Land and Agricultural Development Bank of South Africa.
Explore chapterTourism
Buy digital copy of this chapter - £18Over the next 12 years Ghana aims to move from an off-the-beaten-track locale to a major player in African tourism. Ambitious plans are afoot to increase visitor numbers five-fold by 2027, capitalising on the country’s natural beauty, cultural heritage, hospitality, and safety and security. The World Travel & Tourism Council forecasts that the tourism sector will grow by an annual average of 4.5% per year between 2014 and 2024. This is in line with broader economic growth: the council expects tourism and travel to contribute the same 3% to GDP in 2024. A new, well-financed tourism authority is already implementing a detailed strategy emphasising private sector leadership and investment.
This chapter includes an interview with Charles Osei-Bonsu, CEO, Ghana Tourism Authority.
Explore chapterHealth
Buy digital copy of this chapter - £18A decade after the introduction of the Popular Health Insurance Scheme, the national insurance programme, Mexico has made tremendous progress toward attaining universal coverage, albeit limited. The country is now striving to guarantee universal access to health care, not an easy feat for a fragmented system suffering from decades of under-spending. While the sector reform announced by the government in 2013 has taken a backseat in the context of fiscal constraints, steps to increase integration among public institutions and between the public and private sectors continue, as part of a countrywide effort to increase efficiency and curb rising costs. As a result, greater cooperation among public institutions and between the public and private sectors should be expected in the coming years. Meanwhile, as standards of living improve, driving demand for health care services, Mexico will remain a key market in Latin America, providing opportunities for drug and device manufacturers.
This chapter includes interviews with Jose Antonio Gonzalez Anaya, Managing Director, Mexican Social Security Institute (Instituto Mexicano del Seguro Social, IMSS) and Sandra Sánchez y Oldenhage, Director-General, PROBIOMED.
Explore chapterAgriculture
Buy digital copy of this chapter - £18After a decade of slow growth, averaging 1.3% per year, Mexico’s agriculture sector made a comeback in 2014, outperforming the wider economy and highlighting the sector’s counter-cyclical nature. Buoyed by favourable climatic conditions, the sector ended 2014 posting growth of 2.8%, with total production reaching a value of $53.3bn, according to the National Institute of Statistics and Geography. Meanwhile, total agro-food exports (including agro-industrial goods) reached a record $25.6bn in 2014. While the sector’s performance continues to suffer from a number of structural inefficiencies, particularly in relation to the ongoing prevalence of small farmers and the slow adoption of technology, measures to incentivise production and increase access to financing among small producers should see the sector continue on its path to recovery.
This chapter includes interviews with Ricardo Aguilar Castillo, Under-Secretary of Food and Competitiveness, Ministry of Agriculture, Livestock and Rural Development, Fisheries and Food (SAGARPA) and Javier Valdes, Managing Director, Syngenta Mexico.
Explore chapterRetail
Buy digital copy of this chapter - £18With GDP per capita among the highest in the world at $43,200, Kuwait is seeing its retail market continue to perform robustly, underpinned by a strong appetite for luxury products and the strong purchasing power of a young and diverse population. The value of wholesale and retail trade in Kuwait grew 22% between 2010 and 2013, reaching a value of $5.65bn. Meanwhile, the local retail market is forecast to expand at a compound annual growth rate (CAGR) of 6.7% between 2013 and 2018. While traditional retailers remain popular, sales at Kuwaiti supermarkets and hypermarkets are forecast to expand at a CAGR of 9.6% between 2013 and 2018.
Explore chapterSecurity, Aerospace & Defence
Buy digital copy of this chapter - £18In 2014 Saudi Arabia spent 35% of its budget on defence, equivalent to roughly $80.7bn. The coming years are likely to see increased emphasis on homeland security in three areas: securing the Kingdom’s northern and southern borders, cybersecurity and counter-terrorism. The Kingdom remains focused on developing a sophisticated domestic defence industry, investing heavily to this end in research and development, with various agreements in place between defence companies and Saudi research institutions. These are complemented by a number of collaborative projects in defence-related disciplines that are being forged by leading US universities and their Saudi counterparts. Meanwhile, the offset rules in place ensure that Saudi companies and workers can benefit from the expertise offered by foreign firms that win tenders in Saudi Arabia’s defence sector.
This chapter contains interviews with Prince Turki AlFaisal bin Abdulaziz Al Saud, Chairman, King Faisal Centre for Research and Islamic Studies; and Prince Mutaib bin Abdullah bin Abdulaziz Al Saud, Minister, Saudi Arabian National Guard.
Explore chapterThe South
Buy digital copy of this chapter - £18Although Morocco’s economy has traditionally seen the highest concentration of economic activity around the major cities of Casablanca, Rabat and Tangiers, several initiatives have sought to increase investment in the country’s southern region. The area benefits from a number of natural resources, including pelagic fish and mineral reserves. Wind and solar generation, as well as ecotourism, are other potential areas for growth. However, a lack of clarity over taxation procedures has reduced the amount of funding available for municipalities aiming to improve social services and infrastructure. Reducing unemployment – higher than elsewhere in the country – also remains a challenge.
This chapter contains interviews with Hassan Sentissi, President, National Federation of Seafood Processing and Development Industries; and Omar Belmamoun, CEO, Brookstone Africa.
Explore chapterTable of Contents
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The Guide
This chapter contains an article on African football, as well as information on hotels, government agencies and other listings, along with useful tips for visitors on a range of topics such as visa requirements, currency, communications, dress codes and business hours, among others.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The agricultural sector accounts for a tiny portion of T&T’s overall economy. It contributed an estimated 0.5% of GDP in 2014, according to the UN’s Food and Agriculture Organisation, while agricultural exports contributed just 0.01% of GDP. In labour terms, the sector accounted for 3.5% of total employment in 2013, or some 22,000 jobs, according to the central bank. While this is largely in line with other Caribbean island states, it exposes T&T to a degree of vulnerability in terms of its import bill. To help mitigate this risk, the country has been working to bolster domestic production levels to achieve food security. Though production increases remain limited by structural inefficiencies, weaker oil prices have the potential to reinvigorate non-energy sectors such as agriculture in the years ahead.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Though agricultural development in Panama has historically been hampered by a series of structural issues, including fragmented ownership of land, limited access to financing and deficient transport infrastructure, efforts are now under way to boost agricultural output. According to Panama’s National Institute of Statistics and Census, agriculture and livestock GDP increased steadily over the 2010-13 period, rising from $764.4m to $863.1m. The upward trend came to a halt in 2014, however, with the sector’s GDP falling 0.2% to $861.3m. The sector’s contribution to overall GDP has declined rapidly in the past decade, alongside the continuing industrialisation of the economy; in 2014 it stood at 2.4%, down from 8% in 2000. Soon after assuming office in 2014, President Juan Carlos Varela unveiled a multimillion-dollar plan to boost domestic agricultural production and enhance food security, a move expected to contribute to the revitalisation of the sector in the coming years.
This chapter features an interview with Carlos Fernández, President, Chamber of Commerce, Industries and Agriculture of Panama.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18As a major contributor to the country’s economy as well as a vital part of Indonesia’s future development, the construction sector today faces some major responsibilities and challenges. The segment has experienced continuous growth in recent years on the back of economic and population expansion, while also seeing an enlargement of its expertise and overall capability, with foreign partnerships often helping this growth in capacity. The real estate market began a period of consolidation in late 2014 that is likely to last through 2015. This slowdown in price rises has been welcomed, however, as indicative of a maturing of the sector as it heads off previous fears of overheating. Despite the slower pace overall, residential and industrial real estate continue to show healthy growth, with Jakarta also continuing to be the most active and international market.
This chapter contains a dialogue with Harun Hajadi, Managing Director, Ciputra, and Ervan Adi Nugroho, President-Director, Paramount Enterprise.
Explore chapterHealth
Buy digital copy of this chapter - £18Great strides have been made in Turkey’s health care sector since 2003, when the government launched its far-reaching Health Transformation Programme (HTP). The HTP eventually led to the establishment of universal health insurance, while opening services and private hospitals to the majority of Turks. Improvements in patient satisfaction and health indicators have been steady, with infant and maternal mortality declining while life expectancy rises. Ratios of hospital beds, doctors and nurses to patients remain low by European standards. There are also concerns that the national health insurance system may not be sustainable in the long term, as the import-dependent pharmaceuticals market has shown tremendous growth in recent years, while patient numbers and hospital visits continue to rise. The private sector offers some solutions: public-private partnerships will see the number of doctors and hospital beds increase and patient care improve, while rapid expansion in medical tourism will bolster revenues and help the sector mature. As Turkey builds more facilities, 2015 should see a continuation of the trends that have already brought investors, professionals and new patients flocking in.
This chapter contains an interview with Hasan Ulusoy, Chairman, Nobel İlaç.
Explore chapterRetail
Buy digital copy of this chapter - £18Formal retailing is just getting started in Nigeria, and currently accounts for roughly 5% of the market. There are a host of obstacles to growth, starting with the difficulty of acquiring land on which to establish a mall, store or restaurant. Sourcing goods locally is difficult, while clearing imports is expensive and time consuming. Transporting goods to stores, finding staff and winning over a buying public that is either sceptical or cannot afford the products are also challenges. Retailers have long expected that the Nigerian market would require a long-term approach, and entering early would mean building brand loyalty among consumers even before they may be able to afford to buy. For now, that means overcoming the obstacles and additional costs associated with the market, in the hope of enjoying significant profits in the future.
This chapter contains an interviews with Jeremy Hodara, Founder and co-CEO, Africa Internet Group.
Explore chapterRetail
While international brand penetration is increasing, Saudi Arabia’s vast potential for retail has yet to be fully realised. A combination of favourable demographics, rising incomes, and strong consumer confidence and appetite make the country one of the most promising growth markets for retail globally. Although the local industry has a challenging operating environment and unique social dynamics, mall space is set to increase significantly in the near term and e-commerce is now beginning to take off locally as well. As a result, in both the short and the long term, the rewards for investment in the sector should be high.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Property prices are on the up in Qatar, as are profits for listed real estate companies. Lending to the sector is also growing, with credit facilities worth $34.4bn at the end of 2014, the largest share of commercial banks’ loan book. The upward trajectory of residential rents is also gaining pace. After rising 7.9% y-o-y in August 2014, rents increased by 8.1% in September and 8.3% in October of that year. Meanwhile, Doha’s grade-A office stock, which totalled 2.5m sq metres in 2013, is set to increase when another 300,000 sq metres comes on-line in 2015. Demand is expected to hit 3.4m sq metres by 2019. Elsewhere, the size of the retail sector is expected to triple by 2016, with another 14 malls due to enter the market, bringing the total to 1.7m sq metres of shops.
This chapter contains interviews with Turki Mohamed Al Khater, Chairman and Managing Director, United Development Company; and Omar Hussein Alfardan, President and CEO, Alfardan Group.
Explore chapterTelecoms & IT
The development of high-tech industries is a key part of the Malaysian government’s long-term development strategy, the Economic Transformation Programme. Numerous programmes have been launched in Sarawak to develop ICT, with participation between public and private sector players recognised as a key component of success. While Sarawak’s ICT sector is clearly moving towards the goals set for it by the overall national development plan, government ministers recognise that more needs to be done in order for the sector to really take off. As the state continues to build the basic infrastructure and market improvements necessary to bring its ICT sector up to par – setting down fibre-optic networks, building more communications towers and laying submarine cables – the businesses that power Sarawak’s ICT sector will be anticipating the opening of the next level of the communication highway.
This chapter contains an interview with Sudarnoto Osman, CEO, SACOFA.
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Retail
While international brand penetration is increasing, Saudi Arabia’s vast potential for retail has yet to be fully realised. A combination of favourable demographics, rising incomes, and strong consumer confidence and appetite make the country one of the most promising growth markets for retail globally. Although the local industry has a challenging operating environment and unique social dynamics, mall space is set to increase significantly in the near term and e-commerce is now beginning to take off locally as well. As a result, in both the short and the long term, the rewards for investment in the sector should be high.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Just two companies control the fixed-line and mobile telecommunications market; however, competition between these two providers is intense. The mobile network operators are beginning to shift their investment focus to providing more data capacity and related services, preparing networks for the 4G rollout. Despite the two incumbent operators enjoying an entrenched market position that makes them difficult to challenge, the propensity for Filipinos to consume online content and engage in social media presents opportunities for a range of technology firms involved in delivering media content, gaming, e-commerce and digital advertising. If harnessed effectively, the Philippines possesses a number of ingredients that position it to emerge as a globally competitive tech hub. While large corporates and business process outsourcing companies are still the mainstay when it comes to ICT spenders, efforts are under way to integrate and transform government agencies to more effectively deploy IT in delivering public services.
This chapter contains interviews with Mariels Almeda Winhoffer, Vice-President for Global Business Partners Asia-Pacific, IBM; and Maria Rosario Santos-Concio, President and CEO, ABS-CBN Corporation.
Explore chapterAl Gharbia
Buy digital copy of this chapter - £18The region’s GDP is set to double by 2030 with various sectors, including oil and gas, power generation, infrastructure and transport, and tourism, expected to drive this growth. The government has identified these sectors as having particular potential for investment and can offer competitive advantages in terms of resources, geography and development needs. The region is home to both the world’s largest sour gas project and the biggest concentrated solar power project. In addition, a rising population is expected to drive real estate demand in coming years, while the region is increasingly looking to boost visitor numbers by promoting its natural beauty in an effort to attract tourists.
This chapter contains an interview with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18After over a decade of political instability and armed conflict, Côte d’Ivoire is beginning to rebuild its public health sector. A recent vote for a 29% increase in the budget of the Ministry of Health and the Fight against AIDS and large donor contributions for basic services signal a good start. Côte d’Ivoire’s health sector challenges cut across multiple areas: staffing, infrastructure, training, regulation, national coverage and funding. Improving the quality and equity of care will require sustained interventions in all areas, in particular expansion of access to basic services and better regulation of the private sector. Reining in the private sector through better regulation and training will enable it to serve as a sustainable engine for growth. Investment in public education has stalled over the past several decades, impeded first by the debt crisis of the 1980s and then by the outbreak of civil war. During more than a decade of political turmoil, school buildings were damaged and supplies pillaged. Many schools closed down, largely due to the absence of students, but also for lack of supplies lost to looting. But if Côte d’Ivoire is to harness the development potential of its impressive growth rate, it will need to further extend access to basic education to ensure the enrolment of rural children and girls. As political stability has been restored, the government is prioritising public education, but significant investment will be required to meet the educational needs of the growing population. Long-term gains will require sustained prioritisation and a greater allocation of public finances.
This chapter contains an interview with Oumar Kébé, General Manager for West Africa, GlaxoSmithKline.
Explore chapterHealth
Buy digital copy of this chapter - £18The rollout of universal health insurance commenced in October 2014 with the first of three deadlines for employers to ensure their staff are covered by health insurance, and is due to be completed by mid-2016. The universal cover will offer improved treatment options for many expatriate workers, while also enabling the government to make changes to funding mechanisms and priorities. A range of new hospitals and health care facilities are set to come on-line in the coming years, with three new hospitals and 40 new health care centres due to be built as a part of the Dubai Health Strategy 2013-25, announced in May 2013. Another key goal of Dubai Health Strategy is the development of medical tourism, as the emirate aims to leverage its geographical location, its status as an air travel hub, and its reputation as a luxury retail and hospitality destination as part of its offering.
This chapter contains an interview with Raja Al Gurg, Vice-Chairperson, Dubai Healthcare City Authority (DHCA).
Explore chapterHealth
Buy digital copy of this chapter - £18The Bahraini constitution guarantees access to health care for all nationals. The government budget allocation for health care rose from $1.4bn in fiscal year 2011/12 to $1.8bn for 2013/14, while the sector currently contributes 2.5% to GDP, a figure set to grow to 7% by the end of the decade. Attitudes towards health issues among the local population shifting in recent times; an increased focus on healthy living is expected to fuel demand for health products while the government’s drive to increase the participation of the private sector to meet the medical needs of the growing population will provide further opportunities moving forward. As well as catering to local demands, government efforts are in place to expand Bahrain’s medical tourism offering, with various projects aimed at capturing a slice of the GCC’s medical tourist market.
Explore chapterTourism
Buy digital copy of this chapter - £18According to the Ministry of Hotels and Tourism the number of international entrants to Myanmar in 2013 doubled to 2m from the previous year, with data showing that during the first half of 2014 a 40% year-on-year increase in arrivals was also recorded. The government is hoping to channel the industry’s short-term growth into long-term benefits for the country. In June 2013 the ministry unveiled its Tourism Master Plan, which focuses on six main areas including building human resource development, developing quality products and services, and building Myanmar’s brand as a tourist destination. Together with a Tourism Law it was developed to encourage the establishment of sustainable eco-tourism projects countrywide. Myanmar’s rich natural assets and cultural lure have the potential to make the country one of the top tourism destinations in the region. Major upgrades to transport infrastructure as well as hospitality and public services will be necessary to withstand the pressure of the tourism industry on the country’s infrastructure.
This chapter contains interviews with U Htay Aung, Minister of Hotels and Tourism; and Chali Sophonpanich, President, City Realty Company.
Explore chapterRetail
Buy digital copy of this chapter - £18The Omani retail sector has grown by 7% since 2011 and continues to expand, as large construction projects, predominantly malls and hypermarkets, look set to add more retail space to the sector. The rise in the number of shopping malls, currently numbering 16 in Muscat alone, has coincided with a shift in spending patterns as the population becomes wealthier, while an increasing number of high-net-worth individuals has led to the growth of luxury and fashion brands and the emergence of niche market concepts, such as smaller-scale, high-end retail centres. Although spending patterns have been shifting as lifestyles change, the Omani consumer price index shows that a large portion of household spending still goes towards food and related products, a trend reflected in the steady growth of hypermarkets, which now account for 70% of grocery sales. This chapter contains an interview with Dominic Myers, CEO, Enhance Operating Companies.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms and IT sectors, which combined make up a market of around $8bn, have seen substantial growth in recent years. Recent regulatory changes, large-scale investments, and the emergence of new players are effectively shaking up the telecommunications sector, which saw sales reach $5.5bn in 2013, according to the Supervising Organisation for Private Investment in Telecommunications (Organismo Supervisor de Inversión Privada en Telecomunicaciones, OSIPTEL). New regulations imposed by OSIPTEL, the sector’s watchdog, are putting pressure on operators to provide better service, while the entrance of a fourth mobile operator is set to see competition increase. Though the market is still largely dominated by the leading operator, Telefónica, regulatory changes aimed at opening the market to other competitors should lower entry barriers for smaller players. Meanwhile, government efforts to establish a country-wide fibre-optic network is also driving growth in the IT market, which is expected to expand by 14.8%.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. This section also includes an interview with Samy Laghouati, Partner, Gide Loyrette Nouel.
Explore chapterTourism
Buy digital copy of this chapter - £18The South African tourism sector has been a major benefactor of the opening up of the economy and the country’s reintegration with the global community. Tourism’s economic contribution is taking on added importance in light of the fact that its expansion has been outperforming growth in the economy at large. The sector’s total contribution to GDP, for example, is expected to grow by 3.6% per annum by 2024. Total income for the accommodation sector rose 10.5% y-o-y in 2013, indicating hoteliers are recovering from the oversupply that resulted from preparations for the 2010 World Cup. International tourist arrivals reached 9.6m in 2013, a 7.1% increase from 2012. Industry participants, be they hotels, travel agents, or the tourist attractions themselves, will need to adapt their offering in recognition of the fact that the international visitor profile is slowly but surely changing. However, problems occasionally arise that may prevent the sector from reaching its full potential, such as a lack of coordination among stakeholders and conflicting agendas between government departments.
This chapter contains an interview with Marcel von Aulock, CEO, Tsogo Sun Group.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Egyptian media caters to a population of nearly 90m individuals, more than 60m of which are over the age of 15. However, given high rates of illiteracy and wealth disparity, industry players must adapt to a diverse audience. The industry is able to extend far beyond the country’s borders to tap into a broader base of more than 300m readers, viewers and listeners across the Arabic-speaking world with its books, magazines, films, radio and television programmes. Egypt’s advertising sector benefits from strong, long-term fundamentals, although the political turbulence of the past three years has been challenging. However, with a new presidential administration in place and greater stability in the economic environment, the sector could see a rebound in the coming months as firms begin to increase spending once again.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Home to unspoiled jungle habitats, unique and rich cultural heritage, and miles of pristine sand beaches, all of which is supported by modern and efficient infrastructure, Brunei Darussalam has all the makings of an attractive holiday destination. Already a leading segment within the tourism sector as a whole, the cruise ship industry provides the Sultanate with perhaps its greatest single avenue to increase visitor footfall and spending in the country. Cruise ship tourists from 24 ports of call visited the Sultanate in 2013, up 40% over 2012. Boosting this segment further remains a priority. If further developed, other niche categories, such as ecotourism, bird watching, scuba diving and trekking journeys could also prove to be strong draws, particularly if developed in conjunction with larger Borneo travel packages including Malaysian and Indonesian components.
This chapter contains an interview with Mariani Haji Sabtu, Acting Director, Tourism Development Department.
Explore chapterTourism
Buy digital copy of this chapter - £18Kenya has long been a popular tourist destination and the sector continues to be a critical industry for the country, although it has taken a number of serious knocks recently amid insecurity and travel advisories issued by several Western nations. Tourism directly accounted for 4.8% of GDP in 2013, or $2.09bn, with a total contribution to GDP of 12.1%, or $5.28bn. These contributions are forecast to rise by 2.9% and 3.1%, respectively, in 2014. The sector directly supported 226,500 jobs – 4.1% of total employment – in 2013. Tourism’s total contribution to employment was 10.6%, creating 589,500 jobs. While it is unlikely that international tourists from traditional markets will return to 2011 levels until confidence in security increases, the sector’s marketing efforts should replace some traffic. Kenyans reliant on tourism are likely to suffer in the short term, but a transition to business travel and domestic tourism may mitigate these external shocks.
This chapter contains interviews with Phyllis Kandie, Cabinet Secretary, Ministry of East African Affairs, Commerce and Tourism (MoEAACT); and Martin Dunford, Chairman, Tamarind Group.
Explore chapterTourism
Buy digital copy of this chapter - £18Leveraging its broad range of attractions and reputation as one of Africa’s safest and most welcoming destinations, the country now has a clear road map for increasing tourism arrivals, boosting revenues, and spreading the geographical and social impact of the sector’s growth. The World Tourism & Travel Council (WTTC) forecasts that Ghana will see 1.19m international tourist arrivals in 2014, up from the 993,600 projected by the government for 2013. This trend has been moving strongly upwards in the past few years. The official Ghana Tourism Authority (GTA) has set a target of 5m arrivals by 2027, and 2m in the nearer term. The challenge now will be to ensure the continued growth of tourism through appropriate investments in infrastructure, amenities and attractions, while revamping and substantially boosting the sector’s promotional and marketing efforts abroad.
This chapter includes interviews with Elizabeth Ofosu-Adjare, Minister of Tourism, Culture and Creative Arts; and Ulrich T Eckhardt, President of India, Middle East & Africa, Kempinski Hotels.
Explore chapterEducation
Buy digital copy of this chapter - £18Jordan has both a private and a public school system. Of the 6355 schools operating in the 2012/13 academic year, 3582 were state schools and 2600 were private. In the tertiary education sector there are currently 10 public and 19 private universities. Foreign enrolment remains high at the kingdom’s universities, with foreign students accounting for around 11% of undergraduates in the 2012/13 academic year. The largest source of foreign students is Palestine, followed by Iraq, Syria, and then Saudi Arabia. The Ministry of Education has made entrepreneurship education a key focus and this has resulted in dedicated courses and business incubators being established at universities. Meanwhile, an emphasis on research and development aims to boost innovation in the energy and water sectors, and also in pharmaceuticals, analysis of biological materials and organic fine chemistry.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Gabon, in partnership with Deloitte.
Explore chapterCountry Profile
The only monarchy in North Africa, Morocco contains a blend of Arab, African, indigenous Berber and European cultures. The kingdom has long maintained close diplomatic, economic and cultural ties to Europe that it continues to deepen and has a reputation as a stable and tolerant state. Morocco encompasses a landmass of 446,500 sq km and is located on the north-western tip of Africa, sitting astride both the Mediterranean Sea and Atlantic Ocean. It has one of the more diversified GDP mixes in the region, and the mainstays of the economy include agriculture, tourism, and the textiles and garments industry; higher-end manufacturing (such as the automotive and aeronautics industries), information technology and communications, and outsourcing are also all becoming increasingly important. The past few years have seen Morocco undergo some significant changes, yet the kingdom has remained stable, both socially and politically, even amidst the broader regional turmoil. This chapter contains interviews with King Mohammed VI; Abdelilah Benkirane, Head of Government; Salaheddine Mezouar, Minister of Foreign Affairs and Cooperation; Ali Bongo Ondimba, President of Gabon; and Daniel Kablan Duncan, Prime Minister of Côte d’Ivoire
Explore chapterCountry Profile
More than a decade of multi-party elections have consolidated Mexico’s transition to democracy, while the current administration’s ambitious reform agenda promises to take the country to its next phase of development. In less than two years in office, the government of Enrique Peña Nieto has accomplished a great deal. Radical changes in education, telecoms and energy, among other areas, aim to bring dynamism to the economy and have attracted significant global attention along with foreign investment. With 12 foreign trade agreements involving 45 countries, Mexico has one of the most globally integrated economies in the world. Nonetheless, significant challenges remain for the second-largest economy in Latin America. High poverty and inequality rates, as well as drug-related violence, continue to hamper social development. This chapter includes interviews with President Enrique Peña Nieto; US President Barack Obama; Luis Videgaray Caso, Minister of Finance and Public Credit; and José Antonio Meade Kuribreña, Minister of Foreign Affairs.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18In 2012 the ICT sector as a whole posted total revenues of MNT650bn ($390m), up more than 17% from the previous years, according to the Information Technology, Post and Telecoms Authority. In the telecoms segment, the country’s four mobile operators are making plans for a considerable amount of capital expenditure in order to meet the needs of Mongolia’s rural population and to develop new higher-speed networks in Ulaanbaatar and a small number of other population centres. The country’s new foreign investment law has been widely praised and is expected to result in new interest from foreign investors. Mongolia’s reputation as a centre for ICT in Central Asia has risen considerably in recent years. On the World Economic Forum’s 2013 Networked Readiness Index, for example, the country was ranked 59th place out of 142 nations, up from 63rd place the prior year. With planned developments in mind, many local players expect to see increased levels of competition, potentially from international players. This chapter contains interviews with David Holliday, CEO, MobiCom; and N. Battulga, Executive Director, ITZone.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18After years of rapid economic expansion and population growth, Thailand’s education system is facing strong challenges in areas such as quality and enrolment, the rural-urban divide, links between business and academia, and policy continuity. In September 2013 the education minister established a special committee to assess Thailand’s decline in international rankings for education and to produce a list of needed reforms. Education is the basis of Thailand’s efforts to become a more knowledge-based society, and to move away from its low-wage, low-cost model of development. Given the swift approach of more ASEAN integration and the importance of overseas markets to Thailand’s economic development, education is also vital to the country’s future competitiveness. Meanwhile, Thailand has reached nearly all of its Millennium Development Goals (MDGs) in health ahead of schedule, prompting it to pursue an MDG-Plus strategy in recent years. The biggest lunge forward for Thailand’s health care system has been the introduction of a form of universal health care. Not only has this brought many benefits to ordinary Thais, it has provided coverage to individuals who may have previously been unable to afford health care services. The public system has at the same time been working in tandem with private care, whose high-quality services have made the country a top choice for medical tourism for the region and the world. Funding the universal system is likely to be the most pressing issue in the years ahead. The private sector, too, looks likely to continue its expansion, especially in the provinces, with opportunities for foreign investors in medical education and training, equipment, and supplies. This chapter contains interviews with Pirom Kamolratanakul, President, Chulalongkorn University; and Worsak Kanok-Nukulchai, President, Asian Institute of Technology.
Explore chapterTransport
Buy digital copy of this chapter - £18For an archipelago spread over more than 17,500 islands and spanning 5,000 km from west to east, the need for Indonesia to have an efficient transport network that seamlessly integrates sea, land and air transport systems is clear. The public sector manages 90% of total transport infrastructure, while private sector involvement is concentrated on a few tolled highway projects and private rail lines. By 2014 Soekarno-Hatta International Airport is expected to be able to handle 64m passengers annually; however, passenger demand is expected to soar to 87m by 2025. Indonesia has much to improve in the transport sector, which already comprises 40% of infrastructure investment. Deeper focus on development of the country’s transport networks is necessary for improving travel connectivity and reducing the cost of doing business throughout the archipelago. This chapter contains interviews with Emirsyah Satar, CEO, Garuda Indonesia; Sukmawati Syukur, President Director, Monorail; and Djarwo Surjanto, President Director, Pelindo III.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Qatar’s telecoms sector has put itself on a sound footing, thanks to ongoing investments in domestic and global operations. With a solid fixed network, a growing satellite market and sprawling 3G coverage, residents enjoy high connectivity. The ever-rising demand for mobile data has already fuelled a drive for 4G coverage and could prove lucrative to providers even as the use of voice and SMS decreases. One of Qatar’s telecoms companies has launched mobile financial services in the last three years to woo customers, especially the expats who make up more than 85% of the population and often need to transfer money to their home countries, and both firms are looking for ways to expand abroad. This chapter contains interviews with Hessa Sultan Al Jaber, Minister of Information & Communications Technology; Sheikh Abdullah bin Mohammed bin Saud Al Thani, Chairman, Ooredoo; and Ali Ahmed Al Kuwari, CEO, Es’hailSat.
Explore chapterAl Gharbia
Buy digital copy of this chapter - £18Accounting for the majority of the emirate’s oil and gas reserves, Al Gharbia generates more than 44% of Abu Dhabi’s GDP, with economic output exceeding $31bn per year. In the coming years, it is set for substantial investment as the government looks to rejuvenate the region and ensure that local talent is retained and plays an integral role in development. As such, over the next two decades, a host of opportunities are expected to materialise for savvy investors, and the Western Region Development Council is on the lookout to attract the best of these to the region. Some $65bn in investment projects are anticipated for the coming years, covering oil and gas, power generation, infrastructure and transport, and tourism. This chapter contains an interview with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region.
Explore chapterEducation
Buy digital copy of this chapter - £22As Panama enters a new stage of economic maturity, the quality of its education system has claimed a pivotal role for authorities and the private sector alike. Curricular reform has significantly improved performance across the board: coverage for initial education rose 12.1% from 2011 to 2012, while coverage for primary and pre-middle school education rose 2.1% and 0.8%, respectively. In the World Economic Forum’s “Global Competitiveness Report 2013-14”, the quality of Panama’s education ranked 75th out of 148 countries, a notable leap from the previous year’s ranking of 112th. A new accreditation procedure is expected to address poor institutional quality among universities, while heightened public spending for the sector should not dissipate even with a change of government in 2014. Economic growth should continue to drive demand for higher education, a more diverse curriculum and increasing opportunities to use technology in the classroom.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of Myanmar’s legal framework, with a focus on the rules governing foreign investment, new legislation, special economic zones, and the combination of colonial, traditional, and modern laws. It also contains a viewpoint with OBG’s legal partner, Cheah Swee Gim, Director, Kelvin Chia Yangon.
Explore chapterHealth
Buy digital copy of this chapter - £18As the emirate leverages its diverse leisure activities and central location, medical tourism looks set to grow beyond the $1.69bn in revenue earned in 2012. A number of health and pharmaceutical groups are eyeing Dubai as a regional centre, owing to its well-developed transport and communication links and ongoing advances in technology and research. Insurance is not currently required by law; however, legislation is in the works to introduce an employer-based health insurance mandate. When it is implemented, the law is expected to bring with it a shift in the quantity and type of medical services demanded in the emirate.
This chapter contains an interview with Essa Al Haj Al Maidoor, Director-General, Dubai Health Authority.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The sultanate boasts high mobile penetration, widening 4G LTE coverage in key urban areas and a growing fixed-line market. Auctions are under way for spectrum to support service expansion, and the regulator is considering a new framework for competition. Meanwhile, private investments should help expand network coverage and provide more secure services. This chapter contains a roundtable with Greg Young, CEO, Nawras; Gürkan Öztürk, CEO, Samatel; Talal Said Marhoo, CFO, Omantel; and Martin Glud, CEO, FRiENDi Oman.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite a global economic recession, international tourist arrivals in Peru rose by 10% in 2012 to reach 2.85m and the industry forecasts these numbers will continue rising at a steady rate, exceeding 3m visitors by the end of 2013. Overall heightened economic activity and investments are building a large corporate segment that is pushing industry standards, particularly in the hospitality business. Revenues from foreign tourists amounted to $3.23bn in 2012, representing an 11% increase from the previous year, and official full-year figures for 2013 to surpass $3.5bn. The government hopes to boost annual tourist arrivals to 5.1m by 2021. Government support, most notably in efforts to simplify the process of obtaining construction permits for hotel development, as well as positive quantitative indicators demonstrate that tourism is becoming an area of growing importance for the country.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecommunications sector continues to evolve with the emergence of new technologies, fierce competition between existing operators and the entry of new service providers. Mobile services dominate the telecoms sector. The mobile penetration rate stood at 107% at the end of 2012, though because many people use multiple SIM cards, the actual rate may be closer to 80%. 3G uptake by Filipinos is expected to be moderate in the coming years, with subscriptions forecast to rise to rise by a CAGR of 12.7% between 2012 and 2016. As the IT sector continues to roll out new and updated infrastructure, the expanding services exports segment is likely to see growth. One challenge to this, however, may be securing enough skilled local workers to fill positions. If the government continues to extend incentives to new firms, this is a hurdle that could be overcome. This should leave the industry in a good position to see increasing internet uptake, growing exports and a rising number of jobs for locals. This chapter contains interviews with Manuel V Pangilinan, Chairman, Philippine Long Distance Telephone Company (PLDT); and Gamaliel Asis Cordoba, Commissioner, National Telecommunications Commission.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Rapid population growth, steadily increasing urbanisation and rising incomes – particularly among the middle class – have fuelled expansion in Nigeria’s real estate sector over the past decade, and are expected to continue to drive growth in the industry. While most segments have seen increased investment in recent years, the country remains undersupplied in virtually every area, particularly affordable housing, high-quality retail space and grade-A office space. Activity in Nigeria’s construction industry is expected to continue to rise for the foreseeable future, despite softening demand in a handful of segments due to exogenous factors. The supply and demand differential in the power generation and housing segments alone is expected to result in trillions of naira worth of federal- and state-led investments through 2020. At the same time, the industry faces a number of challenges, notably construction costs and security issues. This chapter contains an interview with Nick Lambert, Head of Complex and Emerging Markets, CBRE.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The Algerian media sector continues to remain relatively underdeveloped; however, a number of recent changes suggest the sector may be going through a transition period. Print media continues to hold a dominant role, with a total of 105 daily newspapers published across the country, and many publications shifting from French to Arabic. Although government advertising continues to be the main source of revenue for most publications, some of the largest newspapers are beginning to find success attracting advertising from private companies. In addition to changes in the print segment, private television channels are emerging as serious contenders to the state-run offerings. Additionally, as the country’s internet penetration increases, online news platforms promise to become increasingly popular.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18After decades of improvements, Egypt has some of the region’s best public health indicators, and in some cases it delivers international-standard care. However, the precarious political and economic situation means that progress on reform has been patchy. With population pressures, new and old health care challenges – including rising non-communicable diseases rates and a high level of hepatitis infections – alongside a scarcity of resources, there is no doubt that the current system is stretched. With public funds limited, an increasing role for the private sector is looking likely, creating new opportunities for international participation in health financing and provision. With 20m people in some form of education, Egypt has the largest student body in the MENA region. However, after several decades of progress, the system now lags behind international standards. Due to a shortage of resources, top-heavy administration, the difficulty of recruiting good teachers and out-dated curricula, schools and universities are not producing the qualified graduates Egypt needs for economic development. Factors including patchy standards at government institutions, rising incomes among the middle classes and a growing number of jobs that require higher levels of education have seen an increase in the number of private schools in the past 20 years. This chapter contains an interview with Hossam Badrawi, Managing Director, Nile Badrawi Hospital, and Professor, Cairo University Medical School.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Under the National Health Strategy adopted in 2010, Gabon has made a push to upgrade service quality and expand hospital capacity. In recent years, the country’s health strategy has centred on heavy investment in infrastructure. The Ministry of Health aims to enforce a set of quality standards by 2020, but with 86% of the population living in urban areas, rural structures face challenges including understaffing and interruption of supplies. Much remains to be done to meet Gabon’s Millennium Development Goals, yet efforts to make health governance more effective at the local level should help the authorities to identify weak points in the system and allocate resources more effectively. A drive to diversify Gabon’s economy away from commodity dependency has made education a key element of the broader plans for growth. The state is primarily working to increase the number of schools, train and recruit more teachers, and produce reliable statistics on student performance by 2020. Efforts to introduce more advanced and technical degree programmes will better equip young people to meet the demands of the shifting domestic job market. More and more specialised schools are opening with private support, but the country will need to expand these programmes quickly to meet the demands of Gabon’s growing economy. This chapter contains an interview with Léon Nzouba, Minister of Health.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The Ministry of Education is moving ahead with plans to develop schools on a public-private partnership basis in order to deal with pressure from the country’s rapidly expanding youth population. Kuwait’s health care industry is also on the verge of a major period of development and expansion. The planned establishment of an independent regulatory body in the near future is a sign of market maturation. While the Ministry of Health will likely continue to play a central role for years to come, particularly in terms of health care provision for nationals, the private sector is increasingly active, and could potentially serve as a major foreign direct investment draw over the course of the coming decade. This chapter contains an interview with: Adnan A Shihab-Eldin, Director-General, Kuwait Foundation for the Advancement of Sciences.
Explore chapterAgriculture
Buy digital copy of this chapter - £18After years of underinvestment and mismanagement, the government has launched a series of reforms and initiatives aimed at putting the agricultural sector back on track towards profitability and sustainability. Indeed, Côte d’Ivoire has a vibrant agricultural sector that has played an integral part in its national economy since the country gained independence in 1960. The sector accounted for 27.7% of GDP in 2012, or CFA3.5trn (€5.3bn) out of CFA12.5trn (€18.8bn). It also generates around 40% of export earnings and provides jobs for 68% of the labour force.
Explore chapterTourism
Buy digital copy of this chapter - £18As South Africa’s visitor numbers pick up, revenues are returning to a tourism industry that suffered a post-World Cup dip compounded by the effects of a tough global environment. Some 4.4m tourists visited South Africa in the first six months of 2012. The government is working to increase the tourism sector contribution to the economy, from a 2009 baseline figure of R189.4bn ($23bn), or 7.9% of GDP, to R499bn ($60.8bn) by 2020. Tourism business performance, particularly in the higher-value segment of the market, remains somewhat muted – however, as traditional target markets continue to be slow, the visitor mix is beginning to shift subtly. As such, businesses will have to develop new strategies to cater to the changing visitor dynamics in the market. This chapter contains interviews with Thulani Nzima, CEO, South African Tourism; and Arthur Gillis, CEO, Protea Hospitality Group.
Explore chapterInfrastructure
Buy digital copy of this chapter - £18The government plans to implement heavy spending programmes to address Colombia’s severely deficient infrastructure network, a result of a rugged topography and decades of corruption, militancy and shifting government priorities. The Santos administration, which identified infrastructure development as a key pillar of its inclusive economic development policy, has committed to increasing investments from 1% to 3% of GDP. Investment allocations in the national budget have more than doubled in recent years, exceeding $4.2bn in 2012 and 2013. By 2020 the government expects some $50bn to have been invested, with the bulk coming from the private sector following administrative reform of the National Infrastructure Agency and a new law on public-private partnerships, aimed not only at increasing transparency and efficiency but also at attracting private investment. This chapter contains an interview with Luis Fernando Andrade Moreno, President, National Infrastructure Agency.
Explore chapterHealth
Buy digital copy of this chapter - £18Life expectancy within the kingdom is above the regional average, with a medical insurance safety net available for citizens. Medical care is provided by public, private and aid operators. Advanced procedures and improving care standards are drawing health tourists to the kingdom, and Amman has become a growing medical manufacturing base, with free zones offering an attractive location for businesses looking to access Middle Eastern and East Asian markets. Industry leaders in the kingdom are looking to partner with ICT groups in the US, with a view to building Arabic-language editions of US software, and licensing US medical products by Jordanian firms.
Explore chapterHealth
Buy digital copy of this chapter - £18Bahrain offers both citizens and residents a wide range of care provided by the government and the private sector. The government spent almost $557.86m on health care in 2011, which was an increase of close to 8% over 2010. Since that year it has been implementing a strategy to improve health care provision, which has focused, in large part, on integrating medical services and providing greater preventive care. The Supreme Council for Health, established in 2013, will set medical training standards, develop a range of policies on insurance and medical staff recruitment, and work to improve the effectiveness of coordination within the medical sector.
Explore chapterHealth
Buy digital copy of this chapter - £18Although the health system faces an array of challenges, including human resource shortages, disparities between regions and rising costs, significant gains in the quality and accessibility of care have markedly improved the wellness of Turkey’s population. Moreover, as the economy expands, health companies and investors are well positioned to capitalise on growth opportunities in private hospital development, pharmaceuticals production and medical device manufacturing. Now that Turkey has secured its place among the emerging market leaders in public health, the country is seeking to leverage the system as a platform for economic growth.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Growing global food insecurity has turned Brunei Darussalam’s attention back toward its farms. The government has set a goal of 60% self-sufficiency by 2015, though it is unlikely this will be achieved in that time. Self-sufficiency in rice, fruits and vegetables stood at 4.4%, 15.4% and 62.8%, respectively, in 2011. The government has planned to expand rice cultivation to some 5000 ha, but will need to attract more foreign firms and foreign direct investment to do so. In land-based activities, restricted capacities and outdated practices have blunted the effectiveness of reform initiatives, and meeting these challenges will continue to define the sector for now. However, the partnerships that have been developed with foreign firms and organisations will deliver the desired re-engineering of sector outputs in the long term. This chapter contains an interview with Richard Chuang, Managing Director, Golden Corporation, and General Manager, Semaun Marine Resources.
Explore chapterEnvironment
Buy digital copy of this chapter - £18In the face of important environmental challenges created by rapid population growth, pollution and climate change, Morocco has established itself as a strong advocate for environmental protection and conservation. The government’s major new energy strategy focuses on diversifying energy sources with the target to produce 42% of electricity needs from renewables by 2020. Despite the presence of many environmental challenges to the kingdom, Morocco has initiated several rounds of regulations and reforms aimed at improving and expanding its environmental protection commitments. More extensive reforms are also in the process of being introduced, including a new law intended to facilitate access to information on environmental developments and regulations against soil erosion and noise pollution. With growing concerns about air and water pollution, inadequate waste management facilities, burgeoning costs for energy imports and the destruction of the kingdom’s ecosystems, the government has adopted a multitude of initiatives to combat these issues, setting an impressive example for the rest of the region. This chapter contains an interview with Ahmed Squalli, President, Amisole.
Explore chapterRetail
Buy digital copy of this chapter - £18Ranked as one of the world’s leading destinations for retail investment, Saudi Arabia is in many respects unrivalled in the Gulf. With a young and rapidly growing consumer base of some 29m people, the Kingdom is the obvious point of entry for retailers looking to start branching out into other promising markets in the wider Middle East region. Indeed, pessimistic forecasts for Saudi Arabia’s retail sector are hard to come by at present. Sales in the sector as a whole are expected to grow annually by 8.6% in 2013, rising to 10.2% in 2015 and 2016. On the supply side, total retail space is continuing to grow as construction proceeds on new development.
Explore chapterAl Ain
Buy digital copy of this chapter - £18The city of Al Ain is sometimes known as “the Garden City”, and with good reason. While the UAE is largely composed of desert, Al Ain sits in the centre of a large oasis that it shares with the neighbouring Omani town of Buraimi and which has sustained human settlement for thousands of years. Now, diverse economic activity is offering new opportunities aerospace supplies production, food processing and tourism – all areas which the government hopes to develop in Al Ain. Furthermore, retail space, office space and hotel rooms are all set to increase under bold plans for the city’s expansion. Indeed, Al Ain had a population of only 338,000 in 2005, but this is expected to rise to 627,000 by 2020 as a result of growth, reaching 1m by 2030, as new jobs attract residents.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The third-largest contributor to Indonesia’s national economy behind the oil and gas sector and industrial manufacturing, Indonesia’s agricultural sector maintains a crucial role in supplying the nation’s domestic market as well as providing an attractive supply of exports. As the country’s economy continues to expand and diversify, the agriculture industry is shifting away from being an exporter of principally raw material towards being a value-added base for global agro-industry. An integral part of the social and economic fabric, the agriculture sector should continue to play a role in the economy even as it continues to transform into an industry with a more value-added downstream-oriented focus.
Explore chapterIndustry
Buy digital copy of this chapter - £18In line with the goals laid out in the Dubai Strategic Plan 2015, industrial growth has done much to lead economic development and diversification. Although significant challenges like debt refinancing and regional competition could arise in the future, both the government and the private sector have proven their resilience in recent years. In particular, the manufacturing sector has seen strong export numbers, with direct exports growing nearly nine-fold between 2005 and 2011, from $3.05bn to $26.7bn. Of this, aluminium continues to be among the emirate’s largest industrial activities, accounting for 15% of manufacturing’s contribution to GDP. Meanwhile, the development of both industrial areas and free zones is continuing to impact the economy in a number of positive ways.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18While it is much improved from its state of near-collapse following the end of the Soviet period, health care has failed to truly recover. Thanks to the work of a number of donors, a few local doctors, and small investments made by international medical groups, it has experienced some improvements. However, the health care industry is underfunded, lacking in qualified doctors, and almost devoid of preventative care. Despite the sector’s weakness, it has a number of assets that could help it over the long term, including an extensive history of traditional medicine, which is enjoying a revival. Mongolia also has many well-qualified and experienced doctors who have the technical knowledge to help push the sector forward. The education sector is underfunded and poorly managed. With the country set to come into substantial wealth from mining, it needs to spend that money wisely so that its citizens have the skills, expertise and knowledge to make a living from the industry now as well as continue to thrive after the minerals are depleted. Boosting bilingual education is a new initiative, and steps will be taken to improve the quality of higher education institutions. The government is open to foreign participation, but is most interested in tangible aid, such as school construction. This chapter contains an interview with Peter Morrow, Chairman of the American University of Mongolia
Explore chapterTransport
Buy digital copy of this chapter - £18After many years of building up the transport system – and with over $11bn in the budget for hard infrastructure projects during the 2011-2015 period – the next few years promise significant transformation for Oman’s transport sector. A number of large-scale developments are in the pipeline, and a proposed new railway connecting Oman with other GCC countries is expected to create capacity for 8800 tonnes of freight daily. The authorities are also diversifying port infrastructure to ensure each sector of the economy can benefit more fully. In addition, Muscat International Airport is gearing up for major capacity upgrades to cope with the 18% year-on-year increase in arrivals between August 2011 and August 2012. These are, therefore, highly exciting times for the sector, with major developments across the board creating opportunities not just for construction contractors, but also for logistics companies of all kinds. This chapter includes an interview with Ahmed bin Mohammed bin Salim Al Futaisi, Minister of Transport and Communications.
Explore chapterEducation
Buy digital copy of this chapter - £18Education is a renewed area of focus for the Malaysian government, which has increased its spending on the sector by 60% over the past two years as part of its commitment to building a high-income economy. The current system enjoys relatively high grades in global reports but suffers from low enrolment across primary, secondary, and tertiary levels. Private schools have emerged to fill this gap, especially in the kindergarten and primary market. The government also abolished school fees for primary and secondary school in 2012. One major challenge, however, will be maintaining the quality of Malaysian graduates even as the government increases quality to address labour shortfalls. This section features an interview with Lim Kok Wing, Founder and President of Limkokwing University of Creative Technology, and David Willetts, UK Minister of Universities and Science. Malaysia’s relatively low dependence on the public sector – just 4.1% of budgetary expenditures go toward health care – is fairly unique in ASEAN, but it has produced a system that most agree is fundamentally sound. Around 40% of Malaysians have medical insurance, with the rest using Ministry of Health centres, while the private sector’s share of medical spending has trebled in the past decade. This has led to retention problems in the public sector, as many doctors head for private practice or go overseas.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Since the liberalisation of the press in 1986, Algeria has had a flourishing media industry, publishing approximately 300 newspapers with two main reader profiles – Francophone and Arabic-speaking populations. Experts however assert that while a preponderance of dailies creates the perception of a saturated print market, there is actually a lack of serious and credible media. Online newspapers are poised to become a lucrative market as interest in print media decreases and internet user numbers expand. Valued at approximately €123m in 2008, the advertising sector in Algeria has demonstrated steady growth over the last several years, having doubled in value between 2008 and 2012 to around €250m. Mixed-media campaigns have been described as the most successful in attracting Algerian customers, with the combination of written press, radio and outdoor adverts accounting for 80% of such campaigns.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18With a population of some 160m, Nigeria has one of the most active media sectors of any emerging market. Excluding satellite networks, 147 television stations and 100 radio stations fill the airwaves. The dramatic rise of Nollywood in the past decade has spurred global interest from viewing audiences and investors alike, and the industry is poised to be a major force both domestically and internationally. Despite the encouraging signs, challenges to expansion remain. Among these are the high costs associated with unreliable infrastructure, including electricity outages and unrefined distribution networks, which hamper circulation. An overdependence on advertising revenues may also prove problematic, and, there remains a degree of uncertainty concerning Nigeria’s regulatory environment with respect to broadcast and online media. This chapter contains an interview with Jason Njoku, Founder and CEO, iROKO Partners.
Explore chapterCulture & Tourism
Buy digital copy of this chapter - £18As an ancient pearl fishing centre, Qatar was once part of an historic trade network stretching across the Indian Ocean and connecting the merchants of Arabia and East Africa to South Asia. The modern state continues to show a commitment to building on its cosmopolitan history to attract travellers to its shores and expand its dynamic tourism offerings. The five pillars targeted for development to promote sector growth are: MICE, culture, education, sports and leisure. Certainly, challenges remain; one issue currently being addressed is infrastructure congestion. However, development of niche tourism segments complements long-term diversification plans by expanding the knowledge-based areas of the tourism economy.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Though the domestic media landscape is relatively small, it is also quite diverse. Print media continues to play an important role, with a number of popular local newspapers and periodicals, along with a wide range of international offerings. Television is growing particularly quickly following the introduction of digital terrestrial TV, which currently reaches 80% of the population. The media are supported by a dynamic advertising sector, which is continuously expanding and utilising a wider variety of platforms. Television and radio have been essential for reaching rural and remote populations, which do not receive much of the print media released in the cities. Given Gabon’s increasingly international presence, particularly following the Cup of African Nations, and its growing economy, the advertising industry is well-placed to vie for international investment.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Long the Arab world’s largest media market, Egyptian broadcast and print outlets often have an influence far beyond the country’s borders; Egyptian newspaper circulation accounts for more than 40% of the Arab world total. In the months since the 2011 revolution, a number of new independent outlets emerged – in television alone, there are some 16 new stations. Broadcast remains the most widespread medium, with household TV penetration at 96%. The 17 terrestrial channels are all state-owned, but the domestic private sector dominates the top 10 satellite channels. Meanwhile, advertising spend is recovering from a rocky 2011, when spending dropped 30%. Per capita spend is approximately $6.30, which is roughly one-third the regional average, although higher than many other countries. In terms of absolute size, however, the country is the third largest accounts for 11% of total advertising expenditures. Newspapers tend to accommodate for the majority of spend, followed by television. This chapter contains an interview with Sherif Wadood, CEO, Al Masry Media Corporation.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The media market in Ghana is widely considered to be one of Africa’s freest and most competitive, with a variety of outlets across a number of types of media. The country has made strides in recent years with legislation that ensures the population’s right to access government information and in proposing a broadcasting bill that will lay out stricter regulations regarding the ownership of broadcasting organisations, providing a framework for the industry. Economic and media liberalisation has led to the growth of a highly competitive advertising industry, with new agencies emerging regularly. Advertising spending in 2011 amounted to $177.4m, with the communications industry, particularly telecoms, leading the pack, accounting for 17% of advertising spending. This chapter features an interview with David Ampofo, Managing Director, Channel Two Communications and host of Time with David.
Explore chapterRetail
Buy digital copy of this chapter - £18Economic growth, government price support for agricultural commodities, and stimulus programmes have all contributed to robust retail growth over the past several years. Modern hypermarkets such as Tesco Lotus and Big C continue to dominate the sector, although popular criticisms of their hegemony have prompted a Retail Act that if passed would restrict their expansion. The mall sector is contested primarily by two large groups, CPN and the Mall Group, although newcomer Siam Future is threatening to upset this balance. For all segments of retail, however, the upcountry provinces hold the potential for the most future growth. This chapter contains an interview with John Christie, CEO, Ek-Chai Distribution System (Tesco Lotus).
Explore chapterMining
Buy digital copy of this chapter - £18Mining has long been the mainstay of the PNG economy, representing more than two-thirds of the government’s revenues in 2011. Moreover, with its top commodities of gold and copper selling at near-record prices on global markets, the country is drawing increased attention from resource firms. Indeed, more than half of the country’s land area is covered by mining permits in the application process. These include China’s biggest investment in the South Pacific, the $1.5bn Ramu nickel and cobalt mine, as well as several forays into deep-sea mining. It remains to be seen, however, whether PNG’s renewed mining push will safeguard against the social and environmental hazards that have plagued it in the past. This chapter includes interviews with Byron Chan, Minister of Mining; Greg Anderson, Executive Director, Papua New Guinea Chamber of Mines and Petroleum; and Peter Aitsi, Country Manager, Newcrest Mining.
Explore chapterEducation
Buy digital copy of this chapter - £18With nearly universal levels of basic education and the majority of graduates enrolling in a university, Jordan was ranked fourth in the Middle East and North Africa on the Education Index of the UNDP. Furthermore, the kingdom’s top public universities are ranked among the best in the region, and have been rising in international rankings as well. Jordan is also host to several foreign universities and is attracting an increasing number of international students. However, challenges remain. Public sector salaries for teachers are an issue, with complaints over wages leading to a three-week strike in early 2012. Moreover, ensuring the employability of university students is a priority as graduate unemployment rates rose to 16.2% in 2009, up from 12% in 2008. A number of initiatives are underway to bridge the gap from education to employment. This chapter includes an interview with Professor Labib Khadra, President of the German-Jordanian University.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The public school system, for which the state provides over 90% of the funding, has reportedly experienced steady improvement with a higher national budget and GDP percentage dedicated to education. However, the past decade has seen the private sector play a significantly larger role in education, particularly at the university and secondary levels, and increasingly among K-12 schools as well. The nation’s young population and under-supply of universities has driven private investment in the sector, and seen a dramatic increase in the number of institutions of higher learning. The government’s recent changes to public K-12 schooling – the so called 4+4+4 system passed into law in mid-May – have put the sector in the spotlight and anticipate more changes in quality and provision of education in coming years. This chapter has interviews with Zekeriya Yıldırım, the Chairman of the Darüşşafaka Foundation; and Dr Recep Akdağ, the Minister of Health.
Explore chapterTourism
Buy digital copy of this chapter - £18While the FIFA event was seen as an overwhelming success by organisers and the domestic tourism body, the country has, thus far, been unable to replicate or sustain the level of visitors the international football tournament brought to the country. However, figures began to head upwards in the last quarter of 2011 and certain markets, such as the African and Asian visitor segments, offer hope for an industry that remains central to the government’s development plans. The government has begun a transition in its strategy, moving away from its traditional reliance on European and Western tourists and shifting towards other markets, promoting domestic travel and looking to emerging economies. This chapter contains interviews with Robert Venter, Chief Executive, Altron; and Marcel von Aulock, CEO, Tsogo Sun Group.
Explore chapterTourism
Buy digital copy of this chapter - £18After a difficult year in 2011, the return of the Formula 1 (F1) Gulf Air Bahrain Grand Prix in late April 2012 signalled a possible turning point for the country’s tourism sector – a sign that, perhaps, things are now on a path towards renewed growth after what has been, by all accounts, a difficult year. However, not all of the Kingdom’s tourism segments were affected, nor have the fundamental strengths that have made it a leading destination for business travel been damaged. Indeed, Bahrain’s performance and outlook as a site for meetings, incentives, conferences and exhibitions (MICE) remains a bright spot for the country. Business tourism has traditionally proven less sensitive to negative publicity than other forms of tourism, and MICE tourism in Bahrain has remained strong over the past year. Indeed, tourism has been identified as key to economic diversification, according to the Kingdom’s long-term development plan, Economic Vision 2030. This chapter includes an interview with Sheikha Mai bint Mohammed Al Khalifa, the Minister of Culture.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18Though the Philippines lags behind in several measures of technology penetration, scoring 36 out of 100 in a World Economic Forum report on “network readiness”, internet cafes are plentiful and Filipinos have the highest Facebook usage rate in the world. This drives the market for online games, which are very popular with the Philippines’ substantial young population. Software in general is developing as a viable business model, with 28% export revenue growth in 2010 alone. In telecoms, the Philippines’ two mobile operators are still adding customers, reaching 92% penetration in 2011. Price wars have driven rates for voice far down, although operators still enjoy some of the biggest profit margins in the world. Once those margins come down, future revenue growth will shift to web-enabled phones and their 3G and 4G services, which are only now coming into fashion. This section features an interview with Enrique Gonzalez, CEO, Intellectual Property Ventures Group (IPVG).
Explore chapterRetail
Buy digital copy of this chapter - £18In the world of retail, Kuwait is a heavy-hitter. This is despite a relatively small population of some 3.5m. Indeed, with the high level of disposable income that Kuwaitis enjoy, retail sales are expected to grow over the coming years by some 42%, from $8.41bn in 2011 to $11.92bn by 2015. This is because mall shopping has become ingrained in local popular culture. Moreover, in recent years a range of new shopping developments have driven up the level of competition. The food and beverage segment continues to be a key component of the retail market, contributing $2.54bn in sales for 2010, accounting for a 33.9% share of the overall sector, despite inflation and the rising cost of food.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18Landlocked in part by its rapidly industrialising neighbour, China, Mongolia’s potential for manufacturing and other industry is limited by factors beyond its control. The government has responded to these challenges by focusing on areas of competitive advantage. Cashmere, for which Mongolia could supply up to 30% of the world, has proven an excellent export commodity, and producers are hoping to boost the amount processed in country. One related strategy is for Mongolia to develop itself as a brand for premium agricultural products, trading on its image as a remote and spiritual land. The government’s plans for traditional industrial development, meanwhile, depend on the development of Sainshand Industrial Complex, which will specialise in processing Mongolia’s abundant mineral resources. This chapter features an interview with T. Badamjunai, Minister of Food, Agriculture and Light Industry.
Explore chapterPlantations & Agriculture
Buy digital copy of this chapter - £18Long a major exporter of raw natural resources, including agricultural products, Indonesia is looking to maintain its strengths in this sector while expanding downstream industries to fuel domestic industry. The country imports over 20m tonnes of food annually, but major investment plans are designed to mitigate the need for imports by boosting domestic output. Indonesia’s strengths are manifested in its palm oil sector, which was forecast to produce 23.5m tonnes for 2011, a world-leading total. One controversy arose in 2011 when the export tax on refined palm oil was decreased to nearly half that of CPO, which should boost downstream processing but may eat into upstream profits. This section features an interview with Franky Widjaja, Vice-Chairman for Agribusiness, Food and Livestock, Indonesian Chamber of Commerce and Industry (KADIN).
Explore chapterSecurity, Aerospace & Defence
In 2014 Saudi Arabia spent 35% of its budget on defence, equivalent to roughly $80.7bn. The coming years are likely to see increased emphasis on homeland security in three areas: securing the Kingdom’s northern and southern borders, cybersecurity and counter-terrorism. The Kingdom remains focused on developing a sophisticated domestic defence industry, investing heavily to this end in research and development, with various agreements in place between defence companies and Saudi research institutions. These are complemented by a number of collaborative projects in defence-related disciplines that are being forged by leading US universities and their Saudi counterparts. Meanwhile, the offset rules in place ensure that Saudi companies and workers can benefit from the expertise offered by foreign firms that win tenders in Saudi Arabia’s defence sector. This chapter contains interviews with Prince Turki AlFaisal bin Abdulaziz Al Saud, Chairman, King Faisal Centre for Research and Islamic Studies; and Prince Mutaib bin Abdullah bin Abdulaziz Al Saud, Minister, Saudi Arabian National Guard.
Explore chapterLegal Framework
While it is common knowledge that laws in the Middle East include certain restrictions on foreign parties doing business that do not otherwise apply to citizens, significant strides have been made in the region in recent years. These reforms have facilitated foreign investment and participation in businesses. Kuwait has led the way with a number of reforms and was a pioneer with the promulgation of the Foreign Direct Investment Law in 2014, which has since been replicated in one form or another in other GCC countries. The country has also seen recent developments that have impacted investment procedurally and substantively. This chapter contains an interview with David Walker, Partner at ASAR Legal.
Explore chapterICT
Buy digital copy of this chapter - £22Abu Dhabi is poised for deeper integration of advanced technologies in government and business processes. With advanced digital infrastructure and high global rankings in digital readiness, the emirate is at the forefront of digital transformation. To attract private investment, federal and emirate-level authorities are implementing advanced digital government services, enhancing transparency and efficiency. Funds and incentive packages support technology start-ups and robust regulatory frameworks inspire investor confidence, while Abu Dhabi’s focus on 5G and 6G innovation enhances its global appeal. This chapter features an interview with Peng Xiao, Group CEO, G42; and Ali Al Hashemi, Group CEO, Yahsat.
Explore chapterHealth & Life Sciences
Buy digital copy of this chapter - £22Saudi Arabia places health care at the centre of its long-term development plans, guided by the Vision Realisation Programme under Vision 2030, the Kingdom’s blueprint for socio-economic transformation. Advanced health care infrastructure is in place, with ongoing efforts to modernise the sector through digitalisation and private sector involvement. Public health care services are provided free of charge to citizens, while non-citizen residents are required to obtain private health insurance – contributing to a thriving private health care segment. Strategic privatisation, innovation and infrastructure investment are key drivers of the sector's growth and efficiency, positioning Saudi Arabia for sustained progress in the space. This chapter contains interviews with Fahad Al Shebel, CEO, National Unified Procurement Company; and Hisham bin Saad Aljadhey, Executive President, Saudi Food and Drug Authority.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22The legal framework analyses the introduction of a revised code of conduct for auditors; the commercial law that improves the ease of doing business; new rules on the retirement age and pension eligibility, and updated resolutions that aim to enhance data privacy. This chapter contains a viewpoint from Hatim Zu’bi, Partner, Zu’bi & Partners, Attorneys & Legal Consultants
Explore chapterDelta State
Buy digital copy of this chapter - £22Situated at the epicentre of the petrochemicals industry, Delta State has the third-largest economy among Nigeria’s states, accounting for around 21.5% of the country’s oil output as of March 2023. While its internally generated revenue is predicated on oil and gas proceeds, the state has seen an expansion in other areas of the economy, with the non-oil and gas sector accounting for 52.5% of GDP in 2020 following a recent push for economic diversification, compared to 41.9% in 2013. In that vein, Delta State’s primary growth potential is in agri-business, light manufacturing, health care, tourism, energy and mining. Given the levels of unemployment, maximising support to foster this potential is set to play a crucial role in accelerating the diversification drive, as well as in consolidating its poverty reduction gains and attracting foreign direct investment. This chapter contains an interview with Ifeanyi Okowa, Former Governor, Delta State.
Explore chapterTourism
Buy digital copy of this chapter - £22The tourism sector has long been the focus of Oman’s efforts to diversify the economy away from a reliance on hydrocarbons. After slow but steady growth throughout the 2010s, the tourism sector’s contribution to GDP reached a high of 2.9% in 2019. However, restrictions imposed due to the Covid-19 pandemic weighed on the sector’s performance for much of 2020. As part of its long-term economic diversification strategy, Oman Vision 2040, the Ministry of Heritage and Tourism and the Oman Tourism Development Company, Omran, are pursuing sector expansion with renewed vigour. Tourism has been earmarked for 21% of the OR11bn ($28.6bn) in investment opportunities promoted under the National Programme for Investment and Export Development for the 2021-25 period. The sector rebounded strongly in terms of visitors and expenditure in 2022, and government investment in hotel capacity and niche markets such as integrated tourism is helping the country make progress towards its 2040 goals. This chapter contains an interview with Hashil Al Mahrouqi, CEO, Omran.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22While it is common knowledge that laws in the Middle East include restrictions on foreign parties doing business that do not apply to citizens, progress has been made in recent years to facilitate foreign investment and participation in businesses in the region. Kuwait was a pioneer in this regard, with the promulgation of the Foreign Direct Investment Law in 2014, which has since been replicated in one form or another by several other countries. Despite these steps, there continue to be restrictions on the participation of international investors and owners in Kuwaiti companies. The government has worked in recent years to address this, both procedurally and substantively.
This chapter contains an interview with Ezekiel Tuma, Partner, ASAR – Al Ruwayeh & Partners.
Health & Life Sciences
Buy digital copy of this chapter - £22The health care sector in Saudi Arabia receives an average of 16.5% of the government’s annual budget, reflecting its importance to socio-economic development. The Covid-19 pandemic placed significant pressure on health care systems worldwide, yet the intensified throughput allowed governments to identify weaknesses in their health services and supply chains. Saudi Arabia’s substantial sovereign reserves have seen it emerge from the worst of the pandemic in a strong position to remedy the vulnerabilities exposed by the unprecedented events of 2020-22. Moving forwards, the government plans to increase efforts to create an integrated, high-quality, value-based health care system. Public-private partnerships are targeted at strengthen specific areas of health care infrastructure, while investment in research and development capacity is set to increase. This chapter contains an interview with Hisham bin Saad Aljadhey, CEO, Saudi Food and Drug Authority; and Fahad Al Shebel, CEO, the National Unified Procurement.
Explore chapterTax
Buy digital copy of this chapter - £22In Côte d’Ivoire, the preparation of finance laws traditionally includes a consultation between the private sector and the tax administration. In this sense, there have been recent developments in the Finance Law 2022, which formalised the state budget for 2022. A tax annex was developed to support the economy and employment, provide a more balanced distribution of the tax burden, and strengthen the means of the state through improved tax mobilisation, governance and accountability. Thanks to the tax exemptions granted, more foreign investors may be able to invest in companies in strategic sectors and infrastructure projects with high growth potential, thus contributing to the modernisation of the economy. This chapter contains a viewpoint from Éric N’guessan, Managing Partner, EY Côte d’Ivoire.
Explore chapterEducation & Research
Buy digital copy of this chapter - £22Decades of concerted investment in education have helped Qatar create a qualified workforce equipped with the skills needed to succeed in growing professions. The country’s literacy rate in 2019 was 99.2% of individuals 15 years old and above, while the gross enrolment rates for primary, preparatory and secondary education are all around 100% – a reflection of the mission to provide education for all. Education, research and training are key components of Qatar National Vision 2030. One goal of the vision is to increase the number of educational facilities from 354 schools in 2012/13 to 482 in 2018/19 and 524 in 2023/24. In line with the growth set out under the roadmap, the contribution of the education sector to GDP increased from 1.3% in 2012/13 to 3.3% in 2018/19.
Explore chapterHealth & Education
Buy digital copy of this chapter - £22Ghana’s health sector has made significant progress over the last two decades, with access and insurance coverage growing since the introduction of the National Health Insurance Scheme. The Covid-19 pandemic exposed some long-standing weaknesses in the system, most notably the lack of hospitals and larger medical centres outside big cities. But the pandemic also pushed Ghana to forge ahead with digitalisation efforts, improving online access to medical services and digitalising records. Digitalisation is also on the rise in the education sector, notably with the government’s Education Strategic Plan 2018-30, supported by high public spending on education. Greater oversight and reporting by new government institutions and accreditation boards are expected to improve the quality of schooling at all levels, as well as support crucial areas such as science, technology, engineering and mathematics. This chapter contains an interview with Delese Mimi Darko, CEO, Food and Drugs Authority.
Explore chapterTable of Contents
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Table of Contents
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Tax
Buy digital copy of this chapter - £18Papua New Guinea is in the process of significant changes following recent amendments to the tax code, which include new rules for the taxation of extractive industries, while proposed reforms include the introduction of a capital gains tax and the rewriting of the Income Tax Act. The 2020 budget is focused mainly on reforming the revenue administration system. It also includes a limited number of changes to the tax regime, including introducing a new tax system for small and medium-sized enterprises, reducing the permitted debt-to-equity ratio for resources companies and amending the tax dispute resolution process. This chapter contains a viewpoint from Jonathan Seeto, Managing Partner, PwC Papua New Guinea.
Explore chapterTax
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This chapter offers an overview of Egypt’s taxation system, which has undergone a number of reforms in recent years in an effort to build an investor-friendly environment. Recent changes include the introduction of stamp tax on the disposal of securities, updates to the progressive rate for personal income tax, and the proposal of a simple regime for small and medium-sized enterprises. It contains a viewpoint from Cherif Hammouda, Partner, RSM.
Agriculture & Food Security
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Agriculture is a key target for expansion, modernisation and diversification in the emirate. The Abu Dhabi Economic Vision 2030 aims for the non-oil sector to make up 64% of the economy by 2030. Food and agriculture have an important part to play in achieving this and represent vast potential for growth into new areas. In spite of the emirate’s dry desert conditions and high summer temperatures, the sector has made significant progress in recent years. The authorities are working on increasing local production in the face of high imports and a growing population. While this presents challenges it also offers an opportunity to stimulate local food resources, farms and the private sector. Other priorities include advancing research and development, investing in agricultural technology, addressing water scarcity, and employing sustainable practices such as reducing food waste and ensuring the highest standards of food safety for a market that demands consistency and quality. This chapter contains an interview with Saeed Al Bahri Salem Al Ameri, Director-General, Abu Dhabi Agriculture and Food Safety Authority
ICT
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The vibrancy of Indonesia’s digital economy is evident in the ubiquity of the green-uniformed Go-jek and Grab delivery drivers navigating via mobile device through its streets. Indonesia has the largest and fastest-growing ICT market in South-east Asia, and presents an enticing opportunity for investors thanks to demographic and macroeconomic factors, particularly as the government presses on with omnibus laws to reform a host of financial, investment, labour and tax regulations. Challenges include an uncertain macroeconomic environment weighed down by the Covid-19 pandemic, and an undefined regulatory and legal framework under which cybercrime threatens to undermine confidence and trust. However, these issues are not insurmountable, and longstanding government plans to improve internet and mobile data service provision across the country are coming to fruition, in tandem with the evolution of a dynamic digital services ecosystem steered by homegrown unicorns and supported by a thriving market for ancillary services. This chapter contains interviews with Johnny Plate, Minister of Communication and Information Technology; and Ming Maa, President, Grab.
Explore chapterTax & Accountancy
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In conjunction with EY, this chapter explores the taxation system and Côte d’Ivoire’s efforts to build an investor-friendly environment. It also contains an interview with Eric N’Guessan, Managing Partner, EY Côte d’Ivoire.
Explore chapterICT
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The ICT sector is at the forefront of the digital transformation outlined in Saudi Arabia’s Vision 2030, and is poised to be a key element of diversifying the economy towards greater non-oil growth. In the last few years ICT has become much more prominent, and it has become increasingly dynamic as the country ramps up investment in technology to become an international leader in the digital economy. At the same time, further expansion will be needed going forwards to meet demand for digital services. To that end, citizens, businesses and the government are actively pursuing greater adoption and capacity development, and this trend is anticipated to continue in light of the youthful population and expanding non-oil sectors. This chapter contains an interview with Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman, Zain Saudi Arabia.
Explore chapterICT
Buy digital copy of this chapter - £18The year 2020 presents exciting prospects for the Qatari ICT sector. Vodafone and Ooredoo have committed to roll out 5G in all densely populated areas, along primary roads and motorways, and at venues associated with the 2022 FIFA World Cup by the end of 2020. In anticipation of this, stakeholders will be closely monitoring the opening of Lusail City. Investors will also be looking for further opportunities from the Smart Qatar Programme, also known as TASMU, after the Ministry of Transport and Communications awarded 11 multimillion-dollar contracts under the programme at the annual Qatar IT Conference and Exhibition in November 2019. The flagship project to develop the TASMU Central Platform was awarded to a consortium of firms, of which Oooredoo was the main partner. This chapter contains interviews with Mohammed Ali Al Mannai, President, Communications Regulatory Authority; and Ghada Philip El Rassi, Board Member, MEEZA.
Explore chapterTax & Accountancy
In conjunction with Ernst & Young, this chapter explores the taxation system and Morroco’s efforts to build an investor-friendly environment. It also contains an interview with Abdelmejid Faiz, Tax Partner, EY Maroc.
Explore chapterAgriculture
Agriculture still lags behind other sectors and continues to be overshadowed by the energy-driven economy. However, strides have been taken in the areas of training and farm development. The dip in energy prices leading to the 2015 recession emphasised that economic diversification is paramount to the stability of the Trinidad and Tobago economy. Moreover, the high produce import bill needed to sustain the country’s food needs has led to a greater focus on food security. Investment in traditional crops as well as diversification of produce could provide for greater domestic production and less dependence on neighbouring countries. A move towards agro-industry through technological training and graduate grants could provide significant growth in value-added products for domestic consumption and export. This chapter contains an interview with Nirmalla Debysingh-Persad, CEO, National Agricultural Marketing and Development Corporation.
Explore chapterHealth & Education
Progress has been made in expanding the coverage and treatment of infectious disease in Ghana. The rollout of public coverage has been central to these achievements, with the private sector also playing a pivotal role, both in terms of contracts with the government and through the operation of private facilities. A new generation of domestic start-ups has also begun to reshape the sector, utilising digital solutions to better address demand. Yet the sector still faces serious challenges, including shortages in medical professionals and the rise of non-communicable diseases. Education reform has been a major priority of the administration of President Nana Akufo-Addo. The government introduced the Free Senior High School policy in September 2017, which was followed by a number of reforms launched in 2019 to improve teacher training, and the establishment of a new national curriculum. Opportunities for future investment exist in the expansion of private sector schooling.
Explore chapterICT
Buy digital copy of this chapter - £18With developed ICT infrastructure, high penetration rates, a tech-savvy population and a business-friendly ecosystem, Bahrain has much to offer investors. The kingdom’s geographically and demographically compact market provides an ideal sandbox for tech companies and start-ups to experiment and roll out pilot programmes, giving it a well-established research and development pedigree. Telecommunications companies in Bahrain face many of the same challenges as providers in other countries, with a decline in demand for voice services, accelerating data consumption and higher investment costs, particularly as infrastructure spending is disproportionately allocated to the rollout of the 5G network. Nevertheless, tech firms and start-ups will continue to benefit from the kingdom’s relative ease of doing business and government support in the form of funding, accelerators and incubators. This chapter contains an interview with Mikkel Vinter, CEO, Batelco.
Explore chapterICT
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ICT was identified by the government as a key component of the sultanate’s long-term economic development strategy, Vision 2040, which calls for enhancing national technical capabilities, constructing vital ICT infrastructure and improving governance through the use of e-services. A government organisational shake-up has renewed focus on the sector, as authorities work to integrate technology such as artificial intelligence and internet of things applications into everyday life. The mobile segment is set to see the entrance of a third operator, while efforts to boost rural and urban high-speed internet access, upskill the workforce and provide support to local ICT start-ups remains a focus as Oman prepares for the next stage of digital transformation. This chapter contains an interview with Talal Al Mamari, CEO, Omantel.
Explore chapterTourism
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Sharing borders with India, Bangladesh, Thailand, Laos and China, Myanmar is one of the last frontiers of Asian tourism. Offering pristine beaches, abundant cultural and natural attractions, and a warm, hospitable population, the country has significant potential – especially considering the thriving travel markets in neighbouring states. Following its opening as a travel destination, the sector experienced impressive growth in both arrival numbers and foreign direct investment. However, unrest in Rakhine State in 2017 and the international media coverage that followed have negatively impacted the sector, diminishing the flow of visitors from Western countries. Visitor demographics have since changed and the sector is undergoing a gradual recovery, with sizeable growth stemming from Asian source markets. Tourism has been supported by a number of government reforms and initiatives, including relaxed visa regulations, and efforts are under way to establish new flight routes to the country. This chapter contains an interview with Daw Su Su Tin, Managing Director, EXO Travel.
Explore chapterEducation
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In a short time Dubai has established a vibrant education sector with an increasing variety of choice at all levels. While the private segment continues to dominate, recent reforms have seen major improvements to public sector schooling, modernising it and bringing it in line with international best practices. Inevitably, high rates of growth in the number of international schools and higher-education institutions have led to consolidation, gradually slowing expansion and creating greater barriers to entry for prospective players. In general, however, there remain opportunities for investors with savvy value propositions attuned to ongoing shifts in market needs in Dubai and in the broader region.
Explore chapterRetail
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With a strong fiscal base, a high average per capita income and a robust shopping culture, Kuwait looks set to rebound from a period of stagnant growth caused by declining oil prices. While the local retail sector is small compared to larger GCC markets like the UAE and Saudi Arabia, consumers are quickly catching up with their regional peers in their tastes and demand for international food, brands and shopping experiences. Retail and wholesale trade accounts for a sizeable percentage of Kuwait’s GDP, and there are solid growth forecasts for the coming year. Existing sector players are expecting 2019 to be a year of increased consumer confidence and healthier disposable incomes.
Explore chapterEntrepreneurship + R&D
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Mexico is considered to be at the leading edge of Latin America in terms of innovation in business modelling, with a mature tech sector installed in clusters across Mexico City, Monterrey and Guadalajara. Furthermore, it has a second tier of smaller cities housing start-ups that apply technology to a number of sectors, from automotive, aviation and banking, to renewable energy and urban mobility. However, the country’s investment in research and development (R&D) is below the global average. The private sector looks set to take the lead in R&D investment, with the current government announcing a 13.6% cut to the 2019 budget for science and technology. Moreover, a legislative proposal for a new federal science and technology law is being studied. It is hoped that the reform will change the way policies are designed and implemented. It is also intended to spur investment and secure investor confidence.
Explore chapterTourism
Buy digital copy of this chapter - £18With the new administration of Prime Minister James Marape committed to easing dependency on extractive industries, supporting diversification and stimulating job creation, the tourism sector offers significant potential. However, travelling in Papua New Guinea at present requires patience, perseverance and fortitude. Considerable scope remains for savvy local and international operators to exploit shallow product offerings in niche markets, notably adventure, cultural tours and ecotourism. In addition, many Chinese tourists have been made aware of PNG through coverage of the APEC summit. Convincing them to visit will require targeted measures. More broadly, ongoing improvements to transport infrastructure, code-share agreements between airlines and a coordinated effort to counter the perception that PNG is unsafe are essential. This chapter also contains an interview with Heidi Kunkel, Vice-President of Australasia Operations, Hilton.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with KPMG, this chapter explores the taxation system and Tunisia’s efforts to build an investor-friendly environment. It also contains an interview with Moncef Boussannouga Zammouri, Managing Partner, KPMG.
Explore chapterICT
Buy digital copy of this chapter - £18The Philippines’ ICT industry is embarking on an exciting period as a number of reforms and initiatives take effect and Congress debates legislation for further market liberalisation. Weak competition and the archipelago’s sprawling geography have contributed to the ICT industry’s difficulties in keeping pace with other countries in the region in terms of the scale and quality of its services. At the forefront of developments in the industry is the entrance of a third telecoms provider. While this is threatening the existing duopoly, it is expected to increase innovation, speed and coverage. Telecoms infrastructure improvements, combined with a number of legal and regulatory changes designed to drive competition and improve the provision of ICT services, are also opening the door to lucrative opportunities for domestic and overseas players. This chapter also contains an interview with Andrés Ortola, Country General Manager, Microsoft Philippines.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY Colombia, this chapter explores the taxation system and Colombia’s efforts to build an investor-friendly environment. It also contains an interview with Jaime Vargas, Tax Managing Partner and International Tax Services Leader, EY Colombia.
Explore chapterEducation & Health
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Efforts to reform the education sector, boost teacher salaries, provide qualitative assessment and coordinate national education policy are areas being targeted by the government, while the skills mismatch between graduates and the private sector, the urban-rural gap, and underperforming private primary and secondary schools highlight other areas that require attention. Local authorities and international organisations have already taken steps towards overcoming these challenges, and the government appears to be on track to achieve its bold education objectives. With increased funding, the government laid out a series of initiatives aimed at increasing access to and improving the quality of health care, which should help achieve universal coverage by 2021 and further improve health indicators. Although challenges remain, particularly with a rural-urban divide and a shortage of doctors and medical specialists, Peru’s is strengthening its health infrastructure. This chapter contains an interview with Angela Flores, Executive Director, National Association of Pharmaceutical Manufacturers.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with RSM, this chapter explores the taxation system and Egypt’s efforts to build an investor-friendly environment. It also contains a viewpoint with Cherif Hammouda, Managing Partner, RSM Egypt.
Explore chapterICT
Buy digital copy of this chapter - £18Some 70% of Indonesia’s citizens are under the age of 39, and many are mobile-first and digital native consumers, making the ICT market very attractive to purveyors of data services, applications, software and hardware. Developing domestic ICT infrastructure has been a key goal of President Joko Widodo’s administration. When his administration took office in October 2014, it unveiled an Rp278trn ($19.7bn) broadband connectivity plan, designed to spur broad-based and inclusive economic growth, with a 35,000-km, nationwide fibre-optic network, the Palapa Ring, as its centrepiece. This chapter also contains interviews with Rudiantara, Minister of Communication and IT; Nadiem Makarim, CEO, GOJEK; and Dian Siswarini, CEO & President Director, XL Axiata.
Explore chapterICT
Buy digital copy of this chapter - £18Like other sectors of the economy, development of Saudi Arabia’s ICT industry is being deeply influenced by the government’s Vision 2030 strategy, which emphasises the need for diversification and modernisation. However, in the context of this roadmap, ICT is not being addressed as a standalone sector, but rather as a fillip to help all other sectors transform through the adoption of digital technologies, cloud computing and e-commerce, among other applications. In 2018 a study to estimate the value of spending on ICT services concluded that it totalled $36.2bn in 2017, up by 4.6% on the previous year. Of that total, telecommunications accounted for almost two-thirds (65%), with the remaining 35% distributed between IT, hardware and software services. This chapter contains interviews with Nasser Al Nasser, CEO, Saudi Telecom Company; Mohammed AlShaibi, CEO, Tamkeen Technologies.
Explore chapterICT
Buy digital copy of this chapter - £18Qatar’s ICT market is well established, and characterised by high levels of mobile and internet penetration rates. Internet services are both affordable and quick, with fibre-based connections available since 2012. The country’s two main telecommunications operators are also working to roll out 5G services in all heavily populated areas by the end of 2020. The deployment of advanced technology runs alongside the Qatar National Vision 2030 strategy. On the IT side, government officials are working to strengthen the sector, with plans for the development of a new smart city, e-government services and a robust start-up ecosystem currently in the works. This chapter contains an interview with Sheikh Hamad bin Abdulla Al Thani, CEO, Vodafone Qatar.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Sri Lanka’s free, universal public health care system dates back to the 1930s. While the system is rooted in urban centres, public service provision has long since expanded into rural areas and is available island-wide, though concerns persist about the relative quality of these services beyond the major towns and cities. The Sri Lankan government has made a concerted effort to develop the education sector in recent years, seeing this as fundamental to its overall push to become an upper-middle-income country. This effort includes increased public spending, institutional and curricular reform and expansion, and the redevelopment of the foundations of the education system. At the same time the government is stepping up outreach efforts to encourage more students to pursue degrees in science, technology, engineering and mathematics and to develop forward-looking IT skills. This chapter contains an interview with Shyam Sathasivam, President, Sri Lanka Chamber of Pharmaceutical Industry.
Explore chapterEducation
Buy digital copy of this chapter - £18Billions of dirhams are being spent each year on education in Abu Dhabi by the emirate’s leaders, investors and families, with the aim of equipping new generations with the skills necessary to lead the transformation of the public and private sectors, and drive the development of a knowledge-based economy. Standards in schools and universities are closely monitored to ensure a quality learning environment for young citizens and residents, and efforts have been made to attract well-known international institutions in the tertiary and private school segments to open campuses in Abu Dhabi. The Abu Dhabi authorities have also focused on improving public schools, colleges and universities. This chapter contains an interview with Jameela Salem Al Muhairi, Minister of State for General Education.
Explore chapterEducation
Buy digital copy of this chapter - £18The education sector of Dubai is shaped by a population that was 3.2m in early 2019 and around 90% expatriate, making it multinational, multi-ethnic and multicultural. In the 2017/18 academic year, Dubai’s student body included 182 nationalities, with students from India comprising around 33.9% of the total, followed by those from the UAE (11.7%), Pakistan (8%), Egypt (5.5%) and the UK (4.7%), while the emirate’s most diverse school included 114 different ethnicities. Legislation reserves public school seats for Emiratis, meaning that this large percentage of foreign students attend private schools and colleges, which offer a variety of opportunities and incorporate 16 different national curricula.
Explore chapterHealth
Buy digital copy of this chapter - £18Moroccan health indicators have improved steadily in recent years, although there remains room for improvement, even by regional standards. In addition, as in many countries, the burden of lifestyle-related non-communicable diseases is on the rise. Access to health care coverage has also been growing rapidly as the authorities roll out government-backed insurance schemes to an ever-growing number of citizens, with the country aiming to achieve near-universal coverage in the coming years. Meanwhile, recent regulatory changes have opened up the private sector to increased investment, and the public sector has been gaining ground on the former in terms of its level of spending. This chapter contains an interview with Mohamed Elmandjra, CEO, Oncologie et Diagnostic du Maroc.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Ghana’s economic development is leading to heightened demand for specialised private health services, while on the public side; the government has made commitments to improve universal health coverage and is implementing plans to tackle specific challenges such as non-communicable diseases and a shortage of health professionals. Such commitments to legal reform and public resource provision will help spur further investment; however, challenges remain, including weaknesses in the National Health Insurance Scheme and high pharmaceutical and health care costs, all of which tend to have the greatest impact on low-income citizens. As for the education sector, the government has prioritised educational reform in recent years in a bid to improve access at all levels of the system. To this end, in 2018 the state introduced its Free Senior High School policy, an initiative which provides free tuition for attendees at all public secondary schools. On top of this, to improve learning outcomes and help fulfil demand in the job market for certain skills, the authorities have also encouraged greater investment in education infrastructure and strengthened technical and vocational education and training. This chapter contains an interview with Kwaku Agyeman-Manu, Minister of Health.
Explore chapterICT
Buy digital copy of this chapter - £18Bahrain boasts one of the most-developed telecommunications markets in the region, and the authorities are planning for further infrastructure upgrades, including the rollout of an ultra-fast broadband network across the country. Work is under way to develop the kingdom as a regional ICT hub, with a particular focus on areas such as the cloud, e-commerce, gaming, cybersecurity and the local start-up scene. Such efforts have been bolstered by a recent surge in foreign investment into the ICT sector, led by a landmark investment by Amazon Web Services in 2017 in the cloud and data centre segment. This chapter contains an interview with Mohammed Ali Al Qaed, Chief Executive, Information and eGovernment Authority.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, this chapter explores the taxation system and Côte d’Ivoire’s efforts to build an investor-friendly environment. It also contains a viewpoint with Jean François Albrecht, Country Managing Partner; and Eric N’guessan, Country and Regional Tax Leader, EY.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter offers an overview of Myanmar’s tax system, focusing on the implementation of the second phase of its of Reform Action Plan 2012, which aims to establish an effective and fair tax system with increased tax revenue, as well as the introduction of self-assessment bookkeeping and of capital gains payable on any capital asset exchanged. It also contains an interview with U Win Thin, Chairman, Win Consulting.
Explore chapterICT
Buy digital copy of this chapter - £18On both a local and national level, Oman’s ICT sector continues to expand while also preparing for new technologies and the benefits and challenges that they may bring. New innovations in cloud services, e-commerce and e-government have enabled both private and public organisations to cut costs, and strategic thinking by the sultanate’s authorities has also brought rewards for the sector. This has helped lay the groundwork for a successful industry for many years now, encouraging tech start-ups and establishing a clear ICT roadmap, as well as building on the country’s global connectivity and its reputation for stability and security.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, this chapter explores the taxation system and Algeria’s efforts to build an investor-friendly environment. It also contains a viewpoint with Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria.
Explore chapterRetail
Buy digital copy of this chapter - £18Following a decade-long period of growth, in which formal retail supplies more than tripled, Nigeria’s retail sector faced several challenging years. Macroeconomic volatility, a recession in 2016 and the naira’s rapid depreciation impacted retailers and consumers alike. Likewise, both purchasing power and household incomes declined, while input costs and vacancy rates simultaneously increased. Despite these recent economic challenges, the country remains one of Africa’s most attractive retail investment destinations for local and foreign investors. As retailers move to capitalise on opportunities in the sector, stakeholders anticipate that developers will increasingly shift their strategy towards smaller, localised retail developments offering essential grocery, pharmaceutical and clothing items. In the longer term resurgent middle-class growth, supported by improving oil prices and strengthening macroeconomic fundamentals, should see a return to large-scale, high-end regional and mixed-use retail centres. This chapter contains an interview with Olaide Agboola, Managing Partner, Purple Capital.
Explore chapterHealth
Buy digital copy of this chapter - £18The health profile of the Kuwaiti population has changed significantly in the past several decades. Kuwaiti citizens, who account for around 30% of the population of just over 4.2m, have become more prone to non-communicable diseases (NCDs). While deaths from infectious diseases are posing less and less of a threat, NCDs – the four main categories of which are heart disease, cancers, diabetes and upper respiratory diseases – accounted for 72% of deaths in Kuwait in 2015, according to the World Bank. In the coming years the government will aim to address the increasing prevalence of NCDs, which are also associated with rising health care costs. Efforts to reduce public health care expenditures will also require a shift in the financing of care for the large expatriate population, and solutions for this challenge are now being formulated.
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Tax
Buy digital copy of this chapter - £18In conjunction with Ernst & Young, this chapter explores the taxation system and Kenya’s efforts to build an investor-friendly environment. It also contains a viewpoint with Gitahi Gachahi, CEO, EY Eastern Africa.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The economic recession in recent years has forced the government to closely examine its consumption of foreign goods, and to prioritise domestic production and self-sustainability. The push towards wider economic diversification has highlighted agriculture as a potential sector for transformation. While the state has shown a commitment to change, Trinidad and Tobago still has room for improvement as it continues its journey towards increased food security. To ensure food security and sustainability, T&T must invest in initiatives that will build out its agricultural capabilities and place the local food system on a solid foundation that values both staple and export crops. Planned rehabilitation efforts can only be successful if the government and private investors alike continue showing commitment to and interest in the rehabilitation of the sector. This chapter includes an interview with Joe Pires, Managing Director, Caribbean Chemicals and Agencies.
Explore chapterTourism
Buy digital copy of this chapter - £18While Papua New Guinea’s economy remains dominated by the agriculture, fisheries, forestry and extractives industries, tourism has been identified by government actors as an important source of economic diversification and sustainable development. With around 462,840 sq km of largely untouched land, a wide variety of indigenous flora and fauna, and immense cultural diversity as evidenced by its 852 known languages, PNG has promising tourism potential. Nevertheless, PNG’s tourism industry is seen by many as a key area of potential with significant development opportunities. This chapter contains an interview with Ann Sherry, Chairman, Carnival Australia.
Explore chapterTransport & Infrastructure
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Investing in transport infrastructure could boost Argentina’s overall economy, given the sector’s growing contribution to GDP. In 2017 the transport and communications sector represented 8.1% of GDP compared to 7.3% in 2016, according to the National Institute of Statistics and Census. The government has demonstrated its intent on improving the transport sector, with ample investment and PPP opportunities present. Enhancing the connectivity of local industries to principal logistical hubs by road, railway, river and/or air will inevitably improve regional economies and stimulate Argentina’s overall economic and social development. This chapter features interviews with Guillermo Dietrich, Minister of Transport; and Ezequiel Lemos, President, Trenes Argentinos Cargas.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Although Peru is increasingly focusing resources on education, there is some way to go to catch up to its regional peers. However, there are encouraging signs that the necessary changes are being made, including more public investment via a centralised spending framework, revised regulations, take-up of technology and other innovations. The dynamic private sector looks set to capitalise on increasing demand for high-quality education among the burgeoning middle class. Nevertheless, the sector needs to overcome a divide between rural and urban education provision, opposition to some reforms from educators and a significant infrastructure gap. In terms of health, Peru has made impressive strides towards achieving its aim of universal health coverage by 2021. With the launch of the e-health programme, the government has shown itself to be receptive to utilising emergent technologies to expand and improve provision nationwide. Nevertheless, the sector faces persistent shortages of doctors, and inequalities in services between rural and urban areas. This chapter includes interviews with Jorge Yzusqui, General Manager, Innova Schools; and Juan Carlos Salem Suito, General Manager, SANNA.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter navigates Thailand’s tax regime, offering a guide to navigating tax laws relevant to businesses. It also explains key corporate duties and regulations as well as tax holidays and incentives on offer for investment. This chapter contains an interview with Andrew Jackomos and Paul Ashburn, Co-Managing Partners, BDO in Thailand.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Traditionally a barometer of a Mexico’s economic health, the construction sector saw investment slow in 2017 as a result of a dip in public spending on infrastructure works and uncertainty among private investors over the possible outcome of the renegotiation of the North America Free Trade Agreement. This could further push up the already rising costs of materials brought by the February 2018 hike in interest rates to a nine-year high of 7.5%. Although the sector will continue to gain steam in 2018, such growth will be tepid, given that the factors impeding expansion remain. The real estate sector of Mexico saw record occupancy in 2017. Competitiveness as a manufacturing hub and job growth is fuelling a hike in demand for residential properties and retail space. The expanding population is also driving continued growth in housing demand, as the housing shortage remains above 25%. These factors are all solid indicators of a market that is far from saturated, demonstrating substantial opportunities for investment and growth. This chapter contains an interview with Luis Gutiérrez Guajardo, President, Prologis Latin America.
Explore chapterICT
Buy digital copy of this chapter - £18While the Philippines has a robust economy with sound macroeconomic fundamentals, its telecoms sector still lags behind global standards, in large part due to a lack of competition and limited investment. In spite of this, the domestic telecoms market is ripe for change and set to welcome a major new player, following the pres¬ident’s promise to accelerate network modernisation. Consequently, rising capital expenditure in communi¬cations infrastructure, as well as spectrum reallocation, is set to revolutionise the digital landscape. Under the national Build, Build, Build agenda, the incumbent administration wants to transform the Philippines into an upper-middle income nation by 2022. To achieve this target, limitations on foreign ownership within the telecoms industry will be lifted to attract investment. This chapter contains interviews with Ernesto R Alberto, Executive Vice-president and Chief Revenue Officer, PLDT; and President and CEO, ePLDT; and Hans Bayaborda, Managing Director, Microsoft Philippines.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, this chapter explores the taxation system and Tanzania’s efforts to build an investor-friendly environment. It also contains a viewpoint with Joseph Sheffu, Country Managing Partner, EY.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The government has signaled its determination to reform Sri Lanka’s health sector with region-leading stances on tobacco, while also showing a willingness to engage with private health care providers looking to tap into the country’s potential. Private health care in Sri Lanka is starting from a low base, but a number of factors will provide distinct opportunities for those looking to invest in the market. In a concerted effort to boost the country’s overall economy, development of the education sector has become a government priority. In recent years it has initiated plans to increase the capacity of institutions, improve the standards of teaching and embrace the technology revolution that is happening globally. This chapter contains an interview with Lakshman Dissanayake, Vice-Chancellor, University of Colombo.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with KPMG, this chapter explores the taxation system and Tunisia’s efforts to build an investor-friendly environment. It also contains a viewpoint with Moncef Boussannouga Zammouri, Managing Partner, KPMG.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Jordan, contact details for important government offices and services, as well as useful tips and information for business and leisure visitors alike.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter gives an overview of Myanmar’s tax regime, focusing on key developments including the New Company Law and the extension of the self-assessment system implementation. Draft Revenue Appellate Tribunal law changes are also examined in this chapter. It also contains a tax viewpoint from U Win Thin, Chairman, Win Consulting.
Explore chapterICT
Buy digital copy of this chapter - £18Recognised by the government as an engine for growth, economic diversification and social cohesion, the ICT sector in Bahrain is expected to play a vital role in enabling the kingdom to achieve its ambition of becoming a regional centre for digital technology. Since ownership was liberalised in the early 21st century, the telecoms industry has made a direct contribution to the development of the national economy while also serving as an enabler for other important business sectors.
This chapter contains an interview with Ulaiyan Al Wetaid, CEO, VIVA Bahrain.
Explore chapterHealth
Buy digital copy of this chapter - £18The health sector is still recovering from the conflict period due to damaged infrastructure and restricted funding, though recent years have seen investments undertaken to rebuild the health sector from a low base. The 2016-20 National Development Plan made and continues to make valuable progress on key indicators such as the infant mortality rate and access to health services, while major contributions from international development agencies have helped reduce the burden of malaria, HIV and tuberculosis. Though it will be several years before investments in infrastructure and regulation efforts benefit the entire population, initiatives such as mandatory health care coverage and an independent pharmaceutical regulatory agency are necessary steps to develop health care in Côte d’Ivoire.
This chapter contains an interview with Eric Djibo, President and Director-General, International Polyclinic Sainte Anne Marie.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC, this chapter contains an introduction to Egypt’s taxation system, including a breakdown of rates imposed on corporate income, regulations governing capital gains and double taxation, and a list of goods and services exempted from value-added tax.
This chapter contains a viewpoint from Maged Ezzeldeen, Country Senior Partner, PwC.
Explore chapterICT
Buy digital copy of this chapter - £18Developments in Oman’s telecoms sector in 2017 were centred on the announcement of a third mobile network operator licence and an increase in royalty rates from January 1, which led to a 35-40% drop in net profits that year for the two existing operators, Omantel and Ooredoo. With market penetration in the mobile sector at close to 150%, the sultanate’s third licence is expected to significantly tighten market competition. Meanwhile operators in Oman’s IT sector have recently made big strides forward, moving beyond infrastructure to develop applications and applied business solutions for increasingly sophisticated customers. The government has made it clear that ICT is a key priority in improving the standing of Omani businesses in the international arena, and in 2017 the Information Technology Authority was developing a 2030 Digital Oman Strategy (eOman) focused on developing IT skills, digital literacy and new technologies.
Explore chapterRetail
Buy digital copy of this chapter - £18As average incomes expand along with Morocco’s middle class, the retail sector is seeing a rising number of opportunities for development. Shopping malls have become the norm in the kingdom’s major cities, and while less-formal commerce still accounts for a large proportion of sales, the movement towards modern retail is underpinned by stable economic fundamentals that are expected to continue over the long term. As the kingdom becomes more closely integrated in the international economy, consumers are demanding a wider variety of retail options and experiences. This will present both challenges and opportunities for retail developers, as well as investors aiming to represent international brands in Morocco.
This chapter contains an interview with Moncef Belkhayat, President, DISLOG.
Explore chapterHealth
Buy digital copy of this chapter - £18With new hospitals under construction, existing facilities expanding, and ambitious plans to improve the quality of treatment available not only for residents but also the growing number of medical tourists, Dubai has a competitive health care sector. Included in its expansion is the introduction of the universal health insurance programme in 2017, providing a sustainable safety net for the over 4m people who live or work in the city and their dependants. Looking ahead, Dubai aims to implement 15 strategic programmes encompassing 100 health care initiatives through the Dubai Health Strategy 2016-21, an overarching project of reform involving both the public and private sectors.
This chapter contains an interview with Princess Haya Bint Al Hussein, Chairperson, Dubai Healthcare City Authority.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Facing a growing population and an urban middle class underserved by health care providers, the government has made considerable strides in a number of important areas, including the expansion of primary care coverage. Expanded infrastructure, increased numbers of health care professionals, and a renewed emphasis on sanitation and prevention should help improve health indicators. Furthermore, economic development is increasing demand for health care services, from both public and private providers. With a young and growing population, an expanding job market in a dynamic economy, and funding and support from a range of sources, the education sector is witnessing rapid growth. The system features a mix of public and private institutions, and the past decade has established a solid base of schooling for the vast majority of citizens.
This chapter contains interviews with Dr Elikem Tamaklo, Managing Director, Nyaho Medical Centre; and Amardeep Singh Hari, CEO, IPMC.
Explore chapterICT
Buy digital copy of this chapter - £18Accounting for 6% of GDP and 10% of non-oil GDP in 2016, according to the Communications and Information Technology Commission, Saudi Arabia’s ICT sector plays an important part in the Kingdom’s economy. Spending in the sector exceeded SR130bn ($34.7bn) in 2016, and in 2017 it was expected to reach SR138bn ($36.8bn) despite economic headwinds. The government’s recently finalised economic strategy places ICT at the centre of the nation’s development, and telecoms players, hardware and software providers, and service operators all stand to benefit from the array of state-directed initiatives it has set in motion. Regulatory changes however have added pressure to ICT companies’ bottom lines over the past year, and the industry is responding by reining in expenditure and shifting the strategic focus to new products and services.
This chapter contains interviews with Abdullah Alswaha, Minister of Communication & Information Technology; Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman, Zain Saudi Arabia; and Essam Alshiha, CEO, Saudi Business Machines.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Qatar boasts a well-developed telecoms market, with high levels of internet use and smartphone ownership among the populace, as well as fast mobile and fibre-based internet connection speeds. The larger of the country’s two main telecoms operators has also emerged as a major force in the regional and international mobile telecoms market. The IT sector is less developed in some respects, with industry observers noting comparatively low penetration rates, particularly in the small and medium-sized enterprise segment. However, some fields, such as e-governance, are highly advanced, and a shift towards the use of the cloud and software-as-a-service is under way in the corporate sector. There are also efforts to develop the start-up scene, and Qatar is emerging as an important centre for computing-fo¬cused research, with several applied research projects already having been successfully commercialised. This chapter contains an interview with Ahmad Mohamed Al Kuwari, CEO, MEEZA.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Following several years of robust expansion supported by the launch and implementation of a major public infrastructure programme emphasising significant new transportation, utilities and social infrastructure builds, Indonesia’s construction industry is set to remain on a rapid growth path. State-owned enterprises continue to dominate the construction landscape, although the government has increasingly sought private sector participation in new builds. A growing middle class and rising levels of urbanisation have supported rapid real estate growth, and there remains substantial room for expansion in the coming years. While a commodities price crash and macroeconomic slowdown weighed on growth between 2013 and 2015, the sector began to regain its footing in 2016, with property sales forecast to rise for the first time in six years in 2017.
This chapter contains interviews with Wong Head Fine, Group CEO, Surbana Jurong; and Michael Widjaja, Group CEO, Sinar Mas Land.
Explore chapterMedia & Entertainment
Buy digital copy of this chapter - £18Nigeria’s first news outlet was established in 1859, and the country’s media sector has since grown into a prosperous industry that comprises newspapers, radio broadcasters and television stations, and caters to an audience of over 189m in a variety of languages. As is the case for many media industries around the world, the shift to digital has resulted in changes in Nigeria. Some alterations have been simple to navigate, while others, such as the rise in online content, have proven more difficult. With a young population and a high rate of connectivity in regional terms, Nigeria is well placed to embrace the new media revolution.
This chapter contains an interview with Jason Njoku, CEO, Iroko.
Explore chapterTourism
Buy digital copy of this chapter - £18As one of the world’s most culturally diverse nations, Papua New Guinea offers visitors the chance to experience a country with genuinely unique appeal. Surrounded by coral reefs and volcanic islands, the natural beauty of PNG has seen the country gain international recognition as an increasingly popular tourist destination. However, despite this vast appeal, PNG’s arrival ports continue to be heavily dominated by business travellers, although recent trends have seen an increase in tourists who are venturing in greater numbers to the country to experience its many attractions, consisting of diverse scenery such as mountain ranges, thousands of miles of coastline and dense forests that are home to rare wildlife.
This chapter contains an interview with Jerry Agus, CEO, Papua New Guinea Tourism Promotion Authority.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Selected headline numbers generated by the Thai education sector have been encouraging. The country has a high rate of literacy, an increasing number of top-rated universities, long school-life expectancy, a strong history of education and a large education budget. Globally and regionally, it compares well by these measures. The country also has ambitions to become a major educational centre, undertaking cutting edge research and attracting students from ASEAN and beyond. Meanwhile, Thailand delivers health care effectively, fairly and at a relatively low cost. Its Universal Coverage Scheme, together with two other national programmes provide good basic benefits to all Thais, and now to most residents of the county. Because of its success Thailand is sometimes regarded as a health care model in the developing world. This chapter contains interviews with Teerakiat Jareonsettasin, Minister of Education; Worsak Kanok-Nukulchai, President, Asian Institute of Technology; Dipak Jain, Former Director, Sasin Graduate Institute of Business Administration; and Virapatna Thakolsri, Managing Director, Biopharm Chemicals.
Explore chapterRetail
Buy digital copy of this chapter - £18Driven by rapid urbanisation, the influx of the expatriate workforce, and a rising population of the young and affluent, Kuwait’s retail industry has grown dramatically over the past 10 years. High GDP per capita and the growing popularity of modern retail concepts and formats have also helped to position the country as a major hub for global luxury brands, earning Kuwait City a ninth place ranking among the top cities worldwide for retailing in property consultancy JLL’s 2016 “Destination Retail” report. However, after several years of rapid growth, subdued consumer confidence somewhat slowed momentum in the sector in 2015-16. Between government reductions in expenditure, demographic changes within the expatriate community and inflated commodity prices, the market is down across most classes and categories. However, in spite of this, a wide and growing array of international retailers are expected to level out the market ahead of another retail boom over the medium to long term.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter explores aspects of Trinidad and Tobago’s taxation system, examining a wide range of areas of special interest to international investors, such as income and corporate tax, petroleum profit tax, withholding tax, value-added tax and Customs tax, among others.
This chapter contains a viewpoint from Angela Lee Loy, Chairman, Aegis Business Solutions.
Explore chapterICT
Buy digital copy of this chapter - £18The telecoms sector is adapting to the move from voice to data. Although this is set to affect operators’ financial results in the near term, rapid expansion of smartphones and 4G accessibility is set to enlarge the potential for new offers. Furthermore, the merger of different entities into a single regulatory body would simplify the rules for operators, ease procedures and remove the need to interact with a number of different watchdogs. In terms of IT, usage across Colombia, along with the deployment of the necessary infrastructure over several years, have created an environment in which the permeation of IT across business and society is well established, and is set to continue. As such, domestic conditions bode well for the continued expansion of the IT industry in the country over the medium term. This chapter includes an interview with David Luna, Minister of Information and Communication Technologies.
Explore chapterInnovation
Buy digital copy of this chapter - £18Investment in research and development (R&D) and innovation has been increasing in recent years in Peru, partly as a result of a greater government commitment to science, technology and innovation issues. Spending on science and technology R&D increased by 93.6% between 2011 and 2014. This investment seems to be paying off in terms of institutional development, sector incentives and increased funding, as well as an overall improved standing in global rankings in innovation and innovation-related issues. However, there is still much to accomplish as Peru continues to lag behind regional benchmarks in many respects, with improvements still needed in key areas such as availability and access to funding, limited public policies and instruments, inadequate infrastructure, insufficient human capital and intellectual property protection.
This chapter contains interviews with Gonzalo Villarán, Director of Innovation, Ministry of Production, and Karl Maslo, Regional CEO, EXSA.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The administration of President Maithripala Sirisena has planned a series of reforms that it hopes will better equip Sri Lankans for the more competitive economic activities of the future. It aims not only to increase the number of years spent in school, but also to raise the standards of teaching, and emphasise a curriculum of critical thinking and problem solving. Sri Lanka is also keen to build on its success in public health, with the government also showing a willingness to cooperate with the private sector. Some of the improvements to government hospitals are being undertaken through public-private partnership agreements, while the most recent budget includes plans to establish paying wards within government hospitals in partnership with private operators.
This chapter contains an interview with Ananda Jayawardane, Vice-Chancellor, University of Moratuwa.
Explore chapterAl Dhafra
Buy digital copy of this chapter - £18The region of Al Dhafra encompasses approximately 35,250 sq km and accounts for 60% of the total landmass of the emirate of Abu Dhabi. The region is bound by a 350-km northern coastline and lies between Saudi Arabia to the west and south, Al Ain to the east and the Abu Dhabi region in the north-east. Al Dhafra is mostly desert and lies on the edge of the Arabian Peninsula’s Empty Quarter (Rub Al Khali), the world’s largest uninterrupted mass of sand. As a result, Al Dhafra, despite being the largest of Abu Dhabi’s regions, is the most sparsely populated. Al Dhafra’s economy is underpinned by its hydrocarbons industry; the region is home to around 90% of Abu Dhabi’s total oil reserves.
This chapter contains an interview with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Al Dhafra Region.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Surging activity and investment have benefitted the Philippines’ telecommunications industry in the decades following its deregulation, with mobile penetration increasing rapidly among a large population of digitally literate consumers. Although the market remains dominated by two operators, rising competition between them saw capital expenditure soar in 2016, driving improvements to service quality and consumer tariffs. Recent government moves to re-allocate new spectrum have further supported expansion of 3G, 4G and LTE services. The creation of a stand-alone department to oversee ICT development bodes well for expansion of a planned national broadband network, with the private sector set to play an important role in future service expansion.
This chapter contains an interview with Rodolfo A Salalima, Secretary, Department of Information and Communications Technology.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of Tunisia’s taxation system and examines the country’s efforts to encourage growth via prudent fiscal policy, including through a new investment framework, which offers improved incentives and guarantees.
This chapter contains a viewpoint from Moncef Boussannouga Zammouri, Managing Partner, KPMG.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Kenya’s current administration has placed a great emphasis on the health care sector. Given that the country has one of the youngest populations in the world by average age, Nairobi is aware that investment in social services will be a key component of supporting growth and development in the coming years. Yet while the health industry performs solidly in comparison to its regional peers, there are substantial obstacles standing in the way of rapid progress. With the burden on public services at an all time high, more still needs to be done as funding and financing remain key challenges. While insurance coverage is slowly improving, government funding remains low. If the country wants to push its standard of care up towards developed nations, significant investment and developmental policy will need to be a focus for the sector in the coming years.
This chapter contains an interview with Paul Tiyambe Zeleza, Vice-Chancellor, United States International University.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter offers a breakdown of current regulations and guidelines, and covers the double-taxation agreement with the US and the new decree on transfer pricing released in February 2017.
It also contains an interview with Dinh Thi Quynh Van, General Director, PwC Vietnam.
Explore chapterTourism
Buy digital copy of this chapter - £18Receiving more than 35m international visitors in 2016 – 2.8m more than in 2015 – Mexico continues to move up the world tourism league table. The country’s ranking in terms of arrivals in global tourism destinations improved from 10th to ninth position in 2016, according to the UN World Tourism Organisation. A weak peso has boosted margins for operators and attracted more visitors while at the same time bolstering domestic tourism in Mexico. The famous sun, sea and sand destinations of Cancún, Los Cabos and Puerto Vallarta continue to dominate the international tourism market, and new projects are set to expand capacity of this tried-and-tested model. This chapter includes interviews with Enrique de la Madrid Cordero, Minister of Tourism; and José Carlos Azcárraga Andrade, CEO, Grupo Posadas.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Continued efforts to address the health care needs of its large and growing population have resulted in varied opportunities for the development of Egypt’s health care space, particularly in the form of private sector investment. While the country has continued to see some positive steps, especially in the arena of primary care access and infant and maternal care, progress has been stalled on some other priorities, including the long-promised universal health insurance initiative. While there is still some heavy lifting to be done, Egypt is likely to make progress on goals for quality and equitable health care access, if the government can meet its commitments to increase public spending on health initiatives, attract additional foreign investment for facility upgrades and research, and increase equity of access through the passage of the universal health coverage law. Overhauling the education system has remained on the Egyptian government’s long priority list following the 2011 revolution, and for good reason. In 2015 approximately 33% of the 92m-strong population were under the age of 15, according to the World Bank. The Strategic Plan for Pre-University Education Reform 2014-30 published by the Ministry of Education states that every child has an equal right to receive a quality education in accordance with international standards, thus allowing every child to contribute effectively to the social and economic development of the country and to compete regionally and globally.
Explore chapterEducation
Buy digital copy of this chapter - £18Côte d’Ivoire is investing in achieving sustainable high growth levels, for which it requires a strong education sector. The government has its eyes set on expanding basic education access, improving education quality and governance, and enhancing the link between education and the job market. In addition to ongoing initiatives, the government has set out a series of actions, outlined in the 2016-20 National Development Plan, under which it allocates an ambitious indicative budget totalling close to CFA5trn (€7.5bn) for education, including public and private contributions. This chapter contains an interview with Saliou Touré, President, International University of Grand Bassam.
Explore chapterICT
Buy digital copy of this chapter - £18Bahrain now has a solid telecoms market with customers benefitting from a diverse array of services and increasingly competitive rates. The 2014 World Bank “Broadband Networks in the Middle East and North Africa” report singled out Bahrain as having the only mature broadband market in the MENA region, as well as being one of only two countries in the region to have a fully open telecoms market. The ICT sector, meanwhile, now forms a major pillar of Bahrain’s economy, and also one of the core sectors Bahrain is focused on developing, both to attract direct foreign investment and to grow human resources to help propel Bahrain as a regional ICT centre. Recent years have seen a significant expansion in the ICT landscape, as well as a push towards cutting edge technologies. The country’s fourth National Telecommunications Plan, which was released in early 2016, is a further example of the government’s strategic goals and planning when it comes to the sector.
Explore chapterIndustry
Buy digital copy of this chapter - £18From heavy industries largely owned by government entities to regional headquarters for multinational companies, Bahrain has a vibrant manufacturing sector that is growing steadily and playing an increasingly important role in the economy. The global downturn in both crude oil and commodities prices squeezed profit margins despite record production by Bahrain’s petrochemicals plants and aluminium smelter. However, the country is continuing to invest in the most ambitious industrial expansion plans for over a decade to capitalise on future global demand for its output. The single-biggest investment in the industrial sector is the $3bn project to build a sixth potline for Aluminium Bahrain (Alba), which will be the company’s largest expansion since potline five came on-stream in 2005. However, this individual development is part of a cluster of inter-related investments in Bahrain’s upstream and downstream industries that are designed to fire up the economy, attract additional investment and ensure long-term prosperity for the country’s citizens.
This chapter contains interviews with Zayed R Al Zayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Alba.
Explore chapterICT
Buy digital copy of this chapter - £18Driven by growth in consumer demand for data and improved connectivity, combined revenues from fixed-line telephony and mobile services in Oman reached OR906.19m ($2.4bn) in 2015, a 12.8% increase on the previous year. Infrastructure providers face considerable challenges in rolling out high-speed services to all areas of the country, while increased competition in the mobile market is creating a renewed focus on customer service and offerings tailored to specific niches in Omani society. While many trends in the country’s telecoms sector reflect developments in the industry region-wide, distinct characteristics in the sultanate’s own market include strict prohibition of voice-over-internet-protocol services such as Skype and Facetime, which limits the cannibalisation of call revenues seen in other countries. This chapter contains an interview with Said Abdullah Mandhari, CEO, Oman Broadband Company.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Myanmar’s tax regime, focusing on the newly passed Special Goods Tax Law, rules and penalties for concealment of income, regulations for industrial and special zones, the Myanmar Investment Law set to reshape the market and a summary of accounting standards and practices. It also contains a viewpoint from U Win Thin, Chairman, Win Consulting.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. Samy Laghouati, Partner, Gide, on the new investment code.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18A growing population, expanding job opportunities in a dynamic economy, and funding and support from a range of sources are driving the expansion of Ghana’s education sector. The system is a mix of public and private provisions, and in the past decades has established a solid base of schooling for the vast majority of Ghanaians. In some areas, at top universities for example, the system rivals the best on the continent. However, there are deficiencies, and the Ghanaian education system has not always kept pace with the economy’s acceleration and diversification in recent years. With this in mind, reform and development of the sector has become a priority, an undertaking in which both foreign and private partners are playing key roles.
This chapter contains an interview with Nathaniel Otoo, Acting CEO, National Health Insurance Authority.
Explore chapterICT
Buy digital copy of this chapter - £18Saudi Arabia is the biggest ICT market in the Middle East, with annual sector spending expected to reach about SR140bn ($37.3bn) by 2017. At a time of shrinking oil revenues, the government has identified ICT as a key driver of smart, cost-effective solutions for government and commerce alike, and as a major pillar of the Kingdom’s long-term development strategy, Vision 2030. However, there are also significant challenges around data security, as well as the need to nurture the human capital required to serve the Kingdom’s rapidly developing digital economy.
This chapter contains interviews with Ahmed Farroukh, CEO, Mobily; and Khalid Balkheyour, President and CEO, Arabsat.
Explore chapterTourism
Buy digital copy of this chapter - £18Welcoming more than 10m tourists annually since 2014, Morocco is Africa’s top tourism destination by foreign arrivals, the result of a decade of steady development under the framework of two successive sector development plans, Vision 2010 and Vision 2020. Despite an increasingly challenging regional environment, the sector has proved resilient thanks to the kingdom’s political stability, with only a minor drop in tourist arrivals in 2015. Authorities are expecting the sector to pick up in 2016, driven by increased air connectivity, further diversification of source markets and a more specialised tourism supply.
This chapter contains an interview with Omar Kabbaj, CEO, Interedec.
Explore chapterEducation
Buy digital copy of this chapter - £18As befits a vibrant, highly commercial global city, Dubai’s education sector is multi-faceted, with kindergartens, schools and universities offering public and private education drawing on best practice from around the world. Dubai is a destination of choice for many international students and teachers. The quality of its educational facilities plays a significant role in attracting professional talent to a city that is a centre of excellence and innovation in a multitude of sectors, including aviation, commerce and hospitality. Research by education advisory Altamont Group suggests that Dubai’s role as an international education centre has a significant impact on its economy, with the K-12 and higher education sector together directly contributing more than $3bn a year to the economy.
This chapter contains an interview with Hussain Al Hammadi, Minister of Education.
Explore chapterHealth
Buy digital copy of this chapter - £18The health care market in Kuwait is set to receive a fiscal boost over the next five years, as rising public investment and private demand keep growth at double-digit levels. Health care provision and facilities are already expanding at a faster rate than most Gulf countries, reflecting Kuwait’s affluence and the government’s determination to prioritise the sector as part of the Kuwait Development Plan 2015-20. The coming years are likely to see growing opportunities for private and foreign investors as the authorities look to ensure that provision keeps pace with demand. Developing specialist care for chronic conditions, and better preventive care, are priorities, while securing universal coverage for the large expatriate workforce is a long-term goal.
This chapter contains an interview with Dr Qais Saleh Al Duwairi, Director-General, Dasman Diabetes Institute (DDI).
Explore chapterMedia & Entertainment
Buy digital copy of this chapter - £18The Nigerian media industry is in the midst of what many local players consider to be a sea change. The rising popularity of ICT across the nation over the past decade and a half has had a major impact on the way Nigerians access media on a daily basis. This has created a range of challenges for print and broadcast media entities. The print industry, for instance, faces high levels of competition and falling revenues, as a steadily rising percentage of its output shifts online, where sufficient marketing and advertising models have yet to be fully developed or implemented. Furthermore, while broadcasters in particular are increasingly looking to the internet to help them reach new customers and larger markets, many Nigerians lack access to basic ICT services. However, the shift to digital is ultimately expected to be a boon to the industry, in that it has the potential to drastically expand the reach of local media producers, both domestically and further afield, with huge implications for revenues.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector will likely be a bright spot in an otherwise subdued economic growth story in 2016, as the widening infrastructure gap and recent fuel subsidy reforms have driven a surge of new government spending into a massive public infrastructure programme. Despite recording moderate recent increases in sales and prices, residential growth has slowed from the double-digit heyday of 2011-13, while oversupply in the office market is beginning to weigh on prices and rental rates, particularly in Jakarta. A few bright spots stand out, however. The booming retail segment is expected to perform well in 2016 on the back of growing demand, while Indonesia’s secondary cities hold considerably high potential across all segments.
This chapter contains interviews with Rizkan Chandra, President-Director, Semen Indonesia; and Eddy Hussy, Chairman, Real Estate Indonesia.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Home to a remarkable amount of biodiversity, rich volcanic soil, bountiful waterways and a moist tropical climate, Papua New Guinea possesses all the elements to fashion itself into a thriving agricultural exporter. These native assets have supplied the basic natural building blocks providing nourishment to country’s population throughout history, and more recently to the agribusiness industry for exporting cash crops such as coffee, tea, cocoa, spices, copra, rubber and palm oil. Given this abundance of naturally-occurring inputs along with a substantial labour pool already well versed in agriculture cultivation, the only stumbling blocks standing in the way of a robust agro-industry are the means to increase efficiencies throughout the value chain to make production and distribution more competitive.
This chapter contains interviews with John Kasu, Managing Director, National Fisheries Authority; and Robert Nilkare, Country Manager for Papua New Guinea, New Britain Palm Oil Limited; and a roundtable with Alan Bird, Agricultural Development Consultant; Ilan Weiss, Chairman and Executive Director, Innovative Agro Industry; and Sir Brown Bai, Chairman, Rural Industries Council.
Explore chapterICT
Buy digital copy of this chapter - £18Twenty years ago, Qatar’s leadership set out to liberalize the country’s telecoms sector, transforming its state-run monopoly operator into a market-driven firm. This was part of an effort to transition the Qatari economy away from its traditional mainstays, oil and gas. To that end, the ICT sector has been instrumental to a broader process that continues today. As state and private players team up to roll out advanced infrastructure and increase ICT device penetration, they are driving growth in one of the country’s most dynamic non-energy sectors, improving communications, and building up infrastructure and expertise vital for the development of a knowledge economy.
This chapter contains interviews with Mohammed Ali Al Mannai, President, Communications Regulatory Authority; and Ian Gray, CEO, Vodafone Qatar.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Aegis Business Solutions, OBG explores Trinidad and Tobago’s taxation system, examining a wide range of areas of special interest to international investors, such as income and corporate tax, petroleum profit tax, withholding tax, value-added tax and Customs tax, among others.
This chapter features a viewpoint from Angela Lee Loy, Chairman, Aegis Business Solutions.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter explores Brunei Darussalam’s tax regime, focusing on key areas that include tax breaks for businesses, incentives, the withholding tax regime and deductible expenses. It also contains a viewpoint from Shazali Sulaiman, Partner, KPMG Brunei Darussalam; and Chairman, Brunei Darussalam International Chambers of Commerce and Industry.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Many of Malaysia’s Vision 2020 goals to develop into a high-income knowledge economy hinge on its ability to leverage the IT sector strategically and effectively. As in developed countries, the country’s IT backbone undergirds and acts as the foundation for the potential of a wide swathe of other sectors, from services and industry to tourism and banking. Although the sector is steadily achieving its Vision 2020 goals, it is faced with doing so in a demanding environment. The past two years have been somewhat trying times for the country’s telecoms companies, which have had to adapt to changing economic, market and regulatory conditions. However, there is light at the end of the tunnel as the sector appears to be preparing for a more stable period, and ongoing work on coverage, capacity expansion, modernisation and infrastructure-sharing agreements are beginning to yield benefits for providers and consumers alike. This chapter contains interviews with Zam Isa, Group CEO, Telekom Malaysia; and Wong Heang Tuck, CEO, U Mobile.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Sri Lanka’s education system is widely regarded as among the best in South Asia. A commitment to improving the quality of teaching at all levels and across the country has resulted in impressive outcomes in recent years. The current government, which came to power in early 2015, has announced a series of ambitious new policies aimed at bolstering the nation’s reputation as a high-quality education provider and further improving the government-run primary, secondary and higher education systems. Free universal health care is enshrined in Sri Lanka’s Constitution. Its health care system delivers what is widely recognised as some of the highest-quality care in South Asia, despite spending considerably less than most other countries. Meanwhile, the private sector has made significant strides recently, with companies opening high-end hospitals and other specialised facilities at a rapid pace.
This chapter contains an interview with Ashok Pathirage, Chairman, Asiri Group of Hospitals.
Explore chapterRetail
Buy digital copy of this chapter - £18Strong expansion in Abu Dhabi’s high-quality retail stock with a focus on added entertainment and food and beverage components has helped to draw crowds, with the emphasis on malls as destinations in themselves increasingly reflected in the proportion of space given over to food and beverage outlets, and the greater variety among concessions. Wholesale and retail trade in the emirate totalled $11.5bn in 2014 when measured at current prices. This represented annual growth of 18.3%, or 8.7% at constant prices, beating average 2.2% growth for the economy overall. Rents are expected to remain stable in the short term; however, the new malls entering in 2018 are likely to have a more marked effect on the sector, with polarisation anticipated. In particular, lower-quality malls are expected to see rents decline. This chapter contains an interview with Yousef Mohammed Rasool Khoory, CEO, Mohammed Rasool Khoory & Sons.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, OBG explores the taxation system, examining Tunisia’s investor-friendly environment. This chapter contains a viewpoint from Noureddine Hajji, Managing Partner, EY Tunisia.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The government of Thailand is highly focused on reforming education and has made some decisive moves to achieve this end. The administration is also starting to lay the foundations for the long term, pushing initiatives that will help education move into the future. It is, for example, working to increase research and development spending, from 0.46% of GDP in 2015 to 1.0% in 2016. This is central to making the universities more sustainable, competitive and relevant in an international context. Ultimately, the country may find that education can become a driver for economic growth. Health care is growing and is seen as a source of significant opportunity and growth. Not only is it strong on the domestic side, with more than 99% of the population receiving free health care, but it is also a highly competitive destination for medical tourism. Heavy investment continues in the sector. Hospital groups are raising funds and expanding, mergers are being undertaken and the sector is venturing overseas. This chapter contains an interview with Arthit Purairat, President, Rangsit University.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18Lagging behind the region’s faster evolving markets when it comes to the provision and adoption rate of mobile broadband, data usage and mobile services in the Philippines are expected to grow as smartphones become more pervasive and the two leading operators continue to raise capital expenditure to upgrade existing networks and deploy 4G sites. Overall, the Philippine’s young population and expanding economy makes it an attractive market for telecoms firms to play. Despite the two incumbent operators enjoying an entrenched market position that makes them difficult to challenge, the propensity for Filipinos to consume online content and engage in social media presents opportunities for a range of technology firms involved in delivering media content, gaming, e-commerce and digital advertising. Encouraging demographics and a well established BPO industry suggest there are also strong opportunities for growth and ways to expand upon current operations in the IT sector. If harnessed effectively, the Philippines possesses a number of ingredients that position it to emerge as a globally competitive tech hub. This chapter contains an interview with Ryan Guadalquiver, Managing Director, Hewlett Packard Enterprise.
Explore chapterTourism
Buy digital copy of this chapter - £18The expected signing of a formal peace agreement between the government and Colombia’s main rebel group, the FARC, promises to be a key event for the country’s tourism industry in 2016. A settlement is expected to formalize and extend the reduction in political violence seen in recent years, with tourism among the sectors set to benefit the most from the peace accord. The sector has registered significant growth in recent years, a trend set to continue in the short-term. Tourism arrivals rose by 12.1% in 2014, with over 2.5m visitors, while data for the first half of 2015 shows growth of 12%, with a 16.3% drop in cruise ship arrivals offset by an 18.2% increase in arrivals by air. According to the World Travel and Tourism Council, the tourism industry’s direct economic contribution in 2014 was equivalent to 1.9% of Colombia’s GDP, while its total contribution reached 5.9%.
This chapter includes an interview with Arturo García Rosa, President and Founder, South American Hotel & Tourism Investment Conference.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Bahrain is home to one of the most liberalised telecoms sectors in the Middle East. Although it is a relatively small market, the country is keen to leverage telecommunications to facilitate broader economic growth, with the third National Telecommunications Plan, issued in 2012 and running until end-2015, envisaging the industry as a key enabler of socioeconomic development. Data services have continued to witness exploding demand in the country, with mobile broadband accounting for 38% of usage in the fourth quarter of 2013, up from 35% in the first quarter. In response to expected continued growth trajectories, the government has allocated funds of $68.5m between 2013 and 2017 for the further development of the national broadband network.
This chapter contains an interview with Muna Al Hashemi, CEO, Batelco.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Myanmar’s legislative climate for foreign investment as well as new regulations for the foreign exchange market and updates to legal codes. It also contains an interview with Cheah Swee Gimm, Director, Kelvin Chia Yangon.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18As diversification efforts continue, the education sector remains a top priority for the government of President Ollanta Humala. Since taking office in 2011, the Humala administration has initiated large-scale reforms aimed at improving educational outcomes. While the presidential elections in 2016 add a degree of uncertainty over the future, there seems to be enough political will to carry the current reform efforts forward. Meanwhile, a push to extend health coverage to more Peruvians has seen significant strides made towards achieving universal health coverage in the past decade. However, rising demand for health care is increasing the burden on already strained public facilities. The reforms initiated under President Humala are expected to increase efficiency and improve service delivery in public facilities in the medium-term. In the meantime, a dynamic private sector is set to benefit from growing demand for private services and new opportunities for public-private partnerships. This chapter contains interviews with Jaime Saavedra, Minister of Education; and Raúl Diez Canseco, Founder, Universidad San Ignacio de Loyola.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Oman offers a diverse as well as highly competitive telecoms sector, with two full-network operators and three virtual network operators catering to a market of 4m people. Despite this, however, the sector has continued to expand on the back of rising subscriptions and increasing mobile penetration rates. Growing market maturity has led to operators looking to boost take-up of mobile internet and value-added services in order to drive revenues, while targeting niches with innovative offers. Meanwhile, the IT segment is thriving, with a particular emphasis being placed on the support of SMEs. The Sas Programme, a notable example this, aims to support young entrepreneurs by providing technical and business training to IT startups.
Explore chapterEducation
Buy digital copy of this chapter - £18With a looming demographic bulge and a need for higher youth employment, Egypt’s education sector is the focus point of much attention. Egypt’s public education system is the largest in terms of student populations in the Middle East and North Africa (MENA), yet its levels of public spending have only seen nominal increases in the last five years.
With new constitutional obligations, Egypt’s current public spending campaign, if executed correctly, should support the improvement of education levels, in terms of quality as well as access. The country’s broader stability should also help to increase attendance figures. Moreover, with its substantial population, sizeable middle class and interest in education, Egypt makes an increasingly attractive prospect for a broad range of private education providers going forwards.
This chapter contains an interview with Prof. Ismail Abdel Ghafar Ismail Farag, President, Arab Academy for Science, Technology & Maritime Transport.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Kenya has a young and growing population, which has the potential to transform the country’s economic fortunes. To achieve this transformation the government will have to improve the quality and relevance of the skills young people possess. The country’s basic indicators have been moving in the right direction and compare well with the region. The state of health care in Kenya presents both challenges and opportunities. The public health system has grappled with underfunding and low staffing ratios, but there is hope that the ongoing devolution of services will improve the equitable delivery of quality health care, alongside the roll out of more private sector services. The government has committed KSh38bn ($418m) to the sector under the Healthcare Transformation Programme as part of its wider Vision 2030 plan.
This chapter contains an interview with Noah O Midamba, Vice-Chancellor and CEO, KCA University; and Professor of Defence and Foreign Policy.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTable of Contents
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Media & Advertising
Buy digital copy of this chapter - £18South Africa’s media sector is perhaps the largest and most sophisticated on the continent, with more than 850 print titles, around 250 radio stations and 16 television providers offering more than 170 channels. The reach of broadcast in particular is impressive, with a steady rise in channels and advertising revenues in recent years. Ownership is well diversified, with hundreds of independent and community options both in terms of radio and print providing targeted local and language-specific coverage. As in media markets worldwide, traditional mediums are being shaken up by the rise of digital access and “platform agnostic” content consumption, with print readership one of the most visibly impacted mediums. However, the sector also faces broader headwinds, from pressure to allow closer government regulation to job cuts and delayed digital terrestrial migration.
This chapter contains an interview with Koos Bekker, Chairman, Naspers.
Explore chapterEducation
Buy digital copy of this chapter - £18Universal access to basic education has been a key goal for Ghana, and the country has continued on its path towards full enrolment. At the same time, Ghana has focused on improving and expanding its existing school infrastructure, particularly at the senior high school level through its Secondary Education Improvement Programme, launched in May 2014 and aimed at increasing access to senior secondary education in underserved communities. Educational enrolment levels have continued to improve, in part due to the success of government efforts, and the country has moved closer to achieving the Millennium Development Goal of universal primary education by 2015. Regardless, performance rates have left many in Ghana concerned about the readiness of graduates entering the university system.
Explore chapterHealth
Buy digital copy of this chapter - £18Kuwait’s rapidly changing demographic profile and increased prosperity have given rise to various lifestyle changes that have fuelled a rise in the prevalence of non-communicable diseases. To counter this, and to free up public resources for healthy living initiatives, the government is encouraging greater private sector involvement in the sector, starting with provision of health care for expatriates. Meanwhile, the Ministry of Health is in the process of upgrading nine hospitals at a total estimated cost of KD1.25bn ($4.31bn). Two projects – the Al Razi Hospital and the Amiri Hospital – are already under construction, and seven others are to break ground in the next few years.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Competition in Saudi Arabia’s telecoms sector continues to grow, with companies continually seeking to invest in the infrastructure that will connect customers to a broader range of communications services. As the number of mobile internet users continues to rise, the Kingdom’s operators are seeing demand for traditional voice and text services become gradually displaced by data services and mobile broadband. Meanwhile, and in line with the country’s economic diversification targets, IT firms are increasingly viewed by the government as essential to sustainable development, with the Kingdom’s latest five-year plan committed to enhancing the country’s IT infrastructure. Spending on cloud services is rising rapidly and is expected to reach $31.3m in 2015.
This chapter contains interviews with Khaled Biyari, Group CEO, Saudi Telecom Company (STC).
Explore chapterTourism
Buy digital copy of this chapter - £18Despite grappling with the challenges of political instability in North Africa and the impact of the eurozone crisis in Europe, Morocco continues to pursue the objective identified in its national tourism development plan, Vision 2020, of becoming a top-20 tourism destination by 2020. The sector already contributes 12% of GDP, supports around 505,000 direct jobs and is an important foreign exchange earner, generating up to €6.2bn in 2014. Alongside efforts to expand Morocco’s air links and attract more visitors from abroad, however, the government has also targeted increases in the number of domestic tourists through marketing campaigns and building hospitality infrastructure that caters to the needs of local holidaymakers.
This chapter contains interviews with Imad Barrakad, President, Société Marocaine d’Ingénierie Touristique; and Abdelatif Kabbaj, President, National Confederation of Tourism.
Explore chapterTourism
Buy digital copy of this chapter - £18With fewer than 50,000 visitors travelling to Papua New Guinea each year for leisure, according to figures from the PNG Tourism Promotion Authority (TPA), the country is far from a mainstream tourism destination. The sector remains largely undeveloped and is a relatively minor contributor to the overall economy. PNG is a challenging destination to travel to and within. Yet the more intrepid traveller who is willing to overcome some of the associated concerns and costs will be rewarded with a sense of adventure and authenticity that is difficult to match elsewhere. PNG boasts a diversity of attractions bundled together. And while not catering to the mass holiday market, enthusiasts in pursuit of any combination of distinct local cultures, history from the Second World War, unique flora and fauna, and some of the world’s best hiking, surfing and dive spots will not leave disappointed.
This chapter contains an interview with Richard Knight, Owner, Loloata Island Resort.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of T&T’s tax regime, covering areas of particular interest to investors such as corporate and individual income tax, value-added and Customs tax, as well as tax exemptions, among other aspects. In addition, it features a viewpoint with Angela Lee Loy, Chairman, Aegis Business Solutions, on the tax incentives supporting economic diversification.
Explore chapterEducation
Buy digital copy of this chapter - £18Despite notable achievements in the past decade, including reaching universal coverage at the primary level, by international standards the quality of Panama’s education system continues to lag significantly. Panama ranked 83rd out of a total of 144 countries for the quality of its education system in the World Economic Forum’s “Global Competitiveness Report 2014-15”, down eight places from 75th in the previous year’s report (out of 148 countries) and behind regional neighbours Costa Rica (21st) and El Salvador (63rd). Curricular reform introduced in 2010 has increased pertinence and retention rates, while a strengthening of the accreditation process for universities has also brought about improvements at the tertiary level. However, a disconnect between the educational offering and labour market needs remains a concern. A rising budget and push to expand the post-secondary offer are indicative of the current government’s commitment to improve education outcomes, a move which has become key to ensuring sustainable economic growth.
Explore chapterInsurance
Buy digital copy of this chapter - £18Given Indonesia’s large population of nearly 220m – which is expanding by more than 1% per annum – its growing middle class and a GDP rising at about 6% a year, the insurance sector stands to benefit from these fundamentals in the years ahead. Overall insurance company assets increased by 14.5% in 2014, according to preliminary statistics from the Financial Services Authority (OJK), and total assets have more than doubled in the five years to 2014. However, even as insurers garner more business, there will be challenges for the OJK, as it works to achieve the right balance of regulation to ensure long-term sustainability without limiting growth or worrying investors.
This chapter contains an interview with Rinaldi Mudahar, President-Director, Prudential Indonesia.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The number of listed companies on the Indonesian Stock Exchange (IDX) increased by 50% in the decade to 2014, and market capitalisation was up five-fold in that period. In terms of the exchange’s performance, the index has risen far more than those of its regional peers and international benchmarks. Still, the capital markets are in need further development. For the nation to grow as it hopes and plans, the IMF and others have said that it must endeavour to create markets that are larger and more sophisticated. If the capital markets continue to improve and evolve, and if the authorities are able to get more firms listed and increase the number of shareholders, volatility and risk can be greatly reduced and the markets can play a more significant role in the transformation of the economy.
This chapter contains interviews with Muliaman D Hadad, Chairman, Financial Services Authority; and Michael Steven, President-Director, Kresna Securities.
Explore chapterEmerging Cities
Buy digital copy of this chapter - £18Since the policy of decentralisation was enacted in 2011, the country’s central government has ceded increasing amounts of control, both budgetary and political, to its provinces. However, the island of Java and the country’s metropolitan capital, Jakarta, remain the main source of Indonesia’s economic power. As a result, efforts are being made to equalise and support growth and investment in the country’s regions and cities. As the decentralisation process has unfolded, several “second cities” have shown a particular ability to thrive in this autonomous system, namely, Surabaya, Bandung and Medan.
This chapter contains an interview with M Ridwan Kamil, Mayor, Bandung.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Driven by government reforms, increased private sector investment, and one of the largest and youngest populations in Europe, Turkey’s education sector has grown and matured impressively over the past decade. As the country moves forward on a host of education targets, including Vision 2023’s goal of reducing unemployment to 5%, key indicators such as literacy and enrolment have shown improvement. However, stakeholders have highlighted continuing challenges, including low enrolment across the secondary and tertiary levels, gender and regional disparities at the primary and secondary levels, and serious capacity constraints in the post-secondary system. The government has taken note, increasing its annual education budget each year and launching new projects aimed at expanding research and development (R&D) at post-secondary institutions. Turkey’s sizeable young population is poised to capitalise on a growing and increasingly inclusive education system that should help to improve employability and employment levels in the years to come.
This chapter contains an interview with Turgut Şenol, General Manager, Teknopark Istanbul.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Over the past decade or so the agriculture sector – one of Mongolia’s oldest industries – has remained integral to the country’s long-term development strategy. Until just a few years ago the majority of Mongolia’s population was involved in herding or farming in one way or another, and as recently as 2011 more than 30% of the country’s workforce was employed in agriculture. While this figure is expected to decline in the coming years, largely as a result of steadily increasing rural-urban migration, a considerable percentage of the population will likely continue to be involved in agricultural activities – primarily in the livestock segment – for the foreseeable future. Generally speaking, production levels and overall food quality are improving across the sector, and exports are increasing apace. The cashmere segment in particular continues to provide high revenues for many Mongolian companies and individual herders, and opportunities for meat and other animal-product exports bode well for future growth.
This chapter contains an interview with Sh. Gungaadorj, Former Mongolian Prime Minister, and Head, Mongolian Farmers and Flour Producers Association.
Explore chapterMedia & Entertainment
Buy digital copy of this chapter - £18In recent years Nigeria has earned a reputation as one of the fastest-growing media markets in Africa. Over the past few decades the nation’s large population – currently estimated at around 170m, according to the World Bank – and rapidly expanding middle class have driven demand for new newspapers, magazines, radio and television programmes, music, film and, more recently, digital media of all sorts. The music industry and the Nigerian film industry have become significant cultural institutions in their own right, earning fans throughout Africa and further afield. Nigeria is the single largest media market in sub-Saharan Africa, and a handful of Nigerian media outfits have a pan-African reach. While catering to the needs of the country’s large and diverse population is seen as a major challenge, it is also an opportunity for the development of niche and tailored publications, targeted advertising and new markets.
Explore chapterTransport
In line with plans to make the Kingdom a regional centre for logistics and trade, the 2014 budget put $17.76bn towards transport and infrastructure, the third-highest allocation. Plans for upgrades across all elements of the transport network including ports along the Red Sea and a national rail network will help to position Saudi Arabia as a base for logistics operations in the region, especially for the crucial Europe-Asia cargo route. At the same time, growing airline passenger numbers and large urban public transport projects look set to further develop domestic transportation. This chapter contains an interview with Prince Fahd bin Abdullah, President, General Authority of Civil Aviation.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms sector in Qatar has grown at a rapid pace over the past decade and today boasts at least 100% mobile penetration, 93% laptop ownership, 65% smartphone ownership and 29% tablet penetration. Data services have underpinned revenue growth in recent years and are expected to continue driving demand and revenues in the mobile segment. Meanwhile, the take-up of IT services has been increasing rapidly in the state, with 85% of the population accessing the internet in 2013, compared with 38% in 2008. IT is regarded as a key sector moving forward, and the country has seen a strong push to encourage SMEs, which make up 97% of Qatar’s private sector, to use IT solutions, particularly in terms of cloud computing.
This chapter contains interviews with Hessa Sultan Al Jaber, Minister of Information and Communications Technology; and Rashid Fahad Al Naimi, CEO, Qatar Foundation Investments, and Chairman, MEEZA.
Explore chapterHealth & Environment
In common with governments around the world, issues such as rising costs, demographic shifts, technological advances in care and delivering equitable health care to both rural and urban populations are posing challenges to Sarawak’s health authorities. Of the state’s inhabitants, 44% were considered rural in 2013. Yet it has only one major public hospital, Sarawak General, located in the capital Kuching. It is thus important for authorities to devise alternative modes for delivering care. Within the health care sector, the need to address the persistent urban-rural divide and create incentives to attract and retain qualified medical practitioners is likely to be prioritised. As costs rise, the requirement for health care insurance for some workers should energise the state’s insurance industry. There is also much promise for bioprospectors to discover new medical compounds in Sarawak’s rainforests, which could act as a key accelerator for the state’s biomedical economy.
Explore chapterTransport
In line with plans to make the Kingdom a regional centre for logistics and trade, the 2014 budget put $17.76bn towards transport and infrastructure, the third-highest allocation. Plans for upgrades across all elements of the transport network including ports along the Red Sea and a national rail network will help to position Saudi Arabia as a base for logistics operations in the region, especially for the crucial Europe-Asia cargo route. At the same time, growing airline passenger numbers and large urban public transport projects look set to further develop domestic transportation. This chapter contains an interview with Prince Fahd bin Abdullah, President, General Authority of Civil Aviation.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Directly employing more than one-quarter of all workers in non-service industries, agriculture provided a livelihood for more than 11m Filipinos in 2013. The sector continues to play a pivotal role in the economy, even as the government looks to develop other industries to lead the way in the future. Recent public and private efforts to boost output and efficiency have led to promising improvements across several segments, including a drive for self-sufficiency in the staple crops of rice and corn and expansion of the sugar industry, while continued investment has produced growth in export-oriented cash crops. Determining the most effective means of countering the effects of inclement and often devastating weather will be a key concern going forward.
This chapter contains interviews with Francis N Pangilinan, Secretary, Office of the Presidential Assistant for Food Security and Agricultural Modernisation; and John P Perrine, Chairman, Unifrutti Group Philippines.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18The past decade has seen significant sums invested in developing tourist facilities and infrastructure in the emirate, and the sector has been earmarked as key in supporting economic diversification in line with Abu Dhabi Economic Vision 2030. The strategy appears to be paying off, with around 3.5m guests staying in Abu Dhabi in 2014, up 25% on the previous year. The emirate aims to continue this rising trend, and is investing heavily in the conferences and exhibitions sector, another area that witnessed strong growth in 2014, while the Yas Island and Saadiyat Island developments represent key planks in the government’s strategy to attract a diverse range of international leisure tourists.
The emirate is also adding events to its sporting calendar, and in 2015 is due to host the World Triathlon Series and pro-cycling race Abu Dhabi Tour.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Given its size, its status as a cultural hub of Francophone West Africa and its relatively diverse print media and radio sectors, Côte d’Ivoire has the potential to be a major regional media market. While high production costs and low household discretionary spending have limited growth, developments in the audio-visual (AV) sector, namely the migration to digital TV and planned liberalisation, should stimulate competition and spur investment in that side of the market. While high costs and demographic factors in the Ivorian market continue to pose a challenge to the profitability of the nation’s print media in the short-to-medium term, strong overall economic growth and a large youth population hold promise for the future of web media. By comparison, opportunities in the AV sector are larger. The move to AV liberalisation, plus the shift to digital TV, should create new opportunities for investment in the near future.
Explore chapterEducation
Buy digital copy of this chapter - £18The government and private providers are investing to meet growing demand as the emirate estimates that the number of students attending private schools in Dubai will double from 183,000 in 2010 to 366,000 in 2020. Underpinning this sustained growth in school pupil numbers has been a shift in behaviour by the expatriate labour force in recent years from temporary stays to more permanent residence. As the number of tertiary institutions in the sector continues to rise, competition to attract students has intensified, with private universities are likely to come under increasing pressure to publish graduate employment data. The higher education industry is working to foster stronger links between industry and higher education providers and to look for ways university research may be tailored to benefit businesses in the emirate.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Privatisation and liberalisation initiatives have led to increased competition in the Bahraini telecoms sector in recent years, making it one of the most dynamic in the kingdom’s economy, with telecommunications accounting for roughly 4% of GDP in 2012. Mobile penetration stood at 166% in 2013, well above the regional average of 110% and the global average of 96% while the roll out of 4G long-term evolution services is accommodating the huge rise in data demand. Meanwhile the IT sector continues to thrive, with 2013 figures showing that 82% of households in Bahrain had internet access and more than 90% had computers. Government services have increasingly become available online since 2007, with The National eGovernment Strategy for 2016 aiming to bring over 90% of key services used by Bahraini residents and businesses online, including business and office registration, banking services and e-tendering of government contracts.
This chapter contains a roundtable discussion with Alan Whelan, Group CEO, Batelco; Ulaiyan Al Wetaid, CEO, VIVA Bahrain; and Mohammed Zainalabeddin, General Manager, Zain Bahrain.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter offers an overview of Myanmar’s tax system, examining how new laws and amendments are affecting the country’s business environment. It also features a tax viewpoint from U Win Thin, Chairman, Win Consulting.
Explore chapterAgriculture and Fisheries
Buy digital copy of this chapter - £18Achieving self-sufficiency in agriculture and fisheries sector is driving expansion in Oman as the government finances a number of initiatives and invests in key infrastructure that will strengthen the sector moving forward. Adding value through processing is a key goal with the Oman Sugar refinery company’s 2013 announcement of a $200m sugar processing plant in Sohar a key point in this regard. Meanwhile, the Ministry of Agriculture and Fisheries is working to double the output of the fishing sector to 480,000 tonnes by 2020. Doing so would create 20,000 additional jobs, and the integrated fishing industrial zone at Duqm is set to be the largest such facility in the Middle East. This chapter contains an interview with Fuad bin Jaafar bin Mohammed Al Sajwani, Minister of Agriculture Fisheries Wealth.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Public spending on education and health is set to increase significantly in coming years as the government attempts to address one of the biggest challenges facing both sectors; a sizeable infrastructure gap that continues to perpetuate a significant urban-rural divide. In the process, opportunities for the private sector through public-private partnerships (PPPs) should abound. In the education sector, the government’s most recent effort to improve quality came in the form of a new university law which will increase oversight and requirements for students and professors. Meanwhile, in the health sector, a reform package passed in 2013 and the allocation of $8.4bn to address the infrastructure gap in the public health system are indicative of the government’s commitment to raising sector standards. A new emphasis on PPPs to boost public health infrastructure is expected to generate opportunities for an already dynamic and fast-growing private sector.
This chapter contains interviews with José Dextre Chacón, President, Federation of Private Institutions of Higher Education and Elsa Del Castillo, President, University of the Pacific.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Despite a decline in agricultural production as a percentage of GDP in the past decade, agriculture remains a key component of South Africa’s economy and one of the country’s largest employers. In 2013 the sector as a whole contributed $5.48bn to GDP, on the back of primary annual agricultural production of $17.78bn. Agricultural production by volume rose by 2.7% in 2013. This can be attributed to a 4% increase in poultry meat, and a similar rise in goat and sheep mutton, pork and beef production; a 2.3% rise in field crop production, including sorghum, soya beans, sunflower seeds, dry beans and sugar cane; and a 0.6% increase in horticultural production, including citrus and deciduous fruit. Under the National Development Plan the government aims to create almost 1m new jobs in agriculture by 2030, primarily by expanding irrigation on arable land. South African farmers and other agriculture players also face high input costs, complex and shifting land reform regulations, labour unrest, dilapidated infrastructure and increasing competition from elsewhere. However, many local players are looking forward to continued expansion.
This chapter contains an interview with Chris Venter, CEO, AFGRI.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The largest country in the Arab world, Egypt has well-established medical facilities. However, the health sector faces significant challenges in caring for a rapidly growing population using a system hampered by structural weaknesses. In its 2014 constitution, the Egyptian government pledged to devote 3% of GDP to health care. With pressing matters of security and political stability facing the next government, health care workers are not anticipating radical reforms immediately. Yet the consensus is that reforms must come in the medium term to improve standards and services, reduce inefficiencies and inequality, and prepare the system for the pressures involved in dealing with a rapidly growing population. The education system in Egypt currently faces many challenges as it seeks to improve and better prepare the country’s young people to join the workforce. One of the biggest component groups of Egypt’s jobless are graduates, who account for 33% of the total. Optimism was sparked by the new constitution, which came into force in January 2014. Article 238 stipulates that education must receive expenditure to the value of at least 4% of GDP each year. Yet increasing funding cannot be the only solution; the reform of curricula, implementation of technology and improvement in teaching are all also urgent requirements.
This chapter contains interviews with Hamed Sherif, Chairman, Misr International Hospital and Mahmoud Abo El Nasr, Minister of Education.
Explore chapterEducation
Buy digital copy of this chapter - £18The Ministry of Education’s plan for the 2012-17 period includes three focus areas: teaching and learning excellence; professionalism and accountability; and efficiency and innovation, all bolstered by 14 strategic objectives and 18 key performance indicators. Complementing the transformation of its basic education system is an equally ambitious overhaul of tertiary institutions designed to combat unemployment across a broad range of sectors and skill sets. The sector benefits from substantial funding. In the 2014/15 budget, for example, the Ministry of Education received the second-largest allocation of any state entity at $604.5m or 13% of the total.
This chapter contains an interview with Pehin Dato Abu Bakar Apong, Minister of Education.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Following decades of stagnation in basic health care indicators, Kenya’s health sector is slowly picking up. Health care spending however remains low, while key indicators such as maternal mortality have stayed high for a decade. Nonetheless, recent reforms have painted a brighter picture for health care in Kenya. President Uhuru Kenyatta’s goal to deliver universal health care has seen the National Hospital Insurance Fund (NHIF) significantly expand its activities and coverage in the last year, raising hopes of coverage expansion for low-income people. Meanwhile, over the past decade, intensive attention and investment have been directed at Kenya’s education sector as the government works toward industrialisation under the Vision 2030 national development plan. The introduction of universal primary education and the abolition of secondary school fees have created a more inclusive system, improving a number of basic indicators. A sharper focus on technical, industrial, vocational education and training (TIVET) activities will bolster employment outcomes, and new emphasis on ICT uptake will broaden access and enhance skills development.
This chapter contains interviews with James Macharia, Cabinet Secretary, Ministry of Health; Mabel Imbuga, Vice-Chancellor, Jomo Kenyatta University of Agriculture and Technology.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The introduction of structural health reforms and provision management systems over the past decade has enabled the health sector to more effectively confront its persistent challenges. While many indicators are improving, diseases such as hypertension and diabetes are on the rise. There are also persistent concerns about maternal mortality and human waste disposal. The refined roll-out strategy for the National Health Insurance Scheme (NHIS), along with a renewed focus on maternal health, investment in new equipment and overall infrastructural upgrades, demonstrates a positive outlook regarding health coverage and disease prevention for Ghanaians. In education, capacity building and knowledge transfer through new training programmes, private universities and public-private partnerships are a top priority. While the budget is robust, overspending and inefficient allocations still impede optimal growth. Hard infrastructure also remains a key challenge and greater investment from the private sector is part of the government’s strategy.
This chapter contains interviews with Frederik Hsu, Deputy Chairman, NMS Infrastructure; and Mark E Smith, Vice-Chancellor, Lancaster University.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate including an introduction to a new investment law aimed at improving tax governance, an examination of the various treaties that have been established with partner countries and a breakdown of general sales tax and special sales tax.
This chapter contains a viewpoint from Ali Samara, Partner, EY Jordan.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterCountry Profile
In just a decade, advances in the fight against insurgent groups, coupled with long-term policies that have generated confidence among investors, have radically changed the way the world looks at Colombia. On the political front, the government of President Juan Manuel Santos Calderón has maintained a dialogue over the past 18 months with the Revolutionary Armed Forces of Colombia, with hopes of achieving peace after half a century of internal conflict. The possibility of a peace agreement has the potential to redefine not only the political climate in Colombia but also the economy – important for a country that still faces significant challenges. High crime rates in major cities, coverage gaps in education and health, and a high inequality coefficient are some of the issues the government will work to tackle in the next four years. This chapter contains interviews with Juan Manuel Santos Calderón, President of Colombia; Maria Ángela Holguín, Minister of Foreign Affairs; and Hasan Tuluy, World Bank Regional Vice-President for Latin America and the Caribbean.
Explore chapterTourism
Buy digital copy of this chapter - £18Visitor arrivals have jumped substantially in recent years, topping 475,000 in 2012, up 3.4% from the previous year and from less than 150,000 in 2000. As of mid-2013 the government has been working with the private sector to overhaul the country’s tourism regulatory regime and development strategy. In March 2013 the minister of culture, sports and tourism announced that the government had allocated $600,000 for tourism marketing in 2013, including $300,000 for promotional activities, $120,000 for international tours and expositions, and $180,000 for advertising. As of 2012 the industry’s direct economic contribution was 194m, or 2.3% of GDP. This figure was projected to rise by 7.2% in 2013 and by around 7% annually through to 2023. While major challenges remain – including how to attract visitors during the long, cold winter months – many local operators are broadly optimistic about the sector’s long-term potential. This chapter contains an interview with Ts. Oyungerel, Minister of Culture, Sports, and Tourism.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The agriculture sector’s contribution to GDP has fallen from an average of 32.19% during the 1960s to 23.2% in 1980 and 9% in 2000. However, by 2007 the share had risen to 10.7%, and recent estimates have suggested that the sector now accounts for some 13% of GDP. With its products renowned throughout the world, particularly its rice, Thailand has also been an important international granary at times of global food need. Today, however, the sector faces some important challenges as it seeks to develop further. Debate surrounds the role of the state in the sector’s future, particularly regarding the government’s rice support policies. Locally, raising productivity and managing the agricultural labour market are also proving challenging. Despite a reduction in the number of farmers, the sector has been able to reverse the long-term decline in its share of GDP thanks to a shift in policy towards higher-value, more specialised products, as well as increased mechanisation, diversification, and productivity. The political framework governing agriculture, particular the rice and rubber segments, is still the source of some risk. Despite challenges, however, Thailand remains a global agricultural player. There is much to be developed, which could create major opportunities for investors in the years to come. This chapter contains an interview with Krisda Monthienvichienchai, CEO and President, Mitr Phol.
Explore chapterTelecoms & IT
There is a growing sense that the telecoms market is evolving and becoming more segmented, with increased differentiation among players. This is helping the industry to move beyond the commodity stage, as customers begin to pick and choose and are no longer seeing all carriers as being the same. The merger between XL Axiata and Axis Telekom Indonesia received approval from the Ministry of Communications and Information Technology in December 2013, and the deal was completed in 2014. The combined entity is set to become the second-largest player in Indonesia. The prospects for the sector are the best in years. Mergers, additional spectrum and new technologies are helping to stop the decline in average revenue per user that defined the market for so long. While much IT-related activity in Indonesia is very basic, it is on a large scale and is growing rapidly. A density of use is being attained that is driving profitable advances. The next few years should bring rapid growth and intense competition. Companies from all over the world will be battling for market share, which should help keep prices down. Last mile and digital divide issues remain, but as they are solved the market will expand further. This chapter contains interviews with Arief Yahya, President Director, PT Telekomunikasi Indonesia (Telkom); and Hasnul Suhaimi, President Director and CEO, XL Axiata.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18As a strategic priority for national development, the tourism sector is showing promise, and visitor numbers, particularly from the GCC, are on the rise. Business travellers are the mainstay of the sector, though Qatar’s growing status as a sports and shopping destination is also enhancing long-term potential, while a growing regional cruise market and a new port in Doha are raising interest and opportunities in expanding Qatar’s profile as a cruise destination. A new national museum is set to showcase the state’s vision of Qatar’s national identity, an aim that has underpinned cultivation of the country’s tourism and cultural sector. This chapter contains interviews with Issa bin Mohammed Al Mohannadi, Chairman, Qatar Tourism Authority; Hamad Abdulla Al Mulla, CEO, Katara Hospitality; and Khalid bin Ibrahim Al Sulaiti, General Manager, Katara Cultural Village Foundation.
Explore chapterAl Ain
Buy digital copy of this chapter - £18The government has overseen Al Ain’s development in line with the policies laid out by the current ruling family of Abu Dhabi, which is committed to maintaining the traditional character of their ancestral home. Al Ain’s heritage and the area’s many natural attractions have made it a popular tourist destination for Emiratis and foreigners alike. Under Plan Al Ain, Jebel Hafeet and the surrounding Hajjar Mountains will be given national park status, with the goal of protecting the area from development and making it more accessible to visitors. The region is expected to attract considerable and sustained investment from both domestic and foreign investors, and a wide variety of industries will likely benefit from the anticipated increase in economic activity.
Explore chapterHealth
Buy digital copy of this chapter - £18At the height of its economic success, Panama seems to be seizing the opportunity to expand medical infrastructure. Funding for health in both the public and private sectors is rising along with spending per capita on medical services. Five new hospitals under construction are expected to add 1500 new beds and benefit some 658,000 patients, boosting the quality of health care in areas outside of the capital. A new medical city, known as Ciudad Hospitalaria, will consist of a 31.9-ha, $587.5m facility that will provide 1700 beds, 40 surgery rooms and 200 emergency room beds. Successful expansion of the sector will nevertheless depend on overcoming its most fundamental setback – a lack of medical staff, which could cause significant operational deficits. Indeed, Panama lags behind regional averages in its ratio of medical professionals to population. A new law allowing foreign medical professionals to work in specific jurisdictions could alleviate some of the pressure for the time being.
Explore chapterThe Guide
This section contains hotel listings for business and leisure travellers, useful numbers for embassies and other important contacts, and facts for first-time visitors to Myanmar. It also contains a feature introducing readers to the country’s pristine getaways and more information on what the “Golden Land” has to offer travellers.
Explore chapterIT & Telecoms
Buy digital copy of this chapter - £18Through strong government support, an attractive business environment and innovative free zones, Dubai has established itself as a leading regional centre for information and communications technology (ICT). Improved infrastructure for modernising technology is also helping domestic players diversify their services for an increasingly tech-savvy clientele, with demand for regionally and locally specific applications and content in multiple languages, particularly Arabic, set to grow. Most of this demand will be met by large, established companies, but increasingly start-ups, and even individuals, could begin to play a role in the market as well. For business customers, managed solutions and cloud-based services will steadily replace the traditional model of software and hardware sales throughout the region, with Dubai well placed to benefit from this trend.
This chapter contains an interview with Osman Sultan, CEO, du.
Explore chapterTransport
Buy digital copy of this chapter - £18Expansion of the highway network is set to boost sea-to-air connectivity and raise the sultanate’s profile as a logistics and trans-shipment destination. Development of aviation and port facilities has attracted significant foreign investment, with joint-venture opportunities in free zones and industrial zones, among others, progressing alongside the GCC rail project. This chapter contains interviews with Wayne Pearce, CEO, Oman Air; Melanie Schulz van Haegen, Dutch Minister of Infrastructure and the Environment; and Abdulrahman Al Hatmi, Director, Oman Rail Project.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Fuelled by private investment and broader economic growth, the telecoms market grew 13% in 2012 and is projected to expand by a further 11% in 2013. As the mobile market becomes more saturated with the entry of a fourth mobile operator in 2013, non-voice services are being rolled out to maximise customer revenues, such as mobile money and banking. The dominance of two operators in the mobile segment, stagnation in the fixed-line market, and the obstacles to the establishment and maintenance of telecoms infrastructure in rural areas continue to pose substantial challenges to the sector. Though the IT market grew 12% in 2012, growth is forecast to slow to 6% in 2013, with the hardware segment being the largest contributor to industry revenues, followed by IT services. Nonetheless, a more coherent national policy, coupled with a budding software market and a growing reputation as an outsourcing destination should ensure stable growth for the sector in the near future.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Belied by its relatively modest contribution to the overall economy, the Philippine agriculture sector remains a key component in the social and economic development of the country; more than 24.53m Filipinos work in the sector, making it economically and politically vital. Taken together, agriculture, forestry, hunting and fishing expanded by 2.92% in 2012, up slightly from 2.59% in 2011. At current prices, the value of agriculture production reached $33bn in 2012. Recent efforts by the government to increase efficiency and productivity within the industry should help boost profitability in the sector. Further, once in place, business-friendly policies and enhanced infrastructure should provide an attractive market for investors looking to harness the sector’s untapped potential. This chapter contains interviews with Virgilio de los Reyes, Secretary, Department of Agrarian Reform; and John Martin Miller, Chairman and CEO, Nestlé Philippines.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Over the past few decades Nigeria’s media and entertainment industry has developed into one of the liveliest in Africa. The country has one of the largest television markets in Africa and the film industry – nicknamed “Nollywood” – is one of the largest in the world by number of films released. Nigeria’s media, entertainment and advertising industries continue to face a number of interrelated challenges, including underdeveloped transport infrastructure and the unreliable electricity grid. Despite these issues, media firms, advertising agencies, and film and music production companies are broadly optimistic and Nigeria is uniquely situated to become a key international player in many of these areas. This chapter contains an interview with Alex Okosi, Senior Vice-President and Managing Director, Viacom International Media Networks Africa.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. This chapter contains an interview with Samy Laghouati, Managing Partner, Gide Loyrette Nouel.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The Egyptian media scene continues to undergo rapid change in the two years since the start of the revolution. The media has become much more diverse, and a number of new outlets have opened across all genres. The largest media organisation in the country is the Egyptian Radio and Television Union, which has a staff of over 40,000 people and runs nine television channels and six regional television stations. Egypt’s media is likely to continue to witness rapid change, with new outlets continuing to open but perhaps not nearly as many surviving. New media and the rise of smartphones are likely to stimulate competition, but over the near term content does not look set to shift focus noticeably. A large media market in its own right, the Egyptian advertising industry is bouncing back from the events of 2011 and 2013. The country’s media has experienced a flowering as some restrictions on freedom of expression have loosened considerably, and several new media outlets, both broadcast and print, have been launched, winning market share across the Arab world. Television will continue to dominate the spending, but other media, particularly radio and outdoor ads, could see strong growth. The sector looks set to see further recovery in 2013, and the rapidly changing media environment is likely to bring forward as many opportunities as challenges.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Rising incomes and improvements in providing access to internet platforms are having a positive impact on Gabon’s overall media environment. Print remains the dominant media force and more targeted titles might help bring more dynamism to the newspaper segment. Radio remains Gabon’s most universal medium and is especially relevant for the rural areas, which have widely dispersed populations. Online ventures are gaining more ground, but their rapid expansion remains restricted by limited access to internet connections and advertisers’ reluctance to embrace the internet as an efficient communications platform. As the range of media outlets continues to diversify both in terms of form and content, Gabon’s advertising sector is seeing steady growth. Online news platforms are attracting a steady flow of regular visitors and are increasingly able to monetise this, however, overall investment in internet advertising remains weak. Traditional media, such as press, television, radio and outdoors advertising spaces, will continue to drive the sector.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter, written in conjunction with Al Tamimi & Co., contains a rundown of the recently issued New Companies Law (NCL). In line with the reforms being implemented in various economies throughout the world, Kuwait, through the introduction of the NCL, is introducing new provisions and amending previous ones to allow more flexibility in establishment and operations, facilitate the incorporation process, make it more efficient, and alleviate other hurdles placed by the Old Law on new and existing investors who are interested in establishing and operating companies in Kuwait.
Explore chapterTransport
Buy digital copy of this chapter - £18More than any other sector, the Ivoirian government has placed transport and infrastructure at the centre of its plans to revitalise the national economy after a decade of political instability and under-investment. The improvement of Côte d’Ivoire’s transport network is essential to increasing growth in its export-led agriculture sector and the nascent mining industry, as well as capitalising on the country’s role as a transit and transshipment centre for the sub-region.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Despite some challenging circumstances, the South African agricultural sector continues to perform robustly. In the first quarter of 2013, the agriculture, forestry and fisheries sector comprised 2.2% of real GDP. The country’s major farming segments in recent years have included cattle, dairy, poultry, sugar and maize. In terms of turnover, as many as 10 of the top 20 agribusinesses in South Africa are domestic firms. With demand somewhat stymied and rising costs of operation for a number of farmers and agro-processing businesses, the sector faces some pressing challenges, including uncertainty over land tenure, labour unrest and the current economic environment. While these have created some difficulties, they have not cast a shadow over the future of the industry and investors have many reasons to look favourably on South African agriculture. This chapter contains an interview with Su Birch, CEO, Wines of South Africa.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Colombia’s transportation network, currently a competitive disadvantage for the country, ranks poorly even by regional standards. Decades of under-investment and security concerns have created significant logistical complications, pushing up the duration and cost of domestic shipments, which has recently been exasperated by the high cost of fuel, particularly diesel. Budget allocations for investment in transport have risen significantly in the past two years as the government carries out major modernisation projects. Heavy investment and the gradual implementation of a Customs reform to streamline shipping processes should see the sector regain some dynamism in the near future. This chapter includes an interview with Fabio Villegas, CEO, Avianca.
Explore chapterAgriculture & Water
Buy digital copy of this chapter - £18European countries pose a promising market for farmers, as the Jordanian climate is ideal for cultivation of out-of-season produce. The government has made resource conservation a priority and major projects are under way to improve network reliability. A number of initiatives have been implemented recently to increase the reliability of water sources, including a project to pump water from a southern aquifer to Amman.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The Third National Telecommunications Plan, unveiled in 2012, lays out the goals of developing a national broadband network and providing the regulatory framework necessary for implementing fourth-generation long-term evolution (4G LTE) technology. A considerable improvement in the country’s ICT capabilities, represented by a jump of five places from 45th to 40th between 2011 and 2012 in the ICT Development Index, is forecast to continue. The Telecommunications Regulatory Authority (TRA), which regulates the industry, has pursued policies to encourage market liberalisation and fair competition among operators, which has been a very positive force in the market. In a small, but highly competitive market, the main telecommunications companies within Bahrain have worked to carefully position themselves over the past few years toward the unveiling of the 4G LTE spectrum, which, due to a high level of ICT interconnectedness and the tendency of the kingdom’s population to be early adapters of new technologies, will most likely be very popular and profitable. This chapter contains a roundtable discussion with Sheikh bin Isa Al Khalifa, CEO, Batelco Group; Ulaiyan Al Wetaid, CEO, VIVA Bahrain; and Mohammed Zainalabedin, General Manager, Zain Bahrain.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The rapid growth of the domestic economy has helped to sustain an expanding media landscape, although issues of media freedom remain an ongoing concern. For some, a sense of growing polarisation represents a danger; others regard it as the emergence of a healthier (if more contested) public sphere. Despite the challenge from online outlets, Turkish print journalism still maintains a diverse range of publication and viewpoints. For 2013, there is widespread expectation that increased economic growth, along with the sector’s ability to move on from recent television ratings issues, should result in solid expansion. This chapter contains an interview with Nurı Çolakoğlu, President, Doğan Media International.
Explore chapterHealth
Buy digital copy of this chapter - £18Galvanised by encouraging policy-driven results, as well as by the 2011 constitutional amendments that enshrined access to health care as a basic right of all citizens, Morocco is securing the gains it has made over the past two decades. While health care indicators have shown improvements in recent years, a noticeable gap continues to exist between the country’s urban and rural areas, prompting new government programmes to correct this. Although the RAMED insurance scheme should greatly increase the number of people who have access to medical services, future success will depend on revamping existing infrastructure and deploying new equipment into less developed areas. The kingdom’s pharmaceuticals sector has seen steady growth over several decades, with the number of local and foreign manufacturing units growing from 13 facilities in 1975 to 32 in 2011. Sales reached €755.7m in 2012, a 4% increase on 2011 figures. Production accounts for 70% of local consumption, but exports are still low compared to capabilities, at 10% of annual output. This chapter includes an interview with Houssaine Louardi, Minister of Health.
Explore chapterTransport
Buy digital copy of this chapter - £18Spurred on by strong demand for services, the government is planning to bolster and upgrade infrastructure capacity across all segments of the transport industry. Indeed, with a rising population and increasing trade volumes, the sector is poised for growth. The transport, storage and communications sector accounted for 7.7% of GDP in 2011 and is growing at a rate of 10.63% per year. Planned road and rail expansions are designed to facilitate the movement of goods and develop the Kingdom as a logistics centre for the region, while several new ports are being developed and expansion plans are under way at a number of existing facilities. This should help accommodate rising levels of traffic – container volume was up around 7.5% in 2011. Such projects illustrate the importance the government is placing on the transportation sector to expedite economic growth and diversification. This chapter includes an interview with Prince Fahad bin Abdullah bin Muhammad, President, General Authority of Civil Aviation (GACA), and Chairman of the Board of Directors, Saudia.
Explore chapterEducation
Buy digital copy of this chapter - £18While the emirate currently maintains one of the more respected educational systems in the region, the sector continues to develop and possesses tremendous potential for sustainable and long-term growth. Recent efforts have focused on upgrading the present academic system by reducing gaps between vocational education and industry and between secondary and tertiary education. Several organisations are working together to identify skills shortages and create vocational training programmes, and new partnerships aimed at strengthening research between academia and industry are being forged across and beyond the sector. Encouragingly, Abu Dhabi has also seen a significant increase in student enrolment numbers in recent years. The figure rose by 22% between the 2005/06 and 2010/11 academic years. At the same time, the sector has seen a significant rise in the number of private universities offering higher degrees. This chapter includes interviews with Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Higher Education and Scientific Research; and Mugheer Khamis Al Khaili, Director-General, Abu Dhabi Education Council (ADEC).
Explore chapterTourism
Buy digital copy of this chapter - £18With some 17,500 islands featuring diverse landscapes that range from volcanoes to white sandy beaches, as well as major cities with international-standard conference and entertainment facilities and a highly hospitable population, Indonesia has much to offer its visitors. In recent years, the economy has experienced rapid growth leading to the emergence of a new middle class that is looking to travel, which has contributed to a dynamic and expanding domestic tourism sector. Figures from Statistics Indonesia indicate that in 2011 a total of 7.65m foreign visitors came into the country, spending an average of $1118 each per visit and staying an average of 7.84 days. Tourism development is a central plank of the government’s national development strategy. The challenge for sector professionals will be in creating a critical mass to help Indonesia realise its huge tourism potential. This chapter contains an interview with Sri Sultan Hamengku Buwono X, Governor, Yogyakarta Special Region.
Explore chapterMedia
Buy digital copy of this chapter - £18Dubai has emerged as a regional centre for the media industry over the past decade. Indeed, the resilience of the media through the recent economic crisis points to strong fundamentals that will continue to support the sector as it moves forward. Overall, revenues for the first nine months of 2012 in the region amounted to some $12.7bn, a 22% increase over the same period in 2011. While in many parts of the world the print sector has been struggling, for example, newspapers and magazines account for almost 40% of total advertising expenditure in Dubai. Looking ahead, perhaps the biggest area of growth potential is the digital media sector, which has grown from just $15m in 2009 to almost $79m in 2012, and is expected to double again by 2015. Ongoing support from the government and an increasingly transparent industry are likely to help with continuing to attract foreign participation in the sector.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Opportunities for new media outlets blossomed following the fall of the one-party communist regime in 1989-90, with private print and broadcast players entering the market soon after. As of the start of 2012 there were 469 media outlets nationwide. Mongolia has a vast range of outlets, from national newspapers and TV channels to local radio stations broadcasting to herding communities. The country’s advertising sector, meanwhile, has been strengthening fast on the heels of economic growth, as foreign interest and subsequent investment have increased. There has also been a diversification in advertising platforms, from traditional television ads to digital billboards. With continued expansion and rising incomes, the period ahead is likely to see greater sophistication in Mongolian media, along with greater competition.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The creation of a public education system capable of equipping Omanis for a modern economy has been at the centre of government policy for decades, and the private sector has thrived since the 1970s. Yet, more recently, the sector has seen a similar expansion of investment at the tertiary level, combined with an increasing amount of research activity. This new phase of expansion is underpinned by the latest five-year plan, which outlines a 48% increase over the previous plan in terms of sector spending, for the development of some 15 new schools, 32 expansion projects and 65 extensions to meet the growth of student numbers by 2015. Private schools, meanwhile, have continued to benefit from the presence of an expatriate community, which grew 32% between 2003 and 2010, and is expected to continue increasing. In health, meanwhile, growing investment in the sector has resulted in improving health indicators, and the government is working to encourage the public to participate in health care provision. This chapter includes an interview with Rawya Saud Al Busaidi, Minister of Higher Education.
Explore chapterRegions
Buy digital copy of this chapter - £18Malaysia’s government is in the midst of implementing a long-term strategy that seeks to diversity the national economy away from dependence on the core Kuala Lumpur/ Klang Valley area. This plan, introduced in 2006 under the 9th Malaysia Plan by then-Prime Minister Abdullah Ahmed Badawi, created five regional economic corridors: Iskandar Malaysia (IM), the East Coast Economic Region (ECER), North Coast Economic Region (NCER), Sarawak Corridor of Renewable Energy (SCORE), and Sabah Development Corridor (SDC). By focusing on distinct industries within each region and soliciting private domestic and foreign investment, the government is hoping to alleviate regional poverty and rebalance the nation’s economic growth. This chapter includes interviews with Jebasingam Issace John, CEO, East Coast Economic Region Development Council (ECERDC); Ismail Ibrahim, CEO, Iskandar Regional Development Authority (IRDA); and Mohd Ali Rustam, Chief Minister of Melaka.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. Samy Laghouati, Managing Partner, Gide Loyrette Nouel Algeria, talks to OBG.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism is among those sectors with significant potential to support efforts to diversify away from oil in a sustainable and inclusive manner. According to the Federal Airport Authority of Nigeria, the inflow of passengers rose in 2011, with more than 1.9m arrivals recorded at the international airports of Lagos, Abuja and Port Harcourt, up by about 10% year-on-year. Traffic at domestic terminals was much higher, with 5.5m incoming and 5.4m outgoing passengers. Roughly 98% of visits by foreigners are for business reasons. This has resulted in an increase in demand for international hotels, which have been opening their doors in growing numbers, particularly in Lagos. A N5bn ($32m) fund was set up at the beginning of 2012 that will be used to support the development of the industry, providing financing and facilitating capacity building. Estimates put the sector’s direct contribution to GDP at 1.6% in 2011. This is expected to increase by 11% in 2012 and an average of 6.3% a year between 2012 and 2022. This chapter contains an interview with Taleb Rifai, Secretary-General, World Tourism Organisation (UNWTO).
Explore chapterMedia
Buy digital copy of this chapter - £18As Qatar’s economy has grown, so has demand for information, driving tremendous progress in the media industry and related sectors. The popularity and reach of the media has also had an impact on the advertising and communications industry, which has seen double-digit growth over the past five years. In a bid to expand the media sector, Qatar is now planning to establish a dedicated media and communications free zone called Qatar Media City outside Doha. Going forward, the country’s winning bid to host the 2022 FIFA World Cup is set to lend a huge boost to sports coverage. This chapter includes an interview with Haya Al Nassr, Director of Communication Directorate, Qatar Foundation.
Explore chapterTax
Buy digital copy of this chapter - £18In collaboration with Deloitte, OBG introduces different aspects of the taxation system, explaining Gabon’s investor-friendly policies. This chapter contains a dialogue on incentives with Madeleine Berre, Partner and GM, Deloitte Legal and Tax; and Nicolas Balesme, Partner and GM, Deloitte Touche Tohmatsu.
Explore chapterTax
Buy digital copy of this chapter - £18With assistance from Deloitte, Oxford Business Group delves into the details of Egypt’s tax laws.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The health sector has undergone major reforms over the course of the past decade, including the provision of more developed services and infrastructure in rural areas and the introduction of the National Health Insurance Scheme. The sector has seen a shift to preventive care, with greater numbers of Ghanaians visiting health facilities. The provision of health care infrastructure is also increasing, with a total of 3217 health facilities in the country. The education sector has also undergone a series of reforms in recent years. It has seen higher primary and secondary enrolment rates and a tripling in the number of tertiary educational institutions over the past decade, with the private sector now playing a bigger role in the sector. This chapter contains an interview with Franklyn Many, Rector, Ghana Institute of Management and Public Administration.
Explore chapterMedia & Entertainment
Buy digital copy of this chapter - £18Thailand’s media sector has seen liberalisation on paper, with the passage of several laws to increase press freedom and competition. At the same time, a March 2012 decision to renew state agencies’ control of broadcast frequencies, and the restrictive 2007 Computer Crimes Act, suggest that media freedom in Thailand has a long way to go. Regardless, the sector is growing on the strength of terrestrial free-to-air television, which has very strong viewership thanks to its popular soap operas. Cable and satellite operators are beginning to add diversity to the sector, and growing computer and smartphone penetration is opening the mobile market, but TV is still by far the medium to beat. This chapter contains an interview with Supakorn Vajjajiva, President, The Post Publishing Public Company.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18PNG’s telecoms market is emerging from the stagnation of a government monopoly and has seen steady growth since liberalisation in 2007. With fixed-line penetration limited by geography, the country is targeting a rapid expansion of mobile networks in a bid to connect all of its citizens. Digicel, the top mobile provider, has been the primary benefactor in this shift, increasing its subscriber base to 1.6m and its market share to 84%. At the same time, the focus on mobile has done little to help boost internet connectivity, which suffers from slow speeds and strict bandwidth caps. This section has interviews with Jim Miringtoro, Minister for Communication and Information Technology; Charles Punaha, CEO, National Information and Communications Technology Authority (NICTA); and John Mangos, CEO, Digicel (PNG).
Explore chapterHealth
Buy digital copy of this chapter - £18With one of the best health care sectors in the Middle East, Jordan is the regional leader for medical tourism. The Ministry of Health (MoH) is working to boost efficiency and reduce wasted expenditure through initiatives such as the development of an e-health platform. This will provide an electronic platform for the storage, retrieval and updating of electronic health records, and will be rolled out across the kingdom’s public health facilities. Another key focus is the expansion of health insurance, with plans in place for everyone in the country to be covered within the next 5-10 years. Lastly, with the country needing more qualified medical staff to meet demand, the government is making efforts to train and recruit new doctors and nurses. This chapter includes interviews with Dr Awni Al Bashir, President of the Private Hospitals Association; and Raed Shadfan, CEO of Atlas Medical.
Explore chapterTourism
Buy digital copy of this chapter - £18New visa regulations have provided for greater access to Turkey by new market segments, and the recent turmoil in the MENA region has also improved the nation’s profile as a safer destination for tourists. Regional visitors, in particular, have constituted an increased share of the numbers. These factors, combined with a vast increase in the MICE segment, saw a nearly 10% increase in visitor figures in 2011. A government initiative to support efforts in the health tourism segment is creating a pipeline for new projects, and the high number of over-booked hotels in Istanbul has likewise driven rapid development of new venues. The chapter contains an interview with Kadir Topbas, the Mayor of Istanbul.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Agriculture’s contribution to the South African economy has waned in recent years, however the industry is well-placed to address some of the more fundamental needs of the country’s growth trajectory and offers significant potential in a number of key cash crops and export commodities, as well as niche opportunities in segments such as organic produce and wine. While the government looks to create thousands of jobs in agriculture and reverse a trend that has seen the number of farm workers decline significantly over the past few decades, the industry continues to face problems of competitiveness and efficiency, compounded by factors such as soil productivity, input costs, infrastructural impediments and the trade environment. This chapter contains an interview with Alex Thiel, CEO, Sappi Southern Africa.
Explore chapterEducation
Buy digital copy of this chapter - £18As a central pillar of the reforms outlined in Economic Vision 2030, the Bahraini government’s long-term development plan, education plays a key role in the economy. Indeed, having recognised the importance of human capital development, the government has taken significant steps in recent years to improve its public schools and higher education institutions. These include reform efforts at the school level, most notably through the School Improvement Programme (SIP) and the move to develop a new curriculum. One aspect of the country’s approach to education that is distinctive and commendable is the fact that it is largely “home-grown”, centred around empowering locals and using local leadership. At the same time, regulatory organisations keep a close eye on the system to ensure the provision of quality education, both by public and private sector institutions. Taken together, recent educational reform efforts should ultimately help to make Bahrainis more competitive in the workplace, as well as provide additional employment opportunities. This chapter includes an interview with Sheikha Hessa bint Khalifa Al Khalifa, Executive Director, inJAz Bahrain.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Plans for agriculture in the Philippines include making the world’s largest rice consumer, which currently imports the staple, self-sufficient. Multi-million dollar irrigation projects are currently underway to help achieve this goal, while a National Irrigation Administration is seeking to teach farmers sustainable irrigation techniques. The government is also pushing farmers to adopt more commercial approaches to their businesses, forming cooperatives and specialising in high-value subsectors like organics. Finally, the sugarcane industry, facing the prospect of the sugar market being flooded with cheap imports when ASEAN liberalisation kicks in, is looking toward value-added products like bioethanol. This chapter includes interviews with Proceso J Alcala, Secretary, Department of Agriculture; and Rica Davila, Chairman and CEO, Lapanday Foods Corporation.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains details about Kuwait’s tax system, including rules and regulations for foreign investment, procedures for tax filing and appeals, double-tax avoidance treaty agreements and information on trade licences and sponsorship of foreign firms. This chapter also includes an interview with Qais Al Nisf, Managing Partner, BDO.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18The communications sector in Mongolia has grown rapidly, with wireless telephony saturating the market within a decade of its introduction. The challenge now for providers is figuring out how to further monetise their customers, who generally have low incomes. Some companies are focusing on bundling, offering internet access and television along with phone subscriptions. On the IT side, the penetration of computers is low, although it nearly doubled between 2007 and 2008. The government has earned commendation for connecting with its citizens through technology, rising from 82nd position to 53rd rank on a UN E-government survey. This chapter includes interviews with J. Bat-Erdene, Chairman, Information, Communication Technology and Post Authority (ICTPA); O. Batchuluun, President and CEO, Telecom Mongolia; and D. Bolor, CEO, Mobicom.
Explore chapterTourism
Buy digital copy of this chapter - £18Already known worldwide for the hugely popular island destination of Bali, Indonesia has been trying to market its full range of opportunities. At the same time, the country is hoping to build its profile as a business travel venue, a policy helped along by ongoing economic growth. 2011 tourist arrivals were up 7.5% year-on-year for the January-July period, well on their way to meeting the government’s target of 7.7m. The government is keen to promote the meetings, incentives, conventions, and exhibitions sector, with conference facilities being developed in Lombok and Jogjakarta. Finally, it’s looking to draw visitors beyond conventional destinations, highlighting islands like Lombok, which has direct ferry connections to Bali. This section features an interview with I Made Mangku Pastika, Governor of Bali.
Explore chapterTelecoms & IT
Competition in Saudi Arabia’s telecoms sector continues to grow, with companies continually seeking to invest in the infrastructure that will connect customers to a broader range of communications services. As the number of mobile internet users continues to rise, the Kingdom’s operators are seeing demand for traditional voice and text services become gradually displaced by data services and mobile broadband. Meanwhile, and in line with the country’s economic diversification targets, IT firms are increasingly viewed by the government as essential to sustainable development, with the Kingdom’s latest five-year plan committed to enhancing the country’s IT infrastructure. Spending on cloud services is rising rapidly and is expected to reach $31.3m in 2015. This chapter contains interviews with Khaled Biyari, Group CEO, Saudi Telecom Company (STC).
Explore chapterThe Guide
This section includes selected listings of Kuwait’s hotels, as well as helpful tips for business and leisure travellers planning to visit the country.
Explore chapterEducation & Research
Buy digital copy of this chapter - £22Education and research hold pivotal roles in Abu Dhabi’s broader development effort. The emirate is committed to enhancing human capital through curriculum redesign, increased research and innovation capacities, and technology integration in the education sector. Recent initiatives and partnerships have channelled expertise and funding into specific educational areas, bolstering Abu Dhabi’s regional and international reputation in the education sector. Advancements in technology are opening new avenues for investment and development, positioning Abu Dhabi as a global leader in education. The emirate’s continued progress in international attainment tests reflects its ambition to contribute significantly to economic expansion by nurturing a highly skilled workforce and fostering innovation through education and research. This chapter includes an interview with Sarah Al Amiri, Minister of State for Public Education and Advanced Technology.
Explore chapterTourism
Buy digital copy of this chapter - £22Saudi Arabia, with its rich cultural heritage and natural wonders, is rapidly transforming into a global tourism destination, a trend driven by Vision 2030, the country’s blueprint for socio-economic development. The introduction of tourist visas in 2019 marked a significant shift, emphasising the sector's importance for diversification and job creation. Through strategic infrastructure investment, destination development and an emphasis on heritage, the Kingdom has successfully established itself on the global tourism stage. Government support and collaborative efforts among stakeholders are poised to make tourism a crucial force in reducing oil dependence and creating new revenue streams in the years ahead.
Explore chapterThe Guide
The Guide contains listings of accommodation options throughout the capital city for both business and leisure travellers. Helpful information is provided on visa regulations and business etiquette, as well as public and private transport options for navigating the country during your stay.
Explore chapterGombe State
Buy digital copy of this chapter - £22Gombe State has a strong agriculture sector, and has the potential to further develop its agro-industry, mining, manufacturing and energy sectors to accelerate economic growth. Ranking first in Nigeria’s 2021 and 2022 subnational ease of doing business surveys, the state’s business environment has attracted a significant number of micro-, small and medium-sized enterprises. Moreover, with GDP growth projected to more than double over the next decade and a relatively robust debt-to-GDP ratio, the unemployment rate is anticipated to fall significantly, and per capita income could double by 2030. Regardless, more remains to be done to reduce poverty, increase private sector investment in infrastructure and attract foreign investment. This chapter contains an interview with Muhammad Inuwa Yahaya, Governor, Gombe State.
Explore chapterEducation & Health
Buy digital copy of this chapter - £22Education, health and other social services are central to Oman Vision 2040, the country’s long-term development framework that aims to create a knowledge-driven, diversified and competitive economy. Indeed, the authorities are working to shift a portion of the local workforce to the private sector, as well as enhance the role of private entities in the provision of both heath care and insurance – factors that will be key in transferring some of the government’s current cost burdens to the private sector. In terms of education, the government has prioritised equipping Omani nationals with the skills and knowledge to compete in a changing employment market, whether that means adopting technology in the classroom or expanding the reach of technical and vocational education and training programmes and institutions. This chapter contains an interview with Rahma bint Ibrahim Al Mahrooqi, Minister for Higher Education, Research and Innovation.
Explore chapterThe Guide
The Guide contains listings of accommodation options throughout Kuwait for both business and leisure travellers. Useful information is provided on the latest visa requirements and business etiquette, as well as tips and advice for new and returning visitors.
Explore chapterTourism
Buy digital copy of this chapter - £22Saudi Arabia is rolling out a broad range of tourism offerings across the country as a central part of its Vision 2030 national transformation strategy. Following the launch of the tourist visa programme in September 2019 and the subsequent downturn from the Covid-19 pandemic, 2021 and 2022 have witnessed an ambitious calendar of events ranging from the Formula 1 Grand Prix to arts and cultural festivals. In October 2021 the Ministry of Tourism announced a $1trn investment over the next 10 years in the sector. This reflects the Kingdom’s ambitions to become one of the top tourist destinations both regionally and worldwide. This chapter contains an interview with John Pagano, Group CEO, The Red Sea Development Company.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22The legal system in Côte d’Ivoire has historically proven to be highly adaptive, evolving to offer legal frameworks that facilitate the proper functioning of the economy. The recent introduction of regulations regarding remote work into the legal system illustrates the commitment of the government to amend laws in line with the evolving needs of the business community. Moreover, Côte d’Ivoire has increased its efforts to provide a secure climate for economic activity. The country joined the Organisation for the Harmonisation of Business Law in Africa, which resulted in the acceptance of the jurisdiction of the Common Court of Justice and Arbitration, the apex court for resolving disputes related to business law. This chapter contains an interview with Joachim Bilé-Aka, Managing Partner, Bilé-Aka, Brizoua-Bi & Associés.
Explore chapterHealth
Buy digital copy of this chapter - £22A concerted effort to improve health care delivery in Qatar has created a system characterised by strong public and private investment, innovative technologies and a high standard of care. In the 2021 Legatum Prosperity Index, published by the UK think tank Legatum Institute, Qatar ranked 39th out of 167 countries and second in the MENA region in terms of health. The ranking was an improvement on 48th place in 2019, reflecting the health system’s successful navigation of recent challenges. Even as Qatar focused on a Covid-19 vaccine campaign in 2021, initiatives to further develop the sector continued apace, including efforts to address the increasing incidence of lifestyle diseases. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health and Managing Director, Hamad Medical Corporation.
Explore chapterTax
Buy digital copy of this chapter - £22In conjunction with PwC, this chapter explores the taxation system and Ghana’s efforts to build an investor-friendly environment. It also contains an interview with Vish Ashiagbor, Country Senior Partner, PwC Ghana.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter explores Papua New Guinea’s legal system across the national, local and provincial levels, including the laws that may impact a foreign enterprise in its business dealings in PNG; the taxes and import duties imposed on individuals and business organisations; the rules regarding the use of customary land; and the conditions under which citizens of the country can be employed. The chapter includes a viewpoint from John Leahy, Principal, Leahy PNG Law.
Explore chapterLegal Framework
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This chapter explores Egypt’s legal system, including the laws that are most relevant for foreign investors. These include those that regulate corporate operations, labour, investment and property, as well as the regulations governing the country’s free zones. In recent years efforts have been made to ensure that local and international investors are treated equally, and a number of business types are open to full foreign ownership.
Education
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Abu Dhabi continues to make significant investments in its education sector, which is set to remain an area of consistent growth in the coming years. Education is a key component of the Abu Dhabi Economic Vision 2030, the emirate’s long-term development strategy that aims to build a globally competitive, knowledge-based economy for the post-oil era, and raising teaching standards is considered essential to meeting the needs of the future labour market. To this end, the authorities are seeking to diversify the skills of the local population and investing in education to broaden the range of opportunities available to Emiratis. Recent developments in the sector include the expansion of technology and use of artificial intelligence in schools, and a greater emphasis on technical and vocational training. The emirate also continues to encourage international private schools and tertiary education institutions to open new campuses in Abu Dhabi. This chapter contains an interview with Hussain Ibrahim Al Hammadi, UAE Minister of Education.
Tourism
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Indonesia encompasses more than 17,000 islands, spread out over thousands of kilometres between the Indian and Pacific oceans. With the world’s largest tropical coastline, Indonesia has become a leading tourism destination in South-east Asia; the country’s cultural and natural diversity also offer significant untapped potential. Although the country has seen expansion in tourism in recent years, the Covid-19 pandemic that broke out in early 2020 has dampened prospects in the short run. Even so, President Joko Widodo, better known as President Jokowi, has identified tourism as a strategic sector through which to boost foreign exchange reserves. The sector is also set to provide a training and employment platform for a youthful workforce – a factor that could drive growth in both the sector and broader economy in the medium term. This chapter contains an interview with Abdulbar Mansoer, President Director, Indonesia Tourism Development Corporation.
Explore chapterLegal Framework
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This chapter introduces the reader to the different aspects of the legal system in Côte d’Ivoire in partnership with Bilé-Aka, Brizoua-Bi & Associés. It also contains a viewpoint with Joachim Bilé-Aka and Michel K Brizoua-Bi, Founders, Bilé-Aka, Brizoua-Bi & Associés.
Explore chapterTransport
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Although the Covid-19 pandemic has cast a shadow of uncertainty over parts of the global transport sector – particularly aviation – beyond those immediate issues, Saudi Arabia’s transport network is positioned to play an increasingly important role in the economy in the years ahead. Improving the Kingdom’s logistics and transport infrastructure is a central goal of the National Industrial Development and Logistics Programme, with early wins in speeding up the movement of cargo through seaports demonstrating a coordinated, multi-agency effort to make significant improvements. With new roads and bridges to Bahrain and Egypt planned, Saudi Arabia is also displaying its intention to leverage its location to serve as a transport hub, connecting countries and continents in the region. This chapter contains interviews with Saad bin Abdulaziz Al Khalb, President, Saudi Ports Authority; and Bashar Al Malik, CEO, Saudi Railway Company.
Explore chapterTourism, Culture & Sport
Buy digital copy of this chapter - £18Tourism is one of the most promising prospects for growth as Qatar aims to shift its economy from one dependent on hydrocarbons to one that is more diversified and sustainable. Efforts aimed at attracting visitors from a wider range of countries, international marketing campaigns and liberalised visa reforms have helped the sector maintain momentum despite the blockade. The 2022 FIFA World Cup will be an opportunity for the country to show off its culture, heritage and architecture to not only the 1.5m fans in attendance, but the 3.4bn-strong television audience as well. It will be necessary for the authorities to leverage this attention to encourage individuals from near and far to visit and enjoy the country’s diverse set of offerings.
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This chapter introduces the reader to the different aspects of the legal system in Morocco, in partnership with Dentons Sayarh & Menjra Law Firm. It also contains a viewpoint with Omar Sayarh, Managing Partner; and Mehdi Megzari, Partner, Dentons Sayarh & Menjra Law Firm.
Explore chapterTax
In conjunction with PwC, this chapter explores the taxation system and Trinidad & Tobago’s efforts to build an investor-friendly environment. It also contains a viewpoint from Brian Hackett, Territory Senior Partner, PwC Trinidad and Tobago.
Explore chapterTax
This chapter examines the tax system of Ghana, including value-added tax, double taxation treaties, tax incentives, tax residency, deductions, import duties and tax administration. This chapter also contains a viewpoint from Vish Ashiagbor, Country Senior Partner, PwC Ghana.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Recent years have seen the promulgation of various laws to position Bahrain as a competitive regional jurisdiction. This chapter reviews these new laws, including Bahrain’s new Law for the Encouragement and Protection of Competition, which came into effect on February 1, 2019. The first dedicated Personal Data Protection Law (PDPL) came into force on August 1, 2019. Prior to the implementation of the PDPL, there was no single codified data protection law in force in Bahrain. The Protected Cells Company Law, designed to further develop Bahrain’s financial sector, facilitates local and foreign investment, and promotes the country as a simple, secure and cost-effective place to do business in the Middle East. This chapter contains a viewpoint from Hatim Q Zu’bi, Zu’bi & Partners, Attorneys & Legal Consultants.
Explore chapterTourism
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Blessed with scenic wadis (valleys), natural caves, islands, beaches and mountain ranges, and known for its ancient culture and hospitality, Oman has a lot to offer tourists. Its expanding economy and reputation for stability also draws visitors for meetings, incentives, conferences and exhibitions from the region and beyond. The sector is central to government efforts to diversify the economy, and authorities have worked in recent years to streamline regulations and fast track infrastructure developments to facilitate visitors, such as building a new international airport and convention centre in Muscat. A steady stream of private investment in the hospitality sector is also contributing to improved services.
Explore chapterEducation & Health
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Myanmar’s education sector has undergone a significant transformation following the transition to democracy. Budget allocation for the sector has risen steadily and liberalisation has resulted in the emergence of a rapidly expanding private school segment. Nevertheless, further work is required to reform the curriculum, raise teaching standards and adopt education technology if the country’s young population is to be prepared for an international labour market characterised by innovation and rapid technological change. Health care expenditure has been rising and the government is implementing three national health plans to lead the country towards universal health care by 2030. Furthermore, private investment has become increasingly welcome and significant growth potential exists in the insurance market. Nonetheless, more systematic data collection is required to prioritise the areas where resources are most needed. Widening access to primary health care and improving the quality of services will be key to fostering sustainable economic growth. This chapter contains an interview with U Aung Chit Khin, Founder, Strategy First University.
Explore chapterICT & Innovation
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Dubai is looking to place itself ahead of global trends by investing heavily in ICT and innovation. With an already highly developed market for ICT products and services, the emirate is seeking to harness the transformative potential of digitalisation to facilitate government-to-government and government-to-citizen transactions, and increase efficiency across a range of industries. While the public investment-driven nature of the sector’s momentum contrasts with the private sector model pioneered by Silicon Valley in the US, the approach is proving to have its own advantages. At the same time, the emirate is leveraging its free zone network to attract international investment, while pursuing policies aimed at developing the start-up ecosystem. This chapter contains an interview with Aisha bin Bishr, Director-General, Smart Dubai Office.
Explore chapterHealth
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Significant improvements in health outcomes have been achieved in Kuwait over the past 20 years, especially in terms of the extension of life expectancy and the reduction of infant mortality rates. The reform of the Kuwaiti health care sector is central to the Kuwait National Development Plan, which is also known as New Kuwait 2035. With a growing population and an increasing incidence of lifestyle-related diseases, demand for health care is projected to continue to rise over the longer term, in particular for specialist treatments. The state has traditionally played an extensive role in health care provision; however, moving forward, it aims to improve the quality and efficiency of public health services in line with international benchmarks, while also boosting private sector activity.
Explore chapterTourism
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Over the past decade, Mexico’s tourism industry has shown steady expansion, growing every year since 2011 despite security concerns and travel warnings. The 41.4m tourists that visited Mexico in 2018 reflect a 5.5% increase from the number of visitors in 2017, when the government estimated 39m foreign tourists entered the country. Tourists are increasingly venturing out of the traditional tourist centres – Mexico City, the Mayan Riviera with Cancún as the star attraction, Riviera Nayarit with Puerto Vallarta and Los Cabos – to visit the up-and-coming destinations of Campeche, Yucatán and Oaxaca. Meanwhile, steadily increasing investment in popular resorts reflects the strength of Mexico’s beach tourism. Greater demand for business travel alongside niche alternatives such as ecotourism and cultural heritage visits also demonstrates the continued potential of the tourism industry. This chapter contains an interview with Miguel Torruco Marqués, Minister of Tourism.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines the tax system of Papua New Guinea, focusing on those budget and tax changes guided by the Medium-Term Revenue Strategy 2018-22, including: new revenue measures under the 2019 National Budget; the Companies Act Requirement; the Investment Promotion Act; the rules on corporate taxation; withholding tax; non-resident insurers tax; overseas shippers tax; and tax credits, incentives and various types of tax duties. This chapter also contains a viewpoint from Jonathan Seeto, Territory Senior Partner, PwC.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Tunisia, in partnership with Meziou Knani & Khlif. It also contains a viewpoint with Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif.
Explore chapterAgriculture
While the country is well positioned to tap into new export markets, volatile weather conditions, land reform issues and a legacy of neglect continue to hinder agricultural output, preventing the Philippine agriculture sector from reaching its true potential. In addition to these constraints, the Philippines lags behind regional competitors in mechanisation adoption rates, crop research and access to finance. While the sector has suffered from low total factor productivity – a measure of land, labour, capital and material resources used in production, compared to total agricultural output – the country has natural attributes that make it well placed to achieve greater agricultural diversification and productivity. This chapter also contains an interview with Henry Lim Bon Liong, Chairman and CEO, SL Agritech.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterTax
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In conjunction with EY Peru, this chapter explores the taxation system and Peru’s efforts to build an investor-friendly environment. It also contains an interview with Humberto Astete, Tax Partner, EY Perú.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Egypt, in partnership with Helmy, Hamza & Partners. It also contains a viewpoint with Mohamad Talaat, Managing Partner, Helmy, Hamza & Partners.
Explore chapterTourism
Buy digital copy of this chapter - £18Boasting the world’s largest tropical coastline and renowned cultural heritage sites, Indonesia is becoming a leading tourism destination in South-east Asia. Strong gains have been noted internationally, with the World Economic Forum declaring Indonesia the region’s fourth-most-competitive destination after Singapore, Malaysia and Thailand in its most recent “Travel and Tourism Competitiveness Report” for 2017. Globally, Indonesia ranked 42nd out of 136 economies, an increase of eight spots over 2016. Tourist arrivals have recorded gradual growth in recent years – with 14m and 15.8m in 2017 and 2018, respectively, according to the Ministry of Tourism – but a string of natural disasters and other challenges have impacted the achievement of certain targets. This chapter also contains interviews with Shirley Tan, CEO, Rajawali Property Group, and Henry Hendrawan, CFO, Traveloka.
Explore chapterTransport
Buy digital copy of this chapter - £18The government’s vision is for both domestic and international transport to play a key role in the diversification and modernisation of the economy. The authorities are aiming at making the country a regional and international logistics centre. To achieve this goal, they envisage working closely with leading global logistics companies via public-private partnerships. One aspect of the new approach is the increased promotion of special economic zones in different parts of the country, creating industrial clusters with multi-modal freight links to a range of international destinations. As a result levels of both domestic and foreign investment are rising, particularly with regard to major infrastructure projects. This chapter contains interviews with Nabeel Al Amoudi, Minister of Transport; Rumaih Al Rumaih, President, Public Transport Authority; and Abdullah Aldubaikhi, CEO, Bahri.
Explore chapterTourism & Sports
Buy digital copy of this chapter - £18The 2016 slump in oil prices led the Qatari government to identify industries with high growth potential in a diversified economy. Tourism was among the sectors prioritised due to the opportunities presented by infrastructure investment and major events such as the 2022 FIFA World Cup. The sector’s promising performance comes amid the backdrop of a regional blockade led by Saudi Arabia and several other Arab countries. Efforts to diversify source markets – especially important as prior to the blockade tourism in Qatar was dominated by travellers from the GCC – have also led to an increased number of visitors from countries such as India, Russia and China. Altogether, these factors bode well for the future of the tourism sector in Qatar. This chapter contains an interview with Hassan Al Thawadi, Secretary-General, Supreme Committee for Delivery & Legacy.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legal system of Sri Lanka, focusing on raising loans via the Active Liability Management Act No. 8 of 2018; liberalising foreign land ownership through the Land Restriction on Alienation Act No. 21 of 2018; the Nation Building Tax (Amendment) Act No. 20 of 2018, which covers tax exemptions and exemption periods; the Value-added Tax (Amendment) Act No. 25 of 2018; and the investigations and impositions included under the Anti-dumping and Countervailing Duties Act No. 2 of 2018. This chapter contains a viewpoint from John Wilson, Managing Proprietor, John Wilson Partners.
Explore chapterHealth
Buy digital copy of this chapter - £18A regional pioneer in the provision of both health care and medical insurance, Abu Dhabi continued to lay the foundations in 2018 for a more robust model of primary care and achieved new milestones in transplant surgery. Driven by the construction of new hospitals, clinics and specialised facilities, there is a strong pipeline of public and private sector investment in new facilities, especially regarding specialised care. The health system’s administrators have worked hard over the last decade to fill capacity shortages and attract qualified human resources, acknowledging that more can be done to ensure the achievement of the level of health care services envisaged in Abu Dhabi Economic Vision 2030. This chapter contains interviews with Sheikh Abdulla bin Mohammed Al Hamed, Chairman, Department of Health; and Dr Gareth Goodier, Group CEO, Abu Dhabi Health Services Company.
Explore chapterICT
Buy digital copy of this chapter - £18Dubai offers a healthy environment for ICT operators, with its strong, high-tech and high-coverage network combining well with a tech-savvy and internationally connected population. At the same time, the gov¬ernment in Dubai – and in the UAE – has repeatedly demonstrated its commitment to become a world leader in terms of IT. Initiatives such as Smart Dubai and the Dubai Future Foundation, along with a minister of state for artificial intelligence (AI) and a minister for cabinet affairs and the future, are all positive indi¬cators of this emirate’s forward-looking commitment. This innovative approach is more necessary than ever in a market where basic ICT services long ago reached saturation point. This chapter contains an interview with Aisha bin Bishr, Director-General, Smart Dubai Office.
Explore chapterEducation
Buy digital copy of this chapter - £18Basic education indicators such as school attendance and literacy rates are rising in Morocco, particularly for higher education, where attendance has rapidly accelerated in recent times and is set to rise further as the government expands eligibility. The authorities are stepping up investment in the sector, with plans in the works for increased spending, better infrastructure and the establishment of universal preschool. However, the sector continues to face a range of challenges, including student retention and teaching quality. Building on long-term advances in basic sector indicators such as near-universal youth literacy, education outcomes and the quality of provision appear set for further improvement due to a renewed focus on teacher recruitment and training, rising rates of secondary school and university attendance, and the promotion of preschool. The uptake of private education also appears likely to continue along its current growth trajectory, as the kingdom’s economy expands and income levels rise. This chapter contains an interview with Ahmed Benyahia, CEO, Holding Générale de l’Education.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC, this chapter explores the taxation system and Ghana’s efforts to build an investor-friendly environment. This chapter contains a viewpoint with George Kwatia, Tax Partner, PwC Ghana.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In recent years Bahrain has seen the introduction of a series of laws designed to further develop the kingdom’s financial sector, facilitate local and foreign investment, and promote Bahrain as a transparent, secure and cost-effective place to do business in the MENA region. Contains a viewpoint from Hatim Q Zu’bi, Zu’bi & Partners Attorneys & Legal Consultants.
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Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Côte d’Ivoire, in partnership with Bilé-Aka, Brizoua-Bi & Associés. It also contains a viewpoint with Joachim Bilé-Aka and Michel K Brizoua-Bi, Founders, Bilé-Aka, Brizoua-Bi & Associés.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legal system of Myanmar, focusing on the implementation of the Myanmar Companies Law and its online portal, the new Competition Commission and anti-corruption code, adjusted capital requirements for foreign firms and joint ventures and the increase in minimum wage in March 2018. It also contains a viewpoint from Cheah Swee Gim, Director, Kelvin Chia Yangon.
Explore chapterTourism
Buy digital copy of this chapter - £18Encompassing some of the most spectacular sites in Arabia, a fascinating ancient culture and a worldwide reputation for hospitality, Oman has advantages as a leisure destination. At the same time, the country is an important regional economy with a thriving business sector, which has strengthened its position as a centre for meetings, incentives, conferences and exhibitions. Oman is also regarded as a place of stability and impartiality in MENA, making it an ideal gathering ground. Unsurprisingly, then, the tourism sector continues to flourish. Despite the general economic downturn in the region, robust growth has been logged over the last few years and more is promised. This chapter contains an interview with Peter Walichnowski, CEO, Oman Tourism Development Company.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. It also contains an interview Samy Laghouati, Partner, Gide Loyrette Nouel.
Explore chapterHealth & Education
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Efforts to develop the Nigerian health care system have been hindered by several notable challenges, including limited public funding, a high communicable diseases burden, rising incidence of non-communicable diseases, and elevated rates of infant and maternal mortality. However, Nigeria’s large, young population, widening deficits in primary and specialty care, and the state’s encouragement of investment have created opportunities for growth across all levels of service provision. The government’s willingness to plan and partner with private providers should help to considerably improve the quality, access and outcomes of patient care in the years to come. Meanwhile, the education system presents itself as well with some challenges. Budget shortfalls have stretched the public system thin, while disparities in enrolment and outcomes across the K-12 spectrum continue to emerge along the lines of gender and geography. Moreover, primary and secondary enrolment has slipped in the midst of insecurity in the country’s north, even as the insurgency has ebbed. However, recent policy reforms should propel public investment in new facilities, classroom resources and teacher training, which should improve student outcomes and reduce the country’s large out-of-school population. This chapter contains an interview with Abubakar A Rasheed, Executive Secretary, National Universities Commission.
Explore chapterEducation
Buy digital copy of this chapter - £18Kuwait and the wider Gulf have some of the youngest populations in the world, with one-third of the GCC’s population expected to be under the age of 25 by 2030. As such, ensuring that Kuwaiti youth are equipped with the skills to compete in the global marketplace has become one of the government’s main priorities. This is laid out in New Kuwait 2035, a bold government development plan prioritising education reform and investment, among other policy pillars. The downturn in global oil prices, following the commodity’s high of $111.48 per barrel in June 2014, prompted GCC governments to cut or freeze spending, intensifying pressure for private sector involvement in sectors dominated by public actors. Recognising this, the Kuwaiti government has taken concerted steps to facilitate private investment in schooling, developing build-operate-transfer agreements, public-private partnerships and technical cooperation programmes aimed at improving school curricula, teaching and management.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Kenya, in partnership with Oseko & Ouma. It also contains a viewpoint with Christine A Oseko, Managing Partner, Oseko & Ouma.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC, OBG explores Trinidad and Tobago’s taxation system, examining a wide range of areas of special interest to international investors, such as income and corporate tax, petroleum profit tax, withholding tax, VAT and customs tax, among others. This chapter features a viewpoint with Brian Hackett, Territory Senior Partner, PwC Trinidad and Tobago.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Papua New Guinea’s tax regime, focusing on corporate income tax, the introduction of capital gains tax as part of a five-year plan, double taxation agreements with other countries and other key subject areas. It also contains a viewpoint from Jonathan Seeto, Territory Senior Partner, PwC.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Although Argentina has some of the most advanced telecoms infrastructure in Latin America, scarce competition in broadband and mobile services has restricted sector dynamism. Since assuming office in 2015, President Mauricio Macri has introduced several laws enabling licensed operators to provide multiple services as part of efforts to attract investment, increase competition and enhance connectivity. At the same time, the regulatory framework is being revised to allow for sector consolidation, which should bring down prices and step up the quality of service. In line with global trends, IT development in Argentina has accelerated in recent years, improving connectivity, productivity and social inclusion. Since the introduction of the Promotion of the Software Industry Law in 2004, Argentina has developed its software and information services. As one of the most dynamic sectors of the economy, IT will be of high strategic importance in the government’s goals to develop the country, bridge the digital gap and reduce poverty.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Peru’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, international tax transparency, double taxation treaties, VAT regulation, foreign source income and other investor considerations. This chapter contains an interview with Humberto Astete Miranda, Tax Partner, EY Perú.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Thailand’s legal framework, focusing on work done by the Board of Investment to promote various sectors. It also explains the policies outlined for non-citizens in the Foreign Business Act, tax and non-tax incentives for international companies and other key subject areas. This chapter contains a viewpoint from David Lyman, Chairman and Chief Values Officer, Tilleke & Gibbins.
Explore chapterEntrepreneurship + R&D
Buy digital copy of this chapter - £18While renewed interest in promoting research and development has meant Mexico is performing well on global indices, lower budgets in 2017 and 2018 mean the government will be looking to continue incentivising private investment, while encouraging universities to maintain their work to advance the sector. While Mexico has a strong background in innovation, fostering new research and auctioning new ideas may require structural change. As the incoming administration of Andrés Manuel López Obrador, of the National Regeneration Movement, takes office in December 2018, entrepreneurs will be hoping that the new government recognizes the significant contribution that innovation and technology make to economic development. This chapter features an interview with Enrique Cabrero Mendoza, Director-General, National Council of Science and Technology.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Despite the accelerated growth of other industries in recent decades, agriculture remains a pillar of the Philippine economy, providing employment for 27% of the labour force in 2016, according to the most recent data from the Philippine Statistics Authority. Although the sector’s contribution to GDP has declined in recent decades, falling from over 30% in the 1970s to 9.65% in 2016, there have been recent signs of revitalisation. The previously sluggish sector grew by 6.20% in the second quarter of 2017, with gross output increasing by 3.95% throughout the year, on the back of improved performances in palay, corn, sugarcane, poultry, agricultural services and forestry. This chapter contains an interview with Emmanuel Piñol, Secretary of Agriculture.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Tanzania, in partnership with ATZ Law Chambers. It also contains a viewpoint with Shamiza Ratanasi, Managing Partner, ATZ Law Chambers.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Sri Lanka’s tax regime, explaining obligations outlined for businesses and individuals, deductions offered for trading of a company’s stocks, and other important information for investors. It also contains a tax viewpoint from Sujeewa Mudalige, CEO, PwC Sri Lanka.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Tunisia, in partnership with Meziou Knani & Khlif. It also contains a viewpoint with Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter gives an overview of Myanmar’s legal system, examining recent developments such as the New Companies Law. This section also outlines investment rules and incentives for foreign input, as well as a new banking regulation enabling the formation of a credit bureau. It also contains a legal framework viewpoint from Cheah Swee Gim, Director, Kelvin Chia Yangon.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Bahrain, including the new financial requirements that are set to affect banks’ financial reporting and the issues under the spotlight as the UK prepares to leave the EU.
This chapter contains a viewpoint from Ahmed Alsulaiman, Managing Partner, KSI – Bahrain Consultants & Public Accountants.
Explore chapterEducation
Buy digital copy of this chapter - £18Significant reform in the education sector is seen as a precondition for Côte d’Ivoire’s manageable and sustainable development. The urgency of this restructuring is closely related to the country’s youth bulge: in 2014, 41.8% of the population was under the age of 15. The state’s main goals for the sector are to increase access to basic education, improve quality and governance, and adapt vocational training to labour market needs. While baseline indicators remain low, consistent prioritisation of education in government budgets since 2011 has led to concrete improvements at both the primary and secondary level.
This chapter contains an interview with Koffi N’Guessan, Director-General, Institut National Polytechnique Félix Houphouët-Boigny.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In conjunction with Helmy, Hamza & Partners, this chapter contains an overview of the legal framework in which local and foreign investors operate in Egypt, including the regulations governing different sectors, the rules for investment and expatriate employment, and recently introduced legislation on trade and financial services.
This chapter contains a viewpoint from Mohamad Talaat, Managing Partner, Helmy, Hamza & Partners.
Explore chapterTourism
Buy digital copy of this chapter - £18While the focus on preserving Oman’s natural surroundings and cultural traditions has allowed the sultanate to retain much of the spirit of historic Arabia, the arrival of modern infrastructure and an emphasis on new sectors like activity-based tourism and ecotourism suggest the country is also adapting to the needs of the modern global travel market. Oman has some of the most diverse offerings in the Gulf region, including several UNESCO World Heritage sites, contemporary urban centres, and natural and coastal areas, yet it continues to rely on a few specific destinations and times of the year. While the country welcomed a record number of visitors in 2015 and 2016, the ultimate goal of transforming it into a year-round destination that appeals to a broader set of travellers continues apace. With the addition of the Oman Convention and Exhibition Centre, infrastructure initiatives, new hotels and other flagship developments, the country is well on track. This chapter contains an interview with Ahmed bin Nasser Al Mahrizi, Minister of Tourism.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18Morocco has made great strides in boosting school enrolment, and ensuring access to education has been a primary goal in recent decades. However, the chief challenge over the medium terms is ensuring finish their studies with not just academic qualifications, but also the skills needed to successful enter and contribute to the labour force. In the wake of the Arab Spring, Moroccan citizens approved a new constitution that promised a range of rights, including universal health care and access to quality health services. The authorities have since taken a number of steps to increase coverage, reduce costs, improve quality, and extend services in rural and otherwise isolated areas. Challenges remain in rural areas, however, and funding efforts are likely to be concentrated on building new health facilities and addressing the significant staff shortages that leave some clinics and hospitals in disuse.
Ayman Cheikh-Lahlou, President, Moroccan Pharmaceutical Industry Association, and CEO, Cooper Pharma; and Nawal Chraibi, Acting CEO, Moroccan Foundation for Advanced Science, Innovation and Research.
Explore chapterEducation
Buy digital copy of this chapter - £18With a vibrant and growing private school system generating annual revenues of Dh6.8bn ($1.9bn) and a cosmopolitan collection of international universities, Dubai’s education sector continues to flourish and to attract investment. Its schools and universities are striving to provide their students with the skills they will need to thrive and contribute in a rapidly evolving workplace. In recent years Dubai’s students have made great strides in international indices; now, while it continues to focus on academic achievement, the sector is putting a new emphasis on extra-curricular activities and career support.
This chapter contains an interview with Abdulla Al Karam, Chairman and Director-General, Knowledge and Human Development Authority.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte Ghana, this chapter contains an introduction to Ghana’s taxation system, including a breakdown of rates imposed on corporate income, regulations governing capital gains and double taxation, and a list of goods and services exempted from value-added tax.
This chapter contains a viewpoint from Charles Larbi-Odam, Country Executive, Deloitte Ghana.
Explore chapterMedia
Buy digital copy of this chapter - £18With more than SR3.3bn ($879.8m) in spending earmarked for culture and media by 2020, Saudi Arabia’s government is hoping to attract significant private sector investment in the development of its creative and entertainment industries. To this end, state agencies are working hard to encourage international investment, talent and media sector expertise in the Kingdom, and they aim to help develop local entertainment businesses and expand their influence across borders.
This chapter contains an interview with Ghassan Al Shibl, Board Member and Managing Director, Saudi Research and Marketing Group.
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Tourism & Culture
Buy digital copy of this chapter - £18Qatar’s tourism sector is gearing up for expansion in anticipation of a major influx of tourists for the six-week 2022 FIFA World Cup, with the event expected to attract close to 1m visitors. In the build-up to the tournament, investment is being channelled into the development of tourism-related infrastructure to accommodate visitor traffic, and provide avenues of entertainment and sightseeing. In 2016, following the slump in global oil prices, the government identified tourism as one of several priority sectors to be expanded in pursuit of diversification, and a high-level taskforce was created to drive its growth. The strategy revision process began in April 2017, and the economic blockade led by Saudi Arabia and several other Arab nations imposed in June 2017 gave it new impetus and momentum. This chapter contains an interview with Hassan Al Ibrahim, Acting Chairman, Qatar Tourism Authority; and Sohair Wastawy, Executive Director of Qatar National Library.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite a range of economic and political challenges both at the national level and across the region, Indonesia’s tourism industry posted strong growth in most segments in 2016. According to data from the Ministry of Tourism (MoT), the country welcomed 12.02m foreign visitors, an increase of more than 15% on 2015. This figure matches almost exactly the government’s target of 12m tourist arrivals for the year. With this in mind, it was perhaps not surprising when in late December 2016 Arief Yahya, minister of tourism, announced that Indonesia had upped the ante further, targeting 15m tourist arrivals for 2017.
This chapter contains interviews with Taleb Rifai, Secretary-General, UN World Tourism Organisation; and Bram Hendrata, Managing Director, Ismaya Group.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18In February 2017 the Nigerian government approved the second National Strategic Health Development Plan. The policy “lays emphasis on primary health care… in addition to the provision of financial risk protection to all Nigerians”. It also aims to fast-track the operationalisation of the 2014 National Health Bill, which overhauled the organisation and funding of the health care system and allowed private sector participation to expand. At a time when the government’s budget is shrinking, the private sector has emerged as a crucial player in the country’s bid to improve efficiency as well as access to health care services. With 43% of its 189m citizens under the age of 15, Nigeria is a young country on the cusp of a major demographic shift. Significant reforms are required to the education system if the nation’s youth are to find a place in the workforce. As the population continues to grow, pressure on public services, including education, will increase. Without further reform, the public school system is likely to come under severe stress. The administration is aware of the challenges and has implemented policies to improve both primary education and university-level instruction. As such, there are significant opportunities for further investment and development from the primary to the tertiary segment.
This chapter contains an interview with Mark Wagstaff, Country Manager West Africa, Pfizer.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter offers a guide to PNG’s taxation rules and regulations. It also examines the national budget for 2017, which introduces new changes, and explains several credits and incentives available for businesses.
This chapter contains an interview with Jonathan Seeto, Territory Partner, PwC.
Explore chapterHealth
Buy digital copy of this chapter - £18Over the last five years Kuwait’s health care industry has gained significant momentum, adequately responding to rapid population growth by simultaneously addressing capacity constraints and improving the quality of health infrastructure. Despite the decline in oil prices and a budget deficit of over KD12bn ($39.7bn), health care spending remains a priority for the government. Although the state has traditionally acted as the main payer in the health care system, covering roughly 86% of expenditures in the country in 2014, government objectives are now aimed at increasing private sector participation to meet the growing demand for health care and reduce the burden on the state budget.
This chapter contains an interview with Dr Ahmed Al Saleh, CEO, Health Assurance Hospitals Company.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Although Thailand in recent years has focused on creating a more forward-thinking, modern economy, ranking second only to Singapore in financial clout within the ASEAN block, the country’s agricultural sector still remains a crucial cog in the engine driving the country forward. It continues to capitalise on its long-standing farming tradition and favourable climate as it retains its enviable position as a key exporter of products – including widely consumed agricultural commodities such as rice, sugar and rubber – around the world. Agriculture, particularly rice, is still the dominant economic activity in many of the rural regions of the country, in places where other economic development efforts have not yet made a significant impact. This chapter contains an interview Chatchai Sarikulya, Minister of Agriculture and Cooperatives.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Trinidad and Tobago’s legal framework, covering a range of topics from civil procedure rules, to the Foreign Investment Act, free zones and public-private partnerships, among others.
It also contains a viewpoint from Hadyn John Gadsby, Senior Partner, J.D. Sellier + Co.
Explore chapterTourism
Buy digital copy of this chapter - £18Despite Colombia’s extensive natural beauty and bustling cities, its tourism industry has traditionally underperformed relative to its actual potential; however, international visitor arrivals rose by 70% between 2010 and 2015, contributing to the 17% increase in employment during those years. Overall, the coming years are expected to be marked by double-digit growth in tourism indicators. The devaluation of the peso, ongoing promotional efforts and the country’s enhanced profile provide a window of opportunity for Colombia to attract more tourists. To solidify the sector’s contribution to GDP, continued investment in infrastructure and the development of varied segments will be necessary. This chapter features an interview with María Claudia Lacouture, Minister of Commerce, Industry and Tourism.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18As the period of contraction of the commodity cycle continues to dampen Peru’s growth prospects, the education sector has become critical to the country’s ability to begin its transition to a knowledge-based economy. In a post-commodity cycle scenario, aligning vocational and technical training with labour market needs is expected to gradually rise to the top of the agenda in the medium term, as efforts to stimulate growth outside of natural resource-based sectors gain momentum. President Kuczynski hopes to expand access, improve quality and modernise Peru’s health system, a task that will demand increased levels of public spending at a time when the government grapples with a slowdown in economic growth. Meanwhile, though the private sector has not been immune to the deceleration of economic growth, the market continues to attract significant investor interest.
This chapter includes interviews with Fernando D’Alessio, Director-General, Centrum Católica Business School, and Carlos Heeren, CEO, University of Technology and Engineering (UTEC)
Explore chapterEducation
Buy digital copy of this chapter - £18With the UAE’s 2021 Golden Jubilee celebrations just four years away, the education sector in Abu Dhabi is closing in on achievement targets that will be used as key performance indicators of national transformation. Launched in 2010, the UAE’s Vision 2021 set a challenge to create a competitive knowledge economy and a first-rate education system that is ranked among the best in the world by international indices. While these targets may serve as useful reference points for educators, those administering the education sector in Abu Dhabi also have broader aspirations to ensure that the emirate’s growing numbers of classrooms, lecture theatres and laboratories nurture the skills, aptitudes and attitudes that today’s pupils and students will need in tomorrow’s world.
This chapter contains an interview with Ahmad Belhoul Al Falasi, Minister of State for Higher Education.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Sri Lanka’s tax regime, focusing on business-friendly benefits for 2017, incentives for tourism operators, digitisation of VAT mechanism and other key areas.
It also features a viewpoint from Sujeewa Mudalige, Managing Partner, PwC.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Contributing around 10% of GDP, the Philippine agriculture and fisheries sector’s importance to the economy remains far larger than its direct impact on the bottom line. The industry is a crucial employer, accounting for for 26.7% of the 43.4m-strong labour force, and is one of the few trades available for many Filipinos living in remote, less-affluent regions. With President Rodrigo Duterte announcing the aim to reduce poverty from 21.6% in 2015 to 14% by 2022 as part of the Philippine Development Plan 2017-22, a logical place to begin would be the agriculture sector, as the rural population collectively lives within a poverty range of 35-40%. The sector also plays directly to another of the president’s talking points about focusing on agriculture, tourism and manufacturing, with much of current industrial activity already devoted to downstream processing of agricultural products.
This chapter contains interviews with Emmanuel F Piñol, Secretary, Department of Agriculture; and Rachel Lomibao, CEO, Monsanto Philippines.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains a breakdown of the most recent legal reforms and changes in Tunisia, including an overview of the new finance law.
This chapter contains a viewpoint from Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, OBG explores the taxation system, examining Kenya’s investor-friendly environment.
It also features an interview with Gitahi Gachahi, CEO, EY Eastern Africa, on creating an enabling environment for foreign direct investment in Kenya.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter offers an overview of Vietnam’s legal framework, focusing on legislation passed to improve the business environment, the Law on Enterprises, the New Civil Code and other important areas.
It also contains an interview with Tuan Phuong, Managing Partner, VCI-Legal.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Following 10 years of growth roughly on par with that of the overall economy, Mexico’s agriculture sector outstripped GDP growth by 1.2 percentage points in 2016 and registered a trade surplus for the second year running. Given the uncertainty over future US trade policy, there has rarely been a more urgent or ripe time to address the needs of Mexico’s agriculture industry. In the short term, diversification of export markets and of imports from the US can mitigate the impact of a potential, if unlikely, tariff hike. In the long run, however, the right kind of investment could help unlock agricultural potential. This chapter features interviews with José Calzada Rovirosa, Minister of Agriculture, Livestock, Rural Development, Fisheries and Food; and Gaston Mauvezin, CEO, Proteak.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Egypt’s investor-friendly environment.
Explore chapterHealth
Buy digital copy of this chapter - £18Côte d’Ivoire is setting the health sector back on its feet after a decade of armed conflict and political division. As the 2012-15 National Health Development Plan reached its closing period, progress seemed clear and the country was geared towards rebuilding and constructing health infrastructure and facilities, training and hiring personnel, setting new standards and, ultimately, working to provide widespread health care coverage at an affordable cost. The next iteration of the plan, covering the 2016-20 period, has allocated significant funds for the improvement of health care in the country, with the private sector likely to continue playing a primary role via investments in the form of public-private partnerships. This chapter contains an interview with Ange Désiré Yapi, Director-General, Nouvelle Pharmacie de la Santé Publique de Côte d’Ivoire.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Bahrain, including a summary of accounting standards and principles in the country, an analysis of Brexit’s impacts on GCC economies and a look ahead to the possible implementation of VAT in the GCC.
This chapter contains a viewpoint from Ahmed Alsulaiman, Managing Partner, KSI - Bahrain Consultants & Public Accountants.
Explore chapterTourism
Buy digital copy of this chapter - £18Having welcomed record numbers of tourists in 2015, Oman’s government looked to build on this momentum a year later by unveiling plans to double international arrivals by 2040 and develop strategic tourism clusters across the country. The sultanate is eager to shed its reputation as a luxury destination and boost the performance of other segments in the coming years. The Oman Convention and Exhibition Centre is one development that can help broaden the sector’s reach, by firmly establishing the country as a major destination for meetings, incentives, conferences and exhibitions. Meanwhile, the ecotourism and adventure travel subsectors are seen as ripe for development and promotion by the government. With a significant increase in hotel rooms in recent years and flagship development projects under construction across the country, Oman may soon emerge as a major destination, not just for regional tourists, but also for travellers from further afield. This chapter contains an interview with James Wilson, CEO, Oman Tourism Development Company
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Myanmar’s legal system, focusing on the new investment law that is set to enhance the business climate, the extension of investment protections and benefits, a mobile financial services bill, and updates to several key labour laws.
It also contains a viewpoint from Cheah Swee Gim, Director, Kelvin Chia Yangon.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Ghana’s investor-friendly environment.
OBG talks to Felix Nana Sackey, Managing Partner and CEO, Deloitte Ghana, on financial statements.
Explore chapterMedia
Buy digital copy of this chapter - £18Like many places in the world, Saudi Arabia’s media landscape is going through rapid change, primarily brought about by digital technology and the rise of social media – internet penetration rate is estimated at around 65% overall and 93% among Saudi nationals. While traditional media still has a strong footprint and is unlikely to be pushed aside any time soon, legacy media organisations are being forced to rapidly develop their digital offerings in order to maintain their market share. The regulatory environment for media in Saudi Arabia, which many consider among the strictest in the Middle East, also needs to adapt to the new digital reality. There are signs that change is happening, with a new minister of culture and information appointed in 2015 and the potential establishment of a media production city in the Kingdom, which could help to train a new generation of Saudi journalists.
This chapter contains an interview with Adel Al Toraifi, Minister of Culture and Information.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18Agriculture accounts for around 14% of GDP and 35-40% of jobs in Morocco. Driven in large part by the national agricultural policy, the Green Morocco Plan (Plan Maroc Vert, PMV), the sector’s GDP contribution increased by 57% between 2008 and 2015 to reach Dh115bn (€10.5bn). Among the key changes in the sector since the launch of the PMV is a shift in structure: Moroccan agriculture today is less dependent on cereals output for growth. Results borne of this strategy became most evident when, at the start of the 2015/16 agricultural season, severe droughts hit the country, leaving little hope for prosperous cereal yields. The increased value addition, however, is expected to offset the decline in upstream cereals production. In addition, efforts to mitigate the effects of climate change are playing a significant role in improving the sector’s resilience.
This chapter contains an interview with Mohammed Fikrat, CEO, Cosumar.
Explore chapterICT
Buy digital copy of this chapter - £18Over the past 15 years, Dubai has developed one of the most advanced IT sectors in the GCC region. As of early 2016 more than 90% of the UAE’s population reported using the internet on a regular basis. ICT is at the heart of the seven-year Dubai Plan 2021 (DP2021). DP2021 builds on more than 15 years of investment in advanced technology by the emirate’s leadership, in conjunction with a wide range of blue-chip private sector technology companies. Together, the government and the private sector have turned Dubai into a centre for technological innovation in the Middle East, with the Dubai Smart City (DSC) project a testament to the emirate’s ambitions.
This chapter contains interviews with Aisha bin Bishr, Director-General, Smart Dubai Office; and Osman Sultan, CEO, du.
Explore chapterEducation
Buy digital copy of this chapter - £18Government education spending has grown rapidly in recent years, as the leadership has continued to emphasise the importance of education in creating sustainable employment for Kuwaitis and equipping them with the skills to compete in the global marketplace. Government expenditure on education grew at an average rate of 14.8% in the four years to the 2013/14 fiscal year. Falling oil prices have brought the need for economic diversification back into focus, reinvigorating efforts to develop knowledge-intensive sectors such as high-tech manufacturing and ICT. As such the country’s long-term development plan, Kuwait Vision 2035, places strong emphasis on education as a catalyst to economic diversification, sustainable growth and social progress. Substantial investment from the government is now being coupled with reform tailored to Kuwait’s needs and values. The private sector has a strong presence, educating more than 40% of pupils, and is expanding even more rapidly than the public education system, as demographics and economic growth drive demand.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The current trajectory of the health care sector is defined in large part by the potential offered by Nigeria’s demographics and income profile. However, realising that potential will necessitate major investment and reforms to ensure that both public and private infrastructure can keep pace with demand. With an 184m-strong population growing at 2.7% per year, propelling the country to the upper ranks of the global population tables, the burden on public social services is great and growing. This is placing a strain on the under-resourced and underfunded public health system, but is also opening up the way for private providers. The education sector is also feeling the pressure created by the country’s demographics. Without further reform and attention, the state school system – currently underfunded and understaffed – is likely to come under severe stress. However, if the government is able to adapt accordingly, it can capitalise on the current youth bulge, facilitating a rise in economic productivity and a drop in the dependency ratio.
This chapter contains an interview with Isaac Folorunso Adewole, Minister of Health.
Explore chapterTourism
Buy digital copy of this chapter - £18The world’s fourth-most-populous nation, Indonesia boasts unique cultures, World Heritage Sites, pristine beaches, unparalleled diving and some of the world’s rarest wildlife. Its tropical climate and balmy temperatures of between 28°C and 34°C in coastal areas with little variation from one season to the next, make the archipelagic nation an ideal beach holiday destination. Indeed, Indonesia should be one of the world’s leading tourist destinations, yet it has consistently ranked behind neighbouring Thailand and Malaysia in tourist arrivals. Since taking office in 2014, the government of President Joko Widodo has been working hard to change that. It has recognized tourism as a major pillar of economic growth and set a target of 20m foreign visitors by 2020, when the industry is expected to be Indonesia’s biggest source of foreign exchange earnings.
This chapter contains an interview with Arief Yahya, Minister of Tourism.
Explore chapterTourism
Buy digital copy of this chapter - £18While Papua New Guinea remains a relative newcomer to the global tourism stage, international arrivals to the country have risen steadily over the past decade, from just over 69,200 in 2005 to more than 198,600 in 2015, according to data compiled by the PNG Tourism Promotion Authority. Although notable, most of the increase has been driven by the influx of business travellers and workers that has accompanied PNG’s recent economic growth as opposed to a substantial boost in holidaymakers. This trend has reversed slightly as economic growth has cooled and as segments such as cruise and adventure tourism have taken hold.
This chapter contains an interview with Tobias Kulang, Minister of Tourism.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Backed by a coordinated government strategy and strong investments in key economic enablers such as infrastructure, Qatar’s tourism industry continues to grow at a steady clip. Since 2010 Qatar has seen arrival numbers rise more than 72% to reach 2.93m in 2015. The sector’s economic contribution hit QR39.5bn ($10.8bn) in 2014, and mid-2015 estimates projected 2015 growth at 6.6%, according to the World Travel & Tourism Council. Foreign arrivals rose an average of 11.5% a year in 2010-15 and were up 3.7% year-on year in 2015, falling just shy of 3m visitors, according to Qatar Tourism Authority.
This chapter contains interviews with Hassan Abdulrahman Al Ibrahim, Chief Tourism Development Officer, Qatar Tourism Authority; and Khalid bin Ibrahim Al Sulaiti, General Manager, The Cultural Village Foundation-Katara.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Trinidad and Tobago’s legal framework, covering a range of topics including civil procedure rules, the Foreign Investment Act, free zones and public-private partnerships, among others. It also features a viewpoint from Kenneth Vieira, Senior Partner, J.D. Sellier.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides a guide to the Sultanate’s regulatory structure, focusing on key areas including property laws, IP rights and the sharia system. It also contains a viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services; and President, Arbitration Association Brunei Darussalam (AABD).
Explore chapterEducation
Buy digital copy of this chapter - £18Malaysia’s ongoing commitment to education is evident in the amount it invests in the sector each year, usually at least 20% of the annual budget for all levels of learning, according to the World Bank. The result has been a sustained improvement in access to education, with close to universal enrolment at the primary and secondary level. Shifting the curriculum away from rote learning and closing the gap between rural and urban schools are key aims of ongoing education reforms, which also envisage more private sector involvement. This chapter contains a round table with Helen Bartlett, President and Chief Executive, Monash University; Wahid Bin Omar, Vice-Chancellor and President, Universiti Teknologi Malaysia; Mohd bin Amin Jalaludin, President/Vice-Chancellor, University of Malaya; and Christine Ennew, CEO and Provost, University of Nottingham Malaysia Campus; and an interview with Tunku ‘Abidin Muhriz, Founding President, Institute for Democracy and Economic Affairs.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter explores the Sri Lankan tax framework, giving a breakdown of the various regulatory authorities, revenue collection systems, taxpayer services and other elements. It also contains a viewpoint from Sujeewa Rajapakse, Managing Partner, BDO Partners.
Explore chapterAl Gharbia
Buy digital copy of this chapter - £18Al Gharbia encompasses the western part of the emirate of Abu Dhabi and, at 35,250 sq km (59% of Abu Dhabi emirate), is also larger than any other emirate in the UAE. The government’s strategy for the development of the region is laid out in Plan Al Gharbia 2030. Priority sectors for development include energy, desalination, petrochemicals, tourism and food production, with major infrastructure now under way in the form of a new motorway from Al Mafraq, near Abu Dhabi City, through Al Gharbia via Ruwais, Mirfa, Barakah and Sila, to Al Ghweifat on the Saudi border. Tourism is seen as key for the region, with various events drawing visitors including a water sports festival in Mirfa and the Liwa Date Festival, the 11th edition of which took place in July 2015. The latter attracts 70,000 people annually. This chapter contains an interview Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Tunisia, in partnership with Meziou Knani & Khlif. This chapter contains a viewpoint from Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The naturally fertile land central to Thailand’s Chao Phraya river basin, combined with increasingly well-developed infrastructure, serves as a strong foundation for what is a robust agricultural base. These advantages have propelled both small-scale farmers and larger agriculture companies from Thailand into the forefront of global agri-business, with the country ranking among the world’s leaders in the exportation of rice, seafood, rubber and sugar, as well as serving as a home base for some of the region’s largest food production companies. In 2014 the agricultural sector contributed $20bn to GDP, up slightly from $19.9bn recorded the previous year. In terms of value added, this was equivalent to 10.5% of the country’s GDP for the year. This chapter contains interviews with Krisda Monthienvichienchai, CEO and President, Mitr Phol; and Luck Wajananawat, President, Bank for Agriculture and Agricultural Cooperatives.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Still the country’s largest single employer, the Philippines’ agriculture sector continues to play a pivotal role in the economy, even as the government looks to develop other modern industries to lead the way in the future. Directly employing more than one-quarter of all workers in non-services industries, more than 11m Filipinos relied on agriculture for their livelihood in 2013, according to the Philippines Statistics Authority (PSA). The palay, poultry and livestock industries were the key drivers of growth in 2013, and the segments continued to perform well in the first half of 2014. Determining the most effective means of countering the effects of weather will be a key concern going forward. Initiatives to boost yields of staples such as rice and corn should reduce the country’s food import bills in the future, even if the stated goal of full rice self-sufficiency is not achieved. The flourishing fisheries and fruits and vegetables segments are likely to continue to be profitable as well, as international demand still significantly outpaces the supply of Philippines-cultivated produce and seafood. This chapter contains interviews with Senator Cynthia A Villar, Chairperson, Senate Committee on Agriculture and Food; and Milagros Ong-How, Executive Vice-President, Universal Harvester Incorporated.
Explore chapterSports
Buy digital copy of this chapter - £18As Colombia debates a settlement to long-running internal political conflicts, sport is increasingly seen as a powerful instrument for social inclusion and community development. Despite fiscal austerity, the government, through sports institute Coldeportes, has been promoting sport for all. According to a mid-2015 report by Forbes magazine that examined public sector sports budgets across 20 Latin American countries, Colombia was ranked fourth by total spending. Brazil was ranked in first with $842.4m - the lion’s share because of preparations for the 2016 Rio Olympic Games - followed by Mexico with $233m, Chile with $213m and Colombia with $169.3m. According to the report, the 20 countries were spending a combined $1.9bn on sporting venues, infrastructure and the training of athletes. The development of sport in Colombia has important spillover effects on the economy, with a number of sectors benefiting, including tourism, transport, hotels and restaurants, and the textile industry, among others.
This chapter includes an interview with Andrés Botero, Director, Administrative Department of Sport, Recreation, Physical Activity and Use of Free Time.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework within which local and international firms operate within Bahrain, including an overview of the kingdom’s relevant rules and regulations, a look at the recent labour law, and a rundown of the new guidelines for rental units.
This chapter contains a viewpoint from Hatim Q Zu’bi, Partner, Zu’bi & Partners, Attorneys & Legal Consultants.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines new developments in Myanmar’s tax code, including the Union Tax Law 2015 and the self-assessment system. It also contains a viewpoint from U Win Thin, Chairman, Win Consulting.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of the Peruvian tax regime, covering areas of particular interest to investors such as individual and corporate income tax, capital gains regulations, stability agreements, Customs regulations and other investor considerations. This chapter contains an interview with Orlando Marchesi, Lead Partner, Tax and Legal, PwC Peru.
Explore chapterTourism
Buy digital copy of this chapter - £182015 proved a record year for Oman’s tourist industry, with the number of incoming visitors topping those of previous years and wide media coverage promoting the country’s increasingly cemented status as a niche tourism destination. The preservation of the country’s natural surroundings and cultural traditions has allowed it to keep much of the spirit of “Old Arabia”, and indeed tourism has been deliberately kept at the high end, with marketing aimed at visitors who are interested in engaging with local culture, nature and history. Meanwhile, various developments look set to bolster the sector moving forward, with the ongoing expansion of Muscat International Airport a prime example. A new terminal is currently under construction which will boast an expected capacity of 12m passengers per annum, with further capacity to accommodate four times that number in the future. This chapter contains and interview with Ali Al Rasbi, Acting CEO, Omran.
Explore chapterHealth
Buy digital copy of this chapter - £18As one of the largest health care markets in the MENA region, Egypt is looking to meet rising demand for services driven by its growing population. While efforts are being made to extend care to all citizens, the health care system remains strained by a rising population and structural weaknesses such as fragmentation, low government expenditure and reliance on out-of-pocket spending. Although notable progress has been made in basic public health, further expansion will require greater investment from both the state and private industry. There is rising interest in supporting primary health care, and Egypt is moving towards a health model emphasising prevention and primary care over inpatient treatment.
This chapter contains an interview with Hend El Sherbini, CEO, Integrated Diagnostics Holdings.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework within which local and international investors operate in Kenya, including an examination of the free trade agreements in place and how they are enabling more foreign investments. A rundown of the proposed changes to tax laws currently under examination is also included.
This chapter contains a viewpoint by Gitahi Gachahi, CEO, EY Eastern Africa.
Explore chapterTable of Contents
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Health
Buy digital copy of this chapter - £18Basic health indicators in South Africa have improved recently thanks to surging government expenditure aimed at combating communicable diseases that have added to existing constraints in the public health system. The advent of universal health coverage under the National Health Insurance scheme in particular has created new opportunities in the sector, as well as offering the potential to reduce the economic impact of communicable diseases. Private sector participation will be critical to achieving long-term health care objectives, and a number of positive indicators – including rising investment in new facilities and strong growth within the pharmaceuticals industry – demonstrate the strong potential for continued sector growth.
This chapter contains an interview with Konji Sebati, CEO, Innovative Pharmaceutical Association South Africa.
Explore chapterHealth
Buy digital copy of this chapter - £18More than ever before, Ghanaians have seen their access to health care improve, and as a result they are living longer, healthier lives. Since the roll-out of the National Health Insurance Scheme (NHIS) in 2005, 10.2m active subscribers had been added to the scheme as of end-2014, out of a total population of 25m. This has led to improvements in average life expectancy, which, in the decade leading up to 2014, rose from 57.79 years (2003) to 61.1 years (2013). The maternal mortality rate has declined steadily as well, to 380 deaths per 100,000 live births in 2013, down 49% from 1990, though the country is still some way off from reaching the UN Millennium Development Goal of 185 deaths per 100,000 live births. The health care system is currently dealing with considerable financial challenges, but ongoing developments suggest a positive, and healthy, future for the sector.
This chapter includes an interview with Nathaniel Otoo, Chief Executive, National Health Insurance Scheme (NHIS).
Explore chapterEducation
Buy digital copy of this chapter - £18Despite the pressure Mexico’s demographic boom has placed on its education system, the sector has made notable progress in the past decade, with coverage, especially in primary education, having increased considerably. The system is now faced with the substantial challenge of raising the overall quality of education and increasing coverage at the post-secondary and tertiary levels, while reducing high drop-out rates. Recognising the strategic importance of education in raising Mexico’s economic competitiveness, the government passed an important structural reform in 2013 aimed at improving the quality and increasing the efficiency of the system. In 2015, nearly two years after the reform passed, progress is visible, but resistance from Mexico’s powerful teachers’ unions has resulted in a less-than-smooth implementation of changes. Following through with the reform, despite the opposition of the unions, will prove key to breaking the decades-long status quo and ensuring long-term quality and efficiency improvements for the sector
Explore chapterEducation
Buy digital copy of this chapter - £18During the 2013/14 academic year, the government operated a total of 803 public schools, with a total enrolment of 360,845 pupils and a teaching staff of 60,902. As demand grows, reforms designed to underpin the sector’s role in the government’s economic diversification plan are being implemented in line with Kuwait Vision 2035, the country’s long-term development strategy. A greater focus on research and development will be needed over the long term as part of the broader push towards a knowledge-based economy. An ongoing focus on female education has led to low levels of unemployment among women aged 15-24, which in 2013 stood at 12.7% versus 22.8% for males. In the private sector, the number of schools has risen from 453 in 2005/06 to 501 in 2013/14, with enrolment rising above 250,000.
Explore chapterRetail
Buy digital copy of this chapter - £18Despite the global fall in oil prices, Saudi Arabia’s retail sector continues to enjoy robust growth, fanned by its solid base of domestic consumers and strengthened by a growing youth population and rising disposable incomes. The strong performance of retailers across a number of sectors is leading to increased demand for dedicated mall space, which is expected to command a premium in the short term. Indeed, the existing rental environment presents a challenge for many retailers in the Kingdom, with rent in some cases reaching up to 25% of tenants’ sales revenue, although in the fast food segment it is a more manageable 15%. However, the overall mood in the industry is one of optimism, buoyed by the presence of strong fundamental conditions for growth.
This chapter contains an interview with Khalid Al Sehaibany, General Manager, Hamat Property Group.
Explore chapterRetail
Buy digital copy of this chapter - £18The Rawaj Vision 2020 development plan devised by the Ministry of Trade, Industry and New Technologies aims to grow the retail sector’s contribution to GDP from 11% to 15% and generate 450,000 new jobs. As consumer confidence returns to the economy, new mall developments have sprung up, alongside an influx of foreign brands and franchises into the country. Although it continues to be dominated by informal trade and businesses, the advent of dedicated retail space is changing consumer habits in Morocco, and Rawaj Vision 2020 aims to restructure and gradually absorb informal activity into the formal economy.
This chapter contains an interview with Zouhair Bennani, CEO, Best Financière Group.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Papua New Guinea’s health care system is delineated in the National Health Plan 2011-20, which places a distinct emphasis on the provision of basic care for the country’s poor and rural population. A new free primary care programme, launched by the government in 2014, eliminates all user fees from medical centres and clinics, with the aim of making basic health care free for all Papua New Guineans. The shortfalls in PNG’s health sector are numerous and the reasons complex. Many of the challenges are linked to obstacles in other sectors, such as transport, infrastructure, manufacturing, education and security. It will be difficult for the health sector to improve without concurrent improvements in these areas. The international community is contributing and playing its part to help PNG improve its health care delivery, facilities and services, but there is room for more activity, especially from the private sector. As PNG sees its population increase, the demand for education at all levels is also rising. The country is starting to build the infrastructure and train the educators necessary to cater for this large group of students. However, the sector is still in its early days, and outside assistance and investment is very much welcome in terms of funding and managerial assistance.
This chapter contains an interview with Dr Amyna Sultan, CEO, Pacific International Hospital.
Explore chapterRegions
Buy digital copy of this chapter - £18Across its four regions and 22 provinces, Papua New Guinea contains an impressive diversity of linguistic, ethnic and cultural groups. From the coasts of autonomous Bougainville to the rocky peaks of the Bismarck range in the highlands, and from the dense quarters of the National Capital District to the remote and less-inhabited tributaries of Western Fly Province, these areas – even within themselves – show a high degree of geographical, cultural, and political variety. Among the most dynamic patches is the province of Morobe, on the north-east coast, due north of Port Moresby. This region is PNG’s industrial heartland, as well as a thriving commercial hub. Its capital, Lae, is also an educational centre and the staging point for transport into the highlands and beyond. Through its port, Lae connects the farm and mineral produce of the interior with the busy shipping lanes of the South Pacific. With abundant natural resources and a strategic location, Morobe is likely to benefit considerably from PNG’s economic growth in the near to medium term.
This chapter contains a viewpoint from David J Alcock, CEO, Mainland Holdings; and an interview with Kelly Naru, Governor, Morobe Province.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Featuring a viewpoint with Mark Laquis, Managing Partner, Pollonais, Blanc, de la Bastide & Jacelon, on the financial services regulatory framework, this chapter provides an overview of T&T’s legal framework, covering a range of topics from intellectual property rights to labour laws and immigration, among others.
Explore chapterHealth
Buy digital copy of this chapter - £18Despite a number of setbacks, Panama’s health care sector has seen significant advancement in recent years. The former administration of Ricardo Martinelli oversaw a period of significant infrastructure expansion, and the country is now closer than ever to achieving universal coverage. Meanwhile, the government of Juan Carlos Varela has remained committed to improving access and increasing efficiency, while maintaining the previous government’s emphasis on expanding public infrastructure. The administration now faces the task of addressing the myriad of challenges that continue to affect the health care sector, in particular capacity and health personnel shortages, while leading the country through the transition to a prevention-focused health care model. Though the recent rise in sector infrastructure is an encouraging step to improving access, reducing waiting lists and improving health outcomes, the severe skill shortage remains an obstacle to the sector’s development, and one that will require a multi-faceted approach.
This chapter features an interview with Francisco Javier Terrientes Mojica, Minister of Health.
Explore chapterMining
Buy digital copy of this chapter - £18Endowed with ample mineral and coal resources that have yielded some of the most productive mines in the world, Indonesia’s mining sector continues to exert substantial influence on both the domestic economy and global markets. The world’s largest coal exporter, Indonesia continues to lead the seaborne market despite several leaner years due to weaker demand and softer prices. Local demand is also projected to expand significantly through the end of the decade with a new wave of coal-fired power plants slated for construction over the next five years. The mining sector looks likely to remain in flux over the next few years as policymakers continue to hash out tough compromises in implementing evolving mining regulations. The market for mineral commodities, however, provides for ample investment opportunities in light of positive economic projections for the Asia-Pacific region.
This chapter contains an interview with Garibaldi Thohir, President-Director, Adaro Energy.
Explore chapterTourism
Buy digital copy of this chapter - £18With a selection of archaeological ruins to rival that of Italy and Greece, 7200 km of scenic coastline, Istanbul’s unique blend of rich heritage and cosmopolitan culture, and an advantageous location at the crux of three continents, Turkey’s diverse visitor offerings have seen its popularity grow rapidly over the past decade and the country is now becoming a leading international tourism hotspot. The country ranks as the world’s sixth-most-popular tourist destination, after France, the US, Spain, China and Italy. In terms of source markets Germany remains the number one tourist market for Turkey, recording 5.2m visitors in 2014, and is closely followed by Russia (4.48m) and the UK (2.6m). The country is well on its way towards meeting many of its Vision 2023 tourism goals, including the overarching goal of welcoming 50m visitors annually. With new hotel and transport infrastructure, as well as increased government promotion of various tourism sub-segments, the sector is expected to remain healthy.
Explore chapterTourism
Buy digital copy of this chapter - £18The tourism industry has taken on an increasingly central role in Mongolia in recent years. In 2013 the country saw more than 415,000 incoming visitors and reported market turnover of $263m, which represented about 4% of GDP at the end of the year. These moves are in line with the government’s ambitious short-term and medium-term objectives, which include increasing international arrivals to 600,000 in 2015 and 1m by 2017. These goals will be supported by a considerable reworking of Mongolia’s tourism regulatory framework, which was under way as of April 2015. Broadly, under the new legislation, the government plans to take on a more active role in the development of the tourism sector and to work to facilitate increased transparency and competitiveness in the private sector. Most local players agree that Mongolia has the potential to eventually become a sizeable and highly profitable tourist destination. The country’s many tourism assets bode well for growth, as does the government’s restructuring effort.
This chapter contains an interview with B. Indraa, Executive Director, Tourism for Future NGO, and Director of the Governing Board, Mongolia National Tourism Organisation.
Explore chapterThe State of Osun
Buy digital copy of this chapter - £18Having been established in 1991, the State of Osun is one of the younger states in Nigeria, and in recent years the state government has made ambitious efforts to expand and develop the local economy. Named after the River Osun, linked to the Yoruba goddess of fertility, the state was carved out from the former territory of Oyo State during a boundary re-drawing in the 1990s. Over the past two and a half decades, Osun has grappled with many of the same challenges as other states in the country – poorly maintained infrastructure, irregular federal funding and inadequate social services – but a spate of reforms launched are aiming to address those issues. Although Osun does face its fair share of challenges, including a dependency on the volatile agricultural sector and neglected infrastructure, the current administration has taken a number of steps to block monetary leakages, improve project preparation and delivery, and raise internally generated revenue.
Explore chapterReal Estate
Saudi Arabia’s real estate market should present the best opportunity on the Arabian Peninsula in the coming years. It has the largest potential market in the GCC with abundant oil wealth and a growing and youthful population. But whereas its counterparts to the east have experienced the highs and lows of a full boom-and-bust cycle, and the headlines that accompany this, the Kingdom has ticked along quietly. That said, affordability remains a significant challenge and new mortgage legislation is set to be implemented in 2014.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18The last decade has seen a rapid expansion in the number of hotels and other tourism facilities in Qatar, as the state has invested in transforming the country into a luxury, sports and business destination. While in 2014 the majority of tourists visited the country for business purposes, the Qatar National Tourism Sector Strategy 2030 aims to reverse this trend, with hopes that by 2030, 64% of all non-GCC tourists visit Qatar for leisure. The hosting of the 2022 FIFA World Cup should boost growth across the sector, with the government expected to spend as much as $200bn in the build-up to the global event. Meanwhile, Qatar is increasingly looking to preserve its archaeological and heritage sites with specific initiatives to safeguard its heritage and strengthen laws and regulations that support cultural preservation.
This chapter contains interviews with Sheikh Faisal bin Qassim Al Thani, Chariman, Al Faisal Holding; and Hala Mohammed Al Khalifa, Director, The Fire Station – Artists in Residence.
Explore chapterTax
This chapter gives an overview of taxation in Sarawak, which is governed by the general policies of the Malaysian federal government. Key areas of focus include double taxation agreements, corporate tax, investment tax allowance, incentives and green technology tax exemptions.
Explore chapterReal Estate
Saudi Arabia’s real estate market should present the best opportunity on the Arabian Peninsula in the coming years. It has the largest potential market in the GCC with abundant oil wealth and a growing and youthful population. But whereas its counterparts to the east have experienced the highs and lows of a full boom-and-bust cycle, and the headlines that accompany this, the Kingdom has ticked along quietly. That said, affordability remains a significant challenge and new mortgage legislation is set to be implemented in 2014.
Explore chapterHealth
Buy digital copy of this chapter - £18The Philippine experiment of combining public health care spending with private sector delivery continues to evolve. As health care remains central to the public interest, there is a heavy onus on improving access and efficiency in accordance with the goal of providing universal health care coverage for all Filipinos by 2016. The year 2015 is expected to focus on consolidation, as inefficiencies in PhilHealth and shortcomings in the investment environment are addressed with an influx of funding. The battle to improve the quality of care in rural areas remains pressing and efforts to keep qualified health care staff close to home should start having an effect on the sector overall.
This chapter contains an interview with Alexander A Padilla, President and CEO, Philippine Health Insurance Corporation.
Explore chapterEducation
Buy digital copy of this chapter - £18The development of a knowledge-based economy and a highly skilled and productive workforce are key priorities of Abu Dhabi Economic Vision 2030. To this end the government continues to invest significantly in education, with 21% of federal spending under the UAE’s $38.11bn draft budget for 2014-16 going towards public and higher education. Meanwhile private schools have played an increasingly important role in recent years as their number rose from 181 to 185 between 2010/11 and 2012/13. Moving forward, partnerships with the private sector are helping to match university programmes with high-growth sectors, while several new Ministry of Education teacher-training programmes are expected to have an impact on the emirate’s human resources development and job creation strategies.
This chapter contains interviews with Sheikh Hamdan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research; and Amal Al Qubaisi, Director-General, Abu Dhabi Education Council.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate, including a review of the effects that new labour legislation will have on employers, an examination of corporate law in Bahrain and a look at a proposed law to address the threat of cyber crimes.
This chapter contains a viewpoint from Qays H Zu’bi, Senior Partner, Zu’bi & Partners.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the rules and regulations surrounding business and investment in Myanmar. It also features a legal viewpoint from Cheah Swee Gim, Director, Kelvin Chia Yangon.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Major investment in the telecoms and IT sector from both the public and private sectors has expanded coverage in Oman, with the number of pre-paid mobile subscribers reaching 5.37m in the first half of 2014. The government has recognised the potential of a vibrant IT sector and in line with its objective to diversify the economy away from hydrocarbons has marked the development of the sector as a key part of the Vision 2020 strategy. In an effort to transition many of its services online as part of its e-government initiative, the government had, as of September 2014, trained 90,000 employees in IT skills and awareness. Meanwhile, the Information Technology Authority (ITA) has adopted an incubation approach with efforts to encourage funding of IT start-ups from banks, venture capital funds and others while government guarantees regarding protection of IP rights in the sultanate are expected to attract further investment from international companies. This chapter contains an interview with Salim Sultan Al Razaiqi, CEO, Information Technology Authority.
Explore chapterTax
Buy digital copy of this chapter - £18As part of an overview of the Peruvian tax regime, this chapter covers areas of particular interest to investors such as corporate and individual income tax, stability agreements, tax exemptions and pension fund contributions.
This chapter contains an interview with Esteban Chong, Senior Partner, PwC Peru.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Access to free medical treatment is a constitutional right in South Africa, but though the government has devoted at least 12% of its budget to health care annually since 2010, the Department of Health (DoH) itself has characterised the system as “inequitable, with the privileged few having disproportionate access to health services”. Expenditure is split fairly evenly between the public and private sectors, but 84% of South Africans rely on state health care services, while the private facilities serve just 16% of the population. South African health care is poised for a huge overhaul. The question is whether the roll-out of the NHI programme is feasible, given the human resource, technical and financial constraints of the existing public health system.
Ample resources are invested in South Africa’s education sector, which ranks among the best on the continent. The state spends approximately one-fifth of its budget annually on education and training and has nearly achieved the goal of universal primary school enrolment that has proved so elusive elsewhere in sub-Saharan Africa. Some 14% of government expenditure is invested in basic education, according to UNICEF, though quality remains an issue, and low pass rates are especially prevalent in disadvantaged schools. With 10 globally recognised higher education and research institutions in the country, the tertiary education sector is the best in sub-Saharan Africa, and ranks 33rd in the world in terms of scientific research output. Now that black South Africans have been given access to the continent's best primary and tertiary education system, the government will have to focus on improving outcomes to create a pipeline of skilled youth that meets the needs of the labour market. The challenge will be cultivating the academic and financial capital to meet this goal.
This chapter contains interviews with Stephen Saad, Group Chief Executive, Aspen; and Jonathan Jansen, Vice-Chancellor and Rector, University of the Free State.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18With a proliferation of multi-language broadcasters and publishers catering to a broader regional audience, South Africa is home to one of the continent’s larger media sectors. The media industry is dominated by a group of multinational conglomerates that work across multiple platforms, with the largest player reaching a market cap of $4.7bn. While print sales and advertising revenues are in decline, the segment still represents one of the most read and accessed forms of media in the country. However, increasingly and in spite of a lower level of online penetration, digital content is receiving greater focus.
Television and radio, because of their broad reach, remain the most popular mediums for delivering messages, while print advertising revenues are taking a hit due to declining readership and a shift, albeit from a low base, to digital platforms. The advertising segment is competitive and has a large number of homegrown firms, and most leading international ad agencies have a presence in South Africa, representing a client mix that is largely made up of multinationals with local operations as well as South African blue chip firms that are increasingly doing business abroad.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Egypt’s investor-friendly environment.
Explore chapterHealth
Buy digital copy of this chapter - £18Having already drastically reduced mortality rates and increased life expectancy by tackling the problem of communicable diseases and instituting nationwide universal health services, the Sultanate is now shifting its efforts towards combating non-communicable diseases such as diabetes, heart disease and cancer. Although Brunei Darussalam’s substantial hydrocarbons exports and relatively small population have so far enabled the government to provide high-quality care to all Bruneians, the existing system is unlikely to be sustainable in the long term due to rapid increases in health care costs and the finite nature of the country’s resources. In the long term the expansion of the private sector could help to shape the future evolution of the health sector as a whole.
This chapter contains an interview with Dr Kenneth Y Y Kok, Medical Director, Brunei Cancer Centre.
Explore chapterCounties
Buy digital copy of this chapter - £18A historic transition is under way in Kenya that could have profound implications for its economy: as part of the implementation of its 2010 constitution, the national government is devolving about a third of its powers and responsibilities to 47 newly created counties. The ultimate objective of the process is to usher in a more decentralised approach to public service delivery, which, while challenging and involving substantial short-term costs, is designed to address regional inequalities and improve localised development. The largest areas to be transferred include health care, local transportation infrastructure, and the control of rivers and lake basins, as well as some planning, investment and licensing policies. Although devolution may be a challenge to successfully and smoothly implement for Kenya, the project promises significant benefits over the long term, and a number of counties have taken aggressive approaches to maximising the advantages devolution confers.
This chapter contains an interview with Anne Waiguru, Cabinet Secretary, Ministry of Devolution and Planning.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Ghana’s investor-friendly environment. OBG talks to Felix Nana Sackey, CEO and Managing Partner, Deloitte.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate including an examination of the approval criteria for real estate and property transactions in Jordan and a breakdown of the first Islamic Finance Sukuk Law, enacted in late 2012, which addresses the issuance of sukuk (sharia-compliant bonds) of all forms.
Explore chapterTax & Accounting
Buy digital copy of this chapter - £18Featuring a tax and accounting interview with OBG partner Peter Markey of Ernst & Young, this chapter offers guidance on the local tax system to those interested in opening a firm or investing in Mongolia.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18A long-awaited switch to digital TV and the expansion of the numbers of TV channels is taking place, bringing with it greater openness and competition within the nation’s leading media platform. Thailand also continues to develop its production side, with demand for content likely to surge as the new channels come on air, drawing on the country’s strong tradition in film and IT. Four of the six free-to-air channels are owned and operated by state bodies. The other two, which are private channels, typically draw the highest viewing figures. With frequencies assigned to the existing six channels, there has been no space left for new entrants, and broadcasters have had to move into the cable and satellite space. This will change with the implementation of the digital master plan. There is likely to be some consolidation as the number of channels expands, while those outfits with deeper pockets are likely to survive longer in an increasingly competitive environment. However, media is changing, too, and becoming more diversified and less state controlled, meaning there are plenty of opportunities for foreign investors.
Explore chapterTourism
Buy digital copy of this chapter - £18Boasting some of the world’s greatest biodiversity and dynamic landscapes, Indonesia has long been a popular destination amongst tourists. The development of an Islamic heritage niche has seen an increase in arrivals from Gulf countries. Arrivals from the UAE and Saudi Arabia increased 122.4% and 34.2%, respectively, in 2013. The number of air travellers to Indonesia rose 15% in 2012, reaching 72.6m. Projections for 2013 were high, with as many as 83.4m travellers forecast to fly through Indonesia’s airports. Once the ASEAN single market integration is complete in 2015, there will be a regional market to serve some 600m potential tourists. The government spent approximately $1.53m on international marketing efforts in 2013, focusing on events in new markets such as China, India and Turkey. Infrastructure hurdles and human resource recruitment remain the top challenges, but the government’s prioritisation of tourism as a key source of economic growth is a good sign. As the nation’s $43bn infrastructure investment budget continues to support projects, tourism is set to benefit from improved connectivity. This chapter contains an interview with Anthony Akili, President and CEO, Smailing Tours.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18As part of a long-term strategy to diversify away from dependency on hydrocarbons and move towards a more knowledge-based economy, Qatar has placed considerable importance on education and training. Due to the fact that the Foreign Investment Law exempts the education sector from the requirement to have a local Qatari partner or sponsor, the opportunities for foreign investment and partnerships are numerous, and the process of investing is relatively straightforward. With the population swelling and the government channelling increasing amounts of funds into the system to improve it, chances are that there are opportunities available for any investor looking to participate in the sector. This chapter contains interviews with Sheikh Abdulla bin Ali Al Thani, President, Hamad bin Khalifa University and Vice-President of Education, Qatar Foundation; and Faisal Alsuwadi, President of Research and Development, Qatar Foundation.
Explore chapterEducation
Buy digital copy of this chapter - £18Building a skilled workforce capable of driving a knowledge-based economy is Abu Dhabi’s main goal when it comes to education. In pursuit of this aim, the emirate’s government is making major investments in its schools and universities that are geared towards enhancing the quality and quantity of education for the growing local population. Thanks to government incentives and increased local demand, the private sector is playing a greater role in both K-12 schools and higher education. An emphasis on vocational and technical training is also helping to provide students with the skills needed in the workplace, while efforts to attract international universities are further enhancing the range of post-secondary options on offer, meaning Abu Dhabi appears to be on track with its plans to build up the skills of the local workforce. This chapter contains interviews with Mugheer Khamis Al Khaili, Director-General, Abu Dhabi Education Council (ADEC); and Hussain Ibrahim Al Hammadi, Director-General, Abu Dhabi Centre for Technical and Vocational Education and Training (ACTVET).
Explore chapterTax
Buy digital copy of this chapter - £18The tax chapter provides an overview of the Panamanian tax regime, highlighting accounting and reporting procedures as well as the main types of taxies levied. This chapter also provides a look at international agreements and the establishment process for various types of firms, and features an interview with Carlos Karamañites, Partner, KPMG Panama.
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Industry
Buy digital copy of this chapter - £18Easy access to air and sea transport, combined with expansions at the Jebel Ali Port and of the national airline, has helped establish Dubai’s position as both a trans-shipment hub and a destination for export industries. The industrial sector continues to provide a major contribution to non-oil GDP, with heavy industries able to take advantage of low energy prices. The emirate’s free zones are perhaps the most important driver of manufacturing growth, responsible for around 75% of exports and more than 25% of Dubai’s GDP in 2012. Key outputs, including refined petrochemicals products (plastics, fertilisers, synthetics), aluminium, precious metals and processed foods, are expected to trend positively throughout 2014, buoyed by strong economic fundamentals and major planned infrastructure and development projects.
Explore chapterHealth
Buy digital copy of this chapter - £18The health care sector was allocated 4% of the total 2013 budget, or some $1.3bn, which represented a 32% increase on 2012. The occurrence of non-communicable diseases has grown significantly in recent years, and the government has responded with plans for various large-scale projects, hospitals, health centres and prevention programmes, illustrating its commitment to addressing these challenges. At the same time, the government has complemented its health push with the recognition that the private sector must play a greater role. The trend toward private care is growing each year and the new medical cities and other facilities present opportunities for private players to break into the market.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18A series of reforms in late 2013 have effectively redesigned the health sector’s institutional framework and increased coverage and access to services. While state funding remains low, the sector has seen a significant rise in private sector participation, which is expected to continue following implementation of the reform package. With a number of larger companies investing heavily, smaller clinics now face difficulties staying competitive, which may lead to greater consolidation within the sector. Rapid economic growth is also enabling better access to education, accompanied by efforts to uphold educational standards. Total public expenditure has inched along in recent years but is still below the regional average. With government spending for education remaining relatively low, private participation has played a crucial role in the development of the sector, which continues to offer ample opportunities for private investment, especially in underserved areas.
Explore chapterHealth
Buy digital copy of this chapter - £18By including everyone under a health insurance coverage scheme and ensuring affordable drugs reach all socioeconomic groups, the Philippines is setting an example on how to tackle the problem of the high cost of medical care and social inclusion. The Philippine experiment of combining public spending on preventative health care and medical coverage with private delivery holds the promise of resolving the challenge of meeting public health goals with scarce resources. It may also serve as a model for public-private partnerships (PPPs), in which the health sector emerges as a driver of growth and employment opportunities. The government’s focus on promoting medical tourism and the health care BPO industry provides an enabling environment for future investments. This chapter contains an interview with Clinton Campos Hess, President & CEO, United Laboratories.
Explore chapterOyo State
Buy digital copy of this chapter - £18Known as the “pace setter state”, Oyo borders the states of Ogun, Osun and Kwara, as well as Benin in south-west Nigeria. Oyo’s natural resources are most suited to agriculture production and processing with an abundance of uncultivated arable land and reserves of gold, marble, clay and granite, among others. While economic indicators compare favourably to other states, the government is working to strengthen output in the secondary and tertiary sectors, as well as attract new investments. Businesses in the state face challenges posed by infrastructure bottlenecks, but new policies, developed in conjunction with federal programmes, are helping to incentivise investment by strengthening Oyo’s competitive advantages. This chapter contains an interview with Abiola Ajimobi, Governor of Oyo State.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars Algeria, OBG explores the taxation system, examining Algeria’s investor-friendly environment. This chapter contains a viewpoint from Samir Hadj Ali, Managing Partner, Mazars Algeria.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Egypt’s investor-friendly environment.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Gabon’s investor-friendly environment. This chapter contains a viewpoint from Nicolas Balesme, Partner and General Manager, Deloitte Touche Tohmatsu, OBG’s tax partner.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter, written in conjunction PKF Bouresli, provides a detailed review of the rules and regulations that are applicable to foreign entities doing business in Kuwait. This chapter also contains an interview with Tariq M Bouresli, Managing Partner, PKF Bouresli.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18After a decade-long crisis, donor funds are set to provide the Ivoirian government with enough capital to kickstart a series of public-private partnerships (PPPs) meant to re-launch its weakened economy. The government’s roadmap, including billion-dollar infrastructure projects, and a deficit of about 400,000 homes offer many opportunities in the construction sector.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18South Africa is home to one of Africa’s most dynamic media markets. The end of apartheid created a new era of freedom in which independent voices have blossomed. A population of over 50m and economic growth provide sound fundamentals. Technological changes can be challenging for traditional outlets, but also provide opportunities for those willing to innovate. Having weathered the international economic storm well, the South African advertising industry had a tough year in 2012 and may have a slower period ahead. Having been carried through the worst of the international recession with the help of the World Cup, South Africa’s advertising industry now finds itself in a more difficult period, in which competition is high. Nonetheless, the growing economy should continue to feed into higher spending over the longer term. This chapter contains an interview with Collins Khumalo, Chief Executive Officer, MultiChoice South Africa.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector has experienced consistent expansion in the past few years, registering 3.6% growth in 2012. While this figure is significantly lower than the 10% growth registered in 2011, prospects for 2013 suggest the sector will regain momentum driven primarily by aggressive government spending programmes aimed at closing the gaps in infrastructure and housing. Likewise, the real estate sector is showing signs of reaching maturity, as strong demand for housing and a healthy mortgage system provide access to property and have thus far, prevented speculation. Housing policies, which have traditionally focused on generating demand among the low-income and middle-class segments, are now shifting focus towards developing strategies to control rising property prices produced by the shortage of land in major urban centres. While surging property values and land prices remain a challenge, it has nonetheless increased the potential of the residential leasing market.
Explore chapterEducation
Buy digital copy of this chapter - £18The kingdom has both a private and a public education system, with high rate of female student in all levels of education. In 2010/11 roughly 1.5m students attended government schools, while private enrolment that year stood at about 380,000. Efforts are also being made to increase the use of technology in classrooms, with the government now requiring all public schools to provide computer access to students from the second grade through secondary school. Numerous initiatives are also in place to spearhead academic improvement, with greater focus being put on aligning education with market needs. This chapter contains an interview with Princess Sumaya bint El Hassan, President, Royal Scientific Society, and Chairman of the Board of Trustees, Princess Sumaya University for Technology (PSUT)
Explore chapterLegal Framework
Buy digital copy of this chapter - £18New regulations from the Central Bank of Bahrain that seek to target the marketing of unauthorised financial services have recently been introduced. This new regulation is intended not only to regulate all the financial services and products that are offered in Bahrain, but also to safeguard the interests of the foreign financial institutions who wish to offer or market financial products and services. A new labour law conforms more closely to international standards and is generally seen as expanding the rights of employees. This chapter contains a viewpoint with Qays H Zu’bi, Senior Partner, Zu’bi & Partners.
Explore chapterTax
Buy digital copy of this chapter - £18Featuring the viewpoint of Emre Burçkin, Chairman of the Board of OBG partner, Consulta, this chapter contains information about Turkey’s tax system, designed to aid those interested in doing business in the republic.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18There are two parallel systems of law operating in Brunei Darussalam: English common law and sharia law. This chapter contains information helpful for navigating the Sultanate’s legal climate, particularly in the context of business. It also includes a legal framework viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services, and President, Arbitration Association of Brunei Darussalam.
Explore chapterHealth
Buy digital copy of this chapter - £18The introduction of compulsory medical coverage and a significant population increase have fuelled the growth of Abu Dhabi’s health care sector in recent years, with a number of new facilities opening. This expansion is expected to continue, with both the government and the private sector planning new hospitals for the near future. Indeed, although efforts continue to expand the private sector’s participation in the industry, government subsidised facilities still accounted for 74% of inpatient encounters in 2011. Meanwhile, the implementation of mandatory coverage is reshaping the sector; about 98% of UAE nationals and foreign workers living in Abu Dhabi have medical insurance, a rate that is unparalleled in the GCC region.
Explore chapterEducation
Buy digital copy of this chapter - £18Continuing its efforts to improve literacy rates and match curricula with employers’ needs, Morocco has been increasing its investment in education. Rural enrolment levels are steadily rising, climbing from 49.7% in 2007/08 to 56% in 2010/11. Economic growth is bringing opportunities for increased participation of the private education sector, while international cooperation with new universities and research institutes is opening the door to a more globalised higher education system, positioning the country as a regional centre for tertiary provision. An increased focus on research capabilities is expected to enhance Morocco’s education capabilities and help to build a closer link between the education system and the companies working in emerging priority sectors such as aeronautics and renewable energies. This chapters contains an interview with Thami Ghorfi, President, ESCA Ecole de Management.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Having avoided the major boom and bust cycles of its Gulf neighbours, Saudi Arabia’s real estate sector is considered relatively stable. For several years, and certainly since the global financial crisis, the sector has been viewed as a safe haven for local capital; prices in the market have held firm and returns have been solid. With demographic trends and a solid economic base supporting a sustainable housing market, Riyadh and Jeddah remain strong, with rental prices growing between 8% and 15% in 2011, making these yields some of the highest in the world. Changing preferences among the under-30 segment, which makes up 60% of the local population, are reshaping the local housing market. At the same time, the government is attempting to energise the mortgage market with a new law offering legal guarantees and recourse for lenders. With greater confidence in foreclosure procedures, banks are also more likely to support the sector.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18With the country gearing up for the start of a universal health care coverage scheme, Indonesia has made great progress in addressing many of the historical issues concerning its public health sector. Major new developments in state and private health care are taking shape, with a number of new hospitals under construction and the prospect of a more open market for foreign health professionals also being discussed. Several challenges remain, however, if the sector is to be reformed in a speedy and effective manner. Education represents an opportunity and a challenge for educators, policymakers and investors alike, with the sector going through an overhaul and expansion. Indeed, major programmes of new school and college construction, new teaching requirements and a new outlook, aimed at bringing academia and business closer together, my transform the landscape over the next few years. There is a role for the private sector and for high-quality foreign education outfits. With an expanding population of 245m, future demand is also set to keep increasing. This chapter contains interviews with Dr Grace Frelita, Vice-Chairman, Strategic Health Care Committee, Indonesian Chamber of Commerce and Industry; and Nancy Soemawinata, Managing Director, Putera Sampoerna Foundation.
Explore chapterTax
Buy digital copy of this chapter - £18With cooperation from MERALI’S, this chapter outlines Dubai’s tax rules and regulations, including the steps that need to be taken to meet the legal requirements for firms looking to set up in the emirate. The chapter includes a viewpoint with Mahmud Merali, Managing Partner, MERALI’S.
Explore chapterTax
Buy digital copy of this chapter - £18Currently, Mongolian legislation allows for several forms of business entities, which include joint stock, joint venture and limited liability companies. Economic and business activities in Mongolia are regulated by a variety of laws, including the Law on Foreign Investment of 1993 and the Company Law of 1999. To establish a registered presence in Mongolia, foreign companies may also choose to operate through a representative office or branch. There are many financial, legal, commercial, and tax implications arising from the choice of business vehicle. In this section, Ernst & Young Mongolia gives an overview of the Mongolian taxation system, featuring a viewpoint from Christian Pellone, Head of Tax.
Explore chapterTourism
Buy digital copy of this chapter - £18The tourism sector is enjoying increased attention. In 2012 it accounted for some 3% of GDP, saw growth of nearly 4% in the same year, and contributed to the creation of some 70,000 jobs in 2011. In the broader Middle East region, tourism job creation actually shrank by 0.6%. Going forward, the government’s priority is to diversify tourism offerings, via a number of initiatives to promote the camping and adventure segment. Furthermore, as part of efforts to build up new segments, the authorities are attempting to promote the sultanate as a golfing destination to both domestic and foreign golf enthusiasts. Sailing academies are also being expanded in an effo
Explore chapterPlantations & Agriculture
Buy digital copy of this chapter - £18Malaysia’s agricultural sector continues to be dominated by the export-oriented rubber and palm oil sectors, the latter of which has achieved primacy in recent years. Palm oil accounts for as much as 8% of Malaysia’s GDP alone, and the recent listing of major plantations owner Felda raised $3.1bn and earned cash payments for upwards of 100,000 families. The sector, however, is facing the challenge of transitioning from raw, small-scale agricultural production to value-added and technology-driven agribusiness. At the same time, concerns over food security are leading some to question the dominance of commercial over staple crops. This chapter features interviews with Bernard Giluk Dompok, Minister of Plantation Industries and Commodities, and Sabri Ahmad, CEO & Group President, Felda Global Ventures Holding (FGV).
Explore chapterTax
In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. OBG talks to Samir Hadj Ali, Country Managing Partner, Mazars, on integrating the tax system into the larger regulatory regime.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Overall indicators in Nigeria paint a picture of a country in need of developing its health sector, but prospects for growth and further modernisation are bright, as the industry has been improving gradually. Funding for health care in Nigeria tends to be low, at approximately $13 per capita annually. The 2012 federal budget allocated some $1.81bn for the sector, amounting to 5.9% of the total. Rural areas lag far behind urban centres in terms of the number of medical services and professionals available. The introduction of a number of new programmes will serve to help bridge this divide. In education, the rapid growth of the economy has meant an equally rapid increase in the need for a skilled and educated workforce. Federal and state governments are increasingly looking to the private sector and non-state actors’ participation through partnership and collaboration. A number of partnerships have recently been formed between universities and private sector companies to increase the number of research and development initiatives. Funding for the sector, however, remains low, making up just 8.4% of the budget, well below the 26% recommended by UNESCO for developing countries. This chapter contains an interview with Paul Orhii, Director-General, National Agency for Food and Drug Administration and Control (NAFDAC).
Explore chapterEducation
Buy digital copy of this chapter - £18To diversify the economy and move away from a reliance on its hydrocarbons wealth, the government has invested heavily in reforming the education sector. Indeed, more than QR19bn ($5.21bn) of the 2011/12 national budget has been allocated to education, a 12% increase compared to the previous year. Along with providing adequate funding, the government has made significant progress in reforming the sector, overhauling the regulatory and oversight bodies, restructuring the primary education system and developing competitive research institutions. The government is also seeking to expand the role of the private sector in delivering education. Through these efforts, Qatar seeks to develop a knowledge-based economy and a role as a centre for research and academic excellence. This chapter includes an interview with Sheikha Abdulla Al Misnad, President, Qatar University.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG explores the Gabonese legal system, in partnership with Deloitte. This chapter contains an interview with Madeleine Berre, Partner and GM, Deloitte Legal and Tax; and Nicolas Balesme, Partner and GM, Deloitte Touche Tohmatsu.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides essential legal information for establishing a company in-country, with the aid of Helmy, Hamza & Partners. This section also features an interview from Hatem Soliman, International Partner, Helmy, Hamza & Partners (Baker & McKenzie).
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG provides an overview of the Ghanaian taxation system, exploring the options and investor-friendly environment for businesses in the country. This chapter contains a viewpoint from Felix Nana Sackey, Managing Partner at Deloitte & Touche.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with BDO Advisory, OBG explores the taxation system. Andrew Jackomos and Paul Ashburn, Senior Partners at BDO Advisory, share a viewpoint on preparing for implementation of the AEC.
Explore chapterIndustry and Manufacturing
Buy digital copy of this chapter - £18Most of PNG’s industrial strength derives from its abundant minerals, hydrocarbons and agricultural products. Export markets are, however, naturally constrained by the country’s remoteness and its weak infrastructure, suggesting that PNG will be importing many of its finished goods for the indefinite future. The most successful industries, like food and beverages, cater to domestic consumption. There is room for expansion in downstream industries; for example, PNG accounts for up to 17% of the world’s tuna fish harvest but only processes 20% of the catchment locally. Investments in processing facilities for agricultural commodities like tuna and timber could bring in export dollars while boosting employment in the formal sector. This chapter includes interviews with Charles Abel, Minister of Trade, Commerce and Industry; Murray Woo, Chairman, Manufacturers Council of Papua New Guinea; and Michael Kingston, General Manager, K. K. Kingston.
Explore chapterAgriculture & Water
Buy digital copy of this chapter - £18Making up more than 15% of its exports – up from 12.7% in 2007 – the agricultural sector in Jordan is small but strong. Produce makes up the majority of exports, with livestock farming also playing a significant role locally and abroad. In particular, Jordan has the potential to increase its exports to the European market. Although few Jordanian companies are currently certified to export to the EU, the number that are is expected to grow. At the same time however, demand in Syria for Jordanian produce declined in 2011, and Iraq has banned imports of Jordanian vegetables, claiming that its local production was sufficient. More positively, recent moves by Saudi Arabia to allow Jordanian produce imports provide new opportunities in the sector. Lastly, in an effort to boost its agricultural sector and improve access to water, Jordan has developed strategies to alleviate the water burden; wastewater treatment and water desalination are among the solutions. This chapter includes an interview with Mousa Al Jamaani, Minister of Water and Irrigation; and Jean Louis Chaussade, CEO of Suez Environnement.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Turkey’s young, tech-saavy population is driving a dramatic change in Turkish media, as content platforms and e-commerce have rapidly expanded. The sector is expected to see annual growth rates of over 13% in the 2011-15 period, and the move online is supported by vast expanses to internet infrastructure. This has seen major convergence in media outlets, as television, film and print producers are all working to grow their online offering. With new regulations also improving user access, the outlook for the sector is extremely positive and advertisers are focused on securing the multi-platform coverage necessary to secure their revenue streams. As digital marketing sweeps the sector, new players have also made a space for themselves and created a very competitive new industry. This chapter contains an interview with Hanzade Dogan Boyner, the Chairwoman of Dogan Online.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18South African media is a vibrant, developed and thriving industry. Radio is the country’s most accessible media, with 88.1% reach among the adult population, and television reaches some 83.9%. Print media captures a smaller portion of the population, with an estimated 64.9% of the population accessing newspapers and/or magazines. The sector shares many of the challenges currently experienced by media outlets around the world. As a result, it has been affected by the uncertainties of the global economic climate, which have manifested themselves in the fragmentation of audiences and decreasing advertiser budgets. The South African advertising and communications industry is a growing network of leading international agencies and established home-grown firms. While print advertising has suffered, radio, television and out-of- home formats remain strong. Fast technological developments and a restructuring away from traditional media offer ample opportunity for innovation and growth. Digital advertising, various online schemes and advertising delivered to mobile devices are all likely to be important growth areas. This chapter contains an interview with Nic Dawes, Editor-in-Chief, Mail & Guardian.
Explore chapterHealth
Buy digital copy of this chapter - £18The Bahraini government is working to create favourable conditions for encouraging growth in the private sector and is taking steps to shift the state’s role from provider to regulator. The promotion of the health care sector is in line with the priorities set forth in Economic Vision 2030. Accordingly, the state has undertaken and made plans for a number of initiatives to expand and upgrade the existing public health care facilities. In addition to expansion of existing facilities, the private sector is building new hospitals and other facilities, partially in response to growing demand for medical tourism. The Kingdom is also looking to train more Bahraini doctors and reduce dependence on expatriate medical staff. The opening of King Hamad University Hospital (KHUH) in December 2011 is expected to provide opportunities for local students to gain practical experience.
Explore chapterEducation
Buy digital copy of this chapter - £18Education in the Philippines suffers from chronic funding shortfalls, but budgets have risen significantly in the past several years, suggesting increased government recognition of the problem, though there is a ways to go yet. The addition of two more years of school will bring the Philippines in line with the rest of the world, but without additional money it could be an exchange of quality for quantity. At the university level, meanwhile, the private sector dominates, but schools face a similar funding crunch. This section features an interview with Patricia Licuanan, Chairperson, Commission on Higher Education (CHED).
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Over the past three years Kuwait has promulgated a number of laws concerning public-private partnerships (PPPs), an area which holds great potential in the country. However, since most of the PPP projects initiated by the state are still in their initial phases, it remains to be seen whether there is credence to the proposed Kuwait approach. This chapter looks at the project company structures proposed by the PPP Law and related financing considerations.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The Mongolian construction industry has seen a surge of activity in the past two years. The driver is government spending, particularly the New Development Programme, which will address roads, railways, affordable housing, rural development and industrial development schemes, with a price tag of some $28.6bn. One key part of this is the 100,000 houses project, which represent an attempt to offer modern, affordable housing to the many citizens who still live in traditional gers. This will address some of the huge demand for homes in Ulaanbaatar. On the upscale front, luxury real estate is a growing market aiming to tap into the fortunes that will be created through the mining projects. This chapter includes an interview with D. Ganbaatar, President, Max Group.
Explore chapterHealth and Education
Buy digital copy of this chapter - £18Having already mandated basic education and made it accessible to all citizens, at least in theory, Indonesia’s next challenge is to boost access to, and quality of, secondary and higher education. Other goals include lowering illiteracy and decreasing disparities in quality of education nationwide. The government is hoping to address challenges like teacher absenteeism, and poor scientific and mathematical literacy, in which Indonesia ranked 50th out of 57 countries in international PISA testing. Indonesia’s health care indicators have improved gradually over the past decade, with reduced infant mortality and increased life expectancy. The decentralisation of the health care system has aided this process somewhat, helping halve the maternal death rate. New lifestyle illnesses derived from the increasing prevalence of calorie-rich Western diets are posing a new threat. In 2004, the government pledged to provide all citizens with universal health insurance, under a Ministry of Health scheme due to be completed by 2014. This chapter includes interviews with Ir Ciputra, Founder and Chairman, Ciputra Group; and Dr Endang Rahayu Sedyaningsih, Minister of Health.
Explore chapterRetail
Despite the global fall in oil prices, Saudi Arabia’s retail sector continues to enjoy robust growth, fanned by its solid base of domestic consumers and strengthened by a growing youth population and rising disposable incomes. The strong performance of retailers across a number of sectors is leading to increased demand for dedicated mall space, which is expected to command a premium in the short term. Indeed, the existing rental environment presents a challenge for many retailers in the Kingdom, with rent in some cases reaching up to 25% of tenants’ sales revenue, although in the fast food segment it is a more manageable 15%. However, the overall mood in the industry is one of optimism, buoyed by the presence of strong fundamental conditions for growth. This chapter contains an interview with Khalid Al Sehaibany, General Manager, Hamat Property Group.
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Health
Buy digital copy of this chapter - £22Abu Dhabi’s health care sector is flourishing, contributing progressively to the emirate’s GDP growth. Government strategies and initiatives aim to attract more private investment, resulting in the establishment and strengthening of international health care stakeholders, specialised facilities, pharmaceutical manufacturers and research entities in Abu Dhabi. Recent changes in mandatory health insurance regulations have been implemented to improve the business environment in Abu Dhabi. The health care sector offers an attractive investment destination, with opportunities across various specialties, including logistics, manufacturing, medical technologies, and the development of hospitals and health centres. While challenges remain in managing non-communicable and lifestyle-related diseases, the emirate’s proactive policies are expected to address these issues and further boost the health care sector’s contribution to Abu Dhabi’s socio-economic development and prosperity. This chapter contains an interview with Mansoor Ibrahim Al Mansoori, Chairman, Department of Health.
Explore chapterEntertainment
Buy digital copy of this chapter - £22Saudi Arabia is witnessing a flourishing entertainment scene thanks to sweeping regulatory reforms in recent years. This sector is a high priority in the government's economic diversification drive, aiming to cultivate local talent and stimulate job creation. The General Entertainment Authority has been established to drive sector growth, supporting entertainment-related start-ups and expanding the network of small and medium-sized enterprises (SMEs) – a core component of Vision 2030. The entertainment sector has grown rapidly, aligning with the broader diversification agenda. The Kingdom is becoming a regional centre for entertainment activities, hosting international events while expanding its portfolio of homegrown shows, festivals and events. Investment opportunities are expanding, and the focus on local content creation and SME development indicates sustained dynamism in this sector. This chapter contains an interview with Turki Alalshikh, Chairman, General Entertainment Authority.
Explore chapterContents
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Explore chapterHealth & Education
Buy digital copy of this chapter - £22Although Nigeria’s growing population poses a number of challenges to the provision of health care, the sector’s longer-term investment prospects remain promising, as the Covid-19 pandemic created more opportunities for private sector innovation. Moreover, further reforms and greater government spending on health care have the potential to create significant positive outcomes. As for education, demand is expected to continue to outpace supply, and a lack of resources could impact mobility opportunities for the country’s young, growing population. Despite inadequate funding in Nigeria’s public schools, new educational institutions are entering the market to provide critical skills in science, technology, engineering and maths, providing students with the skills needed to contribute to the country’s development. This chapter contains an interview with Pieter Slabberts, Managing Director, Eurapharma Care Services.
Explore chapterThe Guide
The Guide contains a selection of hotel and accommodation options throughout Oman for both business and leisure travellers. Helpful information is provided on visa regulations, safety and health considerations, business etiquette, and public and private transport options.
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Entertainment
Buy digital copy of this chapter - £22The cultural and economic reforms undergone by Saudi Arabia since 2016 are perhaps most visible in the entertainment sector. For over three decades entertainment and cultural outlets, such as cinemas, art galleries and theatres, were banned. So too were artistic practices including film-making and live music. Since being elevated to a position of executive importance, however, Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud has lifted restrictions and targeted the creation of a vibrant arts and entertainment scene as a means to propel tourism, improve the quality of life for citizens and raise international awareness of Saudi Arabia’s increasingly open economy. This chapter contains an interview with Turki Alalshikh, Chairman, General Entertainment Authority.
Explore chapterThe Guide
The Guide contains listings of accommodation options in Abidjan and other regions of the country for both business and leisure travellers. Helpful information is provided on visa regulations and business etiquette, as well as public and private transport options for navigating the country during your stay.
Explore chapterRetail
Buy digital copy of this chapter - £22Qatar’s retail sector fared well in 2020 and 2021 despite the global slowdown. Although shopping outlets were forced to close in the spring of 2020 when governments around the world imposed lockdown measures to stem the spread of Covid-19, reopening began as early as that summer. In the months since, retail stores and malls in Qatar have welcomed customers with a range of health guidelines in place. A handful of new malls opened in 2021 and more are expected for 2022, encouraged by pent-up demand for goods and socialising, even as median monthly rents have fallen. Grocery retailers, in particular, were buoyed during the pandemic by online deliveries and minimal disruption to supply due to Qatar’s pre-pandemic drive to boost food security and diversify trading partners. This chapter contains an interview with Abdul Aziz Mohammed Al Rabban, Co-founder, Place Vendôme, and Chairman and Managing Director, Business Trading Company.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22This chapter introduces the reader to the different aspects of the legal system in Ghana in partnership with B&P Associates. It also contains a viewpoint with Adelaide Benneh Prempeh, Founder, B&P Associates.
Explore chapterThe Guide
The Guide contains selected listings of hotels in Port Moresby and Lae, as well as information for business and leisure travellers covering visa requirements, health and safety considerations, and local language and culture. This chapter contains an interview with Materua Tamarua, CEO, Australia Papua New Guinea Business Council.
Explore chapterThe Guide
This chapter contains selected listings of some of the top hotels in the greater Cairo area, helpful tips for business and leisure travellers, and other useful advice for visitors to Egypt.
Explore chapterHealth
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Abu Dhabi’s health care sector has witnessed significant expansion in recent years, with health services improving and an increasing number of hospitals, clinics and specialised facilities coming on-line. Both private and public entities are investing heavily in the sector, ensuring a steady stream of new facilities. However, while new and high-tech facilities are improving access to and quality of care, the sector continues to be challenged by high incidences of lifestyle-related illnesses. Like the rest of the world, the sector came under additional pressure in early 2020 as a result of the Covid-19 pandemic, though the authorities were quick to respond with a series of measures designed to slow the spread of the virus. The government has rolled out a number of public-private partnerships to assist with the sector’s expansion. Recent trends have included greater digitisation and innovation, and the development of the medical tourism segment. This chapter contains an interview with Sheikh Abdulla bin Mohammed Al Hamed, Chairman, Department of Health.
Agriculture
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With millions of hectares of arable land across over 17,000 islands, Indonesia’s agriculture sector has long been an integral part of the economy. While its contribution to GDP may have declined in recent years – a result of economic diversification – it remains hugely important, employing roughly one-third of the workforce. Although major companies dominate the industry from a revenue standpoint, small-scale farmers who often operating in hard-to-reach rural areas comprise the backbone of the sector. Infrastructure issues are a hindrance to agricultural growth, but the re-election of President Joko Widodo in 2019 is expected to lead to continued focus on overcoming the issue and contribute to improved nationwide connectivity. In the meantime, technological advancements, often driven by entrepreneurs looking to fill market gaps, are presenting solutions to challenges that Indonesia’s farmers have faced for decades, which include a lack of access to the advanced technologies that could make operations more financially viable. This chapter contains an interview with Kiwi Aliwarga, Founder and Executive Chairman, UMG Idealab.
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This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity. It also contains an interview with Joseph-Olivier Biley, CEO, WeFly Agri.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18With a young population and an increasing number of Saudis entering the workplace, the demand for housing and offices is expected to remain high. As housing preferences evolve, with a move away from extended family homes to those based around nuclear families, appetite for smaller affordable units are set to increase. This will boost construction of residential units and drive continued demand for mortgages. Beyond this, various mega- and giga-projects and large residential housing schemes will drive sector activity. The Kingdom’s growing tourism industry is also expected to be a force in construction planning. As Saudi Arabia prepares for a greater number of visitors due to a new tourist visa, the country will need to analyse its infrastructure requirements, including accommodation and urban transport.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Qatar’s education sector has a rich mixture of state and independent kindergartens, schools and universities bolstered by continued investment aimed at serving a growing population and supporting the country’s economic development. Education administrators pay close attention to international standards and indices that measure student learning outcomes and are working through a five-year reform programme to enhance the performance of schools and universities. Dedicated efforts by the government focused on improving learning outcomes and global rankings among primary and secondary school students, in addition to the influx of an array of international universities, are set to ensure the sector’s sustained growth over the medium term. This chapter contains an interview with Abdul Sattar Al Taie, Executive Director, Qatar National Research Fund.
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This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterThe Guide
This section includes a listing of select hotels as well as useful tips for visitors on topics like currency, visas, language, communications, dress code and business hours.
Legal Framework
This chapter examines the legal system of Ghana, including The Companies Act 2019, capital requirements, foreign investment regulation, incentives and guarantees, labour law, property law, governance of non-bank financial institutions and sector-specific regulations. This chapter also contains a viewpoint from Adelaide Benneh Prempeh, Managing Partner, B&P Associates.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Bahrain and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterEducation & Training
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Oman’s government continues to prioritise education as part of its broader plans to modernise the economy and provide jobs for its growing population. In recent years the focus at the primary, secondary and tertiary levels has been on innovation, as well as greater regulation and oversight of education quality. As it pushes for greater Omanisation in the local economy, the government is increasingly working to equip Omanis with the necessary skills to enter the job market. At the same time, it is encouraging the implementation of new academic and training programmes to keep abreast of the dynamic, knowledge-based global economy.
Explore chapterAccountancy & Tax
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This chapter offers an overview of Myanmar’s tax regime, including the provisions of Myanmar Income Tax Law and the conditions for Commercial Tax and Specific Goods Tax, alongside individuals’ tax obligations – and the penalties for failure to comply. It also outlines the differences in tax requirements for foreign bodies and Myanmar nationals, and summarises Myanmar’s tax assessment systems. The chapter details tax incentives for companies operating in Myanmar’s special economic zones. This chapter contains a viewpoint from U Tin Win, Country Managing Partner, EY Myanmar.
Explore chapterIndustry
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Fuelled by public infrastructure investment and attractive incentives for foreign investors, Dubai’s industrial sector continues to be a major driver of the emirate’s economic growth. While industrial output has been historically built on low-tech but high-value-added segments such as base metals and chemicals production, the emirate is pursuing a diversification agenda under its Dubai Industrial Strategy 2030. This policy appears to be paying dividends, with 2019 seeing growth in priority areas including the food and beverage segment as well as emerging industries such as auto manufacturing. Furthermore, with the reform of foreign ownership laws and the reductions in fees for businesses operating in the emirate’s free zones in 2019, foreign direct investment inflows are expected to rise steadily over the coming years.
Explore chapterEducation
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Amid concerns over the quality of education and training, and in recognition of the country’s growing youth population, the Kuwaiti government has demonstrated its intention to revitalise the education sector through a series of policy reforms and investments in recent years. Some 37% of the population is under the age of 14, while 35% is between the ages of 15 and 34, making the provision of high-quality education and training facilities an essential part of national strategies for economic development and diversification. Many of the recent reforms were announced as part of the Kuwait National Development Plan, known as New Kuwait 2035, a government strategy that prioritises education as one of its seven policy pillars.
Explore chapterAgriculture
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Since 2013 Mexico has achieved significant agricultural export growth, reversing a trade deficit in agricultural products that almost reached $5bn in 2012. In the years ahead Mexico’s government will continue to support existing agricultural activity while also looking for new ways to address inequality between large-scale mechanised farms and small-scale family-run growers, as well as regional differences in agricultural growth. Agri-business firms in the north have demonstrated their ability to tap into export markets over the past decade, but many companies still require support in the form of irrigation infrastructure, technical assistance and trade agreements. Although President Andrés Manuel López Obrador will have the opportunity to implement these policies before his term in office ends in 2024, federal and state government agencies, alongside private firms, will need to consolidate and boost Mexico’s existing export sectors and help producers attract more international buyers.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legal system of Papua New Guinea, as distributed across the national, provincial and local levels, including those governing: investment promotion; regulation of companies; taxation and tax credits; partnerships and joint ventures; personal property; power of attorney; land rights; patents; employment conditions; foreign exchange control; and sector-specific legislation across the extractive industries. This chapter also contains a viewpoint from Eunice Parua, Partner, Leahy Lewin Lowing Sullivan Lawyers.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterHealth
The health sector in the Philippines is undergoing a period of development and reform. The long-awaited move to universal health care (UHC) is now within sight, with the government focused on improving the delivery of public health care and encouraging investment in the sector. While the health system is currently tackling multiple burdens and is limited by human resource constraints, the enactment of the UHC Bill will bring increased funding to the sector and provide greater coverage to the Filipino people. Through increased engagement with the growing private sector, progress is being made towards a more integrated and robust health system that is ready to take on these challenges. This chapter also contains an interview with Francisco Duque III, Secretary, Department of Health.
Explore chapterTable of Contents
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Legal Framework
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This chapter introduces the reader to the different aspects of the legal system in Peru, in partnership with RGB Avocats. It also contains an interview with Ricardo Guevara Bringas, Corporate Lawyer and Partner, RGB Avocats.
Explore chapterAgriculture
Buy digital copy of this chapter - £18With an estimated 57m ha of agricultural lands, farming has long been the backbone of Indonesia’s economy. From small-scale farming to large commercial plantations, the sector employs around one-third of the workforce, is an important source of income for local households and has contributed much-needed export revenue. Partly as a result of adopting business-friendly initiatives, the sector has been able to attract necessary investment, which in turn is helping to bridge structural gaps. However, there remain a number of challenges, including slow adoption of mechanisation and vulnerability to climate change. Rural income is predominately generated by small-scale growers who lack access to finance and technology, which limits their commercial viability. Nevertheless, the country’s vast areas of arable land and extensive marine resources, combined with a thriving tech innovation ecosystem, offer significant potential for long-term, value-added expansion. This chapter also contains an interview with Amran Sulaiman, Minister of Agriculture.
Explore chapterReal Estate & Construction
Buy digital copy of this chapter - £18Although growth in Saudi’s real estate sector has softened since 2016, government-led initiatives to increase access to affordable housing, in addition to wider economic diversification plans focused on tourism and industrial output, look set to turn its fortunes around. All eyes have been on the impact of the government’s white land tax on unused plots, which was introduced in 2017, with early signs indicating that this reform is encouraging greater access to land for mixed-use real estate development. Government reforms and funding initiatives in the home loans sector are under way, with the aim of significantly increasing home ownership. However, going forward there are concerns that an oversupply in new real estate developments will drag down sales and rental prices. This chapter contains an interview with Majed Al Hogail, Minister of Housing.
Explore chapterEducation and Research
Buy digital copy of this chapter - £18Education is an important pillar of Qatar National Vision 2030, the country’s development plan to diversify the economy and reduce its dependence on hydrocarbons. To that end, Qatar has prioritised developing and reforming the education sector, with a substantial portion of its energy revenue dedicated to education. Although the decline in international oil prices in recent years has resulted in some cuts to funding, public spending is once again on the rise in the country, with education allocated 9.3% of the 2019 budget. While the economic blockade had an adverse effect on opportunities for regional academic collaboration, the impact on the overall sector has been limited, with a slight dip in student enrolment and staff retention in some private schools. This chapter contains interviews with Hassan Rashid Al Derham, President, Qatar University; and Richard O’ Kennedy, Vice-President for Research, Development and Innovation, Qatar Foundation.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers and other useful suggestions for travel to Sri Lanka.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18The last 10 years have seen Abu Dhabi’s visitor appeal grow rapidly thanks to the government’s prioritisation of tourism and culture as part of the emirate’s long-term strategy for economic diversification. With an array of high-end accommodation already in place and Louvre Abu Dhabi shining as the emirate’s latest addition to a growing number of attractions, sector authorities are looking to further expand offerings by developing new segments such as cruise tourism, medical tourism and ecotourism, as well as by continuing to develop and promote Abu Dhabi’s identity as a destination for authentic cultural and historical experiences. This chapter contains interviews with Mohamed Khalifa Al Mubarak, Chairman, Department of Culture and Tourism – Abu Dhabi; and Saif Saeed Ghobash, Undersecretary, Department of Culture and Tourism – Abu Dhabi.
Explore chapterTax
Buy digital copy of this chapter - £18The UAE currently has no system of federal income taxation. Instead, most of the emirates – including Dubai – enacted their own corporate tax decrees in the late 1960s. These emirate-level corporate tax decrees are of general application and remain in force as amended. These decrees are similar in nature and text, and deal in broad terms with the identities of taxable persons, rates, administration, computation of taxable profits and loss relief. The decrees limit the scope of taxation to “bodies corporate” carrying out a trade or business in the respective emirates. This chapter contains a viewpoint from Mark Schofield, Partner, PwC Middle East Tax & Legal Services Leader.
Explore chapterIndustry
Buy digital copy of this chapter - £18From 2007 to 2017 the UAE’s industrial sector grew by approximately 31%. According to consultancy Oxford Economics, it is set to grow marginally faster — by another 34% — in the 10 years leading to 2027. At the emirate level, Dubai’s industrial sector has likewise emerged as a major driver of growth; the sector in Dubai grew by 6% annually in the ten years to 2017 and this rate of expansion is expected to surge to 51% in the decade to 2027. Growth will continue to be fuelled by the emirate’s strategic location, which is within an eight-hour flight of almost two-thirds of the global population; its comprehensive airport and seaport infrastructure; and the investment-friendly policies in place.
Explore chapterTax & Accountancy
Buy digital copy of this chapter - £18Written in conjunction with Ernst & Young, this chapter explores the taxation system and Morroco’s efforts to build an investor-friendly environment. It also contains an interview with Abdelmejid Faiz, Tax Partner, EY Maroc.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Bahrain and contacts for important government offices and services. It also features useful tips and information for first-time or regular, business or leisure visitors alike.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers, and other useful suggestions for travel to Myanmar.
Explore chapterEducation & Training
Buy digital copy of this chapter - £18The education sector has been expanding fast, growing from only 10 schools in 1970 to over 1800 in 2018. This is thanks to robust population growth, economic development and the policy of Omanisation, which seeks to reduce the country’s dependence on foreign workers, technicians and managers. Despite a temporary slowdown caused by the oil price slump of 2014-16, education is set for further expansion, which will create new opportunities for private sector investment.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Grant Thornton, this chapter explores the taxation system and Nigeria’s efforts to build an investor-friendly environment. It also contains a viewpoint with Peter N Orizu, Executive Chairman; and Nkwachi Abuka, Partner and Head of Tax, Grant Thornton.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and international investors operate in Kuwait, including a look at the incentives available for qualifying overseas investors and the changes to intellectual property protection framework. This chapter contains a viewpoint Alex Saleh, Partner, Al Tamimi & Co.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Papua New Guinea’s legal framework, offering insight into the legislative powers of the government, laws that affect foreign companies, newly enacted securities legislation and other areas of interest to investors. It also contains a viewpoint from Peter Lowing, Partner, Leahy Lewin Lowing Sullivan Lawyers.
Explore chapterTourism
Buy digital copy of this chapter - £18Home to a wide variety of attractions ranging from the Iguazú Falls in the north-east of the country, wine tasting around Mendoza and the gastronomic night life of Buenos Aires, Argentina has much to offer visitors. Furthermore, with 11 natural and cultural sites included in UNESCO’s World Heritage List, the country presents a varied offering. Building upon these assets, the government has set the goal of boosting both tourism figures and expenditure, with Gustavo Santos, minister of tourism, announcing in January 2018 that the country aims to attract 9m tourists by the end of 2019. In order to meet these objectives, the state has increased public funding and put in place financial incentives to support investment, while reforming the aviation framework. This chapter includes an interview with Silvia Tenazinha, Country Manager, Almundo.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterThe Guide
This chapter contains hotel listings for business and leisure travelers, a directory of government ministries and agencies, and contact information for foreign embassies. It also offers useful information for new arrivals to the country.
Explore chapterTourism
Buy digital copy of this chapter - £18Recording consistent growth since 2011, Mexico’s tourism sector has continued to expand steadily. According to government counts, more than 39m foreign tourists visited the country in 2017. Demand for Mexico’s medical tourism has recently picked up and is forecast to grow further, largely as a result of the changes made to the US health care system. Mexico’s natural beauty has long attracted tourists, but now the country is working to fully harness its broad potential. New transport links have been built and further projects are under way, which should boost the flow of tourists. However, there is room for improvement in terms of infrastructure at tourist centres and international perceptions of security. Whether the sector maintains or loses momentum under the new administration remains to be seen.
Explore chapterHealth
Buy digital copy of this chapter - £18These are busy times for the Philippine health sector, with the country gearing up for a long-awaited move to universal health care (UHC) and investment in the private sector accelerating. Specialist and high-tech facilities are being developed, generating investor interest and business opportunities in pharmaceuticals and imported medical equipment. However, challenges remain, including the expan¬sion of coverage to economically disadvantaged areas, and the growing prevalence of non-communicable diseases. Budgets and financing are also being re-evaluated, with the aim of stamping out leakage and fraud in subsidies and reimbursements. Despite these obstacles, 2018 looks to be a year of positive growth in the private and public sectors, with the UHC rollout inching closer and a range of changes ahead for all Filipinos. This chapter contains an interview with Hector Thomas Navasero, President and CEO, Philab Industries.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Sri Lanka’s legal system, focusing on the updated Inland Revenue Act, the establishment of a new public-private partnership agency, the Foreign Exchange Act and other key areas. It also contains a legal framework viewpoint from John Wilson, Managing Proprietor, John Wilson Partners.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterThe Guide
This chapter offers suggested hotel listings for business and leisure travellers, and contact numbers for a variety of local services and associations. It also offers useful tips for first-time visitors to the country.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and international investors operate in Bahrain, including a look at the laws governing business in the kingdom and an explanation of the rules covering bankruptcy proceedings.
This chapter contains a viewpoint from Hatim Q Zu’bi, Partner, Zu’bi & Partners.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, this chapter contains an introduction to Côte d’Ivoire’s taxation system.
It also includes a viewpoint from Jean François Albrecht, Country Managing Partner and Regional Leader; and Eric N’guessan, Country and Regional Tax Leader, EY.
Explore chapterThe Guide
The guide contains information on some of the leading hotels in Egypt and contact details for government ministries, embassies and business services, alongside useful tips for first-time or regular visitors.
Explore chapterEducation & Training
Buy digital copy of this chapter - £18Oman’s education sector has expanded rapidly since the 1970s, with the total number of schools in the sultanate rising from three in 1970 to 1725 in 2016. The sector is overseen by the Education Council, which was founded in 2012 to streamline all matters pertaining to education development in the country, and is composed of the country’s key education bodies, including the Ministry of Education and the Ministry of Higher Education. Although the Omani government has continued its rationalisation initiatives started in 2014, the education sector has remained largely insulated from major cutbacks. The reductions that have occurred are expected to open the way for greater private sector participation, with international interest fuelled by both Oman’s sizeable youth population, as well as the government’s continued focus on achieving a knowledge-based and diversified economy.
Explore chapterTax & Accountancy
Buy digital copy of this chapter - £18In conjunction with KPMG, this chapter contains an introduction to Morocco’s taxation system, including a breakdown of rates imposed on corporate income, regulations governing capital gains and double taxation, and a list of goods and services exempted from value-added tax.
This chapter contains a viewpoint from Fouad Lahgazi, Senior Partner, KPMG.
Explore chapterICT
Buy digital copy of this chapter - £18Like the UAE as a whole, Dubai has one of the most advanced telecoms and IT markets in the Middle East, boasting high levels of smartphone and internet penetration, fast mobile internet speeds and a rapidly growing start-up scene. While prices in the sector – and the fixed-line market in particular – are relatively high, both the fixed-line and mobile segments are expected to see increasing competition in the coming years. A 2015 infrastructure-sharing agreement, as well as technological advances, should allow more customers to switch between the two main operators for fixed-line services.
This chapter contains an interview with Aisha bin Bishr, Director-General, Smart Dubai Office.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In conjunction with AB & David Africa, this chapter contains an overview of the legal framework in which local and foreign investors operate in Ghana, covering an overview of the regulations governing different sectors, the rules for investment and expatriate employment and recently introduced legislation on trade and financial services.
This chapter contains a viewpoint from David Ofosu-Dorte, Senior Partner, AB & David.
Explore chapterTransport
Buy digital copy of this chapter - £18In a push to diversify its economy, Saudi Arabia is determined to increase the role of the private sector in the development of its transport infrastructure, as well as in the operation of seaports, airports and related supply chains. Public-private partnerships are being pursued to fund several key schemes, while a number of the country’s publicly operated facilities, such as airports, are being readied for full privatisation. However, there are a series of challenges ahead in the Kingdom’s pursuit to meet its Saudi Vision 2030 objective of leveraging its location at the crossroads of three continents. Faced with a decline in the country’s ranking among global indices of competitiveness and logistics since 2016, when the national development plan was unveiled, the budget for 2018 – introduced in December 2017 – includes an 86% increase in planned government expenditure on infrastructure and transportation, from SR29bn ($7.7bn) to SR54bn ($14.4bn).
This chapter contains an interview with Nabeel Al Amudi, Minister of Transport; Rumaih Al Rumaih, President, Public Transport Authority; and Saleh bin Nasser Al Jasser, Director-General, Saudi Arabian Airlines.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Home to an array of local and international schools and curricula, as well as a burgeoning university scene, Qatar hosts numerous branches of foreign tertiary education institutions, many of which are in partnership with Qatar Foundation. Although the fall in international oil prices has affected the sector, leading to cuts in university funding, university enrolment has risen strongly in recent years. The country is rapidly developing its university-based research capabilities, in addition to fields like vocational and technical education. This chapter contains an interview with Hamad Al Ibrahim, Executive Vice-President, Qatar Foundation Research and Development, and Chairman, Qatar Science & Technology Park; and a roundtable discussion with Hassan Al Derham, President, Qatar University, and Ahmad Hasnah, President, Hamad bin Khalifa University.
Explore chapterMining
Buy digital copy of this chapter - £18Considered a powerhouse in the realm of mineral production, Indonesia’s mining sector has long served as a key pillar of economic expansion, acting as a significant contributor to GDP by attracting much-needed export dollars, while also creating employment opportunities across the nation’s diverse landscape. However, soft commodity prices, declining demand from China and regulatory changes intended to promote the down-stream industry have seen the sector’s contribution decline in recent years. Despite this trend, the country’s substantial mineral and coal reserves remain attractive assets. In order to further monetise these resources and create more viable investment opportunities, policymakers are addressing regulatory shortcomings, and reducing the perceived risk of investing in the country.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Stillwaters Law Firm.
It also contains a viewpoint with Afamefuna Nwokedi, Principal Counsel and Group Head, Stillwaters Law Firm.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the laws that affect operations of foreign companies as well as regulative acts that protect land and resources. New securities legislation – yet to be implemented – is also explained.
This chapter contains a viewpoint from Michael Sullivan, Partner, Leahy Lewin Lowing Sullivan.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Thailand’s tax laws relevant to businesses. It explains key corporate tax rates and regulations, tax holidays and incentives, and other important areas.
It also contains a viewpoint from Andrew Jackomos and Paul Ashburn, Co-Managing Partners, BDO.
Explore chapterEducation
Buy digital copy of this chapter - £18Driven by the need to accommodate rising enrolment and government efforts to address long-standing issues in public education, the education sector in Kuwait is undergoing significant reform in 2017. Government-directed reforms and investments include those initiated in the general education segment under Kuwait’s Integrated Education Reform Programme and School Education Quality Improvement Project. These are aimed at helping to improve and enhance the country’s basic education offering. Since 2014 the government has also been more actively seeking to engage the private sector on development, primarily by offering investor-friendly policies and public-private partnerships.
This chapter contains an interview with Adnan Shihab-Eldin, Director-General, Kuwait Foundation for the Advancement of Sciences.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
It also contains an interview with Soca musician Machel Montano.
Explore chapterEducation
Buy digital copy of this chapter - £18Despite fiscal restraints, the government’s budget for education has stayed at consistent levels. However, with coverage expansion at all levels of education remaining a high priority, expenditure efficiency will be of the utmost importance. By strengthening financing mechanisms and access to early education, with a focus on rural areas and those most affected by the country’s civil conflict, the authorities aim to improve the chances of lower-income Colombians not only making it through primary school and high school, but also reaching tertiary education. Support for low-income Colombians to enrol and complete higher-education programmes has been a key aspect of government policy, and is especially important in reducing income disparities and social inequality.
Explore chapterArequipa
Buy digital copy of this chapter - £18Located in the south of Peru, the department of Arequipa shares its border with six other departments, including Ica and Ayacucho to the north-west, Apurímac and Cusco to the north, and Puno and Moquegua to the south-east. The population of Arequipa is set to reach a total of 1.3m people in 2017, representing 4.1% of the country’s population. In 2015 Arequipa had about 693,100 economically active people, down from an approximate 700,200 in 2014. In the third trimester of 2016 Arequipa’s economy grew by 29.3%, with the highest growth sectors including mining, which contributed 19.9%, followed by telecommunications and information services at 9.7%, other services (4.7%), and transport, storage, mail and messaging (3.9%). The outlook for Arequipa appears positive and the present government has taken measures to attract private investment.
This chapter features interviews with Yamila Osorio Delgado, Regional President of Arequipa; Diego Muñoz-Nájar, President, Arequipa Chamber of Commerce; and Michael Michell, Executive President, Michell Group.
Explore chapterHealth
Buy digital copy of this chapter - £18Helped in part by some significant examples of international investment, the health care sector in Abu Dhabi has made huge strides over the last four decades. Based on these foundations, the agencies responsible for planning future provision in the emirate are currently focused on improving, reshaping and expanding the services offered to its residents and citizens, and balancing the resources provided by both the public and private sectors. In 2015, 52% of all inpatient care and 31% of outpatient cases were dealt with in government-owned hospitals, while the remaining care was provided by the private sector, which has seen its role increase since 2011, when government hospitals handled 65% of all inpatients and 40% of outpatients. Health officials in Abu Dhabi are anticipating significant private sector investment, as 10 new hospitals are currently under construction in the emirate alone.
This chapter contains an interview with Professor Maha Barakat, Director-General, Health Authority - Abu Dhabi.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Sri Lanka’s legal framework, focusing on reforms in several areas, changes in capital gains tax and employment law, updated legislation on zoning and land use issues and other key areas.
It also features a viewpoint from John Wilson, Managing Proprietor, John Wilson Partners.
Explore chapterHealth
Buy digital copy of this chapter - £18Given the remarkable strides in improving health outcomes since the 1970s, Filipinos are generally living longer and healthier lives than their predecessors. But despite these advances, the country lags behind many of its neighbours on key health indicators, such as the maternal mortality rate and incidence of tuberculosis. Its health expenditure is also considerably less than other countries in South-east Asia. At the same time, lifestyle diseases are emerging as a new health challenge, requiring different responses. These are the issues that the Philippines faces as it moves forward with its commitment to achieve universal health coverage, ensuring that all Filipinos have access to quality, affordable health care.
This chapter contains interviews with Paulyn Jean B Rosell-Ubial, Secretary, Department of Health; and Dr Edgardo R Cortez, President and CEO, St Luke’s Medical Centre.
Explore chapterThe Guide
The guide contains listings of some of Tunisia’s leading hotels and contacts for important government offices and services, alongside useful tips for visitors on topics such as visas, business hours, and language and culture.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Kenya, in partnership with Anjarwalla & Khanna.
It also features a viewpoint with Karim Anjarwalla, Managing Partner, Anjarwalla & Khanna, on transforming Kenya into an international financial centre.
Explore chapterThe Guide
This chapter includes a list of recommended hotels throughout Vietnam, a telephone directory of useful services and organisations, cultural tips for new visitors and tips for professional etiquette for the business traveller.
Explore chapterHealth
Buy digital copy of this chapter - £18There is much to be celebrated for the Mexican health care system, which is moving in towards its goal of providing all citizens, regardless of wealth or employment, access to high levels of care. In the last three years, movements to increase coordination between health providers, cut costs and improve services are also to be commended. However, the inherent inefficiencies of the fractured public system and the bureaucratic wastage that accompanies it are a continual obstacle to providing the best possible service. Nevertheless, the private sector already plays a crucial role in the provision of health care in Mexico, which is likely to expand in the future. A great deal will depend on the general elections in 2018, which will determine the direction of a much-needed structural reform to the sector. This chapter includes an interview with Julio Sánchez y Tépoz, Federal Commissioner, Federal Commission for the Protection against Sanitary Risk.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Egypt, in partnership with Helmy, Hamza & Partners.
OBG talks to Mohamad Talaat, Managing Partner, Helmy, Hamza & Partners, on beneficial laws and current developments.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC, OBG explores the taxation system, examining Cote d’Ivoire’s investor-friendly environment. OBG talks to Edouard Messou, Senior Partner; and Dominique Taty, Tax Partner, PwC, on the value-added tax refund mechanism.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Bahrain, including a summary of marketing investment products and services, a rundown of the changes to foreign ownership laws for certain businesses and a look at the recent amendments to real estate laws.
This chapter contains a viewpoint from Hatim Q Zu’bi, Partner, Zu’bi & Partners, Attorneys & Legal Consultants.
Explore chapterEducation & Training
Buy digital copy of this chapter - £18Evolving rapidly over a short period, education and training play a key role in Oman’s long-term development plans. From three schools in the country prior to 1970, the sultanate’s general education sector has expanded to include 1647 public, special education, private and international schools, with a total of 724,395 pupils, including kindergarteners and preschoolers. Enrolment is compulsory for 10 years of basic education and free for all Omani citizens. Progress has been reflected in significant improvements in the adult literacy rate, which reached 94.8% in 2015, up from 81% a decade earlier, and in 2013/14 the higher education segment was served by 18 public colleges, 20 private colleges, one state university and seven private universities. This chapter contains an interview with Pankaj Khimji, Director, Khimji Ramdas; and Director, Muscat University
Explore chapterThe Guide
This chapter contains accommodation listings for business and leisure stays, contact numbers for a variety of local services, useful tips for first-time visitors to the country, as well as a feature on the city of Pyin Oo Lwin.
Explore chapterTable of Contents
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Ghana, in partnership with AB & David.
OBG talks to David Ofosu-Dorte, Senior Partner, AB & David, on developing and improving public-private partnerships.
Explore chapterRetail
Buy digital copy of this chapter - £18With high levels of consumer spending in 2015 and early 2016 despite recent macroeconomic pressures, Saudi Arabia’s retail sector is widely acknowledged to be a bright spot in an otherwise challenging current economic landscape. Over the past decade the industry has posted growth of 12% on an annual basis on the back of steadily rising purchasing power among Saudi households and, concurrently, rapid investment in the Kingdom by domestic and international retailers alike. The most pressing obstacle to ongoing sector expansion is the regional macroeconomic situation, which has seen cuts in state spending and in subsidies for electricity and fuel with the effect of curbing disposable incomes.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Ensuring access to education has been a prime objective for Morocco over the past couple of decades, and recent indicators show significant progress. This comes on the back of major efforts to reform the education system through strategies such as the National Charter of Education 1999-2005 and the Emergency Plan 2009-12. The government has also maintained a high level of public spending on the sector. In the short to medium term, the public sector will remain the main provider in Morocco, while the private sector will continue to depend on political will to encourage its growth and attract more students. Collaboration between both sectors will be key to addressing capacity and quality shortfalls. Vocational training is also likely to continue playing a major role in providing an alternative to mainstream education, as well as in putting new graduates into a market where needs for qualified labour are constantly evolving.
This chapter contains an interview with Hervé Biausser, President, CentraleSupélec and Vice-President, Ecole Centrale Casablanca.
Explore chapterIndustry
Buy digital copy of this chapter - £18With a long-standing status as one of Dubai’s key economic contributors, activity in the industrial sector has been a major contributor to non-oil GDP for the emirate. Even as Dubai’s government has invested heavily in areas such as ICT in recent years, industrial activity has remained a central component of the emirate’s long-term economic diversification plan. While some figures from 2015 point to slowing growth in the sector overall – with manufacturing trade for 2015 down 3% year-on-year, recent trends highlight several high-performing segments. With higher lending rates to the sector recorded in 2015 and the launch of a new industrial strategy and investment plan by the government in 2016, there seems significant scope to continue to develop and diversify Dubai’s manufacturing base, which is currently highly focused in a few subsectors.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate, including a look at the key changes made to bylaws governing capital markets and a rundown of the new regulations aimed at boosting investor confidence.
This chapter contains a viewpoint from Alex Saleh, Partner, Al Tamimi & Co, on the new reforms to the capital markets law.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with SIAO, OBG explores the taxation system, examining Nigeria’s investor-friendly environment.
OBG talks to Ituah Ighodalo, Managing Partner, SIAO, on strengthening the tax system and increasing revenues.
Explore chapterHealth
Buy digital copy of this chapter - £18The year 2016 marks the second year of the rollout of universal health care, known locally as JKN, which aims to cover a population of approximately 260m by 2019. While millions have already been brought under coverage, reaching the whole population of an archipelago that contains 6000 inhabited islands will be no easy feat. Still, hopes are high for JKN. With greater access driving greater need for services, the government and its private sector partners are prioritising the expansion of health care infrastructure and the training and recruitment of medical professionals. Meanwhile, the country’s ageing population and shifting disease profile are triggering demand for specialised care and equipment in facilities. As the government works to offset the effects of global economic headwinds on its energy and industry sectors, health is increasingly viewed as an area that can help sustain growth and draw investor interest.
This chapter contains interviews with Nila Moeloek, Minister of Health; and Romeo Lledo, President-Director, Siloam Hospitals.
Explore chapterMining
Buy digital copy of this chapter - £18As the top nickel producer globally in 2013, the second-biggest coal exporter in 2015 and host to one of the largest copper and gold mines in the world, Indonesia has the capacity to compete with the most prolific mining nations. However, this potential has not necessarily been translated into strong production figures in recent times, and the domestic mining sector has suffered markedly over the past three years due to deteriorating global commodity prices and, more specifically, slowing growth in China, the leading purchaser of Indonesia’s mineral and coal products. Efforts to increase downstream production should be supported by the state’s infrastructure investment programme, while any recovery in the current downturn in commodity prices will boost the industry’s outlook.
This chapter contains an interview with Pandu Sjahrir, Chairman, Indonesian Coal Mining Association.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Human development is one of the four pillars of the country’s economic blueprint, Qatar National Vision 2030, with the 2011-16 National Development Strategy highlighting the importance of education in driving the state’s push toward a knowledge-based economy. Efforts to raise the standards of education in Qatar have been gathering pace and over the past decade the country has introduced a decentralised public school system, supported the development of a vibrant private school segment and invested significantly in tertiary education initiatives. Moving forward, a combination of government commitment, key partnerships with non-state stakeholders and increasing demand for education are set to maintain the sector’s pace of development.
This chapter contains an interview with Ahmad Hasnah, President, Hamad bin Khalifa University.
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The Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterThe Guide
This chapter contains a guide to the Sultanate’s best hotels and apartments, telephone numbers for ministries, embassies and other important institutions, and useful information for first-time visitors to the country.
Explore chapterHealth
Buy digital copy of this chapter - £18In the nearly 60 years since its independence, Malaysia has made enormous strides in health care, creating an internationally lauded public health system that delivers quality care to a large proportion of the public at extremely generous rates. This is complemented by a growing private sector, which provides quality care – often in specialist areas – to those Malaysians and foreigners who can afford it. In February 2015 Prime Minister Najib Razak could boast that public medical fees were the lowest in the world, with the government currently subsidising health care costs at a rate of about 98%. But as Malaysians live longer and lifestyles change, the prevalence of diseases such as diabetes and cancer has increased, putting pressure on health care funding. This chapter contains a dialogue with Amiruddin Abdul Satar, Managing Director, KJP Healthcare; and Ahmad Shahizam Bin Mohd Shariff, CEO, Pantai Group.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter explores the legal framework of Sri Lanka and features topics including foreign ownership rules, efforts to improve investor confidence, and employee rights and protections. It also contains an interview with John Wilson, Managing Proprietor, John Wilson Partners.
Explore chapterEducation
Buy digital copy of this chapter - £18The education sector in Abu Dhabi is benefitting from targeted investments in career-relevant post-secondary programmes, as well as strong partnerships between schools and industry. Furthermore, recent K-12 curriculum reforms are aimed at building a strong base of science, technology, engineering and mathematics (STEM) undergraduates. With the Abu Dhabi Economic Vision 2030 development plan emphasising diversification and the transition to a knowledge-based economy, education will remain at the forefront of the agenda and continues to offer significant investment opportunities to private players from pre-K through to the PhD level. This chapter Hussain Al Hammadi, Minister of Education.
Explore chapterThe Guide
This section includes information on hotels and phone numbers for government offices and other useful contacts, alongside tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter summarizes the Thai tax system, focusing on corporate tax rates, rules and regulations, incentives for investors and other key areas. It also contains a viewpoint from Andrew Jackomos and Paul Ashburn, Senior Partners, BDO Advisory.
Explore chapterHealth
Buy digital copy of this chapter - £18With the government committing unprecedented levels of funding to increasing the coverage of its national public health insurance programme, positive effects are being felt throughout the domestic health sector. The Philippine experiment of combining public health care spending with private sector delivery continues to evolve. As health care remains central to the public interest, there is a heavy onus on improving access and efficiency in accordance with the goal of providing universal health care coverage for all Filipinos by 2016. In addition to the realisation of hard infrastructure projects under public-private partnerships, options for the provision of health services under such a model are gradually coming to the fore. This chapter contains an interview with Mario M Silos, Chairman and President, Intellicare.
Explore chapterEducation
Buy digital copy of this chapter - £18In the past two decades, Colombia’s educational system has grown in importance for the country’s policy-makers. This has translated into a stronger link between education and human resources development, as well as a gradual rise in overall expenditure. The sector continues to face a number of challenges, including a significant gap in school coverage and completion rates for secondary schooling in rural and urban areas. Moreover, educational attainment remains tied to students’ socio-economic status. Nonetheless, authorities have set the ambitious goal of turning Colombia into the most educated country in Latin America by 2025. The current drive to develop internet access is helping to overturn some of the discrepancies, while a series of innovative programmes have strengthened educational practices in the more isolated regions of the country, pointing to continued positive progression for the sector.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Bahrain, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business viewers alike.
Explore chapterThe Guide
This section offers facts for visitors, a list of recommended hotels and contact information for airlines, foreign embassies, hospitals, business and trade associations, and other institutions. It also contains a feature piece about the popular tourist destination, Inle Lake.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Peru’s current modern legal framework has now been in place for more than 25 years. After several different governments, global economic crises and other phenomena affecting the country, its underlying legal framework has essentially remained the same. Laws may have changed and some experiments have been conducted, but the country’s principles, laws, regulations and constitution have endured, which is no small feat for a growing developing country that battled domestic terrorism in the 1980s and 1990s. Importantly, throughout these years, the economy was opened up to foreign investors and the country strived to provide a business-friendly and predictable regime that welcomes investment. This chapter provides an overview of Peru’s legal framework, covering a range of topics from the mining and environmental permits to corporate law. This chapter includes an interview with Pablo Berckholtz, Managing Partner, Estudio Echecopar.
Explore chapterEducation & Training
Buy digital copy of this chapter - £18Successive five-year plans have seen Oman’s education system evolve rapidly, with highlights including the expansion of special education programs and the development of teacher-training colleges. In 2013 almost all children in the sultanate were enrolled in school while almost 98% of students completed primary school that year and 92% were enrolled in secondary school. Despite a drop in oil and gas revenues, the sultanate maintained its commitment to education spending in its 2015 budget, with the sector retaining a major share of state expenditure. This will enable a greater focus on both developing the physical infrastructure of the sector and improving the quality of its delivery. Meanwhile a national TVET strategy has been designed to address any mismatches between the requirements of the labor market and the skills and abilities of graduates.
Explore chapterMedia & Entertainment
Buy digital copy of this chapter - £18The 2011 revolution in Egypt led to a flurry of new private entrants in the print media and TV markets, with many of them seeking to compete with public broadcasters and long-established traditional print titles for market share. The revolution was also a catalyst for changing viewing and reading habits. With a large youth population, an increasing number of Egyptians are choosing to consume information and entertainment online. As a result, TV networks and newspaper groups are grappling with dwindling subscription and sales figures as customers once taken for granted are migrating online. As such, the industry is at a critical juncture and – in the short term at least – as elsewhere in the world, the ability of outlets to adapt to digital mediums and a more fragmented audience will prove crucial.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework within which local and international investors operate in Kenya, including a look at the business environment for foreign investors, the different types of corporate entity recognised in Kenya and a rundown of the various incentives available for inward investment.
This chapter contains a viewpoint by Karim S Anjarwalla, Managing Partner, Anjarwalla & Khanna.
Explore chapterEducation
Buy digital copy of this chapter - £18The education sector in South Africa remains a top priority for the state, with basic education receiving the largest share of government expenditure in the most recent budget, as stakeholders move to improve both the quality of learning and student outcomes. Although the sector is still confronted with a lack of available capacity and high levels of youth unemployment for graduates, the government is intensifying its efforts to expand access to basic and post-secondary education. With public expenditure intensifying and significant scope for growth in the private K-12 segment, the education sector should continue to witness improvements in 2016, with rising research and development spending to be accompanied by significant knock-on benefits for the broader economy.
This chapter contains an interview with Adam Habib, Vice Chancellor, University of Witwatersrand.
Explore chapterTax
Buy digital copy of this chapter - £18OBG’s partner Deloitte lays out what investors need to know about income tax legislation in Ghana.
This section also includes a viewpoint from Felix Nana Sackey, CEO, Deloitte Ghana.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, dividend taxation, foreign operations, tax audits and other investor considerations.
This chapter includes an interview with Carlos Méndez, Territory Senior Partner at PwC México.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework for local and international investors in Kuwait and provides a rundown of the key improvements that have been made to the business environment. These include recently introduced public-private partnership laws and a new state agency set up to promote foreign direct investment.
Explore chapterTransport
Buy digital copy of this chapter - £18Saudi Arabia’s transport services have witnessed significant developments in recent times, and this is set to continue with an anticipated $190bn to be invested in the sector through to 2025. The majority of this – around $141bn – will go towards rail and public transport networks. Successive phases of railway development will extend the network across the entire country, with the aim of bringing the Kingdom’s total track length to 9900 km by 2040. In addition to the ongoing expansion of King Khalid International Airport in Riyadh and King Abdulaziz International Airport in Jeddah, a new airport has been completed in Medina and facilities are planned for Taif and Abha. Ongoing port developments – including King Abdullah Port, the first port in the Kingdom to be privately owned and financed – are seeking to capitalise on the Kingdom’s strategic location on the trade routes to many emerging markets.
This chapter contains interviews with Abdullah Al Mogbel, Minister of Transport; and Sulaiman bin Abdullah Al Hamdan, President, General Authority of Civil Aviation (GACA).
Explore chapterEducation & Research
Buy digital copy of this chapter - £18Considerable advances have been made in increasing enrolment levels, with net primary school enrolment reaching 98% in 2013, up from 85% in 2003, although challenges remain in ensuring adequate access to education in rural areas. The government has worked to improve infrastructure through the rehabilitation of schools and the involvement of the private sector. An emphasis on vocational training is expected to help match graduates’ skills with the demands of the labour market, reducing high rates of youth unemployment, while another major focus over the coming years will be to increase scientific research output at Moroccan universities.
This chapter contains interviews with Lahcen Daoudi, Minister of Higher Education and Scientific Research; and Tarafa Marouane, Chairman, Commission of Research and Development, General Confederation of Moroccan Companies.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18After several years of decline due to liquidity shortages, a high current account deficit and reduced export demand from Europe, Morocco’s bourse is growing again, with its market capitalisation rising significantly in 2014 and early 2015. Trading is concentrated in a small number of companies and investors – the 10-most-traded shares made up three-quarters of transactions in 2014, carried out mostly by institutional investors. Faced with a slim listings pipeline and low levels of secondary trading in recent years, market authorities are working on the launch of a range of reforms and new products designed to reinvigorate capital markets activity at a time when liquidity is returning to the wider economy.
This chapter contains an interview with Karim Hajji, CEO, Casablanca Stock Exchange; and a viewpoint from Younes Benjelloun, Partner and CEO, CFG Group.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Papua New Guinea’s taxation rules, outlining the government’s focus on improving tax compliance, new double tax agreements recently signed and current corporate taxation guidelines. It also contains a viewpoint from Jonathan Seeto, Managing Partner, PwC.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency, communications, dress codes and business hours, among others.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Panama’s tax regime, covering areas of particular interest to investors such as corporate and individual income tax, dividend tax, taxation treaties and import duties, among other areas. In addition, it features a viewpoint by Luis Laguerre, Partner at KPMG Panama, on tax treaties and Panama’s international financial services cluster.
Explore chapterTourism
Buy digital copy of this chapter - £18Since the 1930s, the unique cultural and picturesque landscape of Indonesia’s island of Bali has lured millions of visitors. But even as Bali has boomed, the delights from the rest of Indonesia’s archipelago of more than 17,000 Islands have often been overlooked. The new government of President Joko Widodo has vowed to change that. With a goal of attracting 20m visitors by 2020, it is urging tourists to travel beyond Bali and experience the country’s myriad cultures and cuisines, as well as the stunning natural beauty of its more than 54,000 km of beach and coast. While tourism is currently the fourth-largest source of foreign exchange after oil and gas, coal, and palm oil, some industry leaders predict that it could take the lead by 2018 if the government’s initiatives pay off.
This chapter contains an interview with Budi Tirtawisata, CEO, Panorama Group.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines the tax environment in Turkey, looking at a pending new income tax as well as how the tax law deals with corporations. It also includes an analysis on the various ways that Turkey’s investment climate could be improved in the context of taxation.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter outlines the tax environment in Mongolia, focusing on the new investment law, account regulations, corporate income taxation and other subjects. It also contains a viewpoint from D. Onchinsuren, Country Managing Partner, Deloitte Onch LLC.
Explore chapterTourism
Buy digital copy of this chapter - £18As Nigeria receives little in the way of mainstream leisure travellers, the tourism sector is represented mainly by the domestic, visiting friends and family (VFF), and corporate travel segments. While the tourism sector faces significant challenges, Nigeria is a market that any travel or hospitality business with serious international and continental ambitions can ill afford to avoid. The sector is anchored by a steady corporate base with deep pockets, and as the economy continues to grow and industrialise, the supply of hotel rooms is expected to lag demand for some time to come. If Nigeria’s natural and cultural offerings can be better packaged, and some of the prohibiting factors that currently deter discretionary travel can be addressed, a nascent leisure sector could emerge to diversify the visitor profile and encourage tourists to explore new Nigerian destinations.
Explore chapterEducation & Research
Buy digital copy of this chapter - £18The government of Qatar has identified education as key to meeting the targets outlined in both the National Development Strategy 2011-16 and the Qatar National Vision 2030. Government expenditures in 2014 emphasised education, which accounted for over 7% of the national budget. Private sector actors are also playing an increasingly important role in providing education services, particularly at the primary and secondary levels, with private schools catering primarily to the expatriate population, although the number of Qatari nationals enrolled in these facilities is gradually increasing. Meanwhile, at the tertiary level a number of new research and development facilities across the state are helping to establish a strong cadre of research programmes.
This chapter contains an interview with Mohammed Abdul Wahed Ali Al Hammadi, Minister of Education and Higher Education.
Explore chapterLegal Framework
This chapter examines the legal framework environment for doing business in Sarawak, focusing on new sales and purchase agreements, goods and services tax, foreign property investment, minimum wage policy and the variety of visa options available to foreigners. It also contains a viewpoint from Alvin Wong, Managing Partner, Sia, Alvin Wong & Partners.
Explore chapterConstruction & Engineering
Buoyed by prolonged government stimulus, Saudi Arabia’s construction industry, the second-largest sector in the economy after oil, is experiencing rapid expansion, with no shortage of contracts in any segment. From housing and utilities to transport infrastructure, public spending is driving the contracting industry forward. While operational challenges remain, including concerns over the tightening of labour regulations, contractors are likely to benefit from favourable conditions for the foreseeable future.
Explore chapterEducation
Buy digital copy of this chapter - £18As of 2016 the Philippines will extend mandatory basic education to 12 years, up from the 10-year mandate that has been in effect since 1987. The increased role of the private sector in providing educational services is crucial to the realisation of this task, with growing opportunities on the horizon and the authorities taking slow but steady steps to define them. Challenges of access and quality remain, and the government continues to address them through a host of pragmatic initiatives. With the dialogue between the private sector and educational institutions increasing and accompanied by reforms aimed squarely at better preparing students for employment, the sector continues to move in the right direction.
This chapter contains an interview with Armin Luistro, Secretary, Department of Education.
Explore chapterHealth
Buy digital copy of this chapter - £18The health sector in Abu Dhabi has expanded rapidly on the back of a mandatory medical insurance scheme, while the sector has also been driven by population growth, rising health awareness and an increasing incidence of lifestyle-related diseases. Government health care expenditure nearly doubled between 2007 and 2012 to reach over $12bn that year, with government spending comprising 3.3% of total GDP, the highest ratio in the GCC. Human resource shortages will present a challenge to the emirate, with estimates suggesting that Abu Dhabi will require an additional 1600- 4800 doctors by 2022. Such challenges, though serious, have nonetheless opened considerable opportunities for expansion for health care providers in the emirate.
This chapter contains interviews with Dr Maha Barakat, Director-General, Health Authority - Abu Dhabi; and Dr Matar Al Darmaki, Acting CEO, Abu Dhabi Health Services Company.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Cote d’Ivoire, in partnership with Bilé-Aka, Brizoua-Bi & Associés.
The chapter also features an interview with Michel K Brizoua-Bi and Joachim Bilé-Aka, Founders, Bilé-Aka, Brizoua-Bi & Associés.
Explore chapterTax
In conjunction with KPMG, OBG explores the taxation system, examining Cote d’Ivoire’s investor-friendly environment.
Explore chapterIndustry
Buy digital copy of this chapter - £18The manufacturing sector has recorded consistent growth in recent years, accounting for 13.7% of the emirate’s GDP in 2013. Free zones such as the Jebel Ali Free Zone and the Dubai Auto Zone continue to play an important role in the sector, with incentives helping to draw in international players. According to the Jebel Ali Free Zone Authority, its 625 automotive companies generated trade worth around $4.6bn in 2013, up 13% on 2012, while Dubai Auto Zone recorded a 63% rise in trade in the first half of 2014, illustrating the emirate’s continuing development as an export and re-export centre for the automotive sector. The emirate’s growing logistics and transport capabilities as it gears up to host Dubai Expo 2020 are also expected to help drive further growth. This chapter contains an interview with Khamis Juma Buamim, Chairman, Drydocks World and Maritime World.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The emirate continues to benefit from well-developed telecommunications infrastructure with high penetration rates for both mobile and fixed-line services and a local population that is highly concentrated, tech-savvy, and global in both composition and outlook. With saturation rates reached in the local market, telecoms players are looking overseas for growth opportunities. The e-commerce segment is on a strong growth trajectory, with companies hoping to capture a share of the MENA retail market, which is set to reach $15bn by end-2015, up from $12bn in 2012. Online content streaming is becoming another important revenue generator. The launch of Dubai Smart City initiative in 2014 aims to complete the “third phase” of the emirate’s development, propelling it to be a leading global smart city as it integrates more than 100 initiatives and 1000 government services into a single platform.
This chapter contains interviews with Osman Sultan, CEO, du; and Ahmed Bin Humaidan, Director-General, Dubai Smart Government.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Bahrain and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterThe Guide
This chapter contains useful information for visitors to Myanmar, including proper etiquette, language, transport and how to obtain a visa. It also offers important contact information for foreign embassies, hospitals, UN agencies, airlines and hotels.
Explore chapterTourism
Buy digital copy of this chapter - £18Arrivals at Muscat International Airport grew from 7.56m in 2012 to reach 8.31m in 2013, and this rising trend looks set to continue as the sultanate rolls out infrastructure development plans and increases its offerings for visitors. Across the country smaller airports are undergoing expansion that will allow larger planes to land, while rail development in the sultanate will see 2244 km of rail laid in the coming years, boosting connectivity with neighbouring countries. Oman is also looking to establish a presence in the international MICE segment, with the recently opened Oman Conference and Exhibition Centre leading the drive to attract more events to the sultanate. Luxury enclaves along the coast have boosted high-end offerings, and the sultanate is also keen to promote itself as a golf and sailing destination. This chapter contains an interview with Ahmed bin Nasser bin Hamad Al Mehrizi, Minister of Tourism.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18As the commodity supercycle comes to an end and economic growth eases, the Peruvian government has introduced legal changes to promote foreign investment and stimulate growth. This chapter highlights the most important recent changes in Peru’s legal framework, including measures to expedite permits, public-private partnerships, pensions and the Work for Taxes regime.
This chapter contains an interview with Pablo Berckholtz, Managing Partner, Estudio Echecopar, a member firm of Baker & McKenzie International.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Egypt, in partnership with Helmy, Hamza & Partners.
This chapter includes a viewpoint from Mohamad Talaat, Co-Managing Partner, Helmy, Hamza & Partners.
Explore chapterTax
In partnership with Deloitte, this chapter gives an overview of Brunei Darussalam’s tax environment as it applies to businesses and investors. It also features a tax viewpoint from Pengiran Moksin, President, Brunei Darussalam Institute of Certified Public Accountants, and Partner, Deloitte, on the tax environment.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with EY, OBG explores the taxation system, examining Kenya’s investor-friendly environment. OBG talks to Gitahi Gachahi, CEO, EY Eastern Africa, on the benefits of a regional Customs union.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Ghana, in partnership with AB & David. This section includes a viewpoint from David Ofosu-Dorte, Senior Partner, AB & David, on attracting private capital to fund public sector projects.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Jordan and contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors alike.
Explore chapterLegal Framework.
Buy digital copy of this chapter - £18This chapter explores the laws and regulations that affect businesses and investors in Mongolia. It also features a legal framework viewpoint from OBG partner, David Beckstead, Foreign Legal Consultant with Lehman, Lee & Xu Mongolia.
Explore chapterTax
Buy digital copy of this chapter - £18Featuring a tax viewpoint from Andrew Jackomos and Paul Ashburn, Senior Partners at BDO Advisory, this chapter explains Thailand’s tax framework and how investors can prepare for the transition into the tax regime under the ASEAN Economic Community.
Explore chapterAgriculture
Buy digital copy of this chapter - £18In 2013 the agriculture sector accounted for 14.4% of total GDP. Food crops represented the largest segment, with more than half of the industry’s value. Tasked with providing sustenance for the country’s nearly 250m citizens while contributing a steady stream of export revenue, the Indonesian agriculture sector remains an indispensable industry with an influence that extends across a broad spectrum of the social, political and economic landscape. Rice, maize, and soybean are among the most widely grown crops and are cultivated primarily for domestic consumption. With a total output of 70.86 tonnes in 2013, rice is the dominant staple food. The government is focusing on food price volatility and increasing the contribution of domestic production to consumption in the country. Although the days of double-digit expansions for plantation crop acreage are now in all likelihood a thing of the past, continued demand should be enough to sustain profits for large agro-industrial exporters. This chapter contains interviews with Franky Oesman Widjaja, President Commissioner, Sinar Mas Agribusiness and Food; and Franciscus Welirang, Director, Indofood.
Explore chapterHealth
Buy digital copy of this chapter - £18Qatar’s health care sector is undergoing vigorous change, for both good and bad reasons. The good news is that Qataris are living longer. The bad is that more are living with lifestyle-related chronic diseases such as diabetes, heart disease and cancer. To meet this challenge, the government has been making sizeable investments in health care: Qatar now spends more per capita on health than any other GCC country, according to the World Health Organisation (WHO). A 2013 announcement stated that Qatar will funnel $10.4bn into health care over the next five years – a lurch upwards from the recent annual average of $367m. Conducting research, furnishing staff for clinics, supplying pharmaceuticals, building new facilities and running IT services all hold opportunities for private sector involvement. This chapter contains an interview with Abdulla bin Khalid Al Qahtani, Minister of Health and Secretary-General, Supreme Council of Health.
Explore chapterHealth
Buy digital copy of this chapter - £18Fuelled by higher incomes; the growing, ageing population; a rise in the prevalence of lifestyle diseases; and the introduction of mandatory health insurance, Abu Dhabi’s health sector has expanded rapidly in the past five years. Given demographic trends, in 2011 the Health Authority - Abu Dhabi (HAAD) estimated that by 2021, Abu Dhabi will need up to an additional 1900 doctors, 5300 nurses and 1700 hospital beds. The government is building new facilities, hiring doctors and training nationals to keep pace with demand. Meanwhile, private providers are taking up the numerous opportunities presented by this growing market. The private sector will likely expand by investing in high-volume needs such as reproductive health or communicable diseases, while areas such as acute and tertiary care are expected to remain the purview of government hospitals. This chapter contains interviews with Mohammed Sultan Al Hameli, Chairman, Health Authority - Abu Dhabi; and Saif Al Qubaisi, Chairman, Abu Dhabi Health Services Company (SEHA).
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Recent economic, social and infrastructure developments have brought along changes in key legislation. This chapter provides an overview of current legal changes, highlighting areas such as business licences and employment contracts, as well as intellectual property protections and rules and regulations for maritime firms and vessels. In addition, it features a viewpoint from Francisco González-Ruiz, Partner, Icaza, González-Ruiz & Alemán.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Over the last decade, through committed investments and the reduced influence of traditional media centres such as Egypt, Dubai has grown into a centre for media production of all types. The emirate’s cluster of media-oriented free zones has drawn many leading print, digital and broadcasting companies, and the government is expanding its film-making facilities to attract foreign productions. Seen as a base from which companies can serve both local and regional markets, Dubai is home to an increasingly mature, and thus far resilient, print sector, a steady broadcast industry and a growing number of film producers. Despite the challenges, notably a more competitive global marketplace, trends are generally positive, and most indications point towards Dubai’s media sector continuing to see significant growth.
Explore chapterTourism
Buy digital copy of this chapter - £18With the global tourism industry hit hard during the financial crisis and growth slowing in larger markets, international hotels and tourism experts are looking at new opportunities for expansion. Capital investment is set to rise by 7.6% in 2013 to $1.89bn. Internationally branded hotels dominate the market, with several new projects in the pipeline for Lagos and Abuja in particular. Business travellers and visitors working in the oil and gas sector or supporting services are key contributors to the travel industry. While the Nigerian market has its share of challenges, including security concerns, limited infrastructure and a complex visa process, tourism has strong growth potential. This chapter contains an interview with Hassan Ahdab, Vice-President, Regional Director Africa and Indian Ocean Island, Starwood Hotels and Resorts Worldwide.
Explore chapterEducation
Buy digital copy of this chapter - £18Major investments in schools and universities have highlighted Oman’s commitment to revamping its education system according to the needs of a diversified, knowledge-based economy. The government has spearheaded initiatives targeting higher education, vocational programmes and research facilities. Efforts are under way to better align graduates’ skills with the demands of the job market. While challenges remain with respect to improving educational standards, research opportunities and English-language training, the sector has demonstrated tenacity in accommodating the country’s growing youth population and enhancing the quality of its education system at all levels.
Explore chapterTax
Buy digital copy of this chapter - £18Featuring an interview with Esteban Chong, senior partner, PwC Peru, the tax chapter provides an overview of the Peruvian tax regime, highlighting recent changes in areas of interest to investors such as income taxes, stability agreements, tax treaties, tax exemptions and pension fund contributions, among others.
Explore chapterEducation
Buy digital copy of this chapter - £18Reforms to the local school system and increased funding are expected to support improved outcomes in what is a large and logistically challenging sector. The administration of Benigno Aquino III has significantly raised the budget and introduced sweeping reforms that are aimed at addressing access, quality and human resource shortcomings. Reforms have opened up new business opportunities for service providers and private investors. Although the sector caps foreign equity participation at 40% for the most part, new opportunities in technical and vocational training could emerge by 2016. This chapter contains an interview with Alfredo Pascual, President, University of the Philippines.
Explore chapterThe Guide
Buy digital copy of this chapter - £18This section includes articles about the city of Constantine and about reforms to the book industry, as well as information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Egypt, in partnership with Helmy, Hamza & Partners. This section includes a viewpoint from Mohamad B Talaat, Partner, Helmy, Hamza & Partners, on laying the legal groundwork for continued economic expansion.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Gabon, in partnership with Deloitte.
Explore chapterThe Guide
The Guide features a rundown of Kuwait City’s leading hotels and contact information for various institutions, including government ministries, foreign consulates and embassies, emergency services, tourism companies and local media. This chapter also includes information on society and etiquette, language, transport and visas for business visitors.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As with many emerging markets, data is playing an ever more important role in Côte d’Ivoire’s telecoms sector. While many subscribers have multiple SIM cards, the mobile market is nonetheless rapidly nearing saturation, which means the country’s six operators are looking to sustain high growth rates by both expanding the uptake of value-added services and improving network quality.
Explore chapterHealth
Buy digital copy of this chapter - £18With the continent’s largest health care sector, South Africa’s government has focused heavy investment in the industry, and its thriving private sector is keeping pace, accounting for about half of overall spending. Indeed, spending on health care in South Africa exceeds the WHO’s recommended levels, with 8.3% of GDP spent in 2011 compared to the suggested 5%. While resources are relatively ample, the country faces serious challenges, both in terms of public health and in the structure of the health care system, which provides very unequal outcomes. Nevertheless, the proposed NHI scheme is set to radically reform the South African health system and aims to ensure that all citizens have access to high-quality health care services. This chapter contains interviews with Dr Aaron Motsoaledi, Minister of Health; and Richard Friedland, CEO, Netcare.
Explore chapterIndustry
Buy digital copy of this chapter - £18Weaker international demand and increasing foreign competition have caused the output of the industry sector to fall 0.7% in 2012, limiting its contribution to GDP to 12%. Traditional industries as well as the manufacturing of vehicle parts and their assembly have been hit the hardest. Nonetheless, some segments, such as fast-moving consumer goods, continue to display potential. Colombia’s shift in industrial focus from primary products to added value has also seen the development of niche segments such as cocoa products. Government initiatives such as the Stimulus Plan for Production and Employment and the Productive Transformative Programme, should help boost sector growth in the near future. This chapter contains an interview with María Claudia Lacouture, President, Proexport.
Explore chapterTax
Buy digital copy of this chapter - £18Ranked 10th among MENA countries for doing business, a new Investment Law looks set to offer further incentives for foreigners doing business in Jordan. Policy changes, combined with the rise of Jordan as a stable environment in which companies can operate, have transformed the country into an attractive investment area in the region. Investment incentives take the form of exemptions from income tax and Customs fees that can be granted to either domestic or foreign investors. This chapter contains a viewpoint from Yasmeen Muhtaseb, Partner of Advisory Services, Ernst & Young Jordan.
Explore chapterThe Guide
This chapter features a rundown of the island’s leading hotels and contact information for various institutions, including government ministries, foreign consulates and embassies, emergency services, tourism companies and local media. It also includes information on society and etiquette, language, transport and visas for both business visitors and tourists.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter features an overview of Turkey’s legal framework. Subjects include structural reforms, corporate governance, inter-governmental agreements, bankruptcy protection, and reforms in finance. OBG partner, Ümıt Hergüner, Senior Partner of Hergüner Bılgen Özeke, also offers a viewpoint on creating an investment environment to meet Turkey’s centennial goals.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains updates on the Brunei Darussalam tax system, offering need-to-know information for doing business in the Sultanate. It also contains a tax viewpoint from Pengiran Moksin, President, Brunei Darussalam Institute of Certified Public Accounts, and Partner, Deloitte.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The rise of new print titles in an increasingly digitally driven sector shows that the Moroccan media business still has the capacity to absorb innovative products, particularly if they cater for the larger, Arabic-speaking public. A 14-member commission led by the minister of communication has been set up to design a new press code to include standards for online newspapers and to create a national council for press and ethics, while a new law that would allow non-Moroccan citizens to hold up to a 30% stake in local newspapers is expected to be approved by parliament in the second half of 2013. With the rising number of media ventures in different communication vehicles, Morocco’s media sector is setting the pace for continued growth. The global economic downturn has had tangible effects on the advertising sector, with spending dropping from €524.5m in 2011 to €497.8m in 2012. Nevertheless, Morocco remains one of the main advertising markets in the Maghreb in terms of its size and dynamism. Television is still the most important of traditional media vehicles, and local channels are seeing increased competition from pan-Arab satellite channels, steadily claiming pieces of the advertising pie. The internet continues to become a more attractive medium to invest in, as new online products are further threatening the hegemony of print media outlets. Industry stakeholders met in the beginning of 2013 to discuss the development of a new code of conduct for the sector, in an effort to move away from strict sanctions by the regulatory body, the High Commission for Audio-visual Communications.
Explore chapterConstruction & Engineering
Buy digital copy of this chapter - £18While the construction industry in many countries may still be in the doldrums, in Saudi Arabia it is proving to be the driving force behind economic growth. Indeed, all the parts are in place for construction to remain a growing industry over the coming decade. Saudi Arabia has the region's largest market; with its population of 29.2m people – as of 2012 – growing at an annual rate of 2.9%, the need for transport and power infrastructure should continue to grow. In 2012, some $159bn was committed to construction projects, including $67bn allocated for the building of 500,000 housing units and $4.4bn being spent on infrastructure works. While challenges remain for new entrants, the market is gaining in maturity with an improved tendering environment. Moreover, increased competition has the potential to reduce the profit margins for contractors, but it is also likely to improve quality even further.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Like much of the Gulf region, Abu Dhabi is largely made up of desert, and as such, agriculture accounts for only a small proportion of the economic output of the emirate – less than 1% of GDP. Despite Abu Dhabi importing the majority of its food, the sector is set to witness important developments in areas such as aquaculture, organic food and water conservation. Date production continues to be a key pillar of agriculture; in 2008 the UAE produced 755,000 tonnes of dates and exported 280,000 tonnes – making it the fourth-largest producer and single largest exporter that year. Overall, population growth and rising affluence mean that the sector is likely to become increasingly important going forward. This chapter includes interviews with Rashed Mohamed Al Shariqi, Director-General, Abu Dhabi Food Control Authority (ADFCA); and Khadim Abdulla Al Darei, Managing Director, Al Dahra.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18With a vibrant TV and print media sector, in addition to a growing online presence, Indonesia presents a wide spectrum of platforms and styles for advertisers and media investors. There is also an increasing sense of confidence and creativity in the industry, which is expanding on the back of robust economic performance and an increasingly wealthy, growing population, anxious to try out new products and lifestyles. As retail surges so too do media and advertising, with much to expect from both in the years to come. This chapter contains an interview with Rudy Tanoesoedibjo, President Director, MNC Skyvision; and a viewpoint from Shoeb K Zainuddin, Group Editor-In-Chief, BeritaSatu Media Holdings.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18With assistance from SNR Denton, this chapter explains the options for foreign business operations, including how to set up in Dubai and rules on representative branches and local agents. It also outlines employment regulations and the rights of employees. The chapter includes a viewpoint with Michael Kerr, Managing Partner, SNR Denton.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Two issues facing any prospective investor in a developing nation are what activity is permitted and whether the laws of that country will protect their investment. For several years Mongolia’s tremendous potential has been recognised, not just in terms of its mineral resources, but also in agriculture and renewable power generation. The country treasures its independence, but as a functioning democracy, it recognizes the need to respect the rights of its citizens and foreigners alike. Significant strides have been made in the past 20 years to produce a body of Mongolian law that achieves this aim. In this section, Clyde & Co gives an overview of the legal framework for conducting business in Mongolia and features a viewpoint from Stephen Tricks, Consultant at Clyde & Co.
Explore chapterRegions
Buy digital copy of this chapter - £18While a significant portion of economic activity in Oman is concentrated in the capital and nearby surrounding areas, a number of other regions remain key drivers of economic growth. Moreover, these regions are playing an increasingly important role as the national economy matures and diversifies. For example, Sohar offers shipping firms a seaport south of the Strait of Hormuz, which reduces operational costs incurred by heavy congestion through the channel. Indeed, shipping at the Port of Sohar has increased substantially in recent years, with dry bulk growing by over 400% and liquid bulk by 65%. The Port of Salalah is another key transport hub for the region, the attractiveness of which to investors has grown markedly with the establishment of the Salalah Free Zone (SFZ). In Duqm - Oman’s third emerging economic hub - the bulk of economic activity in Duqm focuses on the industry and transport sectors, both of which are expanding rapidly. This chapter includes interviews with Yahya bin Said Al Jabri, Chairman, Special Economic Zone Authority at Duqm (SEZAD); and Said bin Hamdoon Al Harthi, Undersecretary for Ports & Maritime Affairs at the Ministry of Transport & Communications.
Explore chapterInnovation
Buy digital copy of this chapter - £18Malaysia’s R&D spending has skyrocketed over the past decade, albeit from a low base: funds for research grew at an average annual rate of 18% from 1996-2007. New government-led initiatives such as the Cradle Fund and the Malaysian Innovation Agency, are helping to improve the availability of funding, especially for small businesses doing high-value, high-risk research. Biotechnology is one of the emerging industries that has benefitted greatly from this investment, and it now employs over 150,000 people and contributes 2.2% of the country’s GDP. Malaysia’s unique biodiversity has also yielded benefits for entrepreneurs – providing rare natural compounds for pharmaceuticals and biotechnology companies and allowing agribusiness firms to produce high-end rubber and palm oil products. This chapter includes interviews with Francis Gurry, Director-General, World Intellectual Property Organisation (WIPO); and Mohd Nazlee Kamal, CEO, Malaysian Biotechnology Corporation.
Explore chapterThe Guide
This section includes an article about archaeological offerings in Algeria, as well as information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC, OBG explores the taxation system, examining Nigeria’s investor-friendly environment. OBG talks to Ken Igbokwe, Country Leader at PwC Nigeria.
Explore chapterHealth
Buy digital copy of this chapter - £18Promoting development by nurturing a healthy population is enshrined in Qatar’s constitution and is a cornerstone of the government’s long-term development strategy. The state’s population has increased rapidly over the last decade, but so too has expenditure on health care services, climbing from $339 per capita in 2000 to $1560 per capita by 2010. Investments in health care are expected to help diversify the economy away from oil and gas, and the government is actively supporting private sector participation. While Qatar faces the challenge of sourcing skilled professionals to fill new posts, the government is trying to address these gaps through several initiatives aimed at encouraging more students to take up medical professions, particularly nursing. This chapter includes interviews with Dr Hanan Al Kuwari, Managing Director, Hamad Medical Corporation.
Explore chapterThe Guide
This section contains a feature about Gabon’s wildlife attractions, in addition to listings for hotels, government offices and local services, as well as helpful tips for first-time visitors.
Explore chapterThe Guide
This section features an article on the country’s footballers, plus helpful listings of hotels, useful contact details, and facts for first-time business and leisure travellers.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with Bentsi-Enchill, Letsa & Ankomah, OBG introduces the reader to different aspects of the Ghanaian legal system. This chapter includes a viewpoint on oil-backed borrowing by Kojo Bentsi-Enchill, Senior Partner and Head of Energy & Natural Resources at Bentsi-Enchill, Letsa & Ankomah.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with Tilleke & Gibbons, OBG takes a look at Thailand’s legal system. Key points include revised investment incentives and new tax breaks for foreign companies, as well as the impact of new free trade agreements. Darani Vachanavuttivong, Co-Managing Partner and Managing Director of Intellectual Property (IP) at Tilleke & Gibbins, offers a viewpoint on the importance of IP rights.
Explore chapterTransport
Buy digital copy of this chapter - £18Infrastructure deficits are one of PNG’s most pressing economic concerns, affecting the competitiveness of industry and agriculture while hindering development in the country’s interior. Thanks to increasing revenues, however, the government is now in a position to address its inadequate land and sea transport systems. The first of four development plans will spend $11.7bn on transport over five years, with the goal of eventually tripling the size of the road network, expanding over-capacity ports, and modernising airports. The challenge will be to marshal the necessary investments while overcoming the bureaucratic and parochial tendencies of PNG’s political system. This chapter features interviews with Wasantha Kumarasiri, CEO, Air Niugini; Stanley Alphonse, CEO, PNG Ports Corporation; and Joseph Kintau, Managing Director, National Airports Corporation.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The state plays a central role in the Jordanian media industry, operating three of the country’s major TV channels and owning several newspaper publishers. However, private schemes flourish as well and operate most of the radio stations in the kingdom. Television is the dominant form of media by audience, but the local television industry remains weak compared with pan-Arab and regional stations. This dominance is arguably now under threat: Jordan has seen internet penetration rise rapidly in recent years, which has translated into a boom in online media consumption. Moreover, this has been aided by the proliferation of 3G networks that bring internet connectivity to mobile devices. Going forward, the future profitability of the sector will depend heavily on the fortunes of the advertising market, which, in turn, will depend on the performance of the broader economy. This chapter includes an interview with Yousef Shamoun, CEO and Co-Founder of Akhtaboot.
Explore chapterTax
Buy digital copy of this chapter - £18An overview of the new Turkish Commercial Code, as well as important considerations on the tax environment and its ramifications for foreign firms. The accountancy chapter is written by OBG’s partner in Turkey, Deloitte, and contains an interview with Anthony Wilson, the partner in charge for Deloitte Turkey.
Explore chapterRetail
Buy digital copy of this chapter - £18South Africa’s retail sector is marked by a mixed system featuring elements of both traditional and modern retailing. In recent years rising retail spending has been driven by a growing middle class and increased access to finance. According to data from Statistics South Africa, retail was the fastest-growing segment of GDP in the third quarter of 2011, and added 48,000 jobs in the fourth quarter of the year. The most important development in the sector in 2011 was the announcement of the Walmart-Massmart merger in February 2012. South Africa has long positioned itself as an ideal operating base for firms interested in regional expansion and South African retailers are making a mark in other countries, placing them at the vanguard of pan-African retailing. This chapter contains an interview with Ian Moir, CEO, Woolworths.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18Bahrain has the lowest corporate and personal taxes of all the GCC states. There is no personal income tax; no tax on capital gains; no withholding tax; no restriction on repatriation of capital, profits or dividends and very few indirect taxes. This chapter outlines rules and regulations for corporate and labour taxation, and provides an analysis of the significant changes proposed for the accounting and disclosure of revenue from contracts in Bahrain.
Explore chapterHealth
Buy digital copy of this chapter - £18The health situation in the Philippines is similar to that of a number of emerging economies, with communicable diseases having fallen in past decades but “lifestyle” factors like obesity and smoking causing an upsurge in cardiovascular disease and cancer. Spending on health is lower than in some neighbouring countries, but the government’s Philhealth programme is seeking to expand coverage through basic universal health care provision. Private services are widely used, although this has not been accompanied by a rise in private health care. This chapter has an interview with Enrique T Ona, Secretary, Department of Health.
Explore chapterThe Guide
Explore chapterTourism
Buy digital copy of this chapter - £18Mongolia’s tourism industry has blossomed under a laissez-faire regime that allows private ownership and operation of facilities and tour companies. Leisure tourists, who number approximately 90,000 annually, visit the Central Asian countries for its unspoiled natural beauty and unique cultural attractions. Traditional tourists make up only a small fraction of those who visit Mongolia every year, with the rest being shuttle traders, although they still use facilities such as hotels and restaurants. One challenge is fighting the seasonality of the market, given the extreme winters Mongolia experiences. The government is looking to promote winter experiences such as the Eagle Festival and the Ice Festival. This section has an interview with L. Gansukh, Former Minister of Environment and Tourism.
Explore chapterReligious Affairs
Buy digital copy of this chapter - £18While roughly 89% of the country’s citizens subscribe to Islamic beliefs, according to official government statistics, the country prides itself on its tolerance and diversity. There are six officially recognised religions in Indonesia according to the constitution, which guarantees the rights of citizens to practice their religion freely. The Ministry of Religious Affairs (MoRA) oversees not just issues relating to the majority religion of Islam, but of all officially recognised religions. For example, MoRA oversees religious schools, over 97.7% of which are madrassas and other Islamic learning facilities. This chapter contains an interview with Suryadharma Ali, Minister of Religious Affairs.
Explore chapterTransport
Saudi Arabia’s transport services have witnessed significant developments in recent times, and this is set to continue with an anticipated $190bn to be invested in the sector through to 2025. The majority of this – around $141bn – will go towards rail and public transport networks. Successive phases of railway development will extend the network across the entire country, with the aim of bringing the Kingdom’s total track length to 9900 km by 2040. In addition to the ongoing expansion of King Khalid International Airport in Riyadh and King Abdulaziz International Airport in Jeddah, a new airport has been completed in Medina and facilities are planned for Taif and Abha. Ongoing port developments – including King Abdullah Port, the first port in the Kingdom to be privately owned and financed – are seeking to capitalise on the Kingdom’s strategic location on the trade routes to many emerging markets. This chapter contains interviews with Abdullah Al Mogbel, Minister of Transport; and Sulaiman bin Abdullah Al Hamdan, President, General Authority of Civil Aviation (GACA)
Explore chapterTourism & Culture
Buy digital copy of this chapter - £22Abu Dhabi’s tourism industry witnessed substantial growth in the years leading up to the Covid-19 pandemic. The economy was insulated by government policies and relief packages during the crisis, with effective measures implemented to control the virus’s spread. Today, Abu Dhabi’s tourism operators are experiencing a resurgence in international visitors, marking a strong recovery for the sector. Tourism and cultural activities remain central to Abu Dhabi’s economic diversification efforts, with various investment initiatives aimed at expanding the emirate’s range of leisure and cultural attractions. These endeavours, coupled with the sector’s capacity for job creation, have been largely successful to date. Continued growth in tourist arrivals is expected as Abu Dhabi’s cosmopolitan image, along with substantial public and private investment, positions the emirate to capitalise on the increasing international recognition of the region’s cultural and leisure offerings. Abu Dhabi’s reputation as a welcoming, safe and diverse destination with robust international connectivity bodes well for future expansion. This chapter contains interviews with Mohamed Khalifa Al Mubarak, Chairman, Department of Culture and Tourism – Abu Dhabi; and Mohamed Abdalla Al Zaabi, Group CEO, Miral.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22Saudi Arabia has embarked on significant legal reforms in line with Vision 2030's focus on creating a vibrant society, a thriving economy and an ambitious nation. These reforms include the introduction of key laws like the Personal Status Law, the Civil Transactions Law, the Penal Code of Discretionary Sanctions and the Law of Evidence. These laws aim to enhance and harmonise the legal ecosystem, as well as reduce ambiguities in the legal framework. The Law of Evidence and the Personal Status Law have already been issued, with the Civil Transactions Law and the Penal Code of Discretionary Sanctions in process as of mid-2023, marking a major milestone in the Kingdom's legal landscape. This chapter contains a viewpoint from Eyad Reda, Managing Partner, Eyad Reda Law Firm.
Explore chapterTax
Buy digital copy of this chapter - £22Nigeria’s tax system has undergone a significant transformation due to the enactment of three annual finance acts, which have amended a total of 19 pieces of legislation, and 167 provisions of tax and fiscal laws – changes that have included a gradual shift from direct to indirect tax and a higher value-added tax rate. While many stakeholders have continued to advocate for a total overhaul of the regulatory framework, annual reviews of existing laws have led to attempts to align legislation with current economic realities, eliminate ambiguities and impediments to investment, and increase tax revenue. Although challenges to strengthening the regulatory framework remain, the ongoing reforms provide considerable scope for increased fiscal robustness. This chapter contains an interview with Yomi Olugbenro, Partner and West Africa Tax Leader, Deloitte Nigeria.
Explore chapterTax
Buy digital copy of this chapter - £22Saudi Arabia’s income tax rules are governed by the Income Tax Law, which came into force in 2004. The Tax Law is supplemented by implementing regulations. Zakat (a payment under Islamic law that is used for charitable or religious purposes) is governed by the implementing regulations for zakat collection. The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, and the Zakat, Tax and Customs Authority regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. Corporate income tax is assessed on the share of profits of the foreign partner in the local company and a non-resident who conducts business in Saudi Arabia through a permanent establishment. This chapter contains a viewpoint from Tareq al Sunaid, Head of Tax, KPMG Saudi Arabia.
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The Guide
The Guide contains listings of accommodation options throughout the capital city for both business and leisure travellers. Helpful information is laid out on visa regulations and business etiquette, as well as on public and private transport options for navigating during your stay.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers and other useful suggestions for travel to Ghana.
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Table of Contents
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Tourism & Culture
Buy digital copy of this chapter - £18The global Covid-19 pandemic has significantly impacted the global tourism industry in 2020; however, with demand likely to be high after months of enforced isolation, the tourism sector is hopeful there will be a recovery in activity once international travel is able to resume. The substantial growth of the tourism segment in recent years demonstrates solid underlying fundamentals. Abu Dhabi has emerged as a destination for those seeking entertainment, culture and relaxation. The emirate has also become a magnet for weekenders from elsewhere in the UAE, with residents of the country’s other six emirates visiting Abu Dhabi’s many attractions. This chapter contains an interview with Mohamed Khalifa Al Mubarak, Chairman, Department of Culture and Tourism – Abu Dhabi.
Explore chapterHealth
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The health care sector in Indonesia is in the midst of change, with the government making a final push to roll out universal health care (UHC) against the backdrop of the global Covid-19 pandemic. The plan had initially aimed to bring the population of over 268m under coverage by end-2019, but it had yet to achieve the targeted levels of funding and coverage as of early 2020. While the health system is currently tackling multiple burdens, it is limited by comparatively low government spending, rising labour costs and insufficient infrastructure. The move towards UHC is driving demand for private health care, opening new opportunities for collaboration. Going forwards, investment in digital health and technology-based platforms – highlighted during the novel Coronavirus outbreak – must continue to ensure that the health care sector’s reach is vast and sufficient. This should also spur greater focus on personal health across the population. This chapter contains interviews with Terawan Agus Putranto, Minister of Health; and Jonathan Sudharta, Founder, Halodoc
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Education & Training
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Education has long been a key sector in Saudi Arabia and a major recipient of government funding. Recently, focus has shifted to boosting the efficiency and quality of services, while also integrating technology in order to achieve the government’s ambitious goals for the sector as part of Saudi Vision 2030, the country’s economic diversification plan. To this end, the authorities are increasingly turning to the private sector for support, creating new opportunities for foreign investors. The year 2019 saw various international players enter Saudi Arabia’s private general education segment, which is still largely underdeveloped. Opportunities for private sector involvement are not limited to traditional education providers, with the rollout of edtech initiatives opening the door for technology companies to develop innovative new systems to modernise teaching and learning in the country. This chapter contains an interview with Ibraheem Almuaqel, Rector, Saudi Electronic University.
Explore chapterHealth
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The development of new facilities is set to continue in the coming years, with a raft of new hospitals and clinics under way across the country in order to meet growing demand for medical services. Another key focus in 2020 will be on the government’s ongoing plans for a national health insurance scheme. The role that this new law envisions for private sector operators will be a determinant of investment and growth potential, particularly as pressure on the public sector continues to rise with the growing incidence of non-communicable diseases and the more recent threat posed by Covid-19. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health and Managing Director, Hamad Medical Corporation.
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Table of Contents
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The Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers and other useful suggestions for travel to Ghana.
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Health
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The implementation of mandatory health insurance in March 2019 is expected to have major effects on care provision in Oman. New regulations now require private sector employers to provide coverage for their expatriate staff, as well as their spouses and children. This comes as the government takes prudent steps to tighten its budget and looks to shift the cost burden of provision, which has been historically reliant on public coffers, to the private sector. Along with increased government efforts to invite private sector participation in hospital and clinic construction through public-private partnerships, the new mandatory health insurance law presents a significant opportunity for providers and insurers to expand their presence in the local market.
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This chapter examines the legal system of Myanmar, focusing on changes arising from the Myanmar Company Law and efforts to open up to foreign investment. Crucially, the banking sector has reduced restrictions on foreign participation and introduced the Mobile Financial Services Regulations in an effort to increase banking penetration. The chapter also outlines the measures introduced to enhance transparency and improve consumer protection, and details the terms of the Anti-Money Laundering Order introduced in November 2019, as well as anti-terrorism and trade liberalisation measures. Key points in this chapter refer to the opening of the insurance sector and the Yangon Stock Exchange to foreign participation. This chapter contains a viewpoint from Cheah Swee Gim, Director, Kelvin Chia Yangon.
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The UAE currently has no system of federal income taxation. Instead, most of the emirates – including Dubai – enacted their own corporate tax decrees in the late 1960s. These emirate-level decrees are of general application and remain in force as amended. These corporate tax decrees are similar in nature and text, and deal in broad terms with the identities of taxable persons, rates, administration, taxable profits and loss relief. The decrees limit the scope of taxation to “bodies corporate” carrying out a trade or business in the respective emirates. This chapter contains a viewpoint from Mark Schofield, Partner, PwC Middle East Tax & Legal Services Leader.
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After years of abundant public spending, GCC economies experienced a direct hit on their fiscal balances caused by the 2014 fall in oil prices. As such, Kuwait is following the regional trend of pursuing economic and fiscal reform programmes. Multiple government-led initiatives seek to support economic diversification, strengthen the private sector’s contribution to the economy and help keep the deficit under control. In this vein, the last few years have seen the authorities take positive steps towards sustainable development and economic growth by reducing bureaucracy and speeding up administrative processes, amending existing regulations and ratifying a number of new laws. This chapter contains an interview with Alok Chugh, Partner, Government and Public Sector Leader MENA, EY.
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Although the country is moving closer to achieving its ambitious goal of universal health insurance coverage for all Mexican citizens, some obstacles still remain. The public health sector will require greater investment to meet key objectives set out in the National Health Plan 2019-24, while the question of how to address the rural-urban divide remains. Neither of these problems will likely be helped through increased budget cuts at the national level. The pharmaceutical and medical devices industries remain potential bright spots as multinational companies move their practices to Mexico to avoid import duties. Meanwhile, efforts to boost the private insurance penetration rate presents an investment opportunity that could help strengthen the industry. This chapter contains an interview with Rodrigo Puga, Country Manager, Pfizer.
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This chapter contains selected listings of some of the Papua New Guinea’s top hotels; contact details for embassies, ministries and organisations; helpful tips for business and leisure travellers; and other useful suggestions for travellers to the country.
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Education & Research
Educational attainment in the Philippines was falling at the beginning of the 21st century, marked by declining enrolment and literacy rates, as well as persistent underfunding. In response, successive governments have worked to overhaul the education system and increase expenditure, taking measures to keep more children in school, raise the quality of tertiary education, enhance the education system’s global competitiveness, and improve employability through linkages between academic institutions and industry. All this is proving crucial to keep pace in a world adapting to the Fourth Industrial Revolution, where technological competitiveness and the hunt for qualified human capital is placing education at the centre of many countries’ reform plans. This chapter also contains an interview with Fortunato de la Peña, Secretary, Department of Science and Technology.
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This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
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Oman boasts a universal health care system, which offers free primary health care to Omanis and subsidised care to foreign residents. Over the past four decades greater access to medical facilities and doctors has greatly improved the lifespan of Omani citizens, who have seen their life expectancies increase from 49.3 years in 1970 to roughly 76 years in 2016. However, the cost of the public health care sector in Oman is increasing steadily, and future public investment will need to continue rising in order to meet this demand. This could prove challenging in the years to come, and may see the private sector take on an increasingly prominent role in supplying medical treatment and care.
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Health & Education
Buy digital copy of this chapter - £18Indonesia has entered the final stages of its universal health care system rollout, which is set to stimulate continued growth across the private sector. The public scheme will provide an alternative to the country’s private system, addressing the lack of access for Indonesians who cannot afford private coverage but do not qualify for state-funded care. Universal health care will encompass preventive treatment, emergency visits, prescriptions and other services, and the government hopes that increased access will improve the country’s public health indicators, including maternal and child mortality rates. Indonesia’s government allocates one-fifth of its budget to the education sector, with the goal of boosting its international rankings and pupils’ progress. However, certain challenges have impeded the full potential of this policy from being realised. For example, decentralisation of education policy undermines standardisation of curricula at all levels and creates regional disparities in teaching quality and student attainment. This chapter also contains interviews with Caroline Riady, CEO, Siloam Hospitals, and Muhammad Anis, Rector, University of Indonesia.
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Buy digital copy of this chapter - £18As Saudi Arabia seeks to modernise and diversify its economy by moving away from a reliance on hydrocarbons and identifying opportunities created by rapid technological change, the education sector is increasingly being called upon to reinvent itself. The Ministry of Education (MoE) is the key government agency with overall responsibility for the sector. Over the years, separate departments for higher education and education for women have been merged into the MoE. There is also a range of separate bodies responsible for training, including the Technical and Vocational Training Corporation (TVTC). A programme called Colleges of Excellence operates under the TVTC and is set to deliver a range of technical and vocational partnerships with international institutions.
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Buy digital copy of this chapter - £18Qatar’s health care sector has emerged as the highest-ranked system in the MENA region, according to the Legatum Prosperity Index 2018. The past 10 years have seen particularly quick improvement with Qatar rising from 27th place in 2008 to fifth in 2018 out of 148 countries in terms of its health care. This has been attributed to increased investment in new facilities, services and technologies to meet the demands of the growing population. To further its progress, Qatar has launched the second phase of its ambitious National Health Strategy. The plan will focus on preventive health care in hopes of addressing the rising prevalence of non-communicable diseases. Meanwhile, ongoing efforts to develop the private care sector have seen Qatar loosen regulations of foreign investment. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health.
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Environment
Buy digital copy of this chapter - £18Climate change and global warming, coupled with population growth and increasing urbanisation, are just some of the environmental factors depleting the natural resources of countries across the world and affecting the earth’s natural balance. In Abu Dhabi, where average temperatures run from 22.9°C to 35°C, reaching as high as 50°C in summer months, and where average rainfall is just 81.4 mm per year, environmental protection and sustainability are particularly vital to future growth, and have become key pillars in the authorities’ development agenda. Population growth is expected to put additional strain on food and water supplies in the future as well as increase demand for jobs and housing. This chapter contains an interview with Razan Khalifa Al Mubarak, Secretary-General, Environment Agency - Abu Dhabi.
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Buy digital copy of this chapter - £18Written in partnership with Sayarh & Menjra Law Firm, this chapter introduces the reader to the different aspects of the legal system in Morocco. It also contains a viewpoint with Mehdi Megzari and Omar Sayarh, Partner and Managing Partner, Sayarh & Menjra Law Firm.
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Health
Buy digital copy of this chapter - £18In recent decades there has been a major improvement in the quality of health care in Oman. Rising living standards have greatly reduced the impact of contagious diseases, though the high rates of non-communicable diseases – common among many GCC countries – continue to climb. Despite feeling the impact of the fiscal austerity caused by low oil prices, the country’s health sector is poised to resume growth, aided by the expected introduction of mandatory health insurance for expatriates.
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Legal Framework
Buy digital copy of this chapter - £18This chapter introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Stillwaters Law Firm. This chapter also contains an interview with Afam Nwokedi, Principal Counsel and Group Head, Stillwaters Law Firm.
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The guide contains listings of some of the leading hotels and resorts in Kuwait and contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors alike.
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The Guide
This chapter contains selected listings of some of the country’s top hotels, details for embassies, ministries and organisations, and helpful tips for business and leisure travellers.
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Buy digital copy of this chapter - £18With the introduction of the Universal Health Plan, Argentina has gone some way to addressing the low-hanging fruit with regard to improving Argentina’s health care system. Inefficiencies and bureaucratic blocks in the sector can be improved by the introduction of new technologies, appointment scheduling systems and the harmonization of data across the fragmented model. The unification of health care provision looks set to continue, but the biggest challenge will be to provide quality treatment to provinces in the country’s more remote areas. Argentina boasts one of the best education systems in Latin America, in terms of both attainment and funding of institutions. More than 98% of citizens over the age of 15 are literate, and public and private universities frequently perform well – along with Chilean and Brazilian institutions – in global rankings systems. The opening of the economy puts new onus on schools and universities to provide their students with the skills necessary to compete in the global market place. The results of the first batch of students to graduate from the Schools of the Future programme will be eagerly anticipated by progressive innovators and could set the tone for deeper reform in the coming years. This chapter includes interviews with Florencia Davel, CEO, Bristol-Myers Squibb Argentina; Alberto Álvarez Saavedra, President, Laboratorios Gador; and Alberto Edgardo Barbieri, Dean, University of Buenos Aires.
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Agriculture
Buy digital copy of this chapter - £18Mexico has posted strong agricultural export growth since 2013, turning around a deficit in the country’s trade balance of agriculture products that reached nearly $4bn in 2012. Growth in recent years has been driven by high-value berry and avocado exports, as well as the expansion of large-scale agro-industrial complexes in the central part of the country. Experts note that many advantageous conditions have been external, meaning that little to no control can be exercised over them in upcoming years. Such factors included the good exchange rate against the US dollar, and bumper crops of berries and avocados due to favourable weather. Other circumstantial advantages in recent years have even included a drought in the California growing region of the US, which directly competes with Mexico. The extent to which the Mexican agriculture industry can react with force and flexibility if one or more of these positive factors if removed in the future will demonstrate the sector’s true growth and resilience. This chapter contains an interview with Adrián Iturbide Mejía, Former President, Mexican Association of Avocado Producers and Exporters.
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Buy digital copy of this chapter - £18The Philippines has started to make headway in edu¬cation thanks to policies that aim to expand access and improve quality. The need for human capital development has been the main impetus behind such educational reforms, as detailed in the cur¬rent administration’s Philippine Development Plan 2017-22. Despite notable gains, work remains, especially in terms of academic performance, the number of educational facilities and participation rates. To address these issues, the government has significantly increased education expenditure over the years, initiated structural changes in basic and higher education, and intensified partnerships with the private sector and industry. This chapter contains an interview with Fortunato T de la Peña, Secretary, Department of Science and Technology.
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The Guide
This chapter offers a selection of hotels for business and leisure, facts for travelers, and contacts for state agencies, foreign embassies and other important listings.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Bahrain, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular visitors.
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Buy digital copy of this chapter - £18In conjunction with Bilé-Aka, Brizoua-Bi & Associés, this chapter contains an overview of the legal framework under which local and foreign investors operate in Côte d’Ivoire, covering an overview of the regulations governing different sectors, the rules for investment and expatriate employment, and recently introduced legislation on trade and financial services.
This chapter contains a viewpoint from Joachim Bilé-Aka and Michel K Brizoua-Bi, Founders, Bilé-Aka, Brizoua-Bi & Associés.
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Buy digital copy of this chapter - £18In the four decades after Sultan Qaboos bin Said Al Said assumed leadership in 1970, Oman made such strides in health care provision that the UN, in its “Human Development Report 2010”, declared it the most improved nation out of 135 countries. The sultanate is looking to breathe fresh momentum into the coming decades under its current long-term development plan, Health Vision 2050. Published in May 2014, just one month before the price of oil began to fall, the document laid out a roadmap for modernisation on an unprecedented scale, from building new specialised hospitals to digitising patient information systems. Perhaps most striking was its call for a major increase in the role of the private sector, which at the time made up a 10th of all health care provision.
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Buy digital copy of this chapter - £18In conjunction with Naciri & Associés Allen & Overy, this chapter contains an overview of the legal framework in which local and foreign investors operate in Morocco, with an overview of the regulations governing different sectors, the rules for investment and expatriate employment, and recently introduced legislation on trade and financial services.
This chapter contains a viewpoint from Hicham Naciri, Managing Partner, Naciri & Associés with Allen & Overy.
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Buy digital copy of this chapter - £18A key driver of non-oil GDP growth, Dubai’s industrial sector continues to play an integral role in both its own diversification plans and those of the UAE. With a new sector strategy providing guidance for the government’s long-term goal of making the emirate a centre for global innovation, Dubai has plenty of opportunities to further develop its industrial sector. Its network of free zones, both established and nascent, together with a new focus on key sectors with high potential for growth, should contribute to substantial expansion of Dubai’s manufacturing and industrial footprint in the coming years, facilitating increased trade across the region.
This chapter contains an interview with Mohammed Al Zarooni, Director-General, Dubai Airport Freezone Authority.
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The guide contains information on some of the leading hotels in Ghana, and contact details for government ministries, embassies and business services, alongside useful tips for first-time or regular visitors.
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Buy digital copy of this chapter - £18After a period of stabilisation in which the government implemented a number of reforms, the real estate and construction sectors are preparing for the introduction of a range of projects under the Saudi Vision 2030 initiative. Lower oil prices and the resulting fiscal consolidation of the state cooled demand in 2016 and early 2017; however, public and private investment is set to pick up again and the implementation of the NTP and Vision 2030 will have a huge impact on the construction industry if its planned mega-projects are rolled out according to schedule. Increased demand should stem from a growing range of segments, including affordable housing, transport, tourism and commercial space for international tech developers.
This chapter contains interviews with Majed Al Hogail, Minister of Housing; and Khalid S Aljasser, CEO, Arabian Centres.
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Buy digital copy of this chapter - £18Since taking its first steps towards establishing a primary health care system and standardised health care services in 1954, Qatar has invested heavily in cultivating a highly developed standard of care for the 2.4m nationals and expatriates who call the country home. Like every country in the region, the state faces economic challenges connected to the drop in international oil and gas prices; however, the Qatari government remains committed to health care development as a fundamental objective of Qatar National Vision 2030. To meet the country’s rising demand for health care in a period of constrained government spending, the private sector is increasingly being engaged to share the financial burden and offset government expenditure. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Sustained by a diverse landscape, Indonesia’s agriculture sector has long been an important source of income for local households and has contributed much-needed export revenue. The sector has historically served as a pillar of the Indonesian economy, but has yet to achieve its full potential, though significant progress has been made in recent years under the business-orientated administration of President Joko Widodo. Partly as a result of adopting business-friendly initiatives, the sector has been able to attract necessary investment, which in turn is helping to bridge structural gaps. In order to address challenges to the sector the administration of President Widodo has increased the use of mechanised agricultural technology, invested in infrastructure and expanded the total area of farming land.
This chapter contains an interview with Amran Sulaiman, Minister of Agriculture.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte Nigeria, this chapter explores the taxation system, examining Nigeria’s investor-friendly environment.
It also contains a viewpoint with Yomi Olugbenro, Partner and Head of Tax, Deloitte Nigeria.
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This chapter contains a list of recommended hotels located around the country, contact information for government bodies and foreign embassies and the listings of various businesses and organisations. It also offers travel tips and cultural facts for visitors.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework under which local and foreign investors operate, including a look at the value-added tax being rolled out in Kuwait and across the GCC, a rundown of the remittance, excise and corporate taxes in place and an outline of the tax incentives and credits under the new investment law.
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Buy digital copy of this chapter - £18This chapter examines Thailand’s legal system, focusing on incentives available to encourage export activities, analysis of company law and details of permits required for foreign companies. It also contains a viewpoint from David Lyman, Chairman and Chief Values Officer, Tilleke & Gibbins.
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Health
Buy digital copy of this chapter - £18The Ministry of Health and Social Protection is responsible for overseeing the Colombian health care system, dictating policy and promoting health care in the country. MinSalud has become one of the most progressive ministries in the government, and its policies on topics such as price control and biosimilars are pioneering for the region. The Statutory Health Law promises an expansion of services that opens up high-level treatment to 48m Colombians, and therefore opportunities to health care and pharmaceutical companies. This chapter contains an interview with Emilio Sardi Aparicio, Executive Vice-President, Tecnoquímicas.
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Buy digital copy of this chapter - £18This chapter provides an overview of Peru’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, international tax transparency, double taxation treaties, foreign source income and other investor considerations.
This chapter contains an interview with Paulo Pantigoso, Country Managing Partner, EY Peru.
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Tourism & Culture
Buy digital copy of this chapter - £18These are dynamic times for the emirate’s tourism and culture sectors, as Abu Dhabi’s traditional portfolio of business travel and luxury vacations widens to include a whole new range of offerings. Sports, arts and entertainment are all now arriving centre stage for the emirate, as Abu Dhabi also makes its mark on the international cruise industry, while boosting its hotel collection and global interconnectivity. Tourism and culture have been privileged with key positions in the emirate’s long-term development plans, being seen as ways to boost diversification in the economy and establish new jobs and investment opportunities. These developments are rolling out at a time of increased regional and international economic and political uncertainty. Local authorities are striving to carve out a readily identifiable niche in an increasingly crowded regional market. However, with a firm strategy already in place, the signs are that Abu Dhabi is making a strong impression in both the global travel industry and the international creative and cultural sector.
This chapter contains interviews with Noura Al Kaabi, Chairwoman, Abu Dhabi National Exhibitions Company; and Saif Saeed Ghobash, Director-General, Abu Dhabi Tourism & Culture Authority.
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This chapter contains details on leading hotels in Sri Lanka, information for business or leisure visitors, phone numbers for government offices and embassies, and helpful tips for new arrivals to the island.
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Buy digital copy of this chapter - £18The Philippines has embarked on education reforms that it considers crucial to its economic development, bringing its school system into line with international standards and seeking to open up its higher education sector to more people, while supporting research and development activities that will raise its academic profile and bring lasting benefits to the country. The government had to overcome substantial opposition to introduce a K-12 structure, a sign of its determination to bring lasting change, but sustained funding to support the increased demand on resources will be crucial if these bold reforms are to be a success.
This chapter contains an interview with Jikyeong Kang, President and Dean, Asian Institute of Management.
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Education
Buy digital copy of this chapter - £18The reform of public education in Mexico has been one of the thorniest political issues that President Peña Nieto has faced. However, as teacher assessment and training schemes gradually become standardised, the constitutional commitment to prioritising learning in schools is advancing a step closer to achieving its goals. Private sector and international support at the tertiary level and in vocational skills training will also be crucial to the development of one of Mexico’s key competitive advantages, its pool of skilled labour, and may help pave the way for greater productivity in the industrial sector. However, in 2017 the government will have to learn to do more with less, as education has not escaped the wide-scale cuts brought about by the country’s economic challenges.
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This section includes information on hotels, government ministries and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Cote d’Ivoire, in partnership with Bilé-Aka, Brizoua-Bi & Associés. OBG talks to Michel K Brizoua-Bi and Joachim Bilé-Aka, Founders, Bilé-Aka, Brizoua-Bi & Associés, on the country’s legislative evolution.
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The guide contains listings of some of the leading hotels and resorts in Bahrain and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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The Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTransport
Buy digital copy of this chapter - £18Since 2008 the Saudi authorities have invested heavily in transport infrastructure projects as part of efforts to expand and diversify the economy as well as reduce automotive transport for both passengers and cargo. Ports have been built, airports expanded and upgraded, and railway and metro projects initiated – and in some cases already completed. Tens of billions of dollars have already been spent, and many more billions have been earmarked over the next few years. In public transport alone, $141bn will to be spent on infrastructure and operations in the next decade, including the $22.5bn Riyadh Metro project, set for completion in 2019. Despite a scale-back of government expenditure in 2016 due to lower global oil prices, spending on transport infrastructure will likely continue to be prioritised as well-developed networks are seen as key to economic and social growth. The National Transformation Plan announced in June 2016 includes a number of strategic goals and benchmarks for transport in Saudi Arabia.
This chapter contains interviews with Suleiman Al Hamdan, Minister of Transport; Nabeel Al Amudi, President, Saudi Ports Authority; and Faysal Elhajjami, Country General Manager, DHL.
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Buy digital copy of this chapter - £18Health care services in Morocco have evolved in line with the country’s epidemiological transition, facilitated by heightened surveillance of health-related conditions and the maturing role carried out by the private sector. Developments have tracked objectives outlined in the country’s long-term strategy, Vision 2020. In its 2012-16 phase, reforms have aimed primarily at consolidating past gains but also addressing new needs, with a particular focus on restructuring emergency services, promoting family medicine, developing rural health care, extending national coverage schemes and developing human resources. Broader health coverage and the gradual expansion of medical services bode well for the future of the sector. The challenge that lies ahead is to ensure even distribution of facilities and medical staff as demand for health services rises.
This chapter contains an interview with Ahmed El Bahri, Managing Director, Cheikh Khalifa Ibn Zaid Foundation.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Over the past 15 years, Dubai has come into its own as one of the Middle East’s key centres for print, broadcast and digital media. The emirate’s media-focused free zone, Dubai Media City, has attracted a range of global media brands, including news organisations like Reuters, The Economist and CNN; publishing firms, such as McGraw Hill and Forbes; media production companies, including Sony and Showtime; and advertising majors like DDB and Dentsu Aegis. These companies – and many others like them – serve global audiences from the UAE. Dubai, as a consequence, is increasingly considered to be a growing player on the global media landscape. The government has worked to shore up the emirate’s reputation as a media hub in recent years, rolling out new initiatives in an effort to ensure that Dubai remains competitive with other regional media centres, including Egypt, Lebanon and Qatar.
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The guide contains listings of some of the leading hotels and resorts in Kuwait and contacts for important government offices and services. It also contains useful tips and information for first-time or regular visitors.
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Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke.
OBG talks to Ovie Ukiri, Managing Partner, Ajumogobia and Okeke, on the development of privatisation in the power sector.
Explore chapterAgriculture
Buy digital copy of this chapter - £18In spite of a raft of strategic development plans laying out a path towards a more diversified, modern economy with greater contributions from high-value-added industries, agriculture remains a fundamental sector for the country in both financial and social terms. Indonesia’s expansive territory and favourable soil and climate have given rise to a host of homegrown agro-industrial giants as well as drawing the attention of some of the world’s largest international food processors. Valued at Rp1560trn ($113.9bn), the agriculture sector comprised 13.5% of Indonesia’s GDP in 2015, according to data from the Bank of Indonesia. Led by the palm oil segment, plantation crops accounted for the greatest percentage of this figure in 2015, being valued at Rp411.9trn ($30.1bn), and followed closely by food crops at Rp393.4trn ($28.7bn).
This chapter contains an interview with Arif Rachmat, CEO, Triputra Agro Persada.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines Papua New Guinea’s legal framework, focusing on regulations affecting foreign investors, restrictions and laws for companies, taxation and Customs duties, and other important areas.
It also contains a legal viewpoint from John Leahy, Partner, Leahy Lewin Lowing Sullivan, on proposed reforms to PNG’s land use regulations.
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Tourism
Buy digital copy of this chapter - £18Malaysia has long traded on its alluring mix of nature, tropical beaches, vibrant culture and modern cities to bring in tourists from the region and further afield – the collage of attractions summed up in its long-running “Malaysia, Truly Asia” advertising campaign. But as its neighbours refine their offerings, the country is facing increased competition for foreign visitors and their spending, even as it sets itself ambitious targets for the future. The government has identified tourism as a key growth area under its plan to transform Malaysia into a high-income nation by 2020. To do so, the sector is turning to new markets – China, India and the Middle East – and diversifying its products. This chapter contains an interview with Tunku Ahmad Burhanuddin, Group Managing Director and CEO, Themed Attractions Resorts & Hotels.
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This chapter contains useful facts for visitors, phone numbers for business associations and embassies, contact information for state agencies, and advice on travelling through tea country.
Explore chapterHealth
Buy digital copy of this chapter - £18The health authority in Abu Dhabi continues to implement sector reforms, with a new seven-point health strategy that is aimed at addressing the most critical issues faced by patients and medical professionals in the emirate. An increasing emphasis on preventative care, emergency preparedness and further expansion of specialty care are expected to bolster health indicators moving forward. Indeed, since 2013 specialty gaps have reduced markedly, with the number of emergency physicians growing by 20%, a 41% rise in neonatologists and 21% more paediatric and orthopaedic doctors. Numbers of critical care doctors have jumped by 14%. Meanwhile, the Health Authority - Abu Dhabi is currently working to increase the number of Emirati health care workers, while ongoing partnerships with the private sector are bolstering professional training for existing staff. This chapter contains an interview with Dr Maha Barakat, Director-General, Health Authority - Abu Dhabi (HAAD).
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Legal Framework
Buy digital copy of this chapter - £18This chapter examines the Thai legal code, focusing primarily on plans to attract investment, special economic zones, types of businesses that can be set up, and other key topics. It also contains a viewpoint from Yuthana Promsin, Partner and Co-founder of Jus Laws & Consult.
Explore chapterEducation
Buy digital copy of this chapter - £18Having been the only country in South-east Asia providing just 10 years of basic education to its population, the Philippines is working to join its neighbors and implement a K-12 system in 2016. Though the administration of President Benigno Aquino III is providing the Department of Education with more funding to aid the realization of this task, the challenge of doing so over a short transition period is unquestionable. The growing role of the private sector in providing educational services is crucial, with greater opportunities on the horizon and the government taking slow but steady steps to define them. Continuing reform is set to further integrate and incentivise private sector participation, as is happening in sectors like infrastructure and health care. Elsewhere, the challenges of access and quality remain, which the government continues to address through a host of pragmatic initiatives. This chapter contains an interview with Irene Isaac, Director-General, Technical Education and Skills Development Authority.
Explore chapterHealth
Buy digital copy of this chapter - £18As it undertakes its most fundamental reform in over 20 years, Colombia’s health sector is in a period of transition. Demographic change, new challenges in disease management and a lack of financing have led to an overhaul of the system that has shown significant advancements since it was established in 1993. Today Colombia has nearly universal coverage and vastly improved health care indicators, and a new law is set to expand the services available to all citizens. While the government considers the options available to secure the necessary funding, the Ministry of Health and Social Protection is determined to tighten costs of drugs and products. While the full implications of the new law will not become known before 2017, it is clear that the heath care sector is set to expand significantly in the coming years as more patients gain access to cutting-edge treatments.
This chapter includes an interview with Alejandro Gaviria, Minister of Health and Social Protection.
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The Guide
In addition to an article on Peru’s ecotourism potential, this chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation.
Explore chapterHealth
Buy digital copy of this chapter - £18Oman’s health care sector has undergone rapid development since 1970, with average life expectancy boosted to 76.6 years and the number of hospitals growing to 67 in 2014. The private sector has also witnessed expansion, with the authorities particularly encouraging its participation in the provision of care for lifestyle-related diseases. Health Vision 2050 is the sultanate’s long-term sector strategy and aims to support an “efficient and responsive” health system for a healthy and productive population. The government is also looking to reduce the need for citizens to travel abroad for specialty care, with greater investments taking place in specialty care hospitals, representing a cost-effective and efficient use of public spending. This chapter contains an interview with Dr Ahmed Bin Mohammed Bin Obaid Al Saidi, Minister of Health.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte, OBG explores the taxation system, examining Egypt’s investor-friendly environment.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Kenya and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in South Africa, in partnership with Cliffe Dekker Hofmeyr. OBG talks to Brent Williams, CEO, Cliffe Dekker Hofmeyr, on South Africa’s evolving legal and business environment.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18AB & David, OBG’s legal partner, provides a guide to Ghana’s legal framework and relevant statutes for investors.
This section also includes a viewpoint from David Ofosu-Dorte, CEO, AB & David.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s legal framework, covering a range of topics from the recent financial and energy reforms to pension funds. In addition, it features a viewpoint by Juan José Lopez de Silanes, Partner, Basham, Ringe y Correa on the energy reform.
Explore chapterThe Guide
The Guide contains listings of some of the leading hotels and resorts in Kuwait, contacts for important government offices and services, and useful information for first-time visitors.
Explore chapterEnvironment
Buy digital copy of this chapter - £18With Saudi Arabia’s 10th Development Plan the Kingdom has committed itself to responsible stewardship of the environment. The plan emphasises the importance of creating incentives and regulations that will underpin environmentally sustainable growth moving forward. Initiatives currently under way include moves towards more fuel-efficient cogeneration plants, carbon capture and storage, and investment in various renewable energy sources. In urban areas, major population growth has prompted several sustainable rehabilitation projects, with the most high-profile scheme set to transform one of Riyadh’s main water courses from a sewer into a clean, green ribbon of riverside parkland. Meanwhile in Damman, on Saudi Arabia’s east coast, urban wastewater is being treated and used for irrigation purposes, in the hope that the initiative’s success will encourage similar undertakings across Saudi Arabia by both state authorities and the private sector.
Explore chapterHealth
Buy digital copy of this chapter - £18Although total expenditure on health per capita has stayed fairly constant in Morocco, advances have been made to improve the provision and delivery of health care. A 2011 constitutional amendment enshrined access to health care as a basic right, with increasing amounts of public financing going towards expanding health services, although work remains to extend coverage to uninsured segments of the population. The country has also made significant headway in reducing both maternal and child mortality rates. Alongside an epidemiological shift away from infectious diseases, increased longevity and changes in lifestyle mean that around 75% of deaths in Morocco today are related to chronic diseases, presenting both challenges and opportunities for the sector in the coming decades.
This chapter contains an interview with Hubert de Ruty, President, Maroc Innovation et Santé.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legislation in Papua New Guinea that affects enterprises and investors. It focuses on the laws that encourage investment, on the creation of a new environment protection authority and on the rules governing the registration of business names.
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Legal Framework
Buy digital copy of this chapter - £18Featuring an interview with Eduardo Morgan Jr, Principal Partner and Chairman of the Board at Morgan & Morgan, this chapter provides an overview of Panama’s legal framework, covering a range of topics from intellectual property rights to labour laws and investment incentives, among others.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Pervading nearly every level of the country’s social, geographic and economic strata, Indonesia’s agrarian roots run deep. The sector provides a livelihood for the majority of households ranging from small family subsistence plots to multinational agribusiness giants, all of whom contribute to supplying sustenance to the world’s fourth-largest population as well as growing cash crops to be shipped out to the far corners of the globe to bring in foreign currency. Perhaps the country’s best-known cash crop export, palm oil has risen to prominence over the past few decades to take on a major role in not only Indonesia, but the world’s, edible oils trade. Public and private efforts to nudge Indonesia closer to food self-sufficiency should continue to pay dividends in staples, particularly rice, which is likely to see continued rises in production with increased hectarage and more efficient farming practices.
This chapter contains an interview with Susi Pudjiastuti, Minister of Maritime Affairs and Fisheries.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legal environment in Turkey, focusing on how changes in regulations are enabling investment across the country’s many business sectors. It also contains a viewpoint from Harun Kılıç, Partner at Kılıç and Partners.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter outlines the Mongolian legal environment, focusing on changes that include a new Investment Law, Petroleum Law and an amendment to the Minerals Law that is expected to boost FDI. It also contains a viewpoint from David Beckstead, Foreign Legal Consultant at Lehman, Lee & Xu.
Explore chapterHealth
Buy digital copy of this chapter - £18With almost half of all Nigerians living below the poverty line and facing the dual burden of a high incidence of both infectious and non-communicable diseases (NCDs), Nigeria’s under-funded public health system is under significant pressure. Accordingly, international aid organisations and the private sector have a major role to play in alleviating the burden on the state, and there is a strong need for stakeholders to work together to ensure that reliable and affordable health care reaches all segments of society. While significant progress has been made in the reduction of life-threatening infectious diseases and performance on key health indices is improving, there is still a long way to go to meet the UN’s Millennium Development Goals (MDG), an objective that is incorporated into Vision 20:2020, the country’s long-term economic development strategy. There are also hurdles to overcome in ensuring that every Nigerian, irrespective of geography and income, has access to basic health services. The Ministry of Health has proposed ambitious initiatives that could dramatically improve the provision of health care at all levels; execution and delivery will be dependent on key legislative bills being passed, the requisite funding being mobilised and the direction of the new administration.
This chapter contains an interview with Colin Cummings, Chairman and CEO, Swiss Pharma Nigeria.
Explore chapterHealth
Buy digital copy of this chapter - £18Qatar’s rapid population growth over the past 10 years and the rising incidence of lifestyle-related diseases means the state represents the fastest-growing health care market in the GCC. The sector is forecast to be worth some $9bn by 2018, about double the $4.6bn seen in 2013, with the inpatient market pegged to hit $2.5bn and the outpatient market expected to reach $6.6bn by that time. Allocations to the health care sector increased by 12% year-on-year in the 2014/15 budget, to $4.3bn, as Qatar prepares to double the number of health facilities in the country by 2022. Meanwhile, with non-life insurance penetration at 0.6% in 2012, against a global average of 2.8%, Qatar’s health insurance market shows significant room for growth.
This chapter contains an interview with Hanan Mohamed Al Kuwari, Managing Director, Hamad Medical Corporation.
Explore chapterThe Guide
This chapter contains hotel listings, phone numbers for state government ministries, foreign missions, consultancy and accountancy services, and other important contacts, as well as useful facts for visitors.
It also contains a features piece on efforts to preserve the local batik-making tradition, a woven art that traces back centuries, which is currently integrating skilled artisans into Sarawak’s evolving economy.
Agriculture
Saudi Arabia is one of the largest producers and exporters of agricultural goods in the region and is self-sufficient in a number of areas, including milk, eggs and dates. The sector has seen a notable shift towards higher-value and less-water-intensive crops, and a gradual phasing out of domestic wheat production in favour of imports. Efforts are also being made to boost aquaculture and fisheries, as well as acquire land abroad to help ensure food security. This chapter contains an interview with Fahd Balghunaim, Minister of Agriculture.
Explore chapterMining
Buy digital copy of this chapter - £18The Philippines boasts some of the world’s vastest precious metals reserves, valued at around $840bn at 2010 prices. In 2013 the Philippines was tied with Indonesia as the largest nickel producer in the world, producing some 440,000 tonnes each. The country’s vast and largely untapped mining potential will continue to draw strong interest from foreign and domestic actors despite decreasing investment in the short term. Although overall output and revenue are being sustained by existing operations, new investment continues to lag, as mining companies wait out the finalisation of new mining regulations. The question is when the regulatory framework will catch up with demand.
This chapter contains an interview with Geraldo H Brimo, President and CEO, Nickel Asia Corporation.
Explore chapterEnvironment
Buy digital copy of this chapter - £18The UAE as a whole, of which Abu Dhabi is the largest emirate, ranked 25th in Yale University’s 2014 Environmental Performance Index, with the UAE scoring higher than any other Middle Eastern nation. Sustainability is a key focus moving forward and is included in the Abu Dhabi Economic Vision 2030. Since 2008, all new buildings in Abu Dhabi must comply with Estidama, the emirate’s sustainable building framework, while in January 2014 Abu Dhabi launched a Water Resources Management Strategy to increase the efficiency of water use among the population. Meanwhile, in an effort to reduce its dependence on hydrocarbons, the emirate is exploring alternatives such as nuclear and renewable energy, with these expected to generate 25% and 7%, respectively, of its energy needs by 2020.
This chapter contains an interview with Razan Khalifa Al Mubarak, Secretary-General, Environment Agency - Abu Dhabi.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterMedia
Buy digital copy of this chapter - £18Dubai plays host to more than 2000 major media companies, including 120 TV channels and broadcasters, and 180 production houses. While the effects of the global financial crisis have resulted in some residual caution among market players, there is plenty of upside for Dubai’s media and advertising outfits to tap into. In first-quarter 2014 newspapers had the highest advertising expenditure, pulling in $227m, or 57% of the total amount spent in those three months. Major potential for Arabic language content and a thriving pay TV sector, which in 2013 had an 85% penetration rate in the UAE, are expanding the sector’s offering.
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Education & Training
Buy digital copy of this chapter - £18Oman has witnessed a dramatic improvement in enrolment and the duration spent in full-time education thanks in large part to reforms introduced in 1995 and 1998, which required 10 years of basic education and extended the number of school days from 160 to 180. In 1996 the government launched a programme to promote the development of private higher education institutions in the country, providing subsidies in the form of low-interest loans, land, and tax breaks. By 2012 there were 19 private colleges of higher education and seven private universities in the country. Meanwhile, a national research council was established in 2005 as part of the sultanate’s aim to move towards a knowledge-based economy with the target for research and development spending set at 2% of GDP by 2020. Moving forward, higher learning institutes and industry leaders are cooperating more closely to match training and technical skills with future industry needs. This chapter contains interviews with Rawiyah bint Saud Al Busaidiyah, Minister of Higher Education; and Sayyid Shihab bin Tariq Al Said, Chairman, The Research Council.
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This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency, communications, dress codes and business hours, among others.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with SizweNtsalubaGobodo, OBG explores the taxation system, examining South Africa’s investor-friendly environment. OBG talks to Kemp Munnik, head of taxation services at SizweNtsalubaGobodo, on relevant regulations for investors.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with Dr Colin Ong Legal Services, this chapter outlines the parallel systems of statutory and sharia law which operate in Brunei Darussalam, highlighting how this legal framework affects businesses and investors. It also contains a viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services, and President, Arbitration Association Brunei Darussalam.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Kenya, in partnership with Anjarwalla & Khanna. OBG talks to Karim Anjarwalla, Managing Partner, Anjarwalla & Khanna.
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This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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The Guide.
The Mongolia Guide contains useful information for visitors, including business culture, etiquette, climate, transport and how to obtain a visa. Those interested in doing business in Mongolia can also find a list of suggested hotels, as well as contact information for embassies, hospitals, travel agencies and other important resources. The chapter also features guide pieces on dog-sledding and basketball, two sports that are gaining popularity and drawing visitors across Mongolia.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Featuring a legal framework viewpoint from Yuthana Promsin, Partner and Co-founder of Jus Laws & Consult, this chapter examines Thailand’s status as a regional investment hub while guiding business investors through the legal system, with particular focus on foreign ownership.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18In 2002, a new amendment to the constitution required that central and local authorities spend 20% of their budgets on education, a level achieved in only one year, 2009. The Indonesian education system is large, well-funded, fast growing and quickly improving. Despite some difficult years as a result of the 1997-98 Asian financial crisis and some ineffective policies instituted in its aftermath, the government has made a significant commitment to the sector. In 2013 the government increased the number of years of compulsory education from nine to twelve, the former having been a requirement since 1994. If Indonesia can carry out its programmes effectively, the improvements will be reflected in test scores and international rankings. Foreign universities would then be keener to form partnerships that further raise the country’s global standing. While Indonesia has faced significant setbacks in the past, it has made real progress in health care provision and the system is about to dramatically improve. The country is currently implementing a universal healthcare plan and, if all goes according to schedule, by 2019 everyone in the country will receive medically necessary services free of charge. Reimbursement rates need to be set at a level that the government can afford, but one that attracts the full participation of for-profit medical groups. Ultimately, the sector would like to attract inward medical tourism dollars and begin competing with the likes of Thailand, the Philippines and Malaysia. For international medical groups, the country will become a major target for business and investment, with new equipment, technology and capital needed to build the sector. If the government allows for enough international participation on good terms, the Indonesian health sector will be a profitable and growing market for health care operators. This chapter contains interviews with Nafsiah Mboi, Minister of Health; and Hasbullah Thabrany, President, South-east Asian Public Health Education Institutions Network.
Explore chapterSports
Buy digital copy of this chapter - £18Building on the success of the 2006 Asian Games, Qatar has made the development of sports a priority, a move that it has supported with significant investments, which bore fruits in 2010 when the country was awarded the status of host for the FIFA World Cup in 2022. On a wider scale, sport has become a driver of growth in many other areas of Qatar’s economy, as upgrades of infrastructure and construction of stadiums and other facilities get under way. The growth of sport also ties into efforts to improve human resources and quality of life across the country, in accordance with the goals of the National Development Strategy 2011-16 and the broader Qatar National Vision 2030. This chapter contains an interview with Sheikh Saoud bin Abdulrahman Al Thani, Secretary-General, Qatar Olympic Committee.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Efforts to enhance food security and reduce the impact of imported inflation have made the sector a greater priority. Further to this, the government is committed to developing the sector on the grounds that agriculture has played an important role in the emirate’s history, and is considered to be a pillar of its heritage and culture. As in much of the rest of the Gulf, fresh water is in short supply in the emirate, and agricultural planning is therefore shifting in favour of more water-efficient crops, such as replacing grain production with potatoes. This chapter contains an interview with Rashed Mohamed Al Shariqi, Director-General, Abu Dhabi Food Control Authority (ADFCA).
Explore chapterThe Guide
In addition to an article on the expanding domestic film industry in Panama, this chapter contains useful tips for business and leisure travellers, including hotel listings and contact information for ministries, embassies and more.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains a rundown of taxation in Dubai, with explanations of the situation regarding income tax, municipal and property tax, and tax treaties, among other topics. It also contains an analysis of the Dubai International Financial Centre.
This chapter contains a viewpoint from Mahmud Merali, Managing Partner, MERALI’s.
Explore chapterTourism
Buy digital copy of this chapter - £18Though the global financial crisis and delays in hotel construction and infrastructure upgrades have hampered growth, the government and private sector are ramping up promotional activities, hospitality projects and other investments within the industry to meet new demand. Macroeconomic indicators show that the sultanate is on track for continuous, sustainable growth in both its business and leisure segments. With revenues from international visitors exceeding $1bn for the first time – the fourth highest in the MENA region – the sultanate has seen annual tourist numbers grow beyond the 2m mark. Investment in transportation infrastructure and the hotel segment offers long-term growth potential and a variety of opportunities for investors.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18For the past two decades, the Peruvian legal framework has developed along similar lines, promoting foreign investment and competition, as well as social inclusion. This chapter highlights some of the most important recent changes that have occurred in the areas of mining, electricity, tax, employment of foreign nationals, corporate transactions, banking and finance. In addition, it features a viewpoint with Ismael Noya, partner, Estudio Echecopar, a member firm of Baker & McKenzie International, on Peru’s evolving business environment.
Explore chapterMining
Buy digital copy of this chapter - £18In spite of its vast reserves of minerals, the mining sector is currently only a modest contributor to the economy due to a range of factors that have impeded development. All told, approximately 14.5bn tonnes of metallic minerals (including gold, copper, iron, chromite, nickel, cobalt and platinum) and 67.66bn tonnes of non-metallic minerals, such as sand and gravel, limestone, marble, clay, and other quarry materials lie waiting for the turn of the shovel. Between 2011 and 2012 mineral exports recorded a fall due to a decline in market prices and lower production linked to temporary mine closures. Yet, even with the slow pace of progress being made, there remains hope that the government’s recognition of the sector’s importance will help drive it forward. This chapter contains an interview with Eulalio B Austin Jr., President & CEO, Philex Mining Corporation.
Explore chapterEducation
Buy digital copy of this chapter - £18The education sector was allocated $2.69bn in the 2013 federal budget, making it the highest recipient of government spending. A large youth population –estimated at 75m people – points to rapidly expanding demand for education and training of all types for years to come. Boosting private sector activity, particularly at the primary level, continues to be a fundamental objective of the government’s long-term plans for the sector. Other key focus areas include information and communications technology and the TVET segment, both of which will likely benefit from more private sector investment in the coming years. This chapter contains a viewpoint from Enase Okonedo, Dean, Lagos Business Schools, and Chairperson, Association of African Business Schools.
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The Guide
Buy digital copy of this chapter - £18This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterThe Guide
This section includes an article on viniculture as well as information on hotels, contact details for government agencies and other listings, alongside useful tips for visitors on topics such as currency, visas, language, communications, dress, business hours and electricity.
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Table of Contents
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Tourism
Buy digital copy of this chapter - £18Following a period of minimal activity due to political unrest, Côte d’Ivoire’s tourism sector is now showing signs of recovery. According to the World Travel & Tourism Council (WTTC), in 2012, the travel and tourism industry directly contributed CFA285.4bn (€428.1m), or 2.4% to GDP, with the figure set to rise by 3.6% to CFA295.6bn (€443.4m) in 2013. By 2014, growth in direct and total contributions to GDP is expected to average 5.2% per year until 2023, generating an estimated CFA488.6bn (€732.9m) and CFA963.5bn (€1.45bn) in 2023, based on constant 2012 prices. Meanwhile, direct and total jobs created in 2012 accounted for 2.1% and 4.2% of total employment, or 102,000 direct jobs and 208,500 total jobs, according to WTTC figures.
Explore chapterEducation
Buy digital copy of this chapter - £18The government has made it clear that education is a priority, with more public resources going to the education system than any other sector. The 2013 budget allocates $28bn to education expenditure: $121m for teacher recruitment and up to $975m on facilities upgrades. The budget also includes $85m for developing technical secondary schools. Raising the country’s schools to international standards is an ongoing process with the construction, upgrading and maintenance of schools to improve infrastructure and broaden access. International organisations, non-governmental organisations and the private sector are all taking part in developing schooling in South Africa, from buildings through curricula and assessment to technology. This chapter contains an interview with Kgosi Leruo Molotlegi, King of the Royal Bafokeng Nation.
Explore chapterRetail
Buy digital copy of this chapter - £18Over the past decade retail has become one of the biggest contributors to economic growth. In 2011 the sector’s contribution to GDP reached 8.1%, largely driven by the increasing size and wealth of Colombia’s middle class, greater access to financing and an inflow of foreign retailers. The arrival of foreign competitors with high levels of funding, innovation and efficiency has contributed to the sector’s dynamism as the retail offering continues to diversify and various segments experience rapid growth. Foreign capital inflows rose from $10m to $2.3bn between 2000 and 2011, largely driven by the increase in shopping malls. Colombia’s large population spread over numerous cities has been a key factor in supporting growth and bodes well for the future of the sector.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18The government of Jordan has been working to achieve economic stability through encouraging investment, particularly foreign investment. The kingdom’s legal framework not only creates a secure environment for investors and encourages investment in specific sectors through various incentive and benefit schemes, but also provides a well-structured and easily implemented mechanism for establishing fully operational companies. The Free Zones Law grants projects and activities conducted within designated free zones various exemptions and benefits.
Explore chapterThe Guide
This chapter includes helpful information for visitors to Turkey, including information on society and etiquette, language, transport and visas. It also features a list of suggested hotels and contact information for various institutions, including government ministries, foreign consulates and embassies.
Explore chapterThe Guide
Buy digital copy of this chapter - £18This chapter contains useful information for Brunei Darussalam’s visitors, including hotel listings and contact information for emergency facilities, ministries, missions, banks, airlines, and taxi services, which can assist in making a stay in Brunei Darussalam safe and smooth. The chapter’s Facts for Visitors section offers insight into communications, dress, business culture, language, communications, currency, and obtaining a visa. Finally, the Eye on Conservation offers a nature guide, with particular focus on understanding and protecting the local environment that offers intriguing biodiversity to Brunei Darussalam’s visitors.
Explore chapterOriental
Buy digital copy of this chapter - £18After a decade of investment, Morocco’s Oriental region is ready to build a strong reputation in the Mediterranean. For years, the Oriental, as the Eastern Region is known, suffered from insufficient transport connections to the rest of the country and a lack of the infrastructure necessary for supporting the development of its family-owned businesses and strategic industries. However, an increased focus by the government on devolving some decision-making powers as well as improving both growth and social development indicators in areas outside of Casablanca and Rabat has led to a shift in policy and the influx of government support of the kingdom’s regional governments. In 2012 the Oriental attracted Dh7.9bn (€703.2m) of private investment in 256 projects with the overwhelming majority of these in the building and construction sector. The region’s fortunes will be enhanced with further integration with Morocco’s neighbours. Sustained investment in new industrial zones and the regional focus on strategic sectors should also help to foster a strengthened private sector. This chapter contains an interview with Mohamed Mbarki, Director, Agence de l’Oriental.
Explore chapterAgriculture
Buy digital copy of this chapter - £18The Saudi Agriculture show on the outskirts of Riyadh in September 2012 was testament to the buzz surrounding one of the most interesting agricultural sectors in the Middle East. Investors from Europe and Asia were out in force, promoting everything from irrigation equipment to new animal feeds and fertilisers. According to the Ninth Development Plan, investment in the sector is expected to continue to rise 6.6% annually between 2010 and 2014. Going forward, to improve standards in the farming sector, the Agriculture Information Centre has been set up to gather data on existing operations and determine the viability of alternative farming practices. This and other developments in the pipeline should ensure that local producers have a bright future, as the Kingdom continues to retain its position as the largest market in the GCC. This chapter includes an interview with Waleed Abdulkareem Elkhereiji, Director-General, Grain Silos & Flour Mills Organisation.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18In tandem with the increasing diversification of Abu Dhabi’s economy, the information and communications technology (ICT) industry has come to take on a more prominent role, featuring a much broader range of businesses than was the case even five years ago. Telecoms companies in the UAE are continuing to invest in the country’s physical infrastructure, which is among the most advanced in the world, while the public continues to show a growing appetite for data services, which are driving the telecoms market, as margins on voice services fall. One key feature of the IT sector is the government’s efforts to encourage greater use of IT via e-government and e-learning. ICT is now a full and integral part of the national curriculum in the UAE, and the government is moving to introduce greater use of computers in schools in a bid to enhance overall learning as well as improving e-literacy. This chapter includes an interview with Ahmad Abdulkarim Julfar, CEO, Etisalat Group.
Explore chapterRegions
Buy digital copy of this chapter - £18As a nation of 245m people, spread over three time zones and about 17,500 islands, Indonesia has always been a country of great diversity – economically, politically, culturally and ethnically. Since the return to democracy, this diversity has been increasingly recognised, with a policy of decentralisation handing more power to the regions. Redressing old imbalances between the centre and the outlying areas has taken on greater importance in recent times as well, with the government’s latest development plan based on six geographically defined economic corridors. Thus, Indonesia is very much a country of regions, with major implications for investors, foreign and local, given this decentralised approach. Now that the political agenda has given rise to an economic one, efforts to spread wealth around the nation are driven by the regions and by the central government. This chapter contains an interview with Oesman Sapta, Founder, OSO Group.
Explore chapterThe Guide
Buy digital copy of this chapter - £18This chapter includes a listing of the country’s leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about language, weather, visas, currency and more.
Explore chapterThe Guide
This chapter contains useful information for visitors to Mongolia, including visa requirements, accommodation options, and contact information for foreign missions, hospitals, and other institutions. You can also find highlights of Mongolian culture with a special feature on the revival of the traditional sports of polo and archery. Finally, this section provides guidance regarding etiquette, dress, language, and other subject matter necessary to comfortably navigate a journey to Mongolia.
Explore chapterTax
Buy digital copy of this chapter - £18With assistance from Abu Timam Grant Thornton, this chapter provides an outline of the new tax regulations issued at the start of 2012, as well as rules for the establishment of foreign companies in Oman. Information is provided about tax rates, filing requirements, deductable expenses and more. The chapter also includes a viewpoint with Nasser Said Al Mughairy, Managing Partner at Abu Timam Grant Thornton.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Russell Bedford, OBG explores Malaysia’s taxation system.
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. Ovie Ukiri, Managing Partner at Ajumogobia & Okeke, talks to OBG.
Explore chapterRetail
Recent years have been tough going for the global retail sector, and the Gulf region is no exception to this trend. As unemployment has risen, bank credit has dried up and consumer confidence has withered. In Qatar, however, things look somewhat brighter. Although growth in the sector has slowed, the state has recently seen expansion of both retail brands and shopping outlets. In addition to the food, hypermarket and general trading sectors seeing growth, several large international brands such as Ikea, Marks & Spencer and Intersport are entering the market. Overall, retail space expanded by 18.4% to 509,000 sq metres in 2010 and is expected to grow by 34.4% in 2012, an indication of robust demand. This chapter includes an interview with Bader Abdullah Al Darwish, Chairman and Managing Director, Darwish Holding.
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The Guide
This section includes an article on some of the country’s historical touristic attractions and a profile of boxing legend Azumah Nelson. It also provides the reader with an overview of local etiquette and business practices, information on hotels and resorts, and contact information for local government agencies and services.
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This section includes an article about Songkran, the Thai water festival celebrating the New Year, as well as a feature about the tranquil and historic city of Kanchanaburi. OBG also offers information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector in PNG has been booming over the past half-decade, driven by major initiatives such the PNG LNG project. The wealth of contracts available has fostered healthy competition between Australian firms, traditionally dominant in the local market, and newly arrived Western companies. Hoever, the influx of money and workers has created a bubble in office and residential prices and will almost certainly lead to oversupply when the major projects wrap up. At the same time, the anticipated increase in wealth will fund construction projects around the country, including urban developments outside of the big cities that will hopefully staunch urban migration. This section features an interview with Keith Fletcher, Managing Director, Fletcher Morobe Construction.
Explore chapterTax
Buy digital copy of this chapter - £18With Ernst & Young, OBG looks at some of Jordan’s significant economic reforms, many of which were designed to stimulate growth and increase the flow of foreign direct investment into the country. In addition to details of corporate and personal income tax, this chapter includes a viewpoint with Bishr Baker, Managing Partner at Ernst & Young, Jordan and Iraq.
Explore chapterMedia
Buy digital copy of this chapter - £18Large conglomerates, often with ties to politics, dominate the media sector. Still, offerings have expanded in recent years to feed a population hungry for content, and Indonesians now have 10 free-to-air channels as well as a wide variety of pay-TV options. In 2010, advertising expenditure grew by 23% year-on-year to nearly $7.2bn, the sharpest rise since 2006. TV garnered most of this spending – 61.8% d – while newspapers took home 34.7% and magazines and tabloids accounted for a more 3.6%. Telecoms continue to be the main advertisers, along with politicians and local government, and consumer goods like tobacco. Looking down the road, Indonesia should see growth in the media and advertising sector when its pay-TV penetration – currently 3% – eventually expands.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18New and upcoming legal changes are making it easier to conduct business in Turkey, and OBG’s legal partner, Herguner Bilgen Ozeke, provides an in-depth overview of the recent reforms to corporate law. The chapter also contains an interview with Ümit Hergüner, the managing partner of Hergüner Bilgen Özeke.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Change is expected in South Africa’s education sector over the coming years. The sector receives a large share of the national budget, with some R189.5bn ($23.19bn), or 19% of all state expenditure, spent on education in the 2011/12 fiscal year. However, results have yet to materialise. The government has been eyeing different strategies to improve the education system and remove the regulatory and bureaucratic confusion challenging the sector. So far, the schooling system has shown signs of improvement, with the number of overcrowded public schools dropping from 50% to 24% between 2006 and 2011. South Africa currently offers universal health care via hospital access. But this standard of care is far lower than what those who can afford private care have access to. Therefore, the Department of Health is embarking on a multi-decade plan called the National Health Insurance (NHI) to provide better health care for citizens. The idea is to eventually ensure a higher standard of care for all South Africans, to eliminate the disease burdens complicating the challenge and to move from a system based on curing health problems to one in which prevention plays a larger role. This chapter contains interviews with Frank Thompson, Chief Executive, ADvTECH Group; and Adrian Gore, Chief Executive, Discovery Holdings.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18With major infrastructure and industrial projects now being undertaken across the Kingdom, a flexible but robust legal framework has developed to meet challenges and efficiently minimise risks. For those advising on project financing, full recovery of the extended finances, along with the profit or interest returns, remains a primary concern. This chapter outlines the different forms of collateral and security, regulations for real estate investment trusts, and dispute resolution. The chapter also includes an interview with Qays H. Zu’bi, Senior Partner at Qays H. Zu’bi Attorneys & Legal Consultants.
Explore chapterMedia and Advertising
Buy digital copy of this chapter - £18Advertising spending is focused on television, which enjoys 98% market penetration. Free-to-air is the dominant model, with cable television actually receding in coverage in recent years. Readership of print publications is declining, in line with worldwide trends. Meanwhile, the tremendous growth of internet usage and Facebook access makes a migration of news – and advertising spend – to the web inevitable.
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Agriculture
Buy digital copy of this chapter - £18Agriculture, particularly herding, is the traditional foundation of Mongolia’s economy and culture. Even today, the sector supplies 20% of GDP and employs 35-40% of its population. But the transition to modernity has been jarring, with Soviet experiments in collectivised farming and a modern emphasis on producing for export. Cashmere wool has been the true success story here, earning $180m in income in 2009. However, there are concerns that the profitability of cashmere is pushing herders to switch their flocks to goats, increasing desertification. Another constant threat to the sector is Mongolia’s recurrent dzuds — extremely cold winters — which killed more than a quarter of all livestock in the winter of 2009-10.
Explore chapterEnvironment
With Saudi Arabia’s 10th Development Plan the Kingdom has committed itself to responsible stewardship of the environment. The plan emphasises the importance of creating incentives and regulations that will underpin environmentally sustainable growth moving forward. Initiatives currently under way include moves towards more fuel-efficient cogeneration plants, carbon capture and storage, and investment in various renewable energy sources. In urban areas, major population growth has prompted several sustainable rehabilitation projects, with the most high-profile scheme set to transform one of Riyadh’s main water courses from a sewer into a clean, green ribbon of riverside parkland. Meanwhile in Damman, on Saudi Arabia’s east coast, urban wastewater is being treated and used for irrigation purposes, in the hope that the initiative’s success will encourage similar undertakings across Saudi Arabia by both state authorities and the private sector.
Explore chapterTax
Buy digital copy of this chapter - £22Abu Dhabi and the broader UAE have established themselves as attractive destinations for business and foreign investment, due in large part to their globally competitive tax regulations. The UAE remains committed to maintaining a business-friendly economy aligned with international best practices and has proactively adapted to rapid changes in global tax legislation over the past decade. The implementation of updates, such as those in line with the OECD Base Erosion and Profit Shifting actions, underscores its dedication to remaining in compliance with international tax standards. This enhances the country’s appeal as a stable and attractive destination for businesses and investors seeking tax efficiency and transparency. This chapter contains a viewpoint with Emilio Pera, CEO and Senior Partner, KPMG Lower Gulf.
Explore chapterThe Guide
The Guide contains a selection of hotel and accommodation options throughout Saudi Arabia for both business and leisure travellers. Helpful information is provided on visa regulations, health considerations, business etiquette, and public and private transport options.
Explore chapterThe Guide
The Guide contains listings of leading hotels and resorts in Nigeria for both business and leisure travellers, helpful information for new arrivals to the country and details on current visa requirements for tourists.
Explore chapterLegal Framework
Buy digital copy of this chapter - £22In recent years Saudi Arabia has committed to a series of wide-ranging reforms that aim to diversify the economy; foster a more open and connected society; and establish a transparent, efficient and accountable government under the country’s Vision 2030 strategic framework. With those objectives in mind, there have been numerous legislative developments related to real estate, foreign investment, judicial processes, financial innovation, tourism, entertainment and civil law that are transforming the landscape and positioning the economy for growth. Saudi Arabia continues to initiate legislative reforms in the digital space. The authorities seek to be proactive and pioneering by providing integrated digital services to government agencies via the Digital Government Authority. This chapter contains a viewpoint from Eyad Reda, Managing Partner, Eyad Reda Law Firm.
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Table of Contents
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Environment
Buy digital copy of this chapter - £18Climate change, population growth and increasing rates of urbanisation have put a strain on the environment in complex and intertwined ways. Encouraging sustainable development and protecting the environment are key to ensuring future growth in Abu Dhabi. The need for solutions has created opportunities for investment and innovation, and pushed the market towards economic diversification. The emirate’s low levels of rainfall and high temperatures have led to large increases in water and energy demand. Further adding to the strain are high rates of per capita resource consumption, rapid development and a sharp population increase. These factors have also led to greater volumes of waste and encroachment into natural habitats. As part of efforts to address these challenges, Abu Dhabi’s overarching policy initiatives seek to balance social and economic development with environmental sustainability, with the underlying understanding that environmental wealth and well-being is crucial to long-term prosperity. This chapter contains an interview with Shaikha Salem Al Dhaheri, Secretary-General, Environment Agency - Abu Dhabi.
Explore chapterEducation & Human Capital
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As around half of Indonesia’s population is currently under the age of 30, President Joko Widodo, better known as President Jokowi, has repeatedly stressed the need for the country to overhaul its education system in order to prepare the future workforce to compete in an information-, technology- and creativity-driven global marketplace. While currently on hold due to the Covid-19 pandemic, the construction of a new capital city powered by smart technologies in East Kalimantan will further drive local demand for skilled engineers capable of spearheading the government’s Making Indonesia 4.0 initiative, a vision designed to prepare the country for the increasing automation of industry. This chapter contains interviews with Nadiem Makarim, Minister of Education and Culture; and Tony Fernandes, CEO, AirAsia Group.
Explore chapterHealth & Life Sciences
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The outlook for the health care sector remains positive despite Saudi Arabia facing a number of challenges in terms of increasing capacity to meet rising demand and a higher incidence of non-communicable diseases, as well as the more recent threat of Covid-19. The government’s efforts to restructure the public sector through decentralisation and digitalisation initiatives are increasing efficiency and reducing costs. Meanwhile, ongoing privatisation and efforts to create a more competitive health care environment are improving care and attracting significant investment. The shift towards public-private partnerships and build-operate-transfer contracts is expected to support private sector activity in the decade to come, while the burgeoning health start-up ecosystem is set to contribute to a greater level of digitalisation. This chapter contains an interview with Hisham bin Saad Aljadhey, CEO, Saudi Food and Drug Authority.
Explore chapterRetail
Buy digital copy of this chapter - £18In response to the blockade imposed by some of its neighbours in June 2017 Qatar has expanded its trading relationships, particularly with Iran, Turkey and Russia. The country has also promoted its own domestic industries to help surmount limitations on imports. As a result, the retail sector has shifted towards locally produced goods, especially in food and luxury segments. The supply of retail space has risen, supporting Qatar’s reputation as a regional shopping centre. While there are issues such as an oversupply of commercial space, the change in the foreign direct investment law and the 2022 FIFA World Cup position Qatar well for medium-term growth. This chapter contains interviews with Bader Al-Darwish, Chairman and Managing Director, Fifty One East; and Khaled Sam Hosn, CEO, Mall of Qatar.
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Legal Framework & Tax
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Prior to 1971 the Sharia Courts had jurisdiction over all civil and criminal matters, as well as personal status matters in the sultanate of Oman. However, after the succession of Sultan Qaboos bin Said Al Said, the judicial system was reformed in the sultanate, and Sharia Courts currently only govern matters relating to family disputes and inheritance. The 1996 Basic Statute of the State reshaped and codified the legal system in Oman, creating separate structures for the executive bodies, the judiciary, and the rights and obligations of individuals. The principles of the Basic Law entail that Oman is a free market based on cooperation between the public and private sectors. This chapter contains a viewpoint from Ben Ewing, Partner, CMS Oman.
The Guide
This chapter contains a list of some of the country’s top hotels; contact details for embassies, ministries and organisations; and helpful tips for business and leisure travellers ahead of a trip to Myanmar. This chapter contains an interview with Peter Crowhurst, CEO, British Chamber of Commerce Myanmar.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Dubai, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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The modernisation of the country’s capital markets continued in April 2018 through the promulgation and implementation of Boursa Kuwait’s new rulebook. Its purpose is to clarify the regulatory and organisational framework of Boursa Kuwait and all other aspects of Kuwait’s stock exchange. The new rules provide, among other things, for the segmentation of the market into the premier market, main market and auction market. Each segment has been designed to provide the most suitable disclosure and listing requirements for their members. These reforms also included the recognition and regularisation of specific new transactions, such as short selling, security lending and borrowing. This chapter contains a viewpoint with Ahmed Barakat, Managing Partner, ASAR – Al Ruwayeh & Partners.
Explore chapterEducation
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The move towards digitalisation and ongoing efforts to close the gap between urban and rural access to education could provide greater opportunities for Mexican youths. As part of the Fourth Transformation, President Andrés Manuel López Obrador (AMLO) redesigned the education reform that was introduced by the previous administration. Consequently, significant changes are expected to be introduced to the country’s education system. AMLO has promised to continue working towards universal access to quality, free education at all levels. Moreover, increased investment in STEM-related subjects and greater vocational training opportunities offer bright prospects for young graduates entering the job market. However, it is unclear how effectively AMLO’s reform will increase investment in education, and whether the challenges that face education quality will be addressed in urban and rural areas.
Explore chapterTax
This chapter examines the tax system of the Philippines, focusing primarily on those stemming from AmBisyon Natin 2040. This includes: The Tax Reform for Acceleration and Inclusion bill; The Tax Reform for Attracting Better and High-Quality Opportunities bill; the Green Jobs Act; The Tax Amnesties Act; and The Tax Amnesty of Delinquencies. This chapter also outlines which processes can now be completed electronically on the Bureau of Internal Revenue’s digital services platform, as well as which operations are streamlined under the Ease of Doing Business Act. This chapter also contains an interview with Protacio T Tacandong, COO, Reyes Tacandong & Co.
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Tax & Business
Buy digital copy of this chapter - £18This chapter offers an overview of Indonesia’s tax system, focusing on the revision of the tax holiday facility; the introduction of the online single submission system; measures taken to improve financial inclusion, such as Regulation No. 13/POJK.02/2018, which supervises and regulates financial technology; revisions made to Article 22 Income Tax provisions in order to manage imports that could affect the strength of the rupiah; adjustments to Article 31D of the Income Tax Law for the mining sector; and measures to increase transparency, such as The Law on Financial Information Access for Tax Purposes. This chapter also contains a viewpoint from Sharly Rungkat, Partner, Deals Strategy, PwC Indonesia.
Explore chapterHealth & Life Sciences
Buy digital copy of this chapter - £18Saudi Arabia’s health sector is currently facing a combination of demand-led growth and major structural change as the government seeks to privatise hospitals and other medical service providers. The interplay of these two forces is likely to have an influence on the sector in the coming years. Since 2016 two primary strategy documents have been guiding health care policies: the National Transformation Programme, which runs until 2020, and the Vision 2030 development blueprint. The former calls for increased private sector participation in the health sector, while the latter is an overall strategic plan for the country that highlights the need to modernise and diversify the economy. This chapter contains an interview with Hisham bin Saad Aljadhey, CEO, Saudi Food and Drug Authority.
Explore chapterRetail
Buy digital copy of this chapter - £18Qatar has one of the highest GDP per capita in the world. The retail sector has, therefore, benefitted considerably from high levels of disposable income, coupled with a large expat population. Furthermore, retail centres have established themselves as the primary choice for not only shopping but also leisure and entertainment. The country has subsequently seen a significant expansion in retail space since 2000. However, population growth is now stabilising, leading to concerns about oversupply over the longer term. Nevertheless, despite these challenges, demand and consumer confidence in the retail sector remains buoyant, and new hypermarkets continue to open across the country.
Explore chapterICT
Buy digital copy of this chapter - £18The UAE is at the forefront of developments in the regional telecoms market, boasting one of the highest smart phone penetration rates in the world, a reputation as a testing ground for emergent capabilities, and rapidly developing infrastructures for wireless broadband and fibre-optic services. At the emirate level, the Abu Dhabi Economic Vision 2030 established targets for investment in and adoption of new ICT infrastructure, such as increases in ICT spending and internet penetration to match the levels of international industry leaders Singapore and New Zealand. Similarly, the Abu Dhabi Plan, published in June 2016, outlines 25 goals where success will depend on making advances in ICT infrastructure. This chapter contains interviews with Rauda Al Saadi, Director-General, Abu Dhabi Smart Solutions and Services Authority; and Saleh Abdullah Al Abdooli, CEO, Etisalat Group.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Dubai and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
Explore chapterLegal Framework & Tax
Buy digital copy of this chapter - £18Prior to 1971 the sharia courts had jurisdiction over all civil and criminal matters, as well as personal status affairs in the sultanate of Oman. However, following the succession of Sultan Qaboos bin Said Al Said, the judicial system was reformed and Sharia Courts now only govern matters related to family disputes and inheritance. The 1996 Basic Statute of the State reshaped and codified the legal system in Oman, creating separate structures for the executive bodies, the judiciary, and the rights and obligations of individuals. This chapter contains a viewpoint from Ben Ewing, Partner, CMS.
Explore chapterThe Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity. This chapter also contains an interview with Seun Anibaba, General Manager and CEO, Lagos State Lotteries Board.
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Table of Contents
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Tax
Buy digital copy of this chapter - £18This chapter provides an overview of Argentina’s tax regime, covering areas of particular interest to investors such as tax on gross income, real estate tax, stamp tax, and other investor considerations. This chapter contains an interview with César Litvin, CEO, Lisicki, Litvin & Asociados.
Explore chapterHealth
Buy digital copy of this chapter - £18Steady progress has been made in the expansion and modernisation of Mexico’s health care sector in recent years. Some of these improvements have stemmed from the sector increasingly turning to public-private partnerships, with the private sector playing a larger role in operational management, outsourced services and construction. Major steps have also been taken to support the expansion of the country’s pharmaceutical industry. Although the country is very close to achieving its goal of universal coverage for all citizens, as per its constitutional mandate, some obstacles still remain, such as the gaps in insurance coverage between sectors. In particular, the rise of chronic illnesses and non-communicable diseases, combined with the added needs of the country’s ageing population, appear set to place additional stress the country’s health system, which is still not currently capable of tackling these emerging health issues. The sector will need to balance private and public actors, while at the same time boosting its domestic profile and attracting important international investment in key segments of the industry. This chapter includes an interview with Pablo Escandón Cusi, President, Mexican Health Foundation.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter offers an overview of the Philippines’ tax regime, focusing on the territorial system for foreign companies and individuals, financial reporting framework, special economic zones and other key subjects. It also contains a viewpoint from Marivic Españo, CEO and Chairperson, P&A Grant Thornton.
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Table of Contents
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The Guide
The guide contains information on some of the leading hotels in Côte d’Ivoire and contact details for government ministries, embassies and business services, alongside useful tips for first-time or regular visitors.
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Tax
Buy digital copy of this chapter - £18This chapter contains an outline of the tax framework within which local and international firms operate within Oman, including a look at the various models of business open to foreign investors and a breakdown of the new rules set out for Islamic financial transactions. This chapter contains an interview with Omar Al Sharif, Country Senior Partner Oman, PwC.
Explore chapterThe Guide
The guide contains information on some of the leading hotels in Morocco and contact details for government ministries, embassies and business services, alongside useful tips for first-time or regular visitors.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework under which local and foreign investors operate, including a look at the GCC-wide value-added tax, which is being rolled out in 2018, a guide to international taxation treaties, and the investment and tax incentives available in the emirate’s free zones.
This chapter contains a VP from Dean Kern, Middle East Tax and Legal Services Leader, PwC.
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Education & Training
Buy digital copy of this chapter - £18Given pride of place in both the Kingdom’s long-term development plans and in its annual budget, education in Saudi Arabia is currently undergoing a major expansion – both in terms of quantity and quality. A range of new projects were launched over 2017 and will continue into 2018, from university construction to curriculum development. Indeed, the centrality of education and training to the country’s ability to achieve other developmental objectives is now widely recognised by planners, policymakers and investors alike, with important consequences for the sector as a whole.
This chapter contains an interview with Ahmed Aleissa, Minister of Education.
Explore chapterSports
Buy digital copy of this chapter - £18As part of its strategy to promote diversified economic development, Qatar has worked hard to establish itself as a regional centre for sports. Over the past 20 years a surge of investment in infrastructure has paid off as international associations have come to recognise the country’s potential in the athletics arena. Undoubtedly, the biggest success in this regard was in 2010, when Qatar was awarded the right to host the 2022 FIFA World Cup. Despite the diplomatic tensions in the Gulf and the three-year drop in global energy prices, long-term developments associated with the 2022 World Cup plans have not been directly impacted, and authorities have insisted that spending remains unaffected. The country’s authorities are firmly focused on achieving long-term social development goals in line with Qatar National Vision 2030. Meanwhile, businesses and investment groups have entered into numerous partnerships with international athletics entities, further underlining the country’s commitment to develop into an international centre for sports, and encouraging its citizens to engage in active and healthy lifestyles.
Explore chapterHealth
Buy digital copy of this chapter - £18Aiming to bring its population of more than 250m under coverage by 2019, Indonesia continues to roll out its universal health care programme, or Jaminan Kesehatan Nasional (JKN). State-driven developments, as well as activity in the private sector, are triggering impressive growth across the health industry. According to estimates from consultancy Frost and Sullivan, the value of Indonesia’s health care market will reach $21bn in 2019, up from $7bn in 2014. However, government expenditure on health care remains relatively low at just 3.6% of GDP, one of the lowest rates in South-east Asia. In the years to come, greater investment will be vital as demand for services, facilities and equipment increases under JKN.
This chapter contains an interview with Fachmi Idris, President Director, BPJS Kesehatan.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework under which local and foreign investors operate in Kuwait, including a look at the amendments made to the Companies Law and an examination of the New Agency Law which is taking effect after 50 years.
This chapter contains a viewpoint from Philip Kotsis, Partner, Al Tamimi & Co.
Explore chapterThe Guide
This chapter contains listings of leading hotels for business or leisure, numbers for ministries, foreign missions and other institutions and useful information for first-time visitors. It also contains a feature piece about Thailand’s long-standing film industry.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Colombia’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, income tax exemptions, VAT and rates, investment incentives, and other investor considerations. This chapter contains a viewpoint from Jaime Vargas, Tax Managing Partner and International Tax Services Leader, EY Colombia.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Peru’s legal framework, covering a range of topics from public works for taxes to foreign investment law. In addition, it features an interview by Fernán Altuve-Febres Lores, President, Ontier Perú, on the impacts of new legal framework.
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Environment
Buy digital copy of this chapter - £18Climate change, dwindling natural resources, pressure on ecosystems from urban expansion, pollution and waste management are all global challenges that are having an impact in Abu Dhabi, whose delicate environment is characterised by extremes of temperature and landscape. Over the last few decades, extraordinary economic and population growth has increased the pressure on this ecosphere, which has long been of concern for the emirate’s rulers. Protecting the environment has been woven into the fabric of Abu Dhabi’s development plans. Sustainability and optimal use of resources are seen as vital to the future well-being of its citizens and the ecosphere. Authorities have crafted a host of programmes and agencies to further the sustainability agenda, while efforts to promote the environment have become pillars of emirate policy. All of this has profound implications for the emirate’s future, and affords lessons for the region and the world.
This chapter contains an interview with Razan Khalifa Al Mubarak, Secretary-General, Environment Agency - Abu Dhabi.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines the Philippines’ tax regime, focusing on the territorial system for foreign companies and individuals, financial reporting framework, special economic zone tax benefits and other key areas.
It also features an interview with Marivic Españo, Chairperson and CEO, P&A Grant Thornton.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, dividend taxation, foreign operations, tax audits and other investor considerations. This chapter contains an interview with Ricardo González Orta, Partner, Deloitte México.
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The Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate, including a rundown of the expected changes to corporate tax rates, a look at the incentives on offer in the special economic zones and a glance ahead at plans for the proposed GCC-wide value-added tax. This chapter contains an interview with Omar Al Sharif, Country Senior Partner Oman, PwC
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Real Estate
Buy digital copy of this chapter - £18Benefitting from rising incomes and a youthful, growing population, Saudi Arabia’s real estate sector has seen steady expansion in the past decade. Although this increase has been more modest than in its GCC neighbours, it is clear that strong demand for residential real estate will continue over the long term thanks to the country’s demographics. In the short term the hospitality and office segments may face a surfeit of supply and a shortage of demand with major new real estate developments in the pipeline. On the residential side rents are stabilising, but tenants face financial obstacles to home ownership. However, the central bank’s announcement that it will allow specialised mortgage companies to increase their contribution to home financing to 85% will greatly improve access to home loans.
This chapter contains interviews with Majed Al Hogail, Minister of Housing; and Bader Al Saedan, Managing Director, Al Saedan Real Estate.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Morocco’s taxation system and examines its investor-friendly business environment.
This chapter contains an interview with Kamal Mokdad, Managing Partner; and a viewpoint from Asma Charki, Partner, Mazars Morocco, on Casablanca Finance City.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate, including a look ahead at the GCC value-added tax (VAT) framework that is being created and the considered implementation of a corporate income tax.
This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.
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The Guide
This section includes information on hotels, government ministries and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterThe Guide
This chapter contains hotel listings for business and leisure travellers, useful contact details for embassies and ministries, and practical information for first-time visitors.
Explore chapterSport
Buy digital copy of this chapter - £18In the past decade or more, Qatar has started to assert itself in the world of global sports. It has achieved this mainly through its athletics federation and Olympic committee with the country’s winning bid to host the 2022 FIFA World Cup evidence of the increasingly prominent role that sport is taking in Qatar. The government has also made efforts to expand the role of sports and related industries, such as sports medicine, logistics and security, to create more opportunities for high-value, skilled labour in the country. It is hoped that the increasing popularity of sports in Qatar will encourage its citizens to pursue more active and healthy lifestyles. If this is the case, the sector has a lot of potential, not only to bolster overall economic growth, but also to improve the well being of residents.
Explore chapterAgriculture & Plantations
Buy digital copy of this chapter - £18As the world’s second-largest palm oil producer after Indonesia and a leading producer of natural rubber, Malaysia today also boasts increasingly sophisticated fruit and vegetable, rice, livestock and fisheries sectors. These building blocks are set to undergo some important changes in the years ahead, as the country seeks to implement the 11th Malaysia Plan (11MP). Under 11MP there is a strong focus on green, sustainable growth, coupled with increasing mechanisation, boosting human resources and enhancing technological and scientific inputs and outputs. This chapter contains an interview with Pang Teck Wai, CEO, Palm Oil Industrial Cluster Sabah.
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Tourism, Culture & Sports
Buy digital copy of this chapter - £18Abu Dhabi has become increasingly competitive as a regional and international destination in recent years. Guest numbers for 2015 were in line with growth targets, a trend that has continued over from 2014. In 2015 arrivals surpassed 4.1m, equalling an 18% increase over 2014, when 3.5m people visited. Indeed there is a growing recognition that the emirate is home to a “visitor economy” – one where master planned development is approached considering the overall quality of experience from the visitor’s point of view. Of particular interest is the emirate’s expanding museum offering with five major museums due to open in the coming years, while Abu Dhabi’s numerous sporting mega-events, such as the Formula 1 (F1) Etihad Airways Abu Dhabi Grand Prix and Abu Dhabi HSBC Golf Championship, are bringing significant economic benefits to the emirate. This chapter contains an interview with Ali Bin Harmal Al Dhaheri, Managing Director, ADNEC Group.
Explore chapterThe Guide
This chapter contains hotel listings for business and leisure visitors, phone numbers for foreign missions and local services as well as some useful cultural tips for first-time arrivals.
Explore chapterTransport
Buy digital copy of this chapter - £18Thailand is quickly transforming from a country with transportation challenges to one that is becoming a leader in the region, and a possible logistics centre for ASEAN. The country’s air regulators are focusing on regaining the country’s top-grade assessments and have been working to remove weaker discount carriers. Thai Airways is also restructuring, and airports are being upgraded, enlarged and improved. Most importantly, the country’s leaders are calling for significant investments into infrastructure, much of it fast-tracked so that real, tangible results may be achieved within a few years. This chapter contains interviews with Prajin Juntong, Deputy Prime Minister, and Sutthinan Hutthawong, Director-General, Port Authority of Thailand; and a dialogue with Charamporn Jotikasthira, President, Thai Airways International and Puttipong Prasarttong-Osoth, President, Bangkok Airways.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter explores the legal framework of the Philippines, focusing on new legislation for foreign banks, legal procedures for mergers and acquisitions, and rules on data privacy and anti-money laundering, among other recent developments. It also contains an interview with Rafael A Morales, Managing Partner, SyCip Salazar Hernandez & Gatmaitan.
Explore chapterLegal Framework
As part of the long-term measures adopted by the government to develop Colombia’s infrastructure, the country has undertaken certain material legal reforms which aim to promote public-private partnerships (PPPs), increase and diversify financing sources for infrastructure projects, and create a more attractive framework for foreign investors and lenders who take an interest in Colombia’s key assets. This chapter provides an overview of recent changes to the Colombian legal framework, in particular of the country’s PPP law, the recent infrastructure law and amendments to pension funds’ investment regime, among other areas of interest to international investors. This chapter includes an interview with Martín Acero, Partner and Co-Chairman, Philippi, Prietocarrizosa & Uría Colombia.
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Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework within which local and international investors operate in Oman, including an examination of the FTAs in place and how they are enabling more foreign investments, and a rundown of the proposed changes to the VAT laws currently under examination. This chapter contains an interview with Kenneth Macfarlane, Country Senior Partner, PwC.
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Tax
Buy digital copy of this chapter - £18In conjunction with SizweNtsalubaGobodo, OBG explores the taxation system, examining South Africa’s investor-friendly environment. OBG talks to Victor Sekese, CEO, SizweNtsalubaGobodo, on new tax rules.
Explore chapterGuide
This chapter includes hotel listings for discerning travellers, useful telephone numbers, and information for both first-time and repeat visitors.
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This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation.
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Real Estate
Buy digital copy of this chapter - £18A young population and rising disposable incomes signal an optimistic future for the Saudi Arabian real estate sector. With the population growing at a rate of 2.6% per year, the need for housing is expanding rapidly, especially given that 67% of Saudis are under the age of 30. The retail segment also offers significant opportunities for developers, with vacancy rates at shopping centres in the capital standing at 8% in the second quarter of 2015 and rents growing by 7% to $773 per sq metre. The hospitality segment is meanwhile experiencing strong growth in line with the government’s aim to boost tourism. In Makkah, for example, 500 hotels are in the pipeline, adding significant capacity to the city’s current inventory of 125,000 rooms in 650 hotels.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter takes a closer look at the rules governing taxation in Morocco, examining in particular the changes made to pension insurance contracts and to the payment of value-added tax. It also contains a viewpoint by Kamal Mokdad, Managing Partner, Mazars Morocco.
Explore chapterThe Guide
This chapter offers useful facts for visitors, including information about local customs and etiquette, access to health care, visas and local languages. Readers can also find a hotel listing and contact information for foreign missions, legal services, banks, airlines and other institutions. This section also contains a viewpoint from Brian Kelly, CEO, Black Swan International.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and communications.
Explore chapterHealth
Buy digital copy of this chapter - £18The year 2015 marks the second year of the roll out of universal health care in Indonesia. The plan saw a challenging launch in 2014, but administrators and lawmakers are continuing to work toward the target of full implementation by 2019. As more people seek health care because they have coverage, more hospitals are needed, as are more medical staff. Analysts blame regulation disparities, poor health care infrastructure and an urban-rural gap in the number of medical staff attending to each region for the potential difficulty in meeting the 2019 deadline. However, having made universal health care a top priority, the government is determined to overcome these challenges.
This chapter contains a dialogue with Jorge Wagner, President-Director, Boehringer Ingelheim Indonesia, and Bernadette Ruth Irawati Setiady, President-Director, Kalbe Pharma; and an interview with Andi Wijaya, Chairman, Prodia.
Explore chapterThe Guide
This chapter contains useful information for visitors to Turkey, including visa requirements, listings of recommended hotel, and contact information for foreign missions, travel agencies, hospitals and other important institutions. It also contains features pieces exploring the history of Istanbul’s famed Maiden’s Tower and the Aegean island getaway of Bozcaada.
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This chapter contains useful facts for visitors, a list of suggested hotels, as well as phone numbers for important contacts, including ministries, foreign missions and airlines. It also contains features pieces on Mongolian fine artist, G. Zanzabar, and the country’s unique tourism opportunities in its rural expanses.
Explore chapterEducation
Buy digital copy of this chapter - £18Home to the largest and one of the youngest and fastest-growing populations in Africa, Nigeria’s youthful demographic profile could prove either a future economic asset or a significant social burden. Given that 63% of the country’s 170m people are under the age of 24, much will depend on the progress that can be made to improve the quality and capacity of its education system. Major improvements will be essential if the country is to fulfil its economic potential in the medium and long term. The government has been lauded for raising education spending, but observers still see funding as insufficient. Nigeria’s rapid population growth should translate into expanding demand for education for years to come. The growth of technical and vocational institutes will go a long way towards providing an alternative to universities short on spaces, and is helping to match the market with technical skills needed.
Explore chapterSports
Buy digital copy of this chapter - £18Qatar is ramping up its production schedule in preparation for the 2022 FIFA World Cup and the state is allocating around $200bn for the tournament and associated projects, with the money to be invested in an extensive programme of infrastructure and service development. However, Qatar is looking beyond the World Cup and aims to establish itself as a global centre of excellence for all aspects of sport. To this end the Ministry of Youth and Sports was founded by the government in June 2013 and is expected to strengthen the long-term development of athletics in the state, improving planning and oversight, and consolidating the government’s involvement in the sector. Other notable institutions leveraging the growing concentration of sector expertise include the Aspire Academy for sports and the Aspetar Sports Medicine and Orthopaedic Hospital located in the Aspire Zone, an integrated complex of sports facilities, all of which should ensure the growth of the sector’s international standing moving forward.
This chapter contains an interview with Dahlan Al Hamad, President, Qatar Athletics Federation; and Vice President, International Association of Athletics Federation (IAAF).
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Education & Training
Education is at the heart of an ambitious agenda to diversify Saudi Arabia away from reliance on hydrocarbons and transform it into a knowledge-based economy by 2025. With this in mind, the Kingdom has stepped up investment in the education sector and in the young people who will be expected to drive that new economy, but policymakers face the challenge of rapid population growth. However, considerable efforts are being made to ensure that training and education focuses on equipping young Saudis with the necessary skills to fill gaps in the job market. This chapter contains an interview with Ahmed bin Abdullah Al Shoaibi, Director-General, Institute of Public Administration.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines important legal and regulatory developments in the Philippines, with particular focus on the liberalised entry of foreign banks, Islamic banking and finance, merger control and data privacy. It also features an interview with Rafael A Morales, Managing Partner, SyCip Salazar, Hernandez & Gatmaitan.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Dates represent Abu Dhabi’s most important commercial crop and agricultural export, with 99,136 tonnes produced in 2013, an increase from 80,461 tonnes a year earlier. Authorities are also encouraging the development of aquaculture as an alternative to fishing, with this segment seeing increased investment as new fish farms start to open in the emirate. Meanwhile the Abu Dhabi Farmers Services Centre, set up in 2009, aims to develop a sustainable agricultural industry and is expected to launch a project based on soil-free farming, which can offer water savings of up to 70%. Moving forward a food products and processing industry cluster at Khalifa Industrial Zone Abu Dhabi will enable firms to bring agricultural goods to market, with large facilities set to open in the cluster, including several processing plants and a ready-meals factory.
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Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate, including an outline of the incentives available in the free zones and a look at the opportunities in the Dubai International Financial Centre. This chapter contains a viewpoint from Mahmud Merali, Managing Partner, MERALI’S.
Explore chapterHealth
Buy digital copy of this chapter - £18The government is increasingly focused on preventative care as Oman’s health care budget almost doubled for 2014, reaching $3.34bn. Rising rates of obesity and diabetes are among the chief challenges facing the sector as lifestyle changes bring rates for obesity in line with developed Western countries. While government spending accounts for about 78.7% of total health expenditure in the country, the private sector is expected to play an increasingly prominent role moving forward. The number of private hospitals in the sultanate has quadrupled in the last decade, going from three in 2004 to 12 in 2013, and as rapid population growth and cases of bed shortages continue, numerous investment opportunities are being presented in the private health care segment.
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Education & Training
Buy digital copy of this chapter - £18Education is at the heart of an ambitious agenda to diversify Saudi Arabia away from reliance on hydrocarbons and transform it into a knowledge-based economy by 2025. With this in mind, the Kingdom has stepped up investment in the education sector and in the young people who will be expected to drive that new economy, but policymakers face the challenge of rapid population growth. However, considerable efforts are being made to ensure that training and education focuses on equipping young Saudis with the necessary skills to fill gaps in the job market. This chapter contains an interview with Ahmed bin Abdullah Al Shoaibi, Director-General, Institute of Public Administration.
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in South Africa, in partnership with DLA Cliffe Dekker Hofmeyr. OBG talks to Brent Williams, CEO, DLA Cliffe Dekker Hofmeyr, on the African investment climate.
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The Guide
This chapter offers useful information for visitors to Brunei Darussalam, including hotels and contact numbers for embassies, banks, taxi services and emergency services. The chapter also contains facts for visitors such as visa requirements and dress codes and offers tips for etiquette, transport and communication services in the Sultanate.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Table of Contents
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The Guide
This chapter contains useful facts for visitors, including tips for etiquette, acquiring visas, and local business culture. It also provides a suggested list of hotels, contact information for embassies, hospitals and other important institutions, and contains a feature piece exploring the national cuisine of Thailand and its myriad influences.
Explore chapterTax
Buy digital copy of this chapter - £18Featuring a tax viewpoint from OBG partner, Ay-Tjhing Phan, Tax Leader, PwC Indonesia, this chapter gives an overview of the tax system in Indonesia, with focus on changes to the tax system in recent years and regulations for potential investors.
Explore chapterMedia
Buy digital copy of this chapter - £18Known throughout the world as the home of Al Jazeera and of the Doha Centre for Media Freedom (DCMF), a local watchdog with a global reach, Qatar has developed a well-established and far-reaching role on the stage of international media. The domestic market, made up of traditional outfits in print, radio and television, as well as a burgeoning online segment, is also thriving. Both at home and abroad, Qatar is well placed to continue expanding its media activities both in domestic and international markets, and on a more commercially rewarding basis, and as such presents opportunities and challenges that make it one of the region’s more intriguing media centres.
Explore chapterICT
Buy digital copy of this chapter - £18Ranked as the Middle East and North Africa’s most high-tech city alongside Dubai and Doha, according to a study by Swedish telecoms equipment company Ericsson, Abu Dhabi’s sophisticated ICT infrastructure and strong fibre network reaffirm its position as a regional business centre and play a critical role in the emirate’s diversification efforts and transition towards a knowledge-based economy. Expenditure in the UAE, the GCC’s second-largest ICT market, is projected to increase almost threefold between 2013 and 2015 to $40bn. As the local economy expands and diversifies, attracting a greater mix of corporates, there is growing demand for a wider range of IT products and services to supplement the government sector, which remains a reliable source of business. This chapter contains an interview with Rashed Al Mansoori, Director-General, Abu Dhabi Systems and Information Centre (ADSIC).
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the draft of the new companies law, which clarifies rules for investment and covers a number of important exemptions in the law. There is also an explanation of the new competition law, which was recently enacted by the UAE government.
This chapter contains a viewpoint from Michael Kerr, Regional Managing Partner, Dentons.
Explore chapterRegions
Buy digital copy of this chapter - £18Industrial zones, port developments, railways and fisheries projects are but a few examples of how public and private investments are transforming Oman’s regions. Some 87m sq metres of land has been allocated for industrial estates in Sohar, Salalah and Duqm, at a total investment of $9.4bn. The range of new industrial projects shows a clear development strategy aimed at regional economic diversification, which will continue to support the growth of the Omani economy and provide opportunities for local, regional and global investors. This chapter contains a dialogue with Andre Toet and Jamal Aziz, Group CEO and Sohar Freezone CEO, Sohar Port and Freezone; and interviews with Yahya bin Said bin Abdullah Al Jabri, Chairman, Special Economic Zone Authority at Duqm; and Ahmed Akaak, Acting CEO, Port of Salalah.
Explore chapterThe Guide
Buy digital copy of this chapter - £18In addition to an article on the evolving art scene in Lima, this chapter contains useful tips for first-time travellers to the country, including hotel listings and contact information for various institutions, such as government agencies and foreign missions.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with SyCip Salazar Hernandez & Gatmaitan, OBG explores the legal framework of the Philippines, with a focus on procedures for mergers and consolidations, stockholder appraisal rights, “bulk sale” rules and other subject areas relevant to business and foreign investment. This section includes an interview with Rafael A Morales, Managing Partner, SyCIP Salazar Hernandez & Gatmaitan.
Explore chapterHealth
Buy digital copy of this chapter - £18In the six decades since independence, the national health care network has improved on a piecemeal basis, driven primarily by a handful of international organisations and, more recently, government entities at the federal, state and local levels. The sector is guided by the National Strategic Health Development Plan (2010-15), which runs alongside the wider aims outlined in the Vision 20:2020 strategy. With a new federal health bill in the works and steadily increasing private sector participation in many areas, Nigeria’s health care sector is potentially on the brink of a period of sustained expansion.
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Table of Contents
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Health & Education
Buy digital copy of this chapter - £18In the 1980s Côte d’Ivoire’s health care system was a model for the region, but population growth, waning state revenues and conflict eroded the capacity of public institutions, leading to material and facility shortages and declining health for citizens. Major killers today are largely preventive diseases, such as malaria and HIV/AIDS, demanding the establishment of national programmes to coordinate and implement efforts to fight them. Yet, after decades of eroding health budgets, the Ivoirian government has declared 2013 as the “Year of Health”, pledging to greatly increase state expenditures to modernise and expand the public health care system, inspiring hope for improvements in key indicators such as maternal and child mortality rates.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with KPMG South Africa Tax and Legal, OBG explores the taxation system, examining South Africa’s investor-friendly environment. OBG talks to Alan Field, Chairman of Tax and Legal, KPMG South Africa, on mitigating tax avoidance in the new digital age.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Selected as one of five strategic growth areas in the National Development Plan, the agricultural sector has traditionally been one of the primary growth engines in Colombia. However, recent supply and demand fluctuations have created challenging times for the sector and government funding has become central for ensuring its short-term viability. This is likely to improve as completion of renovation campaigns comes in sight, crops undergo further diversification, and competitiveness programmes are vigorously pursued to enable the sector’s performance in open markets. The sector is gradually changing its focus from traditional segments such as coffee and cocoa to products with higher demand in export markets. With 14.5m ha of unused land, the sector’s growth potential is tremendous. This chapter includes an interview with Juan Camilo Restrepo, Former Minister of Agriculture and Rural Development.
Explore chapterThe Guide
With conservation and environmental projects taking on an growing role within the kingdom, a number of reserves are seeing the benefit of increased interest from ecologically minded tourists. The Guide contains listings of some of the leading hotels and resorts in Jordan and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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Table of Contents
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Tax
Buy digital copy of this chapter - £18In conjunction with KPMG, OBG explores the taxation system, examining Morocco’s investor-friendly environment. OBG talks to Fouad Lahgazi, Senior Partner, KPMG, on new legislation governing public-private partnerships (PPPs).
Explore chapterEducation
Buy digital copy of this chapter - £18Saudi Arabia’s booming export economy and record budget surpluses have provided a golden opportunity to reinvest these profits in the country’s future. The education sector has thus been designated a chief priority. More than half of the Kingdom’s population is under the age of 25, with close to 30% under 15. These numbers make providing a strong education system an even higher priority. As of 2012, unemployment hovered around 10% among Saudi nationals, whereas among expatriates it was just 2%. While demand-side measures may help in the short run, increasing the employment of Saudis in the long term will depend on aligning education with the needs of the job market. Increasing cooperation from the private sector in terms of expanded training programmes and collaborative research and development projects should also assist efforts to create more jobs outside of the oil and gas industry. This chapter includes interviews with Khalid Al Sultan, Rector, King Fahd University for Petroleum and Minerals (KFUPM); and Khaled Al Sabti, Vice-Minister of Education and Chairman, Tatweer Education Holding.
Explore chapterTourism
Buy digital copy of this chapter - £18As one of the 12 strategic sectors identified in Abu Dhabi Economic Vision 2030, tourism plays a central role in the government’s plan to reduce the economy’s reliance on the hydrocarbons industry. To this end, Abu Dhabi has invested heavily in the sector in recent years, creating more attractions to draw tourists, as well as building hotels and expanding the national airline. Indeed, the tourism sector has grown steadily, as reflected in the consistent increase in the number of hotel guests; the emirate hosted more than 2.1m visitors in 2011 alone. This figure is set to continue to rise, with the authorities targeting 3.2m by 2015. To cater for – and bring about – this uptick, the sector is witnessing major developments in entertainment, retail, global sports events and large corporate functions. The government is also keen to develop the meetings, incentives, conferences and exhibitions (MICE) segment, aiming to more than double its economic impact by 2020. This chapter includes an interview with Sheikh Sultan bin Zayed Al Nahyan, Representative of the President of UAE and Chairman, Culture and Media Centre.
Explore chapterEast Java
Buy digital copy of this chapter - £18The province of East Java is governed from Surabya, a major industrial and port city, and is subdivided into nine cities and 29 regencies. It has a population of 37.5m and contributes around 15% of national GDP. With much infrastructure and economic muscle already in place, the potential for growth in East Java is great, as are the investment opportunities. The province is well positioned to take advantage of national economic master plan projects, as well as to capitalise on local organic development trends. With regulatory and infrastructure pieces falling into place, growth may be about to accelerate in many ways. East Java, then, has much success and prosperity to reward the efforts of its investors. This chapter contains an interview with H Soekarwo, Governor, East Java Province.
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Table of Contents
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Legal Framework
Buy digital copy of this chapter - £18With Curtis, Mallet-Prevost, OBG outlines the key corporate, foreign investment, labour and property laws relevant to companies doing business locally in Oman. This includes an overview of Omani corporate law and the legal structures for doing business. The chapter also features a viewpoint with Bruce B Palmer, Managing Partner in Oman, Curtis, Mallet-Prevost.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with Chooi & Company, OBG takes a look at Malaysia’s legal system. Key points include the long-awaited Mediation Act 2012, as well as a number of new laws intended to improve regulations and step up protection of relevant parties. Christopher Leong, Managing Partner of Chooi & Company, offers a viewpoint on recent legal developments
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The Guide
This section includes an article about Naija music in Nigeria, as well as information on hotels, government and other listings, alongside useful tips for visitors on topics including currency, visas, language, communications, dress, business hours and electricity.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18In conjunction with The Advisors RSM, this chapter outlines the new rules and regulations for foreign firms operating in Qatar. It also looks at key sections of Law No. 21, a new tax code that came into effect in January 2010, as well as the executive regulations released in support of the law. This chapter includes an interview with Jaber Al Hedfa, Partner, The Advisors RSM.
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Agriculture & Plantations
Buy digital copy of this chapter - £18Even though mining revenues account for most of GDP, agriculture is the way of life for about 85% of PNG’s people. Infrastructure difficulties limit the potential for exports, but PNG does specialise in several cash crops, including palm oil, rubber, coffee, cocoa, copra and tea, in addition to fish and timber. The agriculture sector is host to dozens of initiatives to develop high-yielding crops, boost productivity, and increase access to markets. One of the major challenges, however, is the uncertain legal status of most of PNG’s land, which is governed by customary land rights for indigenous groups. Timber exporters are also suffering from bans on non-certified lumber imports in Australia, the EU, and the US. This section features interviews with James Lau, Managing Director, Rimbunan Hijau PNG; and Pedro Celso, Managing Director, RD Tuna, and Chairman, Fishing Industry Association PNG.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18Along with Ali Sharif Zu’bi Advocates and Legal Consultants, OBG reviews the kingdom’s legal framework and the various structures and incentives established to help foreign companies. This chapter includes an interview with Khaled Asfour, Managing Partner at Ali Sharif Zu’bi Advocates and Legal Consultants.
Explore chapterThe Guide
Turkey is a vast country with many things to see and do. The Guide contains highlights of some of the nation’s key attractions, as well as insights for new arrivals. Also contained in the guide are important phone numbers and hotel listings. The chapter also includes a feature article about the arts in Istanbul, with Bülent Eczacıbaşı, the Chairman of Eczacıbaşı Group and the Istanbul Foundation for Culture and the Arts (IKSV).
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with SizweNtsalubaGobodo, OBG explores the taxation system, examining South Africa’s investor-friendly environment.
Explore chapterThe Guide
Horses are believed to have been part of Bahrain’s culture for as long as 4000 years, dating back to the Dilmun civilisation. This chapter examines how equestrian sports have become a popular leisure activity in the Kingdom. The chapter also includes a listing of the country’s leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about etiquette, language, visas, currency, transport and more.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18In partnership with SyCip Salazar Hernandez & Gatmaitan, OBG takes a look at the Philippines’ legal system. Key points include the different ways of doing business for foreign entities, including their liability to suit and tax obligations. The section includes an interview with Rafael Morales, Managing Partner, SyCip Salazar Hernandez & Gatmaitan.
Explore chapterHealth and Education
Buy digital copy of this chapter - £18The health care system in Mongolia is in transition, moving away from a comprehensive yet out-dated Soviet model to a more private sector-focused approach. This shift, combined with the government’s openness to public-private partnerships, indicates an opening for foreign investors to make gains in this sector. Key challenges including fighting non-communicable, lifestyle diseases, and bridging the gap between urban and rural health care quality. In education, meanwhile, a similar communist-to-capitalist transition is occurring. The government spends up to 20% of its GDP on education, a considerable sum that it must now orient towards training Mongolians for a market economy. In the secondary and tertiary markets, private schools are in high demand.
Explore chapterRegions
Buy digital copy of this chapter - £18With some 17,500 islands tied into a single political system, a centralised unitary government has not proved adaptable to Indonesia’s geography or society. Decentralisation, which began in 1999 and devolved power to local administrative units, has seen both successes and failures, but should hopefully prove more stable in the long run. Critics see the programme as multiplying local bureaucracies and putting power in the hands of inexperienced or corrupt politicians, while supporters point to the dissipation of violence in formerly restive areas. The government’s Grand Strategy for Implementation of Decentralisation would attempt to address the concerns, giving a supervisory role to provincial governors, and allowing the central government to overrule local laws that conflict with national laws. The Indonesia Investment Coordinating Board (BKPM) has also instituted a Regional Champions programme that highlights certain provinces with the institutional qualities required for quick impact projects. Projects that have been awarded to regional champions include toll roads, geothermal power plants, mining and airport projects. This chapter includes a viewpoint from Satish Mishra, Managing Director, Strategic Asia
Explore chapterReal Estate
A young population and rising disposable incomes signal an optimistic future for the Saudi Arabian real estate sector. With the population growing at a rate of 2.6% per year, the need for housing is expanding rapidly, especially given that 67% of Saudis are under the age of 30. The retail segment also offers significant opportunities for developers, with vacancy rates at shopping centres in the capital standing at 8% in the second quarter of 2015 and rents growing by 7% to $773 per sq metre. The hospitality segment is meanwhile experiencing strong growth in line with the government’s aim to boost tourism. In Makkah, for example, 500 hotels are in the pipeline, adding significant capacity to the city’s current inventory of 125,000 rooms in 650 hotels.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers, and other useful suggestions for travel to Abu Dhabi.
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Contents
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Explore chapterThe Guide
The Guide contains listings of accommodation options throughout the country for both business and leisure travellers. Helpful information is provided on visa regulations and business etiquette, as well as public and private transport options for navigating the country during your stay.
Explore chapterICT
Buy digital copy of this chapter - £18Abu Dhabi’s ICT sector saw further growth in 2019, driven by major public investment in the digitisation of services for residents and businesses. The emirate and the wider UAE continue to lead the way regionally in rolling out 5G technology, with the UAE’s two national telecoms companies making significant investments in network expansion and upgrades. The emirate is also consolidating its position as a leading centre for research and development in areas such as artificial intelligence, cybersecurity and cloud services, and the emerging start-up sector is playing an active role. Recently, the emirate’s digital drive has been accelerated by the global outbreak of Covid-19 in early 2020, which caused businesses, educational institutions and government entities to offer remote services after travel restrictions were imposed. This chapter contains an interview with Omar Al Olama, Minister of State for Artificial Intelligence.
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The Indonesian government set a tax revenue target of Rp1786trn ($125.9bn) for the year and had successfully collected 86.5% of that figure by the end of December 2019. In 2020 the target was raised to Rp1861.7trn ($131.2bn). This chapter offers an overview of Indonesia’s tax system, including the proposed omnibus laws, international taxation, zero-rated services, tax concessions and the luxury good sales tax, as well as outlines the online single submission system for the electronic processing of tax allowance applications and analyses regulatory efforts to boost the digital ecosystem. This chapter contains a viewpoint from Subianto, Partner and Digital Services Co-Leader, PwC Indonesia.
Explore chapterTourism & Entertainment
Buy digital copy of this chapter - £18The second half of 2019 saw some of the most exciting developments yet for Saudi Arabia’s tourism sector. In a softening of regulations, the government created a new visa category for tourists as it looks to grow the industry. While the full extent of the impact of Covid-19 on Saudi Arabia’s tourism sector was difficult to gauge as of March 2020, it is clear that the pandemic is set to significantly affect tourism numbers not just in the Kingdom but around the world for the year. In the long term, however, the prospects for the sector look bright, with efforts to open up Saudi Arabia’s once little-known and undiscovered landscapes, history and culture to foreign visitors.
Explore chapterTax
Buy digital copy of this chapter - £18On December 13, 2018 Qatar repealed the decade-long Income Tax Law (Law No. 21 of 2009) and issued the new Income Tax Law (Law No. 24 of 2018). Executive regulations (ERs) implementing Law No. 24 of 2018 were published on December 11, 2019. Highlights have been prepared based on the ERs accompanying Law No. 24 of 2018. The new ERs contain substantive changes covering the determination of taxable income, withholding tax application, exemption of Qatar/GCC natural persons, subsidiaries of listed entities and transfer pricing. The effective date of these new ERs was the day after their issuance in the Official Gazette: December 12, 2019. This chapter contains a viewpoint from Sultan Hassan Al Dosari, Chairman; and Alamgir Khan, Deputy Chairman, Grant Thornton Qatar.
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The guide contains listings of some of the leading hotels and resorts in Oman, and provides useful cultural and travel information for business and leisure visitors alike.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Kuwait, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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In conjunction with Deloitte, this chapter explores the taxation system and Mexico’s efforts to build an investor-friendly environment. It also contains a viewpoint with Ricardo González Orta, Partner, Deloitte México.
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Buy digital copy of this chapter - £18This chapter examines the legal system of the Philippines, including recent reforms that have been passed into law and their impact on the business community. The chapter covers amendments to: The New Central Bank Act; The Philippine Deposit Insurance Act; The Anti-Money Laundering Act. In addition, it provides an overview of the newly implemented Act Strengthening Compliance with Occupational Safety and Health Standards and Providing Penalties for Violations Thereof; Telecommuting Act; and the 105-Day Expanded Maternity Leave Law; and The Revised Corporation Code. This chapter also contains an interview with Alejandro Alfonso E Navarro, Managing Partner, Villaraza & Angangco Law.
Explore chapterThe Guide
Buy digital copy of this chapter - £18The guide contains listings of some of the leading hotels and resorts in Kuwait and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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Buy digital copy of this chapter - £18This chapter examines the legal system of Indonesia, focusing on the issuance of Regulation No. 24 on Electronic Integrated Business Licensing Services. Under this regulation, a single online submission system was created to streamline the licensing process, combining licences for various regional and national institutions across a range of business sectors under one electronic system, and merging several licences into one. This chapter also contains a viewpoint from Teguh Maramis, Senior Partner, Lubis Santosa & Maramis.
Explore chapterTourism & Entertainment
Buy digital copy of this chapter - £18Nestled between two seas and two continents, Saudi Arabia stretches over 2.1m sq km, an area as large as Western Europe. Its diverse landscapes offer a wide variety of scenery, while its rich history, culture and significance to Islam attract visitors from around the globe, making it one of the most-visited countries in the world. However, the tourism and entertainment sector in Saudi Arabia is on the cusp of a major change. Under the umbrella of the Vision 2030 programme, the government has set out ambitious tourism development initiatives, as well as ushering in a series of multi-billion-dollar investment projects to build new resorts, hotels and cultural attractions. This chapter contains an interview with Amr Banaja, CEO, General Entertainment Authority.
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Buy digital copy of this chapter - £18The state of Qatar, a peninsula located in the Arabian Gulf, is known for being one of the world’s foremost exporters of natural gas. Its economy has grown from being one that is dependent mainly on pearling – that is, the harvesting of pearls from molluscs – to one that is driven by the production and export of hydrocarbons and other resources. Qatar National Vision 2030 (QNV 2030) was published by the General Secretariat for Development Planning in October 2008. QNV 2030 is organised around four pillars – human, social, environmental and economic – and targets the development of several sectors and the provision of a high standard of living by the year 2030. This chapter contains an interview with Mubarak bin Abdullah Al Sulaiti, Chairman, Al Sulaiti Law Firm.
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Buy digital copy of this chapter - £18Abu Dhabi’s media sector has enjoyed rapid growth in recent years as a result of sustained emirate and federal government support as well as the increase in local content being created in its dedicated media free zone twofour54. The presence of major international media corporations in the free zone has underlined the quality of the facilities on offer, while efforts to cultivate the emergence of a skilled local workforce for the sector are paying dividends thanks to the various training and outreach programmes on offer. Strategic partnerships with regional and international media players alike should cement the emirate’s reputation as a leading media centre in the years ahead. This chapter contains an interview with Maryam Eid AlMheiri, CEO, Media Zone Authority – Abu Dhabi and twofour54.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Oman, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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Legal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Argentina’s legal framework, covering a range of topics from corporate considerations to foreign investments law. In addition, it features an interview by Jorge Pérez Alati, President, Pérez Alati, Grondona, Benites & Arntsen.
Explore chapterEducation
Buy digital copy of this chapter - £18Since enacting a constitutional change defining the right to education in 2013, Mexico has been working to implement sector reforms to enhance the national school system. As the domestic economy is primarily focused on technical export manufacturing, the reforms aim to strengthen the primary and secondary education system to increase the flow of skilled candidates to university and into the workforce. Education reform continues taking the first basic steps towards advances to modernise curricula and reduce bureaucratic inefficiencies. Successes include securing the long-awaited support of the teachers’ unions for the integration of a testing system that will hold public school teachers to a higher standard. Experts agree, however, that continuity and support for the reform process must be maintained if these steps are going to be reflected as lasting gains in the system. This chapter features an interview with David Calderón Martín del Campo, President, Mexicanos Primero.
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Buy digital copy of this chapter - £18This chapter examines the legal system of the Philippines, focusing on foreign investment limits governed by negative lists, tax reforms to support better collection of public revenue, data privacy, competition commission rules on recent mergers and other key areas. It also contains a viewpoint from Augusto A San Pedro Jr, Co-managing Partner, V&A Law.
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework within which local and international firms operate in Oman, including a look at the work being done to improve it and a summary of the regulations governing key economic sectors. This chapter contains a viewpoint from Ben Ewing, Partner, CMS.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Dubai, and contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors alike
Explore chapterHealth & Life Sciences
Buy digital copy of this chapter - £18Recent years have seen a profound restructuring of the Saudi health care sector, with major reform plans being rolled out that foresee not only future expansion, but a much more significant role for the private sector. These moves are being made are in response to a number of basic challenges, brought about by both economic and demographic developments. According to Tawfiq Al Rabiah, the minister of health, these developments mean that some SR250bn ($66.7bn) of investment in the sector will be required up to 2030. This considerable sum will be injected into a system undergoing far-reaching structural change, with increased emphasis on quality of service and the pursuit of alternative funding models to the current public purse. A major initiative to localise both staffing and materials is also under way, and is likely to see increasing investment in training and recruitment of Saudis, and support to domestic pharmaceuticals, medical equipment and supply manufacturers.
This chapter contains an interview with Dr Haitham Alfalah, CEO, King Saud Medical City.
Explore chapterMedia
Buy digital copy of this chapter - £18Qatar is a major player in the Middle Eastern and international media industries, thanks in large part to its status as the home of news channel Al Jazeera, which, since its inception two decades ago, has developed into a global network, covering events in the Middle East and worldwide in multiple languages. The country is also an important regional advertising market, particularly in regard to newspaper spend, and is emerging as a notable supporter of international cinema.
Explore chapterEducation
Buy digital copy of this chapter - £18Projected to have a workforce of 65m young adults by 2035, the country is turning its focus to education to better ensure its citizens will be prepared to perform in an increasingly competitive economy. Indonesia is the world’s fourth-most-populated country and guaranteeing that everyone has access to quality education is no easy feat, especially considering the many infrastructural challenges posed by its archipelagic terrain. While the construction of new school facilities continues to receive investment, authorities are simultaneously prioritising improvements to curriculum and teacher performance to boost the overall quality of public education. Meanwhile, the sector has seen increasing private participation since it was removed from the negative investment list in 2010, allowing foreign investment into the education sphere.
This chapter contains an interview with Mohommad Nasih, Rector, Universitas Airlangga.
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Legal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Colombia’s legal framework, covering a range of topics from the employment regime and traditional corporations to merger regulation and arbitration. In addition, it features a viewpoint by Jaime E Trujillo Caicedo, Partner and Chair of Latin America Mergers and Acquisitions Practice Group, Baker McKenzie Colombia.
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This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterICT
Buy digital copy of this chapter - £18High mobile uptake, leading smartphone penetration, and rapid expansion of wireless broadband and fibre-optic infrastructure have driven the UAE to the forefront of regional telecoms development. Although mobile tariffs are comparatively high and international volatility has affected operator profits, a recent series of consumer-friendly reforms should help control consumer charges while supporting growth. The Telecommunications Regulatory Authority has rolled out several consumer-friendly changes aimed at boosting competition, with a long-awaited infrastructure-sharing deal between the two mobile operators making significant progress in 2016. Meanwhile, the emirate’s IT sector has shown promising growth over the previous decade, bolstered by rising levels of mobile broadband service offerings, smartphone penetration and internet usage. ICT development is a critical priority for the emirate and the UAE, as reflected in both national and emirate-level, long-term economic development strategies, which have significantly expanded e-government offerings and cybersecurity initiatives in recent years.
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Buy digital copy of this chapter - £18This chapter examines the Philippines’ legal system, focusing on rules and regulations revised in 2016, new directives that affect investors, procurement and other key areas.
It also features an interview with Sylvette Tankiang, Senior Partner, V&A Law.
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Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s legal framework, covering a range of topics from improvements to the framework for intellectual property and public-private partnerships to regulations and obligations governing value-added tax. In addition, it features a viewpoint by César Maillard Canudas, Managing Partner, Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados, on the labour reform.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in the country, including a breakdown of the distinctions between conventional and Islamic banks, an outline of the employment regulations for both Omanis and foreigners, and a look at commercial and personal bankruptcy laws.
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Construction & Engineering
Buy digital copy of this chapter - £18From 2003 to 2013 Saudi Arabia’s second oil boom brought a decade of prosperity for its construction and engineering sectors, but with the brakes applied to public spending, many businesses face a more challenging landscape in 2016. Work is continuing apace on some of the most prestigious projects, such as the Riyadh Metro and King Abdullah Economic City on the Red Sea, but progress has slowed or stalled on many other schemes, and contractors, developers and suppliers face delays on new developments and payments for work they have already completed. However, there may be increased opportunities to work for a broader range of clients as the government considers ways to stimulate private sector growth in order to meet the needs of an expanding population.
This chapter contains an interview with Mounib Hammoud, CEO, Jeddah Economic Company.
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Buy digital copy of this chapter - £18This chapter introduces potential foreign investors to the different aspects of the legal system in Morocco.
This chapter contains a viewpoint from Romain Berthon and Lina Fassi-Fihri, Partners, Lefèvre Pelletier & associés, on participatory democracy in action.
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Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate, including an overview of the expected future changes to foreign direct investment (FDI) restrictions, a rundown of the recently overhauled workplace regulations and protections, and a look at the implications of the expanded scope and greater emphasis being placed on public-private partnerships (PPPs).
This chapter contains a viewpoint from Michael Kerr, Regional Managing Partner, Dentons.
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Education
Buy digital copy of this chapter - £18Over the past few decades, Indonesia has made enormous strides in ensuring most of its children get a basic education. Now the focus turns to quality, and preparing children and young adults for life in the 21st century. President Joko Widodo made education a key part of his election campaign and, after he took office in October 2014, embarked on a series of reforms designed not only to make the education system more appropriate for contemporary Indonesia, but also to help the government meet its goal of raising per capita incomes from $3500 in 2011 to $14,250-15,000 by 2025.
This chapter contains an interview with Djisman Simandjuntak, Rector, Prasetiya Mulya University.
Explore chapterICT
Abu Dhabi’s smart government initiative is a driving force behind growth in infrastructure and technology and, not insignificantly, on public take-up of smart technology for engaging with governance and other civic activities. Underscoring the advancements in Abu Dhabi’s ICT evolution, the country is on course to become the world’s first with nationwide 5G coverage, the roll-out of which should take place ahead of the Expo 2020 in Dubai. Meanwhile, revenues for the telecoms sector at the national level reached $8.9bn in 2014, a 12% rise over the $7.9bn in 2013. From the total, mobile services accounted for $6.9bn. Competition between the two state-backed operators, Etisalat and du, is strong and frequently leads to rigorous marketing campaigns, infrastructure development, bundle offerings and technological innovation. This chapter contains interviews with Rashed Al Mansoori, Director-General, Abu Dhabi Systems and Information Centre (ADSIC); and Saeed Al Ghafli, Director-General, Emirates Identity Authority (EIDA).
Explore chapterMedia
Buy digital copy of this chapter - £18Qatar has cultivated significant soft power over the last decade by hosting international events, stepping up to play a role in diplomatic mediation and developing itself into a regional and global media hub. In the mid-1990s the authorities took ambitious steps in establishing the news network Al Jazeera, which has gone on to become a highly regarded cornerstone of international broadcasting. Building on this success, the media sector has developed into a vibrant industry, evolving along with the global media landscape. Indeed, the push in recent years for the production of local, original, multi-platform content, including films, commercials, TV programmes and videos for the web, has fed into the state’s wider economic diversification goals of building up the knowledge-based sectors considered crucial to future sustainable growth.
This chapter contains an interview with Fatma Al Remaihi, CEO, Doha Film Institute.
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Buy digital copy of this chapter - £18This chapter gives an overview of Malaysia’s legal framework, focusing on key areas that include the Trans-Pacific Partnership, tariff agreements, reforms affecting the entry of foreign firms, and legislation to expand Islamic finance. This chapter contains viewpoints from Philip Teoh, Partner, Azmi & Associates; and Ahmad Lutfi Abdull Mutalip, Partner, Azmi & Associates.
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Tax
Buy digital copy of this chapter - £18This chapter gives a breakdown of the tax environment in the Philippines, examining new developments that include separate tax regimes offered in special economic zones, regulations governing transfer pricing and bookkeeping requirements. It also contains an interview with Marivic Españo, Chairperson and CEO, P&A Grant Thornton.
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Buy digital copy of this chapter - £18For some time now Colombia has been adapting its tax system with the best tools provided by international tax law in order to compete in the global arena. At the same time, the government is focusing on internal tax collection and is searching for a better distribution of the tax burden among the various actors who contribute to producing the country’s riches. This chapter provides an overview of Colombia’s tax system, covering in particular areas of special interest to international investors, such as income tax, taxation of foreign companies, value-added tax, wealth tax, as well as recent measures to harmonize the tax code in line with international guidelines.
This chapter includes a viewpoint from Zandra Guerrero, Acting Partner, BDO.
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Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Egypt, in partnership with AB & David. OBG talks to David Ofosu-Dorte, CEO, AB & David, on a new legal regime for nuclear energy.
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Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework within which local and international investors operate in Oman, including a look at the business environment for foreign investors, the different types of corporate entity recognized in Oman and a rundown of the various incentives available for inward investment. This chapter contains a viewpoint from Paul Sheridan, Managing Partner, Dentons.
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This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Construction & Engineering
Buy digital copy of this chapter - £18Despite the recent fall in oil prices, Saudi Arabia’s government is pushing ahead with its ambitious development agenda. The outlook is thus bright for the Kingdom’s construction firms, with projects planned under government’s 10th Development Plan including investments worth $258.2bn in real estate; $151.5bn in petrochemicals; and $126.7bn in electricity, gas and water. Indeed, in the short term, costs for contractors and the wider construction industry are improving as a result of the fall in oil prices. Meanwhile, foreign firms are becoming increasingly active in the market thanks to recent measures to help smooth the process of market entry for foreign contractors, an illustration of the government’s commitment to engaging foreign firms in the construction industry.
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Buy digital copy of this chapter - £18This chapter examines different aspects of the legal system in Morocco, in conjunction with Lefèvre Pelletier & associés, focusing on recent banking reforms and the impact of new rules relating to health care and the real estate sector. It also cointains a viewpoint by Romain Berthon and Lina Fassi-Fihri, Partners, Lefèvre Pelletier & associés.
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Education
Buy digital copy of this chapter - £18Ranking fourth globally in size after China, India and the US, Indonesia’s education system is large and varied, a complex interweaving of public and private systems all governed to some extent by centralised and decentralised government oversight. A succession of governments has seen education as one of the country’s most powerful economic levers and has formulated plans to exploit it by providing road maps for excellence in education, both public and private. Although the education system faces challenges all along the line, the reasons to continue to strive for academic excellence are many. This means introducing and promoting entrepreneurship, championing excellence in teacher training, changing the national exams system where necessary, encouraging vocational training to close the skills gap and ramping up innovation to compete in a knowledge-based economy within the AEC.
This chapter contains interviews with Anies Baswedan, Minister of Primary and Secondary Education and Culture; and Nenny Soemawinata, Managing Director, Putera Sampoerna Foundation.
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Tax
Buy digital copy of this chapter - £18In conjunction with PwC, OBG explores the taxation system. There is also a viewpoint from Taiwo Oyedele, Partner and Head of Tax and Regulatory Services, PwC Nigeria, on the need for reforms to streamline the tax system.
Explore chapterHealth & Life Sciences
Government expenditure on health and social care in Saudi Arabia has more than doubled in the last five years, and in 2014 the state health sector will receive SR108bn ($28.8bn), as compared to the SR52.3bn ($13.94bn) earmarked for 2009. While the health care sector faces challenges, from a growing population and increasing levels of non-communicable diseases, government spending on infra- structure, human capital and resources suggests the sector is both growing in size and improving in quality. The country is also eager to draw on international expertise to train its medical staff and equip new facilities.
Explore chapterMedia
Buy digital copy of this chapter - £18The state of Qatar has become a hub for regional broadcasters, and the country enjoys high levels of media consumption with, for example, some 81% of Qatari residents reading newspapers, compared to a figure of 65% regionally. Elsewhere, Qatar’s internet penetration rate was 85.3% at the end of 2013, according to the International Telecommunications Union, one of the highest levels in the GCC, with 72% of the state’s internet users saying that “passing time online” is important, compared to 71% regionally. Meanwhile, total advertising spend in Qatar in the first three quarters of 2014 was $461m, down 1% from $466m in the same period of 2013. Newspapers were the dominant medium on the advertising market, accounting for $353m, or 77% of overall spend.
Explore chapterHealth & Life Sciences
Government expenditure on health and social care in Saudi Arabia has more than doubled in the last five years, and in 2014 the state health sector will receive SR108bn ($28.8bn), as compared to the SR52.3bn ($13.94bn) earmarked for 2009. While the health care sector faces challenges, from a growing population and increasing levels of non-communicable diseases, government spending on infra- structure, human capital and resources suggests the sector is both growing in size and improving in quality. The country is also eager to draw on international expertise to train its medical staff and equip new facilities.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines the key elements of the Philippine tax regime, featuring an interview with Marivic C Espano, Chairperson and CEO, Punonbayan & Araullo.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Abu Dhabi’s media environment is in the midst of rapid diversification, with ongoing investment in technology and skills in line with Abu Dhabi Economic Vision 2030 goals to build a sustainable sector capable of driving long-term economic growth and creating highly skilled jobs for Emiratis. Abu Dhabi Media Zone has attracted hundreds of companies to date with film and television broadcast and production firms making up 30% of its tenants, while companies in the growing digital media segment account for another 13%. Indeed, digital platforms are forecast to outperform traditional media in MENA in the next three years, with compound annual growth of 28% anticipated over the 2013-17 period, with increased levels of e-commerce expected to be a major growth contributor across the region.
This chapter contains an interview with Noura Al Kaabi, CEO, twofour54.
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Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate in Dubai. It includes a look at how the emirate is positioning itself as a leading Islamic financial centre, a breakdown of regulations on foreign ownership and an overview of the smart city initiatives. This chapter contains a viewpoint from Michael Kerr, Regional Managing Partner, Dentons.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate. It also contains an interview with Kenneth Macfarlane, Country Senior Partner, PwC.
Explore chapterThe Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Table of Contents
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Legal Framework
Buy digital copy of this chapter - £18With a legal viewpoint from OBG partner, Todung Mulya Lubis, Senior Partner, Lubis Santosa & Maramis, this chapter navigates Indonesia’s legal framework, with focus on anti-corruption measures and other updates that may affect businesses and potential investors.
Explore chapterTourism & Culture
Buy digital copy of this chapter - £18Figures from Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) show a 13% rise in 2012 over the previous year in terms of hotel guests staying in the emirate. This trend is expected to continue as a pipeline of new facilities to capture the corporate and conference markets, as well as fresh attractions to increase the capital’s appeal as a leisure destination, come on-stream. A shift in demand towards mid-tier accommodation is also a reflection of the changing composition of the emirate’s main source markets, with increases in visitors from India, China and Russia, showing much higher y-o-y volume increases than the steadier, single-digit growth from the more traditional European and North American source markets. This chapter contains interviews with Sheikh Sultan bin Zayed Al Nahyan, Representative of the President of the UAE, and Chairman, Culture and Media Centre (CMC); and Sheikh Sultan bin Tahnoon Al Nahyan, Chairman, TCA Abu Dhabi.
Explore chapterRetail
Buy digital copy of this chapter - £18Thriving on the back of an expanding economy and surging population growth, Qatar’s retail sector is now set for further expansion. With a string of giant malls inching towards completion and existing stores undergoing refitting and refurbishing, the country looks set to establish itself as a major regional retail centre. Location will be a major factor in competition, with transport links such as the new metro likely to favour sites close to stations. Over the longer term, continuing economic and population growth will lead to greater stability in the sector, with any surplus likely to filled.
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The guide contains listings of some of the leading hotels and resorts in Dubai, as well as contact information for important government offices and services. It also contains useful tips for first-time, business and leisure visitors.
Explore chapterTax
Buy digital copy of this chapter - £18OBG’s partner, PwC provides information relating to tax in Oman, including coverage of income tax laws, exemptions and administration. This chapter contains a viewpoint from Kenneth MacFarlane, Country Senior Partner, PwC.
Explore chapterTax
Buy digital copy of this chapter - £18In partnership with Punongbayan & Araullo, OBG explores the Philippine tax system, with a focus on incentives, regulations, reporting framework, and other areas of interest to business and investment in the Philippines. This section also contains an interview with Marivic C Espana, Chairperson and CEO, Punongbayan & Araullo.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with PwC Nigeria, OBG explores the taxation system, examining Nigeria’s investor-friendly environment. OBG talks to Taiwo Oyedele, Partner & Head of Tax, PwC Nigeria.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Although sporadic conflict over the past 15 years has complicated development efforts in Côte d’Ivoire’s media sector, more recently new opportunities for growth in each form of media have emerged. The print media faces serious financial constraints, yet the return to relative stability is set to enable vendors to sell publications to areas previously isolated by fighting, while the expected liberalisation of the state-dominated television sector will stimulate competition and growth in the audio-visual segment. Unexploited niche areas within print and audio-visual media will also likely offer opportunities for new entrants into the market.
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Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in South Africa, in partnership with WEBBER WENTZEL. David Lancaster, Senior Partner, Webber Wentzel, talks to OBG.
Explore chapterICT
Buy digital copy of this chapter - £18The ICT sector is undergoing considerable development as the government implements its Vive Digital Plan, a strategy that targets the overall improvement of telecommunications connectivity and is expected to facilitate $12.5bn worth of investments into the sector between 2011 and 2014. The telecoms sector saw the mobile penetration rate surpass 100% in 2012 and its first major auction of 4G spectrum in 2013. While it still faces major challenges, the auction will improve network quality and increase the Vive Digital Plan’s budget considerably. Likewise the IT market has expanded, bringing in $5.8bn in revenue in 2012 as the adoption of new technologies increases, creating more opportunities for internet providers, software engineers and many other segments. This chapter includes an interview with Diego Molano Vega, Minister of Information and Communications Technology.
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Morocco, in partnership with Kettani Law Firm. Nadia Kettani, Partner, Kettani Law Firm, talks to OBG.
Explore chapterHealth & Life Sciences
Buy digital copy of this chapter - £18Saudi Arabia has a growing population that, combined with increased life expectancy and a rising rate of so-called lifestyle diseases such as diabetes, means demand for health care services is set to continue to grow for the foreseeable future. Yet while the state remains the largest player in the health care industry, providing free treatment to nationals and stepping up spending, the authorities are working to encourage the expansion of the already substantial private health sector. There are indications that progress is being made; growth in the private sector seems to be higher than in the public sector in some areas, with the number of private hospital beds growing by 18% between 2007 and 2011. In addition, a number of large infrastructure projects are under way, including a new medical city in the south of the country and a children’s and maternity hospital in Al Jouf. Private companies are also investing in expansion, while foreign firms are stepping up their commitments within the sector.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Recent growth within the media and advertising sector has highlighted the potential of local creative industries. Indeed, going forward the industry is expected to expand considerably, with advertising projected to top $94m in 2015. However, the sector is also undergoing a number of important changes. Newspaper and radio advertising, for example, is expected to decline slightly between 2011 and 2015, while the use of mobile phones to access digital content, we well as the popularity of social media sites are trends that are reshaping the sector. Furthermore, in recent years social networking has overtaken news and information as the most popular online activity among UAE internet users. Abu Dhabi and the wider UAE are also seeing continued efforts to expand the availability of Arabic-language content, another key theme within the sector. This chapter includes an interview with Noura Al Kaabi, CEO, Abu Dhabi Media Zone Authority – twofour54.
Explore chapterTax
Buy digital copy of this chapter - £18The Indonesia tax system continues to evolve, but, for several years, has been mainly based on three primary tax laws – the General Tax Provisions and Procedures Law, the Income Tax Law, and Luxury Sales Tax Law. These tax laws are routinely amended to accommodate the rapidly changing business environment and to support the government objectives of improving the investment climate while increasing tax revenues. This chapter contains a viewpoint from Irhoan Tanudiredja, Senior Partner, Pricewaterhouse Coopers.
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This section includes an article about Fraser’s Hill, a secluded getaway from Kuala Lumpur offering unique trekking, golfing and cuisine options. OBG also offers information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Legal Framework
Buy digital copy of this chapter - £18With assistance from Clyde & Co, this chapter looks at how Qatar’s emphasis on its infrastructure has yielded several interesting legal developments, including a new focus on occupational health, safety and environment (HSE), and a risk-centric consideration of the way in which business is conducted in the construction sector. This chapter also explains the options for foreign business operations and outlines recently passed laws and regulatory changes in Qatar. It also includes a viewpoint with David Salt, Partner at Clyde & Co, on standardising safety regulations.
Explore chapterTourism
Buy digital copy of this chapter - £18Given the country’s remoteness from traditional tourist markets, PNG understandably remains a niche market, catering to travellers looking for a truly out-of-bounds experience. PNG’s strategy is not to appeal to the mass market, but to increase its prominence in the adventure tourism sector. One key accomplishment was the passage of a land act that will allow developers to negotiate the use of and purchase native customary land, making hotel building and trekking easier to manage. In addition to the country’s low profile, however, PNG tour operators also have to contend with high airfare prices and crime levels. This chapter contains an interview with Peter Vincent, CEO, Papua New Guinea Tourism Promotion Authority (PNG TPA).
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This section features an article on Petra, which is widely regarded as the crown jewel of Jordanian tourism. The chapter also includes a listing of the country’s leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about language, weather, visas, currency and more.
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in South Africa, in partnership with Edward Nathan Sonnenbergs. Koos Pretorius, Director, Edward Nathan Sonnenbergs, talks to OBG.
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Tax
Buy digital copy of this chapter - £18In conjunction with Punongbayan & Araullo, OBG explores the taxation system. This chapter features an interview with Marivic C Españo, Managing Partner and CEO, Punongbayan & Araullo.
Explore chapterMedia and Advertising
Buy digital copy of this chapter - £18With hundreds of newspapers, magazines, and television and radio stations, Mongolia’s media scene is competitive, dynamic and increasingly varied. The sector’s strong growth, with new outlets opening on a regular basis, reflects the vibrancy of Mongolia’s growing democracy. Television is the main medium of consumption, with cable becoming increasingly popular, and eight new broadcast channels opened in 2010 alone. The launch of Bloomberg TV Mongolia, for example, highlights both the growing importance of Mongolia as well as the maturity of the media market. This burgeoning audience has also translated into the growth of advertising.
Explore chapterTax
In conjunction with PricewaterhouseCoopers, OBG explores the taxation system. This chapter includes a viewpoint from Irhoan Tanudiredja, Senior Partner, PricewaterhouseCoopers.
Explore chapterConstruction & Engineering
Despite the recent fall in oil prices, Saudi Arabia’s government is pushing ahead with its ambitious development agenda. The outlook is thus bright for the Kingdom’s construction firms, with projects planned under government’s 10th Development Plan including investments worth $258.2bn in real estate; $151.5bn in petrochemicals; and $126.7bn in electricity, gas and water. Indeed, in the short term, costs for contractors and the wider construction industry are improving as a result of the fall in oil prices. Meanwhile, foreign firms are becoming increasingly active in the market thanks to recent measures to help smooth the process of market entry for foreign contractors, an illustration of the government’s commitment to engaging foreign firms in the construction industry.
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Media
Buy digital copy of this chapter - £18Abu Dhabi’s media sector has evolved rapidly in recent years, establishing the emirate as a regional centre for film, television and social media. Sustained government support at both the emirate and the national level has been key to the sector’s success. Carefully calculated promotion has attracted investment and encouraged collaboration in the production of local content in Abu Dhabi’s dedicated media free zone, twofour54. Major developments took place in 2019 in the film and TV broadcast segments, which saw the signing of new partnerships and considerable investment, while the advertising segment followed global shifts placing more emphasis on social media platforms. This chapter contains an interview with Maryam Eid AlMheiri, Vice-Chair, twofour54; and CEO, Media Zone Authority – Abu Dhabi.
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This chapter examines the legal system of Indonesia, focusing on regulations to boost investor appeal and enhance the ease of doing business. These include measures for the regulation of e-commerce activities to support ongoing digitalisation, data protection legislation and the proposed omnibus laws. This chapter contains a viewpoint from Teguh Maramis, Senior Partner, Lubis Santosa & Maramis.
Explore chapterTax
Buy digital copy of this chapter - £18Saudi Arabia’s income tax rules are governed by the Income Tax Law, which came into force in 2004. The Tax Law is supplemented by implementing regulations. Zakat, for its part, is governed by the implementing regulations for zakat collection. The Ministry of Finance issues resolutions concerning aspects of tax and zakat, and the General Authority of Zakat and Tax (GAZT) regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. The GAZT generally takes a substance-over-form approach in dealing with tax matters. This chapter contains a viewpoint from Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster.
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The guide contains listings of some of the leading hotels and resorts in Qatar, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
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Legal Framework
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This chapter introduces the reader to the different aspects of the legal system in Mexico in partnership with Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados; and Aguirre, Aguirre and Associates. It also contains a viewpoint with César Maillard Canudas, Managing Partner, Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados.
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This chapter contains selected listings of some of the country’s top hotels across a range of its regions, as well as contact details for a range of different embassies, ministries, prominent organisations and other important bodies. In addition, it contains a guide of helpful tips for both leisure travellers and business visitors operating in a professional environment. The chapter also offers other useful suggestions for those travelling to the Philippines. This chapter also contains local insight from Ebb Hinchliffe, Executive Director, American Chamber of Commerce of the Philippines.
Explore chapterThe Guide
This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travellers and other useful suggestions for travel to Indonesia.
Explore chapterTax
Buy digital copy of this chapter - £18Corporate income tax rules are governed by the Income Tax Law, which came into force in 2004. The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, a payment under Islamic law that is used for charitable or religious purposes. The General Authority of Zakat and Tax (GAZT) regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. The GAZT generally prefers to take a substance-over-form approach in dealing with tax matters. The GAZT often scrutinises transactions and challenges taxpayers if they view transactions as being motivated by non-commercial tax reasons. This chapter contains a viewpoint from Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster.
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The guide contains listings of some of the leading hotels and resorts in Qatar and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
Explore chapterRetail
Buy digital copy of this chapter - £18With a strong pipeline of retail space under construction, including major regional destination malls and shopping developments to serve untapped communities, Abu Dhabi’s consumers can look forward to new experiences, fresh brands and greater choice. Existing operators are re-thinking mall management to give more prominence to food and beverage outlets, such as fine dining and the latest fast-food concepts, to reflect the changing tastes of a cosmopolitan population. Retail has a key role to play in the business environment as part of the emirate’s strategic shift towards a more diversified economy as described in the Abu Dhabi Economic Vision 2030. Entrepreneurial Emiratis are currently behind many of the enterprises that form the bedrock of the sector. This chapter contains an interview with Tariq Ahmed Saeed Al Wahedi, CEO, Agthia Group.
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The Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate tax liabilities, tax treaties, free trade agreements, and other investor considerations. This chapter contains an interview with Ricardo González Orta, Partner, Deloitte México.
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This chapter contains selected listings of some of the country’s top hotels, contact details for embassies, ministries and organisations, helpful tips for business and leisure travelers, and other useful suggestions for travel to the Philippines.
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Buy digital copy of this chapter - £18There are no articles in this chapter. To view the table of contents, please open click the "View in online reader" link above.
The Guide
The guide contains listings of some of the leading hotels and resorts in Oman, as well as contacts for important for important government offices and services. It also contains useful tips and information for first-time or regular travellers.
Explore chapterTourism
Buy digital copy of this chapter - £18Nestled between two seas and two continents, Saudi Arabia stretches over 2.1m sq km, an area as large as Western Europe. Its diverse landscapes offer a wide variety of scenery; while its rich history, culture and significance in the Muslim religion attract visitors from around the world, making it one of the most visited countries in the world. At around 31.7m – one-third of whom are expatriates – the Kingdom has the largest population of any country in the GCC region providing it with a sizeable source of domestic tourism. Furthermore, Saudi Arabia had an estimated GDP of $689bn in 2017, ranking it as a high-income country, meaning its inhabitants have substantial purchasing power that could be flexed in the travel sector. It comes as no surprise, then, that developing the country’s tourism sector has become a key priority in recent years, especially given that Saudi Arabia is seeking to boost diversification of its domestic industries away from hydrocarbons dependency.
This chapter contains an interview with Prince Sultan bin Salman bin Abdulaziz Al Saud, Chairperson and President, Saudi Commission for Tourism and National Heritage.
Explore chapterRetail
Buy digital copy of this chapter - £18Qatar’s organised retail sector benefits from the country’s high levels of wealth and is currently going through a period of rapid expansion, with gross leasable area nearly doubling in 2017 alone thanks to a strong pipeline of mall openings. In April 2017 two of the largest of these, Mall of Qatar and Doha Festival City, opened their doors. However, the openings come at a time of lower oil and gas prices and regional disruption due to the ongoing economic blockade, imposed in June 2017 by several Arab nations, along with a population that has seen a levelling out in terms of growth. This should generate greater competition for shoppers, potentially giving rise to a clearer demarcation between premium and second-tier facilities in the coming years as more retail area comes on-line.
Explore chapterTax & Business
Buy digital copy of this chapter - £18This chapter examines Indonesia’s tax regime, focusing on its recently completed tax amnesty programme, new zone-based concessions established to attract investors, digitalisation of tax administration and other key areas.
It also contains a viewpoint from Ay Tjhing Phan, Tax Leader, PwC.
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The Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation throughout Colombia.
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Media
Buy digital copy of this chapter - £18The media sector in Abu Dhabi looks set for continued growth as ongoing efforts to attract major international companies to twofour54, the emirate’s dedicated media free zone, continue to bear fruit. Expansion efforts are underpinned by the rollout of the physical infrastructure required to support the sustainable growth of the sector, as well as the numerous initiatives in place to foster the emergence of a local talent base. Meanwhile, the international partnerships forged by media players in recent years will ensure that the aims outlined in the Abu Dhabi Plan to cement the emirate’s reputation as a prominent media hub in the region are met. Looking ahead, the continued migration of media away from print towards online resources has resulted in a corresponding shift in advertising revenue streams, and although the MENA region has historically lagged behind in this regard, the GGC is now looking forward to a significant growth in digital advertisement spend.
This chapter contains an interview with Maryam AlMheiri, CEO, twofour54.
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This chapter contains hotel listings for business and leisure travellers, useful contact information for government ministries, phone numbers for business associations and other institutions, as well as helpful tips for new arrivals to the country.
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This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation throughout Mexico.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Oman and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterEducation & Training
Buy digital copy of this chapter - £18Saudi Arabia is a youthful country, a third of its population being under the age of 15, and in recent years the country’s leaders have invested billions of dollars to educate these young people to lead the planned transformation of the country from an oil-rich state to a diversified, knowledge-based economy. School enrolment numbers and university graduation statistics have improved, though the ultimate goal of realigning the Saudi workforce has proved more elusive. The focus of many of the recent efforts in the education and training sector are on providing young people with the soft skills and vocational qualifications that are required by the private sector job market.
This chapter contains interviews with Ahmed Aleissa, Minister of Education; Ahmed Alfahaid, Governor, Technical and Vocational Training Corporation; and Khaleel Alibrahim, Rector, University of Hail.
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This section includes information on hotels, government and other telephone listings, and useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Dubai, and contacts for important government offices and services. It also contains useful tips and information for first-time, regular, business and leisure visitors alike.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter gives an overview of Indonesia’s legal system, focusing primarily on new policies that aim to improve the business environment, processing time for investment licences, sectors opening to foreign investment, business start-up costs, and other subjects of interest to investors.
It also contains a viewpoint from Todung Mulya Lubis, Senior Partner, Lubis, Santosa & Maramis, on welcoming foreign direct investment.
Explore chapterRetail
Buy digital copy of this chapter - £18The combination of high disposable income, a growing population and rising tourist arrivals makes Qatar an attractive market for retailers of all segments. On the back of real GDP growth of 3.7% in 2015, private consumption was expected to have expanded by 9.5% in 2015, according to BMI Research. This surge is projected to continue, with household spending forecast to increase by an average of 15.8% per year through to 2020. Such momentum largely depends on broader growth in retail trade, hotels and restaurants, for which combined sales rose by 10.47% to reach $15.82bn in 2015, or 9.2% of GDP, according to figures from the Ministry of Development Planning and Statistics and the Qatar Central Bank.
This chapter contains an interview with Abdul Aziz Mohammed Al Rabban, Chairman, Business Trading Company; and Partner, Place Vendôme, Qatar.
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This chapter contains a selection of leading hotels and resorts, contact details of ministries, associations and services, tips for business travellers, and a feature piece on the Danum Valley.
Explore chapterEnvironment
Buy digital copy of this chapter - £18The federal government’s recent efforts to reduce the nation’s environmental impact have started to bear fruit. A three-year plan was announced in late 2014 for reusing 100% of recycled water. Currently Abu Dhabi treats all 800,000 cu metres of the wastewater generated daily, of which 60% is reused while 40% returns to sea. Meanwhile in early 2015 legal moves were made to endorse the expansion of the emirate’s protected areas, oversight of which falls under the Environment Agency – Abu Dhabi. Elsewhere a 25-year recycling plan will break Abu Dhabi into zones, with recycling centres being developed according to the types of waste generated in those particular areas. This chapter includes an interview with Razan Khalifa Al Mubarak, Secretary-General, Environment Agency – Abu Dhabi (EAD).
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This chapter contains facts for visitors, a list of recommended hotels, and a numbers listing for chambers of commerce, government offices, foreign missions and other important contacts. It also highlights suggested destinations throughout the archipelago for travelers to consider when visiting the Philippines.
Explore chapterThe Guide
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation, among others.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Oman and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
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Table of Contents
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Education & Training
Buy digital copy of this chapter - £18Education continues to be a major focus for Saudi Arabia, with an estimated $399.75bn spent on education between 2005 and 2015. This trend is set to continue, as the creation of a knowledge economy forms the third objective of the Kingdom’s 10th Development Plan. Private instruction continues to gain in popularity – the number of pupils at private schools grew by about 9% a year between 2008 and 2011 and currently makes up around 14% of the K-12 sector. Under the Kingdom’s Colleges of Excellence programme, meanwhile, international training providers run a range of vocational courses and build their own curricula to be taught at purpose-built facilities supplied free of charge by the Saudi government. Regionally, the e-learning market in the broader Middle East is set to expand by 8.2% annually as governments invest to support the segment.
This chapter contains interviews with Azzam Al Dakhil, Minister of Education; Ali Al Ghafis, Governor, Technical and Vocational Training Corporation (TVTC); Abdullah Al Mosa, CEO, Saudi Electronic University (SEU); and Badran Al Omar, Rector, King Saud University.
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This chapter offers useful facts for visitors, including information about local customs and etiquette, access to health care, visas and local languages. Readers can also find a hotel listing and contact information for foreign missions, legal services, banks, airlines and other institutions.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter examines Indonesia’s tax environment, focusing on changes to the tax system and regulations for potential investors. It also contains a viewpoint from Ay Tjhing Phan, Tax Leader, PwC.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. There is also a viewpoint from Ovie Ukiri, Managing Partner, Ajumogobia & Okeke, on the Pension Reform Act of 2014.
Explore chapterTelecoms & IT
Saudi Arabia is an early adopter of telecommunications technologies. It was one of the first countries in the Gulf to launch LTE, for instance, and is now preparing to roll out even more advanced infrastructure. Services like fibre-to-the-home will soon be on offer, and while prospects for major additional growth in both the mobile and fixed-line voice segments appear limited, rising smartphone ownership is expected to drive data revenues going forward. This chapter contains interviews with Mohamed Jamil bin Ahmed Mulla, Minister of Communications & IT; Abdulaziz Al Sugair, Chairman, Saudi Telecoms Company; Hassan Kabbani, CEO, Zain Saudi Arabia; and Bejad Al Harbi, Chairman, Technology Control Company.
Explore chapterRetail
Buy digital copy of this chapter - £18With strong foundations in a thriving economy, a young population and a maturing consumer base, Qatar’s retail sector looks set to maintain robust growth as the country continues to develop into a major regional centre for trade and commerce. The state’s luxury retail segment in particular has witnessed strong growth in recent times with the rapid growth of the economy providing luxury retailers with a large and wealthy consumer base. A total of 14 new malls are in the pipeline and are set to add more than 1m sq metres of retail space over the next three years. In addition to malls, mixed-use projects are also being developed in Doha with one such development set to include 640 retail stores and 56,600 sq metres of leasable shopping space when fully operational.
Explore chapterTelecoms & IT
Saudi Arabia is an early adopter of telecommunications technologies. It was one of the first countries in the Gulf to launch LTE, for instance, and is now preparing to roll out even more advanced infrastructure. Services like fibre-to-the-home will soon be on offer, and while prospects for major additional growth in both the mobile and fixed-line voice segments appear limited, rising smartphone ownership is expected to drive data revenues going forward. This chapter contains interviews with Mohamed Jamil bin Ahmed Mulla, Minister of Communications & IT; Abdulaziz Al Sugair, Chairman, Saudi Telecoms Company; Hassan Kabbani, CEO, Zain Saudi Arabia; and Bejad Al Harbi, Chairman, Technology Control Company.
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This chapter contains useful information for those considering travel to the Philippines, including hotel listings, phone numbers for government offices, business organisations and other important contacts, as well as tips for etiquette, transport and health. It also contains a features peace examining ecotourism opportunities across the archipelago.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18The telecoms industry is valued at $7.9bn and currently accounts for 3% of national GDP with the sector witnessing expansion of 6.6% in 2013, comparing favourably with the country’s overall GDP growth of 5.2%. Meanwhile the ICT sector added $5.7bn in real terms to the economy in 2013, representing a rise of 13.2% and equivalent to 2.9% of GDP. Indeed ICT has been a government focus in recent years, representing both a target and an enabler of diversification in the emirate with the public sector acting as the main driver of ICT spending and investment. With this ongoing investment in the sector, Abu Dhabi is positioning itself to capture growing regional demand for technological services while simultaneously putting itself at the forefront of the Gulf’s high-tech future.
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The guide includes listings of some of the leading hotels and resorts in Dubai and contact details for important government offices and services. It also contains useful tips and information for business and leisure visitors alike.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate in Oman. This chapter includes an interview with Paul Sheridan, Partner, Dentons.
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The Guide
The Guide offers readers useful facts for visitors, including business etiquette, procedures for obtaining a visa, and tips for transport. It also contains a list of suggested hotels as well as the locations and phone numbers for embassies, hospitals, travel agencies and other important contacts for visitors. This chapter also features a guide piece on Indonesia’s Komodo National Park, home to the giant Komodo Dragon.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18This chapter contains an introduction to general issues for foreign investors in Qatar, an in-depth look at tax regulations, the perks for would-be investors offered by the Qatari Financial Centre, and information about the steps being taken to protect organisations in Qatar from fraud and other crimes. This chapter contains a viewpoint from Stephen Anderson, Managing Partner, PwC Qatar.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18Abu Dhabi is home to a dynamic media market with a broad range of players catering to a variety of interests and tastes. Efforts to become a leading producer and exporter of creative content and media services are driving growth, as the sector’s development has been identified as a key part of fulfilling broader ambitions of diversification under the Abu Dhabi Economic Vision 2030. The emirate is aiming to become a regional centre for generating Arabic content across a variety of segments, particularly gaming, animation and e-learning. Advertising is also an important market, as the UAE is the MENA region’s largest advertising market, with total spending estimated at $1.2bn in the first nine months of 2013.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG’s partner Curtis, Mallet-Prevost, provides a detailed review of the rules and regulations that are applicable to foreign entities doing business in Oman, covering current trends and possible legislative changes. This chapter contains a viewpoint from Bruce Palmer, Managing Partner, Curtis, Mallet-Prevost in Oman.
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The Guide
For those interested in doing business in the Philippines, The Guide offers helpful information, including suggested hotels, phone numbers for key contacts, and facts for visitors. This section also contains a sights and sounds feature on the island province of Coron, a premier destination for tourists.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. OBG talks to Ovie Ukiri, Managing Partner, Ajumogobia & Okeke, on transfer pricing regulations.
Explore chapterTax
Buy digital copy of this chapter - £18The tax system in Côte d’Ivoire is based on the legislation that existed at the time of the country’s independence in 1960. It has since undergone several amendments intended to take into account the country’s economic and social evolution and budgetary constraints. A powerful and qualified tax authority enforces taxpayers’ obligations.
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This section provides information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18Identified as one of five sectors with strategic importance for its ability to bring about growth in other sectors, the research and innovation sector is set to undergo development in the near future as the 2012 tax reform will see 10% of all revenues from the extractive industries go towards funding innovative projects promoted by regional governments. The contribution of innovation to the country’s economic growth remains small, but efforts are under way to strengthen innovation facilitators, encourage the formation of innovation-based clusters and links between local, regional and national stakeholders and realign academia, researchers and the private sector. These initiatives have already shown some positive signs as a growing number of multinationals are setting up or expanding their research activities in the country, a trend expected to continue.
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This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As the largest telecommunications market in the Gulf, Saudi Arabia also stands out as one of the region’s most competitive markets. Mobile subscription penetration rates are among the highest in the world, standing at close to 200% of the population. Furthermore, smartphone sales grew 154% in 2010, bringing their share of the hardware market to 32%, while rising demand for tablet computers has eaten into sales of traditional PCs. This, in turn, is impacting levels of internet use; the proportion of individuals using the internet in the Kingdom stood at 47.5% in 2011, up from 41% the previous year and from 19.46% five years previously. This is boosting government efforts at addressing concerns over the relative paucity of Arabic-language content on the internet. Looking ahead, internet use, as well as the hardware and IT services market, look set to continue to grow, with state investment likely to drive growth in services in particular. This chapter includes an interview with Ghassan Al Shibl, CEO, Advanced Electronics Company.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter provides an overview of tax regulations in Abu Dhabi. It includes information on corporate taxation, foreign investment incentives and free trade zone advantages for foreign businesses. It also provides a guide to intellectual property law and import taxation.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter features an outline of the various government regulations and laws that govern business in Indonesia. Included is information about public-private partnership regulations, business permits, cooperation agreements, and definitions, objectives, scope, method of execution and form of cooperation. This chapter contains a viewpoint from Todung Mulya Lubis, Senior Partner, Lubis, Santosa & Maramis.
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The Guide
This section includes an article focusing on Qatar’s strong equestrian tradition. In recent years, leaders have been making moves to reintroduce the state’s equestrian past. This has involved investing in facilities at home, as well as building up Qatar’s profile in racing circuits abroad. The chapter also includes a listing of leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about language, weather, visas, currency and more.
Explore chapterEducation
Buy digital copy of this chapter - £18Decades of underinvestment in PNG’s education sector have led to declining standards: literacy rates had reportedly dropped to as low as 15-25% by 2011, and state spending on universities has fallen tenfold since independence. New state revenues, however, have many optimistic that these trends will be reversed. In 2009, the government abolished school fees for grade 1-10, which has increased retention rates. Additionally, the number of teachers more than doubled from 2003 to 2010, and the Department of Education plans to add more. Still, PNG will need major, sustained investment in its education system if it hopes to recover from years of neglect. This section contains an interview with David Arore, Minister of Higher Education, Research, Science and Technology (RST).
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Legal Framework
In partnership with Lubis Santosa & Maramis, OBG takes a look at Indonesia's legal system. Important changes include new rules on cost recovery in the hydrocarbons sector, laws on investment. This chapter includes a viewpoint from Todung Mulya Lubis, Senior Partner, Lubis Santosa & Maramis.
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This section includes an article about urban renewal in South Africa, as well as information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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This section includes an article about Palawan, the Philippines’ pristine island province, which features untouched reefs and unmatched biodiversity. OBG also provides information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and transport.
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Buy digital copy of this chapter - £18In conjunction with Ernst & Young, OBG explores the taxation system. Peter Markey, Partner, Ernst & Young, shares a viewpoint on building a qualified workforce for professional services.
Explore chapterEducation & Training
Education continues to be a major focus for Saudi Arabia, with an estimated $399.75bn spent on education between 2005 and 2015. This trend is set to continue, as the creation of a knowledge economy forms the third objective of the Kingdom’s 10th Development Plan. Private instruction continues to gain in popularity – the number of pupils at private schools grew by about 9% a year between 2008 and 2011 and currently makes up around 14% of the K-12 sector. Under the Kingdom’s Colleges of Excellence programme, meanwhile, international training providers run a range of vocational courses and build their own curricula to be taught at purpose-built facilities supplied free of charge by the Saudi government. Regionally, the e-learning market in the broader Middle East is set to expand by 8.2% annually as governments invest to support the segment. This chapter contains interviews with Azzam Al Dakhil, Minister of Education; Ali Al Ghafis, Governor, Technical and Vocational Training Corporation (TVTC); Abdullah Al Mosa, CEO, Saudi Electronic University (SEU); and Badran Al Omar, Rector, King Saud University.
Explore chapterTax
Buy digital copy of this chapter - £18The UAE currently has no system of federal income taxation. Instead, most of the emirates – including Abu Dhabi – enacted their own corporate tax decrees in the 1960s. These emirate-level decrees are of general application and remain in force as amended. In practice, however, corporate income tax is only enforced on oil and gas companies engaged in upstream activities, certain petrochemicals firms and, under separate banking tax decrees, branches of foreign banks. Entities established within free trade zones (FTZs) are subject to the rules, regulations and tax regime of that FTZ, as well as applicable federal tax regulations such as value-added tax. FTZs generally offer companies and branches a complete exemption from all emirate-level taxes or a 0% tax rate. The length of these tax holidays typically ranges from 15 to 50 years from the date that the entity registers with the FTZ, with a possibility of renewal upon expiry. This chapter contains a viewpoint from Mark Schofield, Partner, PwC Middle East Tax & Legal Services Leader.
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This chapter contains selected listings of some of the country’s top hotels, and helpful tips for business and leisure travellers coming to Indonesia. This chapter contains an interview with Chris Wren, Executive Director, British Chamber of Commerce Indonesia.
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Explore listings of some of the leading hotels and resorts in Saudi Arabia, as well as access useful tips and information for both business and leisure visitors. This chapter contains an interview with Cihan Yilmaz, General Manager KSA, MAPA Construction & Trade Company.
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Buy digital copy of this chapter - £18Saudi Arabia’s Capital Market Authority approved updated corporate governance regulations for joint-stock companies listed on the Saudi Stock Exchange (Tadawul) in February 2017, and amended them in May 2019. The regulations set standards for best corporate practices by promoting accountability, clarity and transparency for management, board members, shareholders and stakeholders. This overview covers shareholder rights, the responsibilities of an organisation’s Board of Directors, competition law, tenders and procurement, arbitration and bankruptcy. This chapter contains a viewpoint from Zeyad Khoshaim, Managing Partner, Khoshaim & Associates.
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The Guide
This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Saudi Arabia as well as contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors alike.
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Agriculture & Food Security
Buy digital copy of this chapter - £18The local authorities are continually looking at ways to improve domestic food production, efforts which can in turn support and work alongside the various strategies in place to ensure Abu Dhabi’s food security as well as that of the wider UAE. Despite a desert climate and significant barriers to large-scale agricultural production, a strong focus has been placed in recent years on the management of key resources such as water, with an increased push into areas like greenhouses, hydroponics and the overall modernisation of the agriculture sector. This comes at a time when Abu Dhabi’s population, and therefore its food requirements, continue to grow. This chapter contains an interview with Mariam bint Mohammed Almheiri, Minister of State for Food Security.
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Legal Framework
Buy digital copy of this chapter - £18This chapter provides an overview of Mexico’s legal framework, covering a range of topics from fiscal reforms to national water laws to ensure sustainable development. In addition, it features a viewpoint by César Maillard Canudas, Managing Partner, Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados.
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Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia including an explanation of the Value-added tax introduced on January 1, 2018, a summary of the parallel systems for zakat and corporate income tax, and a rundown of the taxation treaties in place to help promote foreign investment.
This chapter contains a viewpoint from Riyadh Al Najjar, Country Senior Leader, PwC Saudi Arabia.
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Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Qatar, including a summary of the general rules governing nationals and non-residents, the system requirements for locals and foreign entities, and an analysis of value-added tax, which is to be introduced at a standard rate.
This chapter contains a viewpoint from Wadih AbouNasr, Country Senior Partner, PwC Qatar.
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Buy digital copy of this chapter - £18This chapter examines Indonesia’s legal system, focusing on laws passed to enhance trademark protection; procedural changes set to speed up the registration process and other major developments.
It also contains a viewpoint from Todung Mulya Lubis, Founder and Senior Partner, Lubis Santosa & Maramis.
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Retail
Buy digital copy of this chapter - £18Driven by healthy population growth, world-leading income per capita, and steady demand for high-end retail space, Abu Dhabi’s retail industry has undergone years of strong expansion, leading to an influx of new project completions between 2013 and 2015. The industry, like many others, is beginning to feel the pains of reduced economic expansion, as lower global oil prices and the strengthening US dollar are expected to impact spending and tourism growth in the coming years. At the same time, two large-scale “super-regional” malls, on Al Maryah Island and Al Reem Island, are slated to open in 2018, intensifying competition and weighing on retail rents. Increased competition has nonetheless spurred innovation in the sector. Developers are increasingly linking retail developments to tourist attractions and residential complexes, and have sought to incorporate long-term urban planning considerations such as creating free public spaces and community centres. The grocery segment meanwhile is set to kick-start growth in the UAE’s nascent e-commerce industry, offering new opportunities for investment and expansion.
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Health & Life Sciences
Buy digital copy of this chapter - £18Public and private sector investment in Saudi Arabia’s health care industry continues to be fuelled by the growing demands of a rising population and the increasing prevalence of lifestyle-related diseases. Although the 2016 health care budget was down on the historic high of 2015, industry players are confident of changes to enhance efficiency and promote better allocation of resources, as the rollout of government initiatives and projects already in the pipeline moves ahead. Moreover, what scale-backs are taking place are expected to open opportunities for more vigorous private sector involvement, as called for in the National Transformation Programme, released in June 2016. Meanwhile, a greater focus on preventive care is being encouraged to tackle the rise of chronic and lifestyle-related diseases, and an increasing number of Saudis are enrolling in courses at the Kingdom’s medical colleges, which bodes well for a sector historically reliant on foreign expertise.
This chapter contains an interview with Dr Haitham Alfalah, CEO, King Saud Medical City.
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Tax
Buy digital copy of this chapter - £18This chapter examines Indonesia’s tax regime, focusing on a newly improved amnesty facility, income tax breaks available for pioneer industries, a new effort to improve data collection and processing, and the reduction of luxury goods tax for certain products.
It also contains a viewpoint from Ay-Tjhing Phan, Tax Leader, PwC Indonesia.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Qatar, including a rundown of the tax rules that apply to businesses and how moves to widen the tax base are likely to affect future policy.
This chapter contains a viewpoint from Wadih AbouNasr, Country Senior Partner, PwC Qatar.
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Agriculture & Food
Buy digital copy of this chapter - £18The authorities in Abu Dhabi are seeking to develop the local agriculture and food-processing sector as part of wider efforts to improve food security and diversify the economy, with the emirate now emerging as an important regional food-processing center. Dates are Abu Dhabi’s most important crop and largest agricultural export by value, while there were 31 commercial livestock farms operating in Abu Dhabi in 2014, up from 26 a year before. Meanwhile, consumption of local produce grew at a compound annual growth rate of 28.4% between 2010 and 2013 in terms of volume, compared to 7.9% for the market as a whole.
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Health & Life Sciences
The government represents the biggest provider of health care services in Saudi Arabia, accounting for about 75% of the country’s health spending. In 2015 the government increased its budget for health and social affairs by 48% to $42.64bn. Indeed the Kingdom’s health sector has witnessed rapid growth in recent times as the government looks to meet its 2020 targets of 264 hospitals, 70,694 beds, 2750 primary health care centres and 27 specialist medical centres. Central to realising these ambitions are five new medical cities that are set to spring up across the country. The e-health programme is also gaining traction and now includes more than 70 projects ranging from quick wins to major multi-year endeavours, such as the roll-out of automated systems at primary care centres. This chapter contains an interview with Saleh Al Tamimi, CEO, King Saud Medical City.
Explore chapterHealth & Life Sciences
Buy digital copy of this chapter - £18The government represents the biggest provider of health care services in Saudi Arabia, accounting for about 75% of the country’s health spending. In 2015 the government increased its budget for health and social affairs by 48% to $42.64bn. Indeed the Kingdom’s health sector has witnessed rapid growth in recent times as the government looks to meet its 2020 targets of 264 hospitals, 70,694 beds, 2750 primary health care centres and 27 specialist medical centres. Central to realising these ambitions are five new medical cities that are set to spring up across the country. The e-health programme is also gaining traction and now includes more than 70 projects ranging from quick wins to major multi-year endeavours, such as the roll-out of automated systems at primary care centres.
This chapter contains an interview with Saleh Al Tamimi, CEO, King Saud Medical City.
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Legal Framework
Buy digital copy of this chapter - £18This chapter examines Indonesia’s legal framework, focusing on the new land management policy that has been introduced as a solution to issues with overlapping land claims. It also contains a viewpoint from Todung Mulya Lubis, Senior Partner, Lubis, Santosa & Maramis.
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This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
Explore chapterAccountancy & Tax
Buy digital copy of this chapter - £18In conjunction with PwC, this chapter contains an overview of the tax framework in which local and foreign investors operate in Qatar, including a look at the Customs duty exemptions for some firms and an outline of the incentives available to those businesses that are diversifying the economy.
This chapter also includes a viewpoint from Stephen Anderson, Managing Partner, PwC Qatar.
Explore chapterTourism
Recognising the important role of tourism in achieving the wider goals of development in Saudi Arabia, including job creation and increased economic diversity, considerable efforts are being made to expand the industry. A new Umrah Plus visa allowing for longer stays after religious pilgrimages has been introduced and, in combination with a focus on expanding and rehabilitating heritage and historic sites, this should help to boost visitor spending. PPPs are targeted as the preferred method for boosting private sector involvement in the sector. This chapter contains an interview with Prince Sultan bin Salman bin Abdulaziz Al Saud, Chairman and President, Saudi Commission for Tourism and Antiquities.
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Al Ain
Buy digital copy of this chapter - £18Just over 50% of Al Ain’s Emirati population is under 20 years old and this young labour force, coupled with efforts outlined in Plan Al Ain 2030 to promote diversification should see the metropolitan area of Al Ain become an economic centre moving forward. The region’s status as an aerospace industry hub is growing rapidly, with this set to generate both direct jobs in the industry and to provide employment and training in non-technical areas. Meanwhile the promotion of eco- and cultural tourism has helped boost visitor numbers to the region, with 641,000 hotel guest nights in 2013, up 12% year-on-year from 571,000, and accounting for 7.3% of all guest nights in the emirate.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Oman and contacts for important government offices and services. It also contains useful tips and information for first-time visitors.
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains a look at the legal environment and the framework for foreign investment in Qatar, as well as a rundown of the advantages investors can enjoy in the country’s new economic zones. This chapter contains a viewpoint from Khalifa Al Misnad, Founding Partner, Al Misnad & Rifaat.
Explore chapterEnvironment
Buy digital copy of this chapter - £18The emirate is striving to protect the environment while making the most of its natural resources. Abu Dhabi faces a confluence of environmental pressures that it is looking to address. This presents opportunities for investment and foreign partnerships in resource monitoring and management systems, green technology solutions, and best practice outreach and awareness campaigns. The EAD, established in 1996, is the main government entity tasked with regulating, promoting and setting policy for environmental protection and resource conservation. A number of government-linked organisations have launched environmental initiatives, including the Abu Dhabi National Oil Company, the Abu Dhabi Water and Electric Company, and the Centre of Waste Management. This chapter contains an interview with Razan Khalifa Al Mubarak, Secretary-General, Environment Agency – Abu Dhabi (EAD).
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This section includes an article about festivals as well as information on hotels, contact details for government agencies and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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The Guide contains listings of hotels in the capital and other key cities, contacts for government bodies and foreign missions, and other handy tips for first-time business and leisure travellers, relating to currency, etiquette, visas and more.
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Legal Framework
Buy digital copy of this chapter - £18I. GENERAL LEGAL ENVIRONMENT: undefined A. Sources of Law: Côte d’Ivoire has a civil law system where laws are compiled in codes and establish what is legal and what is illegal. The higher law is the version of the Constitution adopted by referendum on July 23, 2000. The Constitution includes laws that are adopted by the National Assembly, ordinances and decrees issued by the President, and, at the bottom, ministerial decrees and orders.
Explore chapterTourism
Buy digital copy of this chapter - £18An improved perception of security has boded well for Colombia’s tourism sector. Identified as a strategic growth area in the National Development Plan, the sector has grown consistently in the past few years, earning $21.2bn in 2012 and accounting for 5.3% of GDP, a figure expected to reach 5.4% in 2013, making the sector the third-most-important source of foreign currency behind oil and coal. Some 1.7m visitors entered Colombia in 2012, a 7% increase from the previous year and nearly double the global growth rate of 4%. Given these positive indicators, the government has ambitious plans to boost the annual number of visitors to 4m by the end of 2014, for which it set aside a budget of $373.8m. Ecotourism and the global meetings industry have displayed the most potential for growth.
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Tourism
Buy digital copy of this chapter - £18The tourism industry in the Kingdom has seen good growth in recent years. The number of visitors rose dramatically in 2011, making Saudi Arabia the largest travel market in the Middle East and North Africa. Plans to remove restrictions on the movement within the Kingdom of religious visitors from a number of countries, along with major tourism developments in the pipeline, are set to boost the market further. As demand grows, international hotel chains are expanding their presence, including in the middle and lower end of the market that has traditionally been left to local players. The authorities are also seeking to renovate traditional villages and turn them into tourist attractions, with funding to be generated through the creation of public-private companies. Meanwhile, efforts to develop the meetings, incentives, conferences and events segment are continuing apace.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter outlines the general rules for establishing a business in the emirate, including the key corporate, labour and property laws relevant to companies doing business locally in Abu Dhabi. The chapter also includes an overview of the judicial structure, as well as information on arbitration and appeals.
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This chapter includes useful information for business and leisure visitors, including accommodation options and unique activities that may be of interest to visitors, such as ecotourism. It also contains information vital to visitors, including transport, visa requirements, currency, and tips for maintaining good health and respecting local customs while experiencing Indonesia.
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Tax
Buy digital copy of this chapter - £18In conjunction with DFK Hill Mayberry, OBG explores the taxation system. Tony Canning, Partner, DFK Hill Mayberry, shares a viewpoint on the challenges of establishing a company in PNG.
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Legal Framework
Buy digital copy of this chapter - £18In partnership with Hogan Lovells, OBG takes a look at Mongolia’s legal system. Key points include the mining regulations, developments in the banking sector, and the Concession Law.
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This chapter contains selected listings of some of the country’s top hotels, advice and etiquette for business and leisure travellers, and useful tips for first-time visitors to Abu Dhabi. This chapter contains an interview with Samia Bouazza, Managing Director and Founder, Multiply Marketing Consultancy.
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Tax
Buy digital copy of this chapter - £18The UAE currently has no system of federal income taxation. Instead, most of the emirates – including Abu Dhabi – enacted their own corporate tax decrees in the late 1960s. These emirate-level corporate tax decrees are of general application and remain in force. These decrees are similar in nature and text, and deal in broad terms with the identities of taxable persons, rates, administration, computation of taxable profits and loss relief. The decrees limit the scope of taxation to “bodies corporate” carrying out a trade or business in the respective emirates. This chapter contains a viewpoint from Mark Schofield, Partner, PwC Middle East Tax & Legal Services Leader.
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This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation throughout Mexico.
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Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Saudi Arabia including a look at the recent restructuring of the insolvency law and an examination of the new reforms and regulations aimed to boost foreign investment into the country.
This chapter contains a viewpoint from Fahad Abuhimed, Managing Partner, Abuhimed Alsheikh Alhagbani Law Firm in cooperation with Clifford Chance.
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Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Qatar, including a summary of the rules and requirements for foreign investors, a rundown of the new changes to the labour law, and a look at the modifications to the arbitration process that are taking shape.
This chapter contains a viewpoint from Mubarak Bin Abdulla Al Sulaiti, Chairman, Al Sulaiti Law Firm.
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This chapter provides helpful tips and information for first-time travellers, listings for ministries and other key contacts, recommendations for quality accommodation options around the country and other useful information.
Explore chapterAgriculture & Food Security
Buy digital copy of this chapter - £18As a rising population continues to put upward pressure on demand for food, Abu Dhabi’s authorities are pursuing various initiatives to promote domestic production, both as a means of economic diversification and to further bolster food security, with various bodies responsible for the agricultural sector being established over the last 10 years. Although innovative solutions have increasingly started to come on-line in Abu Dhabi, particularly regarding water, the emirate’s desert climate presents significant barriers to large-scale agricultural expansion. As such, the bulk of the emirate’s foodstuffs continue to be sourced from abroad, with various strategic investments in recent years focused on diversifying Abu Dhabi’s international supply streams. Meanwhile, at home, investments in stockholding capacity are aiming to mitigate the short-term impact of potential disruptions to international supply, and a fast-growing agri-food and food-processing segment looks set to position the emirate as a leading regional player.
Explore chapterTourism
Buy digital copy of this chapter - £18With the holy cities of Makkah and Medina attracting millions of pilgrims every year, the bulk of Saudi Arabia’s tourism industry remains concentrated in these two areas. The seasonal nature of many pilgrim visits has historically presented a challenge to the country’s tourism authorities, and as a result various plans and initiatives have been designed in recent years to drive tourism activities across the Kingdom more broadly, by enhancing existing facilities and developing resort-style tourist centres as well as promoting awareness of the options available for domestic tourists. Under Vision 2030 there are plans to develop the sector as a major contributor the economy, with reforms to visa issuance and development of historic heritage sites integral to boosting the numbers.
This chapter contains interviews with Prince Sultan bin Salman bin Abdulaziz Al Saud, Chairman and President, Saudi Commission for Tourism and National Heritage; and Abdullah Al Dawood, CEO, Al Tayyar Travel Group.
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This chapter contains listings for embassies, state ministries and other facilities, contacts for useful services and organisations, helpful tips and information for new travellers, and accommodation options around Indonesia.
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Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate in Qatar, including the rules and regulations for foreign investors, the guidelines for incorporating a new company, a rundown of the foreign property ownership laws and regulations, and a review of the new changes to the Labour Law.
This chapter contains a viewpoint from James Elwen, Partner and Head of Qatar Office, Pinsent Masons.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18The media industry in Abu Dhabi has witnessed a surge in investment recently as sector infrastructure is developed to support the expansion of local production and content creation. By early 2015 direct spending on television and film production was expected to contribute $108.9m to the UAE’s economy over the next five years while the Media Zone Authority is looking to expand the breadth of services and networks it offers, including costume design, hair stylists, makeup artists, camera operators and post-production facilities. Meanwhile, e-commerce presents a significant range of new opportunities, with the segment expected to see growth of 40% by 2020 in GCC states, and with sales likely to reach $41.5bn. This chapter contains an interview with Noura Al Kaabi, Chairwoman, Media Zone, Authority–Abu Dhabi and twofour54.
Explore chapterTourism
Tourism is estimated to have directly contributed $12.7bn to the Saudi economy in 2013, equivalent to 1.7% of GDP, and this was forecast to rise by 5.2% to $13.3bn in 2014. Although religious tourism still dominates the industry, government efforts are under way to expand the sector’s offering, with opportunities available in various segments, including heritage and business tourism. Domestic tourism has surged in recent years with spending seeing a compound annual growth rate of 15% between 2010 and 2014. Indeed, current ambitions for non-religious tourism are directed towards serving the domestic market – both Saudi and expatriate – for whom spending almost doubled between 2010 and 2014, from $15.7bn to $27.4bn.
Explore chapterTourism
Buy digital copy of this chapter - £18Tourism is estimated to have directly contributed $12.7bn to the Saudi economy in 2013, equivalent to 1.7% of GDP, and this was forecast to rise by 5.2% to $13.3bn in 2014. Although religious tourism still dominates the industry, government efforts are under way to expand the sector’s offering, with opportunities available in various segments, including heritage and business tourism. Domestic tourism has surged in recent years with spending seeing a compound annual growth rate of 15% between 2010 and 2014. Indeed, current ambitions for non-religious tourism are directed towards serving the domestic market – both Saudi and expatriate – for whom spending almost doubled between 2010 and 2014, from $15.7bn to $27.4bn.
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This chapter contains useful information for visitors to Indonesia, including a listing of recommended hotels, phone numbers for foreign missions, chambers of commerce, national press, and other important contacts, as well as tips for etiquette, transport, and how to obtain an Indonesian visa.
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Legal Framework
Buy digital copy of this chapter - £18With Pinsent Masons, this chapter contains an outline of the legal framework in which local and foreign investors operate in Qatar. It includes an examination of the rules related to company ownership, an overview of the employment procedures governed by the Labour Law, and a look at the new actions being taken to boost cyber security.
The chapter also includes a viewpoint from James Elwen, Partner and Head of Qatar Office, Pinsent Masons.
Explore chapterTax
This chapter contains an outline of the tax system including an introduction to overall system, an overview of corporate income tax, and an explanation of Zakat rules. In addition, there is an explanation of the regulations introduced by the New Income Tax Law. The chapter also contains an overview of the regulatory environment for potential investors. This chapter contains a viewpoint from Jacques Fakhoury, KSA Country Leader, PwC.
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Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Abu Dhabi including a look at the limited tax laws in place and an outline of the incentives available for companies in the free zones.
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Trade & Investment
Buy digital copy of this chapter - £18Although lower international commodity prices are impacting the pipeline of projects in the traditionally dominant mining sector, Papua New Guinea’s emergence as a major liquefied natural gas (LNG) exporter in 2014 has attracted global attention, with a second landmark LNG project moving towards a final investment decision in 2016. Construction of the PNG LNG project has increased the country’s profile in recent years, with investment inflows of more than $5.7bn between 2009 and 2013. While Australia remains the largest investor in the country, with $17.86bn in 2013, Japan has been the fastest-growing source of investment in recent years. Changes to PNG’s trade patterns mirror the growing diversity in the sources of inward investment. The country is the largest exporter among Pacific Island states and, with China and the Association of South-East Asian Nations trying to assert their influence in the region, the time to focus on building a stable and integrated trade route within the South Pacific has never been more important. This chapter contains interviews with Julie Bishop, Australian Minister for Foreign Affairs; Andris Piebalgs, EU Commissioner for Development; Carlos Pascual, Former Special Envoy & Coordinator for International Affairs, US Bureau of Energy Resources; and Ivan Pomaleu, Managing Director, Investment Promotion Authority.
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The Guide takes a look at Al Zubarah, one of the largest and best-preserved examples of an 18th-century traditional pearling and trading settlements in the Gulf region, which is also the state’s first UNESCO World Heritage Site listing. It also contains hotel listings for business and leisure travellers, along with numbers for ministries, embassies and useful points of contact, and other helpful information and tips for first-time visitors.
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Buy digital copy of this chapter - £18This chapter features an overview of Abu Dhabi’s straightforward tax regime and a viewpoint from Mahmud Merali, Managing Partner, MERALI’S.
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The Guide
Buy digital copy of this chapter - £18Abidjan and its surrounding areas present visitors and locals with a host of activities for their enjoyment, leaving no excuse for those on business trips from abroad to remain in their hotel rooms. Although the crisis-ridden decade that came to an end in 2011 certainly hampered Abidjan’s vibrant nightlife, the security situation has been largely stabilised since President Alassane Dramane Ouattara came to power. The economic capital’s infamous roadblocks were dismantled in March 2013 as a new force – known as the Coordination Centre for Operational Decisions and comprising officers from the police, gendarmerie and the military – was established to maintain security. As security improves and economic growth has resumed, the “Pearl of the Lagunes” is once again flourishing. WHAT’S IN A NAME?: Legend has it that the name Abidjan resulted from a misunderstanding, when the first colonists asked a local man the name of the place. He replied “min-chan m’bidjan,” meaning “I just cut the leaves” in the Ebrié language, thinking he had been asked what he was doing. Today, visitors with a firm grasp of French are not hindered by such misunderstandings when out on the town, though it is often possible to get by with English, owing in part to the influence of neighbouring Ghana and Liberia. In any case, getting around this cosmopolitan city and finding the best places to wine, dine and have a good time is quite easy and very enjoyable.
Explore chapterSport
Buy digital copy of this chapter - £18Sport has not only become a vehicle for social inclusion in Colombia, but also a budding industry contributing to economic development. While public sector investment has been promising, the private sector has been more reticent, and has mainly focused on sponsoring big-name teams and athletes. This is likely to change now that the basis of professional sports development, aside from football, has been established. In addition to a range of investment opportunities from specialised training to the promotion of particular sports, the most popular sporting disciplines are currently experiencing improved levels of sponsorship, a consequence of their higher visibility domestically and internationally.
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Buy digital copy of this chapter - £18Like many other nations looking to diversify their economies, Saudi Arabia has chosen to take advantage of its natural resources to fuel development. Solar and wind power have both been earmarked by the government as it seeks to reduce its reliance on the hydrocarbons sector. Some $109bn will be spent to produce 41 GWh of solar power and 9 GWh of wind capacity by 2032. Indeed, solar power is already gaining traction as an important tool for tackling water scarcity in the Kingdom. A series of solar-powered desalinisation plants have already been planned for construction by joint venture groups. Meanwhile, government efforts to create stronger regulatory and incentive schemes should lead to increased private investment in green building technology and energy-efficient appliances, potentially translating into improved energy savings.
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Buy digital copy of this chapter - £18This chapter provides an overview of Yas Island, which hosts several of the emirate’s major touristic attractions and accommodation options. The chapter also provides a listing of Abu Dhabi’s other leading hotels and resorts, as well as useful telephone numbers and facts for visitors, including information about language, visas, currency and more.
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Legal Framework
Buy digital copy of this chapter - £18In partnership with Leahy Lewin Nutley Sullivan Lawyers, OBG takes a look at PNG’s legal system. Key points include investment incentives for foreign companies and the special status of much of PNG’s land. John Leahy, Partner, Leahy Lewin Nutley Sullivan Lawyers, shares a viewpoint on the origin of PNG’s legal code.
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The Guide
This section includes an article about Karakorum, the country's first capital, as well as a profile of traditional Mongolian wrestling. OBG also provides information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Legal Framework
Buy digital copy of this chapter - £18Founded in December 1971 as a federation between six of its seven constituent entities, the UAE includes the emirates of Abu Dhabi (the capital city), Dubai, Sharjah, Ajman, Fujairah and Umm Al Quwain. The emirate of Ras Al Khaimah joined the federation the following year. The UAE is governed by the UAE Constitution, which permits each emirate to have its own legislative body and judicial authority. Accordingly, there are both federal courts and local courts in each individual emirate that uphold the constitution. Abu Dhabi courts apply UAE federal law, as well as the emirate’s unique legal framework.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Saudi Arabia and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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The guide contains listings of some of the leading hotels and resorts in Qatar and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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Tax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Abu Dhabi, as well as a look at the value-added tax system being developed across the GCC, a rundown of the social security contributions required for local staff and an outline of the double taxation treaties in place or on the way. This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.
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Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate, including a rundown of the restructuring efforts currently under way at the department of tax and an outline of the set timeframe for the introduction of value-added tax.
This chapter contains a viewpoint from Riyadh Al Najjar, KSA Country Leader, PwC.
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The Guide
The Guide contains listings of some of the leading hotels and resorts in Qatar and contacts for important government offices and services. It also contains useful tips and information for business and leisure visitors alike.
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Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate including an outline of the business and tax incentives offered by the free zones and a rundown of the Wages Protection System. This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.
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This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia, including an outline of the various tax systems in place for different ownership structures and a look at the June 2014 updates to the regulations for zakat, a religious tax based on sharia. This chapter contains a viewpoint from Jacques Fakhoury, KSA Country Leader, PwC.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia, including an outline of the various tax systems in place for different ownership structures and a look at the June 2014 updates to the regulations for zakat, a religious tax based on sharia.
This chapter contains a viewpoint from Jacques Fakhoury, KSA Country Leader, PwC
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The Guide
The Guide contains listings of some of the leading hotels and resorts in Qatar and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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This chapter features an overview of the law for both local and foreign investors, as well as an outline of regulations on owning property for non-GCC nationals. It covers up-to-date laws on intellectual property and copyright, as well as environmental guidelines for construction projects and some new standards for disclosure of financial information. This chapter includes a viewpoint from Salman Al Sudairi, Managing Partner of Riyadh Office, the Law Office of Salman M. Al-Sudairi in Association with Latham & Watkins.
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Buy digital copy of this chapter - £18This chapter outlines the legal framework in which local and foreign investors operate in Abu Dhabi. It includes an overview of the court systems and arbitrations options, a breakdown of the various ways to establish a business in the emirate and a look ahead to the new company and foreign investment laws that are on the way.
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Buy digital copy of this chapter - £18This chapter contains important legal information for foreign investors looking to enter Abu Dhabi. It includes an overview of the judiciary and courts system and the various options for establishing businesses, as well as a review of important laws relating to areas such as labour and intellectual property.
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Health
Buy digital copy of this chapter - £18A handful of international awards and recognition have placed Colombia’s health system on the global radar as the sector seeks to conform to international standards. A recent reform to the universal health care system in 2012 improved coverage and made access to services more affordable, boosting the potential for the pharmaceuticals industry and allowing Colombia to build its presence has a producer and distributor in Latin America. Medical tourism has experienced growth, in particular in the areas of plastic and reconstructive surgery even though illegal operations remain a problem. Nonetheless, complex financial and management issues continue to restrict the growth of a quality health system, which faces ongoing challenges, in particular the shortage of specialists and a growing gap in quality standards between urban and rural centres.
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Buy digital copy of this chapter - £18Keeping abreast of tax developments is essential for any business hoping to optimise its financial position. This chapter provides an overview of the business environment in Saudi Arabia, outlining the key areas of investment and growth. This chapter also includes a viewpoint with Bakr Abulkhair, Chairman and Managing Partner, Deloitte & Touche Bakr Abulkhair & Co.
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The Guide
This section includes an article about the historic Kokoda Trail, as well as information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Abu Dhabi and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
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Table of Contents
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Abu Dhabi including the key highlights of the basic legislative guidelines, a review of the main points for setting up a business and an outline of the free zones and other incentives on offer.
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Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate, including a breakdown of new company and investment reguations and a look at the increasing emphasis on corporate governance.
This chapter contains a viewpoint from Zeyad Khoshaim, Managing Partner, Khoshaim & Associates.
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Legal Framework
Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate including guidance for firms doing business in the emirate, advice for the establishment of a joint stock company and a rundown of the incentives provided by the emirate’s free zones.
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Buy digital copy of this chapter - £18This chapter contains an overview of the legal framework in which local and foreign investors operate in Saudi Arabia. It includes a run-down of dispute resolution and bankruptcy rules, an outline of the regulations affecting foreign investors in Saudi Arabia, and an examination of the evolving regulatory framework in place across the Kingdom.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Saudi Arabia, as well as contact information for key government offices and relevant services. It also features useful tips and information for visitors.
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The guide contains listings of some of the leading hotels and resorts in Abu Dhabi and contacts for government offices and services. It also offers useful tips and information for first-time or regular business and leisure visitors.
Explore chapterTrade & Investment
Buy digital copy of this chapter - £18Already one of the most trade-oriented economies in the world and an established regional leader in attracting foreign investment, Malaysia now aims to compete with Singapore as an alternative regional trade and investment hub for rapidly developing ASEAN. Although it boasts a liberal investment environment, foreign investment is restricted in certain sectors, especially retail, banking, agriculture and energy. The government is working to persuade multinationals to locate in Kuala Lumpur with a target to attract 100 firms from the Forbes 2000 list to invest in the Greater KL area by 2020. Negotiations for the Trans-Pacific Partnership have been ongoing since 2010, but have been delayed by disagreements between the various economies involved. However, a text could now be concluded by the end of 2014. Likewise, the ASEAN bloc’s integration process has significant momentum, and, with its well-funded banks and deep corporate equity and bond markets, Malaysia is well positioned to play a greater role in the entire region’s development. This chapter contains an interview with Anifah Aman, Minister of Foreign Affairs; Ratan Tata, Chairman Emeritus, Tata Group; Le Luong Minh, Secretary General, ASEAN; Zainal Amanshah, CEO, InvestKL; and Wan Saiful Wan Jan, CEO, Institute for Democracy and Economic Affairs. It also contains a viewpoint from US President Barack Obama.
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The Guide features hotel listings for business and leisure travellers, along with numbers for ministries, embassies and useful points of contact. It also has helpful information and tips for first-time visitors.
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Buy digital copy of this chapter - £18The education sector is growing in tandem with the economy, as expansion stimulates a need for highly skilled workers. Demand for higher education has increased significantly in the past decade. In 2012 the number of students enrolled in specialisation programmes surpassed 81,000, an increase of nearly 50% from 2002. Several reforms are currently under way aimed at improving access, funding and quality. The government has channelled considerable funds into the sector in the past two years and will continue to do. The additional funds should help the sector address its main challenges – a lack of infrastructure and resources to maintain high levels of instruction and a gap in quality standards between urban and rural areas – and help guarantee continued growth.
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Buy digital copy of this chapter - £18This chapter outlines investment laws and regulations for foreign companies operating within the Kingdom, and provides information about the options available for diversification of corporate ownership. This chapter also includes a viewpoint with Robert W Jordan, Partner in Charge of the Middle East at Baker Botts, and Former US Ambassador to Saudi Arabia.
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The Guide
The guide contains listings of some of the leading hotels and resorts in Abu Dhabi and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Saudi Arabia and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterThe Guide
The Guide contains listings of some of the leading hotels and resorts in Abu Dhabi as well as contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterLegal Framework
This chapter contains an overview of the legal framework in which local and foreign investors operate in Saudi Arabia. It includes a run-down of dispute resolution and bankruptcy rules, an outline of the regulations affecting foreign investors in Saudi Arabia, and an examination of the evolving regulatory framework in place across the Kingdom.
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The Guide contains listings of some of the leading hotels and resorts in Saudi Arabia, contacts for important government offices and services, and useful information for first-time visitors.
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Economy
Buy digital copy of this chapter - £18Despite the global vagaries of the mining business and potential volatility in hydrocarbons, a combination of economic liberalisation, free trade agreements and entry to a variety of trade blocs has assured steady growth for Colombia over the past few years. After expanding 6.6% in 2011 and 4% in 2012, Colombia’s economy experienced a slowdown during much of the first half of 2013, registering GDP growth of just 2.6% in the first quarter. Nonetheless, the sound performance of the construction sector, along with strong public investments, recovery in the hydrocarbons industry and restored consumer confidence, allowed Colombia to finish 2013 with solid growth of 4.7%. While the first quarter of 2014 displayed a slight slowdown, with GDP expanding by just 2.9%, large-scale investments in infrastructure point to continued growth in 2014, with the central bank forecasting GDP to expand by 5%. This chapter contains interviews with José Ángel Gurría, Secretary-General, Organisation for Economic Cooperation and Development (OECD); Enrique García Rodríguez, Executive President, CAF development bank of Latin America; and José Darío Uribe, Governor, Central Bank.
Explore chapterTax & Accountancy
Buy digital copy of this chapter - £18This chapter offers a comprehensive overview of the tax reform introduced in 2012, which sought to increase transparency and participation and affected a number of important areas, such as capital gains, mergers, share acquisition, branch profits and equity contributions. Among other changes, the reform reduced the capital gains tax, introduced the concepts of thin capitalisation and income tax for equality, as well as a registration tax on cash contributions. This chapter features a viewpoint from Eduardo Calero, Partner, PwC, on the implications of the reform.
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Contemporary art is beginning to make a name for itself in Jeddah. In February 2012, the eyes of the contemporary art world turned to Saudi Arabia. Seven years since its foundation, and after blockbuster exhibitions in London, Venice, Berlin, Istanbul and Dubai, Edge of Arabia, a Saudi-focused contemporary arts initiative, hosted its first exhibition in Jeddah. In addition to outlining this newly emerging art scene, this chapter includes a listing of the country’s leading hotels and resorts, as well as useful telephone numbers and facts for visitors. It also includes information about etiquette, language, visas, currency, transport and more.
Explore chapterCountry Profile
This chapter provides an overview of Peru’s geography, government, population, religion and climate, among other characteristics. It also features analyses on recent economic policies, social inequality and relations with China. The section also includes interviews with President Ollanta Moisés Humala Tasso; Juan Manuel Santos, President of Colombia; and Rafael Roncagliolo, Minister of Foreign Affairs.
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Table of Contents
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Guide
The Guide contains listings of some of the leading hotels and resorts in Saudi Arabia, contacts for important government offices and services, and useful information for first-time visitors.
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Legal Framework
Buy digital copy of this chapter - £18Since 1990 Colombia has attempted to modernise its legal system to promote economic growth and attract foreign investment. The array of recently signed free trade agreements as well as reforms to increase transparency and participation are redefining the legal landscape, which, having undergone significant improvements, still suffers from a weak judicial system in enforcement of contracts and significant bureaucratic delays. This chapters features a viewpoint from Martín Carrizosa, Partner, Prietocarrizosa on the significance of the Pacific Alliance.
Explore chapterEconomy
Buy digital copy of this chapter - £18A dynamic emerging market, Peru has enjoyed a decade of sustained economic growth driven principally by its export-oriented extractive industries, with exports reaching a record $46.3bn in 2011. Even in spite of the global economic crisis, Peru posted positive growth of 0.8% in 2009 and rebounded impressively with 8.8% growth in 2010. The government has begun putting a greater focus on social equality and poverty reduction programmes, supporting agricultural development and restructuring policies on mining royalties. Government reserves and debt are both at healthy levels. Meanwhile, though inflation has been rising, it remains relatively tame compared to previous decades. This chapter includes interviews with Luis Miguel Castilla Rubio, Minister of Economy and Finance; Milton von Hesse, Executive Director, ProInversión; Diego de la Torre, Chairman, La Viga, and President, UN Global Compact-Peru; Alessandro Texeira, Brazil’s Deputy Minister of Development, Industry and Foreign Trade; José Luis Silva Martinot, Minister of Foreign Trade and Tourism; and Muhamad Noor Yacob, Executive Director, Asia-Pacific Economic Cooperation.
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Economy
Buy digital copy of this chapter - £18Seven decades of expanding oil production have led to Kuwait having one of the world’s highest GDP-per-capita ratios. The generous welfare system guarantees free education, health care and housing to citizens, while subsidised electricity, water and fuel prices are offered to residents. GDP growth reached 4.5% in 2013 and is expected to rise to 5% in 2014, while fiscal reforms will help ensure stability. This chapter contains interviews with Faisal Al Ayyar, Vice-Chairman, Kuwait Projects Company; Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
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Buy digital copy of this chapter - £18Among the cultural attractions that Colombia has to offer, its array of music and dance styles are the most representative. In addition to an introduction to Colombia’s most distinguished dances, this chapter contains helpful information for visitors to Colombia, including information on dress code, language, visas, communications, currency and traffic. It also features hotel listings and contact information for various institutions, including embassies and regional agencies.
Explore chapterBanking
Buy digital copy of this chapter - £18As banks in the US and Europe faced buyouts and nationalisation, Peru’s banking sector held firm in the wake of the financial crisis. With a sound regulatory body, hefty capital reserves and limited exposure to complex financial instruments, no Peruvian banks were forced to close their doors. The country currently has 15 banks and 59 financial institutions, including 34 microfinance institutions, and increasing bank penetration throughout the country is a priority for the sector. Growth in lending rates and deposits have indicated that more people are taking advantage of the country’s banking services and overcoming historical distrust in banking institutions. Further retail operations are likely to remain the focus in the years to come, as the sector continues its expansion. This chapter includes an interview with Julio Velarde, President, Central Reserve Bank of Peru; and a roundtable discussion with Eduardo Torres-Llosa, CEO, BBVA Continental; José Antonio Blanco Cáceres, CEO, Citibank; Luis Felipe Castellanos, CEO, Interbank; and Carlos González-Taboada, CEO, Scotiabank.
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Capital Markets
Buy digital copy of this chapter - £18Strong economic growth in recent years has enabled Peru’s capital markets to remain relatively unscathed by the global economic crisis that devastated many exchanges around the globe. While the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), with market capitalisation of around $135bn, is one of the region’s smaller exchanges, it is likely to attract interest based on its recent successes. Indeed, in March 2012 it was reported that the exchange had grown 19.1% year-on-year. The BVL still must concentrate on building a broader and deeper marketplace with more regularly traded companies. The focus for the exchange now is on attracting more institutional and retail investors to build a more solid foundation for domestic capital markets. This section features interviews with Walter Bayly, CEO, Banco de Crédito del Perú; and Francis Stenning, President, Lima Stock Exchange.
Explore chapterInsurance
Buy digital copy of this chapter - £18While global insurance markets have been showing lower levels of growth in recent years, Peru’s insurance sector has expanded apace, averaging 15% annual growth in premiums over the past five years. There are 14 insurance companies providing a variety of plans and services. Life in particular has performed particularly well by global standards: while life insurance sales dropped by 4.3% globally in 2009, premiums in Peru grew 9.73% that year. Though insurance penetration in the country remains low, at 1.6%, recent levels of growth indicate that the Peruvian population is becoming more attuned to the benefits of insurance plans, boding well for future expansion in the sector.
Explore chapterEconomy
Buy digital copy of this chapter - £18Despite being deeply affected by the global financial crisis of 2008-09, Mexico’s economy had been recovering since 2010, growing 5.1% and around 4% in 2011 and 2012, respectively. A steady recovery was interrupted in 2013 by growth of just 1.1% as a result of weak exports and a contraction in the construction industry. Overall export growth slowed from 6.1% in 2012 to 2.6% in 2013, shaving about three-quarters of a percentage point from GDP growth. A fall in oil prices dragged down the value of oil, one of Mexico’s most important goods, contributing to a 6.2% decrease in oil exports in 2013. While informality, inadequate government revenues and deficient domestic supply chains continue to plague the economy, the current government’s series of ambitious reforms, specifically for energy, telecoms and education, seem set to improve the economy’s competitiveness. This chapter includes interviews with Ildefonso Guajardo Villarreal, Minister of Economy; Francisco González Díaz, General Manager, ProMéxico; José Ángel Gurría, Secretary-General, Organisation for Economic Cooperation and Development (OECD); and Enrique García Rodríguez, Executive President, CAF development bank of Latin America.
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Energy & Utilities
Buy digital copy of this chapter - £18The exploitation of the Camisea natural gas field has attracted investors to Peru and caused the country to look more closely at the potential of its hydrocarbons industry. The government has also turned its focus to oil production, with state-owned energy company Petroperú stating it hopes to triple oil production over the next four years and thereby turn Peru from a net importer of crude to a net exporter. The country is also adding hydroelectric generating capacity with private investments, thereby bringing electricity to more rural areas. While the government is obviously dedicated to developing its energy sector, it also must address a number of social conflicts – which involve the effects of hydrocarbons projects on indigenous populations, as well as environmental concerns. This chapter includes an interview with Jorge Merino Tafur, Minister of Energy and Mines.
Explore chapterMining
Buy digital copy of this chapter - £18In 2010 Peru was among the world’s top 10 producers of a variety of minerals, among them gold, silver, copper, lead, zinc, tin and mercury. Commodity prices of copper and gold have kept revenues high despite a decline in production over the last several years. Exports increased from $3.2bn in 2000 to $21.7bn in 2010, posting average annual growth of 58% during that period. While the mining industry has had to struggle with issues such as illegal mining, which has caused tremendous damage to the environment, as well as with the negative effects of the sector on indigenous populations, the government is working to strike a balance in development, legislating for consultation with local groups before licensing new projects. This chapter features interviews with Pedro Martínez Carlevarino, President, National Society of Mining, Petroleum and Energy; and Roque Benavides, Chairman & CEO, CIA De Minas Buenaventura.
Explore chapterIndustry and Retail
Buy digital copy of this chapter - £18A number of new free trade agreements – including with the US, Canada and Singapore – and a shift of focus toward value-added production have boosted the industrial sector. The government is now concentrating on growing the export activity of small and medium-sized enterprises (SMEs), which make up more than 99% of Peruvian companies. The textile business continues to thrive, with large quantities of finished fabrics being shipped abroad. Peru is keen to grow in petrochemicals as well, and has hopes of establishing the first petrochemicals production centre in Pacific South America. Meanwhile, retailers are looking outside of Lima for growth opportunities as the sector continues to expand. This section includes an interview with Pedro Olaechea, President, National Society of Industry.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18With more than 2400 km of Pacific coastline, Peru is well placed to take advantage of increasing levels of trade in the Asia-Pacific region. As China has overtaken the US as the country’s biggest trading partner, Peru has turned its attention to improving transport and logistics to facilitate the flow of Asia-bound exports. For example, the Ministry of Transportation and Communications in late 2011 announced a $20.5bn project to upgrade transportation infrastructure. The plan calls for upgrades to roads and highways – including Peru’s portion of the Interoceanic Highway, which runs from Peru’s Pacific coast to Brazil’s Atlantic coast – as well as the expansion of the rail network and upgrades to Lima’s Jorge Chavez International Airport and the construction of a new airport in Cuzco. This section includes interviews with Carlos Paredes, Minister of Transport and Communication; and Jorge Vilches, CEO, LAN.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18With expansion of 3.34% in 2011, the construction sector looks primed for further growth, due in part to a need for new housing evidenced by the country’s housing deficit of some 2m units. The government has publicly announced a goal to build 500,000 housing units by 2016, and there are a number of opportunities for public-private partnerships in the sector. While the real estate market has tended to focus on luxurious, high-end private homes, the housing deficit means the government and developers alike are turning to low- and middle-income housing. The private sector seems poised to take on a larger role, while other segments likely to benefit from the new focus include cement and prime office space providers. This section includes interviews with Mario Alvarado Pflucker, CEO, Graña y Montero; and Jorge Barata, Superintendent, Odebrecht.
Explore chapterTelecoms and IT
Buy digital copy of this chapter - £18The mobile segment has been responsible for driving growth in Peru’s telecoms sector, which expanded by 16.4% in 2011. While growth in 2012 is expected to cool down, new revenue streams from sources such as mobile data will continue to make the sector an important source of foreign direct investment. Meanwhile, with internet teledensity in the country still relatively low, at 4.39% in 2011, the IT sector will require more research and development initiatives, particularly to expand into rural areas, where less than 1% of all households have an internet connection. The government has laid out a new plan that will bring internet to all public schools in the country by 2016, which will raise teledensity to 12.7%. This chapter includes a dialogue between Miguel Rivera, President, Nextel; and Javier Manzanares, President, Telefónica.
Explore chapterAgriculture
Buy digital copy of this chapter - £18While Peru remains a mainstay in products such as asparagus and fishmeal, areas like coffee and organic produce are where new growth is likely to come from. Agricultural exports increased by more than $800m to reach $4.8bn in 2011, with the US being the top destination. Peruvian coffee in particular is gaining an international reputation for quality, especially in new markets, and organics are a welcome value-added alternative for many of the country’s small farmers. The government is turning its eye to improving agricultural infrastructure, particularly with regard to irrigation and distribution. Additionally, the creation of more Peruvian agricultural brands, such as Juan Valdez coffee, could have tremendous positive effects on the sector. This sector includes an interview with Carlos Pinillos González, CEO, Tecnológica de Alimentos.
Explore chapterEconomy
Buy digital copy of this chapter - £18Outperformance remains the key feature of Ghana’s economy, seven years after the discovery of oil prompted new optimism in the country, which was then celebrating the golden jubilee of its independence. In real terms, GDP grew by 7.9% in 2012. This follows revised GDP growth of 15% in 2011, which was largely driven by the start of commercial oil production at the Jubilee field. Ghana is also the world’s second-largest exporter of cocoa beans and products, which accounted for 20.9% of export revenues in 2012. With growth in 2013 forecast to remain at a little under 8%, its oilfields set to expand and its gas infrastructure rapidly developing, Ghana’s future looks bright. Nevertheless, the country will need to tackle a number of challenges, notably in improving its infrastructure and dealing with poverty, as well as budgetary pressures that the government must face to enable it to achieve its medium-term goals of building stability and prosperity. This chapter contains a viewpoint from Kwesi Bekoe Amissah-Arthur, Vice-President of Ghana, and an interview with Mawuena Trebarh, CEO, Ghana Investment Promotion Centre.
Explore chapterTourism
Buy digital copy of this chapter - £18With visitor numbers having risen to 2.5m in 2011, representing a 9% increase year-on-year, the government is developing tourist destinations outside traditional travel hotspots. While the focus has traditionally been on the country’s many historical and cultural sights, the sector is now seeing increased demand for business tourism services. Ecotourism is also a growth area, with more tourists coming to Peru to see the many wild plant and animal species of the Amazon. Niche segments also have a good deal of potential for expansion, and efforts are being made to diversify the options available to visitors and boost local economies throughout the country. This section includes an interview with Claudia Cornejo, Vice-Minister of Tourism.
Explore chapterEconomy
Buy digital copy of this chapter - £18Buoyed by high commodity export revenues and, since 2009 the development of the Papua New Guinea Liquefied Natural Gas project, GDP growth has remained above 6% since 2007, reaching 8.9% in 2011 and 8.1% in 2012. A heavyweight among the Pacific Island states, PNG, together with Fiji, accounted for 80% of regional GDP in 2013, as per UN figures. Agriculture, fisheries and forestry made up the largest part of the economy at 29% in 2012, while the construction sector accounted for 20% of GDP and the mining, oil and extractive industries were responsible for 15%. For investors, any project worth more than $50m could qualify for a public-private partnership (PPP) structure; however, the government has been emphasising the potential for PPPs in the power generation and transport sectors. While attracting private investment will depend on the successful implementation of public sector reforms, the authorities will need to strike a balance between encouraging investment and the need to protect domestic enterprise. This chapter contains interviews with James Marape, Minister of Finance; Charles Abel, Minister for National Planning; Wasantha Kumarasiri, Managing Director, Independent Public Business Corporation; and Geoff Cundle, Managing Director, Steamships Trading Company.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18With an eye to bridge the divide between socioeconomic development and education, the Peruvian government has allocated a 30% increase to the education sector in the 2012 budget and has announced plans to build 400 new schools and hire 12,000 teachers. Enrolment levels in higher education institutions continue to grow, with 103 public and private universities currently operating in the country and a number of technical and vocational institutions also offering professional certifications. Meanwhile, the government is instituting a new plan that will bring universal health insurance by 2013. With 30% of the population lacking health insurance, this will be a challenge and require major public investment. Additionally, clearer regulations and guidelines in the health care sector will promote the expansion of higher-quality care and medications.
Explore chapterEconomy
Buy digital copy of this chapter - £18In 2013, Morocco rebounded from a more modest performance in 2012 to deliver 4.4% GDP growth, with the economy bolstered by a return to form in the primary sector thanks to a productive harvest. After 2.7% growth in 2012, economic activity in Morocco expanded much faster in 2013, increasing by 4.4% as GDP reached Dh864.6bn (€76.8bn). This was driven in large part by the agricultural sector, which typically represents 15-20% of GDP, and contributes significantly to both rural employment and exports. The kingdom did have to grapple with its fair share of exogenous challenges – such as low external demand and high commodity prices – as well as domestic complications including a fiscal deficit and unemployment, but following the government reshuffle in mid-2013 the prospects look far more positive. With the 2014 budget setting a more dynamic tone as the government takes steps to redress key fiscal imbalances, there are strong indicators pointing to the economy’s ability to continue to grow. This chapter contains interviews with Mohamed Boussaid, Minister of Finance; Jacques Attali, President, PlaNet Finance; Nicole Bricq, Former French Minister of Foreign Trade; and Zahra Maafiri, Director-General, Maroc Export.
Explore chapterTax
Buy digital copy of this chapter - £18Together with PwC, OBG explores and clarifies Peru’s tax system, paying special attention to policies for foreign investors. This section also includes a viewpoint from Miguel Mur, Latin America Tax Leader, PwC.
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces various aspects of the Peruvian legal system, in cooperation with its local legal partner, Estudio Echecopar. This chapter includes a viewpoint from Javier Tovar Gil, Partner, Estudio Echecopar.
Explore chapterEconomy
Buy digital copy of this chapter - £18Malaysia is supported by abundant natural resources, in particular offshore oil and gas, and foreign investment-friendly policies have nurtured a globally competitive electrical and electronics industry, while a strong banking system has financed rapid growth in consumer sectors and construction. The country has much reason for optimism through its successful transition to the top-tier in the World Economic Forum’s “Global Competitiveness Report 2013-14,” which ranked Malaysia 24th of 148 countries. The ranking implies the country already has policies and business conditions in place that are comparable to many advanced economies. The country’s biggest challenge is to channel its growing financial capital into more entrepreneurial companies able to compete against peers in the global arena. This chapter contains interviews with Ali Hamsa, Chief Secretary to the Government; and Johan Mahmood Merican, CEO, TalentCorp. It also includes a viewpoint from Syed Haizam Jamalullail, Vice-President, Malaysia-America Foundation (MAF).
Explore chapterThe Guide
Together with local chef Gaston Acurio, OBG takes a look at Peruvian cuisine and its importance in the country’s culture. The Guide also contains an overview of the country’s best hotels and resorts, as well as contact information for local government offices and services and a number of useful tips for first-time visitors.
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Table of Contents
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Banking
Buy digital copy of this chapter - £18The banking sector is considered the backbone of the non-oil economy. The industry has posted steady growth since the global downturn and total assets of local banks were $190.2bn at the end of the first quarter of 2014, up from $181.1bn at the end of 2013 and $158.6bn at the end of 2012. Banking and financial sector legislation that was enacted during 2009 has been helping improve stability in the sector. This chapter contains interviews with Mohammad Al Hashel, Governor, Central Bank of Kuwait; and Fahed Boodai, Executive Chairman, Gatehouse Bank.
Explore chapterBanking
Buy digital copy of this chapter - £18Mexico’s banking system has been experiencing a period of stability unseen in its recent history. With sound and well-capitalised banks, the task now seems to be improving Mexico’s low banking and credit penetration. Domestic credit as a proportion of GDP stood at 47% in 2013, according to the World Bank, well below the average of 75% for Latin America and lower than Brazil (111%), Chile (108%) and Colombia (73%). Commercial banks hold 51.7% of assets in the financial system, with total assets reaching $505.05bn in December 2013, 8.8% above the $466.89bn in December 2012. Credit was the most important contributor to assets, accounting for 46% of the total, or $235.4bn. Following a financial reform in early 2014, significant changes to the system are expected over the next few years. This chapter includes an interview with Alejandro Valenzuela del Río, CEO, Grupo Financiero Banorte.
Explore chapterBanking
Buy digital copy of this chapter - £18The domestic financial sector has been fairly dynamic recently, with a number of mergers and new players arriving on the scene. However, approximately 70% of the population remains unbanked, and increasing access to financing is a government priority, especially for small and medium-sized enterprises. Given the large informal market, the size of the unbanked population and the challenge of integrating lower-income customers into the formal financial system, microfinance is taking off. However, some medium-term challenges will need to be navigated, including fragmentation at the lower end of the market, and ensuring equal implementation of good governance and data collection measures. This chapter contains an interview with Kofi Wampah, Governor, Bank of Ghana, and a roundtable with Charles Cofie, Board Chairman, Barclays; Samuel Adjei, Managing Director, Ecobank; Simon Dornoo, Managing Director, Ghana Commercial Bank; and Kweku Bedu-Addo, CEO, Standard Chartered.
Explore chapterBanking
Buy digital copy of this chapter - £18The past decade has seen the Colombian banking sector expand against a backdrop of economic growth, improved security and macroeconomic stability. An emerging middle class in need of financial services has fuelled the rise in banking penetration. Although accessing financing has often been a struggle for low-income households and micro-businesses, a fresh influx of microcredit and mobile banking is providing financial services to new segments of the population. Total assets of credit institutions reached $213.9bn by December 2013, growing 14.7% from the previous year. Though well-established Colombian groups continue to lead the market, recent merger and acquisition activity is changing the sector’s structure, bringing in new players. On the regulatory front, 2014 has been a transition year thus far, as Colombia’s financial system moves towards the adoption of International Financial Reporting Standards, scheduled to commence in 2015. This chapter features an interview with Luis Carlos Sarmiento Gutiérrez, CEO, Grupo Aval.
Explore chapterBanking
Buy digital copy of this chapter - £18Despite significant challenges linked to poor infrastructure, inadequate credit information and a largely rural population, commercial lenders are developing innovative means of broadening the sector’s reach. Framed by the government and the country’s central bank, the National Financial Inclusion and Financial Literacy Strategy encourages private banks, microfinance institutions, non-bank financial institutions and savings and loans societies to partner with non-financial actors to bridge the gap to access. Ongoing upgrades to Papua New Guinea’s financial infrastructure will improve banks’ efficiency and support alternative means of reaching out to low-income clients. Although lending growth is expected to cool in line with the wider economy in 2014, bankers have their eyes set on significant public infrastructure spending to sustain their loan books. Financial institutions are making progress in terms of providing services to PNGs unbanked population and lenders’ role as financial intermediaries is growing. Seeing through reforms will be key to making the financial system more efficient and broad-based. This chapter contains interviews with Loi M Bakani, Governor, Bank of Papua New Guinea; Mark Baker, Managing Director, ANZ Papua New Guinea; and Tony Westaway, Managing Director, Nationwide Microbank.
Explore chapterSabah
Buy digital copy of this chapter - £18Sabah is a dynamic area for growth, new discoveries and investments. Sabah is one of the five regional development corridors and hosts a number of sectors that fall under the federal government’s National Key Economic Areas, such as oil palm and rubber, among others. Services accounted for 47.4% of the state’s 2012 GDP, followed by agriculture with 20.8%; mining and quarrying, 20.7%; manufacturing, 7.9%; and construction, 2.9%. Tourism is also a growing sector; the state brought in $1.98bn in tourism revenues in 2013, up from $1.72bn in 2012. To encourage further development the government has put a set of tax incentives in place. However, varied terrain and inadequate transportation networks make coordination difficult and hinder development efforts. Bolstering infrastructure and talent is key to moving Sabah forward, and there are plenty of indicators that the state and federal governments are active on these fronts. This chapter contains interviews with Musa Aman, Chief Minister of Sabah; Mohd Yaakub Johari, President and Chief Executive, Sabah Economic Development and Investment Authority (SEDIA); Abdul Kadir bin Abdullah, CEO, Sipitang Oil and Gas Industrial Park (SOGIP); Faisyal Hamdain Diego, Chairman, Suria Capital Holdings; Johnson Koh Yong Siang, Executive Director, Waterfront Urban Development; and KP Kuok, Executive Director, Pacific Sanctuary Holdings.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Low macroeconomic volatility, stable exchange rates and efficient management of the economy and public finances are some of the factors behind the growth of Mexico’s capital markets and the record number of initial public offerings announced in 2013. With the second-largest stock exchange in Latin America, Mexico’s recent performance showed growth in volume as well as in value. In 2013, the volume of shares negotiated on the Bolsa Mexicana de Valores (BMV) was 96.4bn, reaching a value of $282.05bn, and up 8.3% on 2012. Optimism about structural reforms and an improvement in the credit rating from international agencies are attracting foreign capital and making financing cheaper for the government and companies alike. The Latin American Integrated Market, a joint stock exchange that integrates stock markets from Peru, Chile and Colombia, could become another channel for the internationalisation of the BMV as early as 2014. This chapter includes an interview with Luis Téllez Kuenzler, Chairman & CEO, Bolsa Mexicana de Valores.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The Kuwait Stock Exchange is the fourth-largest GCC bourse by market capitalisation, with earnings and market capitalisation rising substantially in 2012. The majority of trading activity is among small-cap stocks, but many local players remain optimistic about future performance. The privatisation of the exchange is expected to take place by the end of 2014, and this is widely anticipated to result in a major improvement in overall transparency and lead to greater foreign investment in coming years. This chapter contains an interview with Faisal Sarkhou, CEO, KIPCO Asset Management Company. Share analysis & data is provided by KIPCO Asset Management Company.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18In recent years the Colombian Stock Exchange (Bolsa de Valores de Colombia, BVC) has made significant efforts to increase investment options and expand the capital markets, including the creation of the Colombian Global Market (Mercado Global Colombiano, MGC) and the derivatives market, incorporation into the Integrated Latin American Market (Mercado Integrado Latinoamericano, MILA), and the implementation of Colombia Capital, a programme focused on developing future issuers. The local capital markets are also gaining attraction abroad, with the participation of foreign investors in the stock market increasing significantly in the past two years, growing from 8% in 2011 to 20% in 2013. Positive reviews are likely to bring more capital flows and raise values. This chapter contains interviews with Juan Pablo Córdoba Garcés, President, Colombian Securities Exchange; and Carlos Raúl Yepes Jiménez, President, Bancolombia.
Explore chapterBanking
Buy digital copy of this chapter - £18Morocco’s banking sector remained resilient in 2013, benefitting from cash injections from Bank Al Maghrib, the central bank, and the industry is among the most sophisticated on the continent. Although liquidity is still less than ideal and non-performing loans have inched upwards, indicators have been positive for the sector, with capital adequacy requirements well above Basel III and deposits growing robustly. In what was both a local and a regional first, 2013 saw a private Moroccan financial institution turn to the international capital markets to float $300m worth of bonds. With Europe’s economy slowly seeing a much-needed improvement (the European Central Bank forecasts economic growth of 1.1% in 2014 and 1.5% in 2015 for the area) and Morocco establishing a number of partnerships with Middle Eastern, US and Asian partners, the country as a whole should benefit. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib, and Othman Benjelloun, President, BMCE Bank.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18Although still fledgling, Papua New Guinea’s capital markets have strong prospects for growth as the economy looks forward to significant foreign currency inflows linked to the liquefied natural gas project and the development of new resource projects. With 13 dual-listed stocks on the exchange, share prices on the Port Moresby Stock Exchange are highly dependent on movements in foreign bourses, with a one to two day delay. PNG’s stock exchange is relatively shallow, with only 20 listed equities in total and one convertible note. The bourse has shown little growth since 2009, but, with prospects of a second major liquefied natural gas project and future mining deals, global investor appetite for frontier markets could broaden to PNG in coming years. Meanwhile, the strong growth in outstanding government bonds through primary auctions should generate enough momentum in PNG to launch a regulated secondary market in the near term. This chapter contains interviews with Richard Borysiewicz, General Manager, BSB Capital; and Ian Tarutia, CEO, National Superannuation Fund.
Explore chapterInsurance
Buy digital copy of this chapter - £182013 was not a memorable year for the insurance sector in Mexico, given the country’s overall slower economic growth. Enhancing Mexico’s low rate of insurance penetration has proved a challenge. With a premiums-to-GDP ratio of about 2% – compared to 5% in Brazil – the insurance penetration rate is one of the lowest in the Latin American region. In 2012 only 22% of the adult population was covered by some kind of insurance. In 2013 insurance companies in Mexico held $72.06bn in assets, corresponding to 5.7% of national GDP. While life insurance remains the main segment of the market, the automobile and health segments hold particularly promising potential, the latter favoured by the fact that many people in Mexico do not have access to health care. Implementation of key legal reforms and their effects on firms and the sector as a whole will be central to growth prospects going forward.
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18One of the foremost and earliest players in the global market for Islamic financial services, Kuwait could soon see the segment play a larger role in the banking sector. Half way through 2013, Kuwait housed more than $70bn in sharia-compliant banking assets, around 6% of the global total and a figure widely expected to grow in the coming years. Key drivers include a sector- wide focus on asset diversification, new opportunities in the sukuk (Islamic bond) market and the potential conversion of the Commercial Bank of Kuwait, a conventional lender, to sharia-compliant status.
Explore chapterCapital Markets
Buy digital copy of this chapter - £18The year 2013 was one of ups and downs for emerging market equities. The Moroccan All Shares Index (MASI) eased downwards in 2013 for the third consecutive year, ceding 2.6%. However, the decline was markedly slower than in 2012, when it fell 15.3%. The Casablanca Stock Exchange (CSE) certainly grappled with a number of exogenous pressures, hitting a five-year low at the end of August 2013. While overall market performance in 2013 was muted, a number of sub-segments saw prices rise over the course of the year. Performance in early 2014 has already begun to show promise, with the exchange up 3.4% year-to-date and up 6.8% year-on-year (y-o-y) as of May 2. As the year progresses, the reclassification to a frontier market by MSCI and the successful initial public offering (IPO) of the Jorf Lasfar Energy Company (JLEC) in December 2013 could continue to serve as catalysts to turn around the fortunes of the MASI. This chapter contains interviews with Said Ibrahimi, CEO, Casablanca Finance City, and Younes Benjelloun, Partner and CEO, CFG Group.
Explore chapterCapital markets
Buy digital copy of this chapter - £18While Ghana benefits from a roster of financial actors, the country’s capital markets are modest compared to continental exchanges in Cairo, Johannesburg, Lagos and Casablanca. The Ghana Stock Exchange (GSE) has just 36 equities and one exchange-traded fund listed on its equities exchange alongside a bond market dominated by government securities. In recent years the requirements for listing have been reduced, while the GSE has also been educating Ghanaians about the benefits of raising capital through equity. There is a long list of state-owned enterprises that could list on the bourse, and their doing so might encourage more private firms to follow suit. Ghana’s capital markets remain extremely attractive to investors seeking a toehold in the West African sub-region, in light of its robust growth, diversified commodity exports and political stability. This chapter contains an interview with Kofi Yamoah, Managing Director, Ghana Stock Exchange, and a viewpoint from David Awuah-Darko, Managing Director, IC Securities.
Explore chapterInsurance
Buy digital copy of this chapter - £18Since the 1990s Colombia’s insurance sector has grown faster than overall GDP, driven by personal lines and social security. The industry recorded 11.3% growth in assets to end 2013 with $21.4bn, up from $19.2bn in 2012, while total written premiums reached $9.45bn, an 18% increase compared to the previous year, which had ended with $8bn. Investments held by the sector also rose from $13.7bn to $15.7bn. Almost two-thirds of the assets and three-quarters of the investments are held by the life insurance division. The market, comprised of 45 insurers, includes a number of global underwriters, with the sector split evenly between domestic and foreign firms. At 2.4%, Colombia’s insurance penetration remains low even by regional standards (compared to Chile’s 5% and Panama’s 4%), suggesting significant room for organic growth in the sector.
Explore chapterEnergy
Buy digital copy of this chapter - £18A key sector of the Mexican economy, the energy industry is set to undergo radical changes as a result of the structural reform passed by the government in 2013. The reform will open the nationalised oil industry to foreign investment, allow for open competition in the electricity market, enable private companies to build natural gas pipelines with more freedom, and will give producers of clean energy better access to customers. For the first time in decades, the energy reform is set to break the existing monopolies in the oil and electricity segments. While the government estimates the energy reform will add between 0.5% and 1% to GDP each year between 2014 and 2018, the end of the current administration’s term, this could be an overstatement of the short-term effects of the reform. Other estimates point to a boost to the economy of between 1.5% and 1.7% on average per year from 2017 to 2030, with a lesser benefit in the early years of this period and a larger one later on. This chapter includes interviews with Pedro Joaquín Coldwell, Minister of Energy; and Emilio Lozoya Austin, Director-General, Petróleos Mexicanos (PEMEX).
Explore chapterInsurance
Buy digital copy of this chapter - £18While the insurance sector has posted steady growth in recent years, in general it remains relatively small, with the energy sector underpinning a great deal of the activity in the market. Insurance penetration was reported at 0.6% in 2012, which was the lowest penetration rate in the GCC at the time. However, there is optimism among locals as gross written premiums as a whole have continued to grow over the past decade, even as competition has remained tough.
Explore chapterInsurance
Buy digital copy of this chapter - £18The market has seen several new entrants in recent years, with the total number of licensed insurance underwriters reaching 14 in 2014. While limited in size and reach, the insurance market in PNG recorded double digit growth in five years to 2013. Driven by the non-life corporate segment, growth has attracted a number of new players. However, the market remains shy of its potential, with low penetration for retail products, while large mining and hydrocarbon projects typically have their risks insured offshore. Establishing and enforcing consistent rules will be key to supporting medium-term growth. Expanding penetration for individuals and businesses will be critical as well, in line with the state’s financial inclusion strategy. This chapter contains interviews with Wayne Dorgan, Managing Director, Pacific MMI Insurance.
Explore chapterEnergy & Utilities
Buy digital copy of this chapter - £18In the past 10 years, Colombia has emerged as one of Latin America’s leading hydrocarbons producers. With just over 1m barrels per day of production in 2013, Colombia trailed only Mexico, Venezuela and Brazil in the region. On a relative basis, natural gas production, at 1.2bn cu feet per day, is more modest, but has also grown every year but one since 2003. With one of the lowest reserves-to-production ratios among the world’s major oil producers, the sector’s primary problem is limited reserves. The industry has begun exploring new unconventional hydrocarbons resources such as shale oil and gas, offshore oil and gas, and coal-bed methane, all of which have the potential to become significant sources of new revenue for the industry. With stable production from conventional sources and expanding opportunities in unconventional and offshore blocks, Colombia’s energy sector appears poised to sustain at least moderate levels of growth. This chapter contains interviews with Javier Gutiérrez, President, Ecopetrol; and Javier Betancourt, President, National Agency of Hydrocarbons (ANH).
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Sitting at the confluence of three of the most populous and prosperous countries in the Middle East – Iraq, Iran and Saudi Arabia – Kuwait is a logical transport centre for the northern Gulf and the country has committed itself to making investments towards attaining that goal. Expansion of the main airport is under way, while a new port is set to increase Kuwait’s capacity as a shipping hub. The government is also looking to increase use of public transport, with plans afoot to invest in more city buses and a metro system.
Explore chapterInsurance
Buy digital copy of this chapter - £18Morocco’s insurance market has become more competitive in recent years. It is now Africa’s second-largest insurance market in terms of penetration after South Africa and the third-largest in the Middle East and North Africa after Saudi Arabia and the UAE. Total premiums in 2012 reached €2.3bn, up 8.9% on the previous year. Non-life premiums – thanks to automobile coverage – continued to dominate, representing some 66% of the market in 2012 at a value of Dh17.19bn (€1.5bn), compared to Dh8.84bn (€785m) for life premiums. Growth continued in 2013, with provisional data indicating that premiums for the first six months of the year totalled €1.3bn, up 3.1% over the same period in 2012. The insurance market is expected to continue to expand in the medium to long term, in line with growth in sectors such as construction, real estate and manufacturing. In the meantime, the industry will carry on developing new products and new ways to access segments of the population that are still uninsured. This chapter contains an interview with Mohamed Hassan Bensalah, President, Moroccan Federation of Insurance and Reinsurance Companies.
Explore chapterInsurance
Buy digital copy of this chapter - £18While insurance penetration is still modest by emerging market standards, headline indicators are improving significantly. Over the past five years, revenue from insurance premiums has averaged 32% growth, with the life segment seeing 38.1% expansion over this same period. Microinsurance is expected to be a major growth driver given the cost-sensitivity of policies. As of 2010, between 160,000 and 250,000 people in the country had a microinsurance policy. Improved social and living conditions point to rising demand for insurance services in Ghana. Indeed, six of the world’s 10 fastest-growing economies over the past decade were in sub-Saharan Africa, including Ghana. Staff training, a concentrated market and a lack of capacity continue to be constraints, but recent reforms to boost capitalisation, encourage consolidation and improve awareness are set to help pave the way for continued increases in premiums. This chapter contains an interview with Lydia Lariba Bawa, Commissioner, National Insurance Commission.
Explore chapterIndustry & Mining
Buy digital copy of this chapter - £18At 17% of GDP, manufacturing is a pillar of the Mexican economy. More than at any point in the past 15 years, Mexican industry is today able to compete with China as a low-cost manufacturing alternative and with other high-income markets as a viable location for outsourcing sophisticated manufacturing. This is perhaps the most promising time for Mexican manufacturing since NAFTA was implemented 20 years ago. The story of the moment is Mexico’s surpassing China in labour cost competitiveness, a phenomenon that is hard to precisely quantify but whose consequences should be easy to see in the coming years. Moreover, reform in the energy sector has the potential to reduce costs in the long term, thus addressing one of the manufacturing industry’s greatest challenges. This chapter includes interviews with Ernesto M Hernández, President and Managing Director, General Motors de México; Louise Goeser, CEO, Siemens Mesoamérica; and Xavier García de Quevedo Topete, President, Minera México.
Explore chapterBanking
Buy digital copy of this chapter - £18In a stress test conducted in early 2014, the central bank found that Malaysia’s banks would be able to hold up even if the system faced shocks greater than those in the 2008 crisis. After a number of years of consolidation and in an environment of tight regulation, Malaysia’s commercial banks have continued to improve. Local banks have been ordered by Bank Negara to increase their collective assessment ratio to 1.2% by the end of 2015. The ratio was previously called the general provisions ratio and was set at 1.5%. Macroprudential measures will help the country get its household debt under control while small and medium-sized enterprise financing is likely to improve over time. The vision of creating a regional banking giant remains unfulfilled for the time being; nevertheless, organic growth opportunities exist and banking targets may become available from time to time, allowing some of Malaysia’s larger players to cobble together a regional footprint. This chapter contains an interview with Kelee Kam, Group Managing Director, RHB Capital.
Explore chapterEnergy
Buy digital copy of this chapter - £18The near future will bring positive change for the energy sector and the economy as a whole, as the investment and construction phase of the $19bn Papua New Guinea liquefied natural gas (LNG) project winds down and the first shipments of gas begin to flow. Progress is also being made in the utilities sector, with major power generation projects and the expansion of water and sewage networks. The billions of dollars invested in the PNG LNG project have trickled down across nearly all sectors of the economy, from services to real estate, as the country waited for export revenue streams to come on-line. The government will now start to see a more direct impact on its bottom line as LNG exports begin to move. How much progress takes place across the sector – and how rapidly it occurs – may rely in large part on government cooperation with the private sector and on ongoing changes to the regulatory framework. This chapter contains interviews with Peter Graham, Managing Director, ExxonMobil PNG; Michael Hession, CEO, InterOil; Peter Botten CEO, Oil Search; and Raka Taviri, Water PNG.
Explore chapterEnergy
Buy digital copy of this chapter - £18As new discoveries are being made in the north of the country, and as the industry develops increasingly sophisticated extraction technologies, Kuwait’s oil revenues should see a new boost. The authorities are also seeking to develop the country’s natural gas resources, as these could provide a valuable alternative for electricity generation. Although the kingdom was ranked as the world’s sixth-largest oil producer in 2013, the government still has its eyes set on energy diversification, with solar energy being the most promising option.
Explore chapterIndustry, Mining & Retail
Buy digital copy of this chapter - £18With an increasing focus on value-added export industries in manufacturing, Morocco has become one of Africa’s leading countries for industrial FDI. The 2009 strategic plan to bolster six designated segments by investing billions of dirhams and facilitating new investments, has drawn in sizable injections of capital and seen an increase in manufactured production, due to strong performance by the automotive and aeronautics sectors. There has been a push to improve performance in the mining sector, in part by encouraging upstream and downstream activity in a variety of metals and minerals. The government rolled out a comprehensive strategy for the sector in 2013, which aims to boost investment and expand capacity, as well as introduce a new mining code. The formal retail industry remains fairly limited, but it has been gathering steam over the past three years. A growing middle class and urbanisation rate, as well as a modernisation of consumer shopping habits bode well for the sector’s future. Major international brands and franchises are increasingly entering and expanding into Morocco, taking advantage of a significant rise in dedicated retail properties. This chapter contains interviews with Moulay Hafid Elalamy, Minister of Industry, Commerce, Investment and Digital Economy, and Hamid Benbrahim El Andaloussi, Chairman, Moroccan Aerospace Industries Group (GIMAS).
Explore chapterCapital Markets
Buy digital copy of this chapter - £18While the possibility of loose monetary policy ending in the US raised concerns in the Malaysian markets, 2013 turned out to be a strong year for new offerings and for the benchmark index. In the first six months of 2014, nine IPOs were reported by the stock exchange. In 2013, $2.56bn was raised in IPOs. That was considerably less than in 2012, when the exchange raised $7.15bn, but up from $2.09bn in 2011. In December 2013 Bursa Malaysia upgraded its trading engine, utilising NASDAQ OMX technology. Bursa Trade Securities 2 replaced a 2008 system. The new engine is 1000 times faster in terms of trade. As in much of the region, Malaysia is facing headwinds related to changes in monetary policy in the West and the tapering of quantitative easing. Foreign investment will likely become more volatile going forward. Nevertheless, Malaysia is well positioned not only to weather any difficulties ahead, but it is in a good position to outperform. It has a well-regulated market, a strong domestic investor base, and its listed companies are well governed. This chapter contains an interview with Shahril Ridza Ridzuan, CEO, Employees Provident Fund.
Explore chapterEnergy
Buy digital copy of this chapter - £18Since the discovery of offshore oil in 2007, Ghana has been adapting to the new reality of its hydrocarbons economy. In 2012 production at the Jubilee field increased 15% year-on-year to reach 27.4m barrels of crude oil, the entirety of which was exported for nearly $3bn. Oil production from the Jubilee field will likely plateau at around 140,000 bpd from 2013 to 2023. Gas production is also expected to peak at around 100m standard cu feet per day in 2015. The infrastructure needed to transport and process Jubilee’s gas resources is not expected to be complete until after 2013. As the gas processing plant nears completion in 2014, Ghana will be able to link its hydrocarbons output with its energy needs, bringing stability to the nation’s electricity sector. With GDP forecast to grow 8-9% in 2013, oil production and demand are both sure to continue rising. This chapter contains interviews with Kwesi Botchwey, Chairman, Ghana National Gas Company; and Aidan Heavey, CEO, Tullow Oil.
Explore chapterMining
Buy digital copy of this chapter - £18With vast coal, gold and other mineral reserves, Colombia continues to be one of Latin America’s leading mining countries. The sector has expanded significantly in the past decade, with the last two governments emphasising its importance to the national economy and courting foreign investment. However, in recent years falling commodity prices have stalled development projects, while strikes, guerrilla attacks and government sanctions have interrupted production. Exports of coal, the dominant component of Colombian mining, fell 4% in tonnage and a 14.3% in value to $6.7bn in 2013 compared to the previous year. Gold, the second-biggest mining segment, with exports of $2.3bn in 2013, was down by a third from 2012. Nonetheless, as the security situation improves, opening up new areas to geological analysis, Colombia’s strong institutions, protection of investors, extensive reserves and competitive royalty rates should continue to attract significant interest in the mining industry. This chapter features an interview with Ken Kluksdahl, President, AngloGold Ashanti Colombia.
Explore chapterMining
Buy digital copy of this chapter - £18In spite of the logistical challenges posed by Papua New Guinea’s geography, strong global demand for raw materials against the backdrop of the commodity super-cycle continues to fuel investment in the country’s mining sector. Mining and petroleum taxes are expected to increase their contribution to the national budget, rising from $331.6m in 2013 to a projected $406.5m for 2014. Joint-venture agreements have seen new mining activity being added to the country’s portfolio, which could help enhance gold, silver and ore output in the medium term. Notwithstanding the challenges facing the sector, which stem from the global economic situation as well as local regulatory uncertainties, the mining sector is projected to remain a major contributor to the economy for many decades to come, with Australia-based ANZ Bank forecasting gold and copper exports of $3.3bn and $3bn up until 2030. This chapter contains an interview with Byron Chan, Minister for Mining, and a viewpoint from Nigel Parker, Managing Director & CEO, Ok Tedi Mining.
Explore chapterConstruction
Buy digital copy of this chapter - £18Driven by an expanding population and a slate of new infrastructure projects expected to enhance economic development and meet growing energy demands, Kuwait’s construction industry is set to grow impressively in 2014. Infrastructure projects in the pipeline will see an influx of public and private spending on road, airport and energy projects, while rising demand for housing and hotels has led to promising opportunities in the hospitality and residential real estate segments. This chapter contains an interview with Riyadh Al Saleh, Chairman & CEO, Kharafi National
Explore chapterIslamic Financial Services
Buy digital copy of this chapter - £18As a result of government promotion, increased interest among Muslims and non-Muslims, heightened awareness of the benefits of Islamic finance and improved regulation, sharia-compliant financial products have been gaining on conventional finance. The country’s IFS sector dates back to 1969, when the government established the Pilgrims Management and Fund Board to help Malaysians pay for the Hajj. According to recent estimates, around half of all outstanding debt securities are sharia compliant, with the annual trading volume of the IFS market reaching $312.1bn. The 2013 Islamic Financial Services Act will improve regulation and supervision in the sector by giving the central bank the power to intervene in financial institutions’ operations if it feels they are endangering the financial system. The IFS sector will no doubt continue to expand rapidly. Regulation may create new challenges for some business in the sector, but it will also increase confidence in and understanding of IFS. Once the sector digests these new rules, it will likely come back stronger and in a better position to take on a larger share of conventional financial services. This chapter contains interviews with Rauf Rashid, Country Managing Partner, EY Malaysia; and Daud Vicary Abdullah, President and CEO, INCEIF.
Explore chapterTourism
Buy digital copy of this chapter - £18Morocco’s tourism sector has undergone a major shift in recent years in large measure due to the implementation of the Moroccan National Tourism Office’s (ONMT) Vision 2020 programme, which seeks to attract 20m tourists by 2020. The programme also aims at raising the country’s “sun and surf” profile, boosting annual revenues to Dh140bn (€12.43bn), increasing hotel bed capacity to 375,000 and creating 9500 new jobs in the industry, all by 2020. While the economic crisis in Europe and the fallout from the Arab Spring elsewhere in North Africa have continued to impact the tourism industry in Morocco, the sector has nevertheless seen moderate expansion in activity. With 10m tourists visiting Morocco in 2013, the tourism sector is a leading contributor to the kingdom’s GDP, at around 7%. The ONMT predicts that Morocco will receive 10.7m tourists in 2014 and 12m in 2016. Tourist expenditure and nights spent at hotels, however, have decreased. Taken together, these factors have put pressure on profits and prices have been reduced in an effort to boost volumes. Efforts by both the public and private sectors mean that the industry’s long-term outlook remains robust, although things may be more volatile in the medium term. This chapter contains an interview with Lahcen Haddad, Minister of Tourism.
Explore chapterQuerétaro
Buy digital copy of this chapter - £18Despite accounting for just 1.7% of Mexico’s population and 2% of the economy, Querétaro is, in many ways, a picture of the country Mexico wants to become. Home to more than a dozen universities that work closely with local industry to produce a qualified workforce, Querétaro also stands out in terms of security and links to population and transport centres. The state government aggressively courts foreign direct investment (FDI), securing $500m-$700m annually in recent years. Querétaro’s economy is estimated to have grown 4.5% in 2013. Manufacturing accounted for 27% of the state’s economy in 2012 and more than half of FDI between 2010 and the third quarter of 2013. Of the manufacturing total, the automotive sector represented 33%, as well as 9% of state GDP. Querétaro is a state to watch as an economy in its own right and as an example of the path Mexico may follow. This chapter includes an interview with José Calzada Rovirosa, Governor of Querétaro.
Explore chapterTransport & Logistics
Buy digital copy of this chapter - £18Colombia’s transport sector is set to undergo significant expansion in the next few years, much of which is owed to the current flagship fourth-generation road concession programme. The development of land transportation networks has become a top priority as the National Infrastructure Agency aims to increase roads under concession from 6000 km to 11,000 km, revitalise the aged railway network and raise rail lines under operation from 900 km to more than 2000 km. Expansion of port infrastructure, which has already benefitted from successful public-private concessions, will also make the country better equipped to deal with rising cargo inflows stemming from enhanced trade. Meanwhile, the increasing number of travellers is spurring improvements in air transport. While the current model for public-private partnerships presents some challenges as a means to attract foreign direct investment, government efforts to improve access to financing and ultimately increase interest in road concessions continue. This chapter contains interviews with Cecilia Álvarez-Correa, former Minister of Transport; Luis Fernando Andrade, President, National Infrastructure Agency; and Eleuberto Antonio Martorelli, President, Odebrecht Colombia.
Explore chapterReal Estate
Buy digital copy of this chapter - £18Although growth in real estate slowed during the global financial crisis, the sector subsequently rallied to become one of the best-performing non-oil industries in Kuwait. Following recovery in 2011 and 2012, real estate growth increased significantly in 2013, driven by rising residential demand and strong performance in the investment and commercial segments, as well as the revision of financing laws as part of efforts to support new buyers.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18While communications will always be difficult in a country where much of the population is geographically isolated and the terrain is so challenging, the relevant infrastructure in PNG is quickly developing towards international standards – and at prices that are near to international norms. For example, prior to competition entering the market, mobile phone SIM cards were sold for $54; however, after a second mobile operator was introduced, prices dropped to around $10. As internet speeds increase, capacity improves and costs come down, ICT is set to become a more integral part of many Papua New Guinean businesses, as they seek to improve their competitiveness. If all goes according to plan, international connectivity is set to receive a major boost, local connectivity will become faster and cheaper, and costs will fall further. It is also likely that consumers will have more choice as new players enter the market. This chapter contains an interview with Jimmy Miringtoro, Minister for Communication & Information Technology.
Explore chapterInsurance
Buy digital copy of this chapter - £18Despite being well established in the country, insurance remains a fairly small part of Malaysia’s financial industry. According to IMF calculations the insurance sector accounts for 6% of total financial assets, and insurance assets are equal to around 15% of GDP. Insurance penetration, though improving, remains low. More foreign investment and consolidation may help, as critical mass and technology could improve products and marketing and result in a wider range of Malaysians buying insurance. More mergers can be expected, and as that happens insurance firms are likely to improve their operations and management. The insurance sector should become more like the banking sector, with a few solid and profitable players. This chapter contains an interview with Kamaludin Ahmad, CEO, Etiqa Insurace & Takaful.
Explore chapterBaja California
Buy digital copy of this chapter - £18The farthest north-west state in the country with a total population of over 3.3m, Baja California’s access to tangible resources – natural gas, water and electricity – and a qualified workforce distinguish the state from other investment regions. The state’s GDP saw a decrease of more than 8% in 2009 due to the economic crisis in the US. Despite this setback, economic recovery has been under way since 2010 with a 2.2% recovery, 4.4% growth for 2011 and 4.2% for 2012. In 2012 the state’s main economic activities by GDP were manufacturing and commerce, with shares of 19.4% and 16%, respectively. Total foreign direct investment was reported at $771.1m for 2013, growing 30% over 2012 figures. By continuing to support education and industry integration, the state could be set to see a shift from manufacturing to the development of an innovation- and research-driven market in the medium-term. This chapter includes an interview with Francisco Arturo Vega de Lamadrid, Governor, Baja California.
Explore chapterMining
Buy digital copy of this chapter - £18Vast mineral resources have served as a primary driver of Ghanaian economic growth in recent decades, and 2012 was another banner year for the mining industry. Ghana was the world’s eighth-largest producer of gold in 2012. At the same time, production of bauxite, a key aluminium property, increased, while deposits of diamonds and manganese continued to attract international investment. Overall, mine production was reported by the Ghana Chamber of Mines to have grown by 23.5% in 2012, above the 18.8% rise posted in 2011. This translated into a 14% increase in total revenues year-on-year. However, limited port and rail facilities are beginning to pose a challenge for the industry, which is being forced to rely on less-than-ideal options for transporting equipment and mineral output. Efforts are under way to develop the supply chain and create new downstream manufacturing capacity, but progress is gradual. It is highly likely that mining output will slow as the market for gold flags. This chapter contains interviews with Alhaji Inusah Fuseini, Minister of Lands and Natural Resources; and Toni Aubynn, CEO, Ghana Chamber of Mines.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18As the first GCC nation to break its single-operator monopoly, Kuwait’s telecommunications industry has evolved over the past 15 years into one of the region’s most mature, competitive and technologically advanced. The private sector has invested heavily in the latest mobile technology, including 4G LTE, and LTE-Advanced (LTE-A), with these services moving to replace the state’s dwindling fixed-line market. At the same time, expanding fibre-optic networks are expected to help the sector meet demand for more sophisticated internet services.
Explore chapterEnergy
Buy digital copy of this chapter - £18With Malaysia’s steady economic growth and expected regional surge in energy demand, the country’s oil and gas sector continues to play a key role economically, socially and strategically. Most of the country’s major oil-producing fields are in the west, with the Sabah and Sarawak basins in the east. As mature oil fields continue to decline in production, development of new fields has shifted to more technically and economically challenging areas. Expanding on past successes, Malaysia is gearing up investments in the upstream sector to cope with overall energy demand that is expected to be about 50% greater in 2040 compared to 2010 levels, according to projections by ExxonMobile. Alongside fiscal initiatives for trading, Malaysia continues to expand its liquefied natural gas (LNG) infrastructure to accommodate increasing supplies of natural gas. The country’s first floating LNG facility is currently being constructed and is expected to come online by the end of 2015. Eagerly awaited reforms in power generation should also positively affect public and private stakeholders as fuel and electricity subsidies are phased out and tender process for new plants become competitive and transparent. This chapter contains an energy viewpoint from Greg Rickford, Canadian Minister of Natural Resources.
Explore chapterTransport
Buy digital copy of this chapter - £18Papua New Guinea’s transportation sector looks to be turning a corner as a number of substantial infrastructure upgrades are now in full swing. Under the PNG Strategic Development Plan 2010-30 the government aims to expand the national road network from 8460 km in 2014 to 25,000 km by 2030 and raise the proportion of roads in good condition from 28.7% to 100%. The government is encouraging private sector investment through the infrastructure tax credit scheme, which is available to taxpayers that build infrastructure to support their mining, petroleum, natural gas, primary production or tourism activities. Improvements at ports, combined with the eventual relocation of government-owned facilities in the capital, should further ease congestion for domestic and international shipping lines, although monopolistic domestic shipping practices could offset some of the efficiencies gained. In the skies, much-needed improvements to the country’s airports and airlines should also improve efficiency, comfort and safety. This chapter contains interviews with Tim Blackburn, Managing Director, Swire Shipping; and Zoë Harrison, Country Manager PNG, DHL.
Explore chapterTransport
Buy digital copy of this chapter - £18The Moroccan transport sector has made some great strides in recent years, and projects across the spectrum are ongoing and set for delivery over the next year and a half, in line with the government’s medium-term infrastructure development plans. While major events such as the 2008-09 financial crisis, the ensuing eurozone debt crisis and recent regional political instability have impacted passenger and cargo flows to and from the kingdom, investment plans in general have kept pace. As such, the first phase of SAAN, a multi-phased plan to upgrade and extend Morocco’s road network, was completed in 2012 and involved the construction of 1000 km of roads. Over the next five years substantial public funding is set to go towards revamping and expanding road, rail, maritime and air traffic infrastructure. This will consolidate Morocco’s position as a regional transit hub for both cargo and passenger traffic, while also responding to growing demand from the domestic market, where passengers are increasing in number, as well as demanding better service quality. This chapter contains interviews with Thierry de Margerie, Vice-President Africa, Alstom, and Faysal El Hajjami, President & Managing Director for Maghreb Region, DHL Express.
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18As the government attempts to open strategic sectors of the economy to competition and attract more foreign direct investment (FDI), much is also being done to improve science and research as a means to spur innovation. Increased spending, coupled with changes in regulation, is expected to fuel the growth of start-ups and make the business environment more dynamic. The current government has stated its goal to raise annual expenditure on science and technology from its current 0.4% of GDP to at least 1% of GDP by 2018. Upon assuming office in late 2012 President Enrique Peña Nieto also announced the creation of a high-level committee to advise him on scientific matters and assist in designing reforms for the sector. With political discourse increasingly echoing the position that Mexico’s future economic growth will depend on businesses’ capacity for change, research and innovation should gain more prominence in the near future. This chapter includes an interview with Raúl Gallegos, President and CEO, General Electric México.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Buoyed by a strengthening of the government’s housing programme, as well as a continued emphasis on improving transport infrastructure across the country, Colombia’s construction sector is well positioned for growth over the coming years. The sector grew 9.8% in 2013, considerably more than the 3.6% increase seen in 2012, accounting for 6.5% of GDP in 2013, according to BBVA Bank. Driven by demand for housing and a mounting construction sector, the real estate sector is also experiencing healthy growth. According to the Colombian Federation of Real Estate, the sector accounted for 8% of GDP in 2013, with real estate services generating a value of $9.8bn, a 3.2% increase on 2012 figures. As the housing stock is absorbed by high demand and a well-structured mortgage system, fears of an impending bubble have so far been exaggerated. This chapter features an interview with Luis Felipe Henao Cardona, Minister of Housing and Social Development.
Explore chapterIndustry
Buy digital copy of this chapter - £18Efforts to diversify the economy away from hydrocarbons have helped drive industrial development. Non-oil GDP saw 10% growth in 2012, and during the 2006-12 period, manufacturing made up an average of 6.4% of GDP a year. Land, transport and electricity prices are currently the main challenges in growing this sector, but efforts are being made to overcome these issues. In early 2013, the government also announced a new $7bn fund to develop small and medium-sized enterprises and help support further economic diversification.
Explore chapterTransport
Buy digital copy of this chapter - £18As Malaysia aims to achieve high-income country status by 2020, the key to reaching the goal is enhancing transport infrastructure, with major investments in air and sea, road and rail currently under way. At the same time, the logistics sector remains highly competitive, with air transport in particular seeing some fierce price wars in 2013-14. The most recent census – for 2010 – confirmed a trend of expansion in the sector, with a compound annual growth rate of 4.5% in the number of transport establishments between 2003 and 2010, and a 1.5% CAGR in employment in the sector. One National Key Results Area under the Government Transformation Programme is to increase urban public transport’s share of passenger journeys from 12% currently to 40% by 2030. With heightened competition in air, major road and rail projects under way on land, and a significant boost in port capacity, the Malaysian transport sector is likely to have some significantly busier times in the years ahead. This chapter contains an interview with Jean-Bernard Levy, Chairman & CEO, Thales.
Explore chapterICT & Media
Buy digital copy of this chapter - £18The telecoms industry, which includes fixed and mobile communications as well as pay TV, saw its revenues expand from $26.6bn in 2009 to $34.7bn at the end of 2013. After years of underinvestment and a market structure that has stifled service penetration, a reform to reduce the influence of dominant players in the telecoms market is set to increase competition, facilitate wider access and put downward pressure on prices. The IT sector now accounts for 6-7% of GDP and is expected to grow rapidly as constitutional reforms reshape the industry. Exponential growth has attracted international players and allowed for the emergence of an established domestic IT industry. However, asymmetric market conditions have made Mexico one of the least-connected countries in the region. There are approximately 40m internet users in Mexico, but only 17% of its 117m people currently have internet access at home. For telecoms firms in particular, the untapped market for additional services is increasingly attractive. This chapter features interviews with Gabriel Oswaldo Contreras Saldívar, President Commissioner, Federal Institute of Telecommunications; and Ankur Prakash, Executive Vice-President, TCS Latam.
Explore chapterIndustry
Buy digital copy of this chapter - £18Although consumer spending has weakened recently, in the long term the country will benefit from economic growth and related foreign investment, which will in turn help support consumer demand. New firms are being developed, while existing business are improving their operations. The retail sector is developing rapidly, and shopping malls are proving increasingly popular compared to the traditional general stores. When returns from the Papua New Guinea Liquefied Natural Gas project begin to feed through to the economy, the retail sector is expected to grow strongly and those who have invested in their businesses will benefit. Higher demand, the growing middle class, increased competition, and the development of more and better infrastructure will reward those who are able to supply the right products and services, and who are prepared to evolve with the economy. This chapter contains an interview with Ravi Singh, CEO, CPL Group, and a viewpoint from Michael Penrose, General Manager, British American Tobacco.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Often referred to as the backbone of Ghana’s economy, agriculture has traditionally been the largest sector and the biggest employer in the country, bolstered by diverse commodities and strong ties to European markets. However, agriculture’s economic contribution has dwindled as the sector has shown low growth in recent years. Its contribution to GDP fell in 2012, totalling 22.7% of GDP, compared to 25.3% in 2011. To counter this, the Food and Agricultural Sector Development Plan features six priority themes. Cash crops form a significant portion of exports, although transport gaps and seasonal production continue to be issues. The government is using growing petroleum revenues to beef up funding allocation for agricultural modernisation. Around $10.3m of the Annual Budget Funding Amount will be spent on the sector annually from 2013-23. As the government continues to expand and modernise agriculture, the industry should see steady growth over the coming years. This chapter contains an interview with Sunny Verghese, Group Managing Director and CEO, Olam International.
Explore chapterRetail
Buy digital copy of this chapter - £18As one of the world’s most affluent societies, Kuwait is home to a growing and diversifying retail sector. With strong economic fundamentals and a steady increase in consumer purchasing power, retail in Kuwait is on a sure foundation. On the back of this, mall space is set to expand, as is the food and beverages segment, driven by the prosperous and young generation that is boosting spending and doing more shopping online.
Explore chapterThe North
Buy digital copy of this chapter - £18Anchored by the port city of Tangiers, Morocco’s diverse northern region has undergone a significant transformation in the past 10 years thanks in large part to efforts to decentralise governance, boost local infrastructure and encourage industrial growth. The crux of these efforts is an integrated economic development plan that aims to capitalise on the region’s location at the juncture of the Atlantic Ocean and the Mediterranean and along key maritime trade routes. In addition, a five-year urban and economic development plan, Tangiers-Metropolis, launched in September 2013, aims to invest another Dh7.66bn (€680.2m) in the greater Tangiers area between 2013 and 2017 to reinforce its position as a motor of the national economy. Today, Tangiers-Tétouan is the second-largest recipient of FDI inflows after the greater Casablanca area. While the port-industrial complex in Tangiers has been the focus of public and private investment in the past decade, the region’s growth has opened up possibilities in a number of sectors, including tourism, services, information and communications technology, offshoring and agriculture. This chapter contains interviews with Fouad Brini, President of the Supervisory Council, Tangiers Mediterranean Special Agency (TMSA), and Julianne M Furman, Founder, Tangiers Free Zone Investors Assoc.; President, Polydesign Systems; and GM, Exco Automotive Solutions Europe.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18As the significantly divergent performances of its various sub-sectors suggest, Colombian industry is at a crossroads. Some sub-sectors have sustained robust growth during the past decade and have developed export channels targeting regional markets. However, other industries have not been able to overcome the number of challenges that nearly all Colombian manufacturers must contend with, in particular high transportation costs and increased international trade which has brought low cost goods to the domestic market. The sector’s contribution to GDP fell from 14% in 2011 to 12% by 2013, prompting the government to implement several programmes to buoy domestic manufacturing. As the cosmetics industry demonstrates, however, opportunities still abound, and there is a place in the regional market for Colombia, a mid-sized exporter, to meet its neighbours’ growing levels of consumer demand. This chapter contains an interview with José Alberto Vélez Cadavid, President, Grupo Argos.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18From 2008 to 2012, the construction sector posted average real annual growth of 20.4%. The value of construction projects in 2013 was estimated at $1.4bn, up from the $1.2bn in 2012, $984m in 2011 and $744m in 2010. A host of big-ticket items are listed in the 2014 budget, including $577m to construct and maintain roads and bridges; $152m to finish facilities for the 2015 Pacific Games; $25m for housing and land development; $91m for university infrastructure; and $109m for hospital redevelopments. Although there has been some sector deceleration, much of this is being offset by a substantial surge in government outlays for infrastructure. Meanwhile, growth in property values is slowing and demand is starting to cool as the unprecedented property demand surge prompted by the Papua New Guinea Liquefied Natural Gas (LNG) project has begun to subside. This decline has led to market correction in certain areas, but some real estate categories have been affected more than others. With an estimated 28% of the urban population in PNG living in informal settlements, the government has been rolling out a number of policy changes to reduce this figure to 15% by 2030. One industrial development that could become a game changer received new life in 2013: the prospect of moving forward with the long-dormant Konebada Petroleum Park. Any rebound in the kina should help stabilise property prices, with real GDP projected to grow through to 2018 as revenues from PNG LNG and other resource extraction projects begin to materialise in late 2014. This chapter contains interviews with Francis Awesa, Minister for Works and Implementation; Stuart Bowman, Country Manager & Director, Leighton PNG; and James Lau, Managing Director, Rimbuna Hijau (PNG) Group.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The construction sector has experienced consistently strong growth in the past four years as the industry expanded by 11.4%, 4.7%, 18.1% and 10.1% each year from 2010 to 2013. Sector growth has surpassed GDP growth in recent years, spearheaded by the government’s Economic Transformation Programme (ETP) and public-private partnership (PPP) projects. Counterbalancing the interest shown in the more profitable high-end properties, the government has also been mindful of developing more affordable options through various government programmes. Mixed-use mega projects in Kuala Lumpur and Iskandar are expected to produce stable demand for construction services. Sustained economic expansion, a youthful and growing population and an investor-friendly market amenable to foreign and domestic investments have continued to drive Malaysia’s real estate market forward in 2013. The government is seeking to rein in residential property growth to limit broader economic damage in the event of a market downturn as well as to keep home prices affordable for the less affluent. Although investment in the residential sector is expected to remain firm within the short term, particularly with regards to mid-range projects, the market is likely to continue its correction course throughout 2014. This chapter contains interviews with Michael Yam, President, Real Estate and Housing Developers’ Association; and Mohamad Salim, Group Managing Director, MRCB.
Explore chapterEducation
Buy digital copy of this chapter - £18Kuwait’s public education system now enrols some 60% of the nation’s nearly 600,000 pupils, although private education continues to be popular. To address the demand currently putting pressure on tertiary institutions, a second public university is set to open in 2015. Meanwhile, public institutions are seeking to address the nation’s deficiencies in research and development, while at the same time ensuring that students are equipped with the skills needed to meet the challenges of the 21st century and address disparities in the labour market. This chapter contains an interview with Fahad Al Othman, Chairman, American University of the Middle East.
Explore chapterUtilities
Buy digital copy of this chapter - £18With the economy growing at record rates, the authorities are working to keep pace with rising demand for water, power and sanitation. Compared to many neighbouring countries, Ghana’s utilities are in healthy standing, though the sector has not been without problems. The country’s water and sanitation systems are in need of improvement; only 64% of the population had access to clean water and 15% to adequate sanitation as of 2010. While Ghana has excess installed electric capacity, the Volta River Authority plants have not been operating at full capacity due to natural gas shortages and underperformance. To better supply growing electricity demand, the government plans to increase installed capacity to 3160 MW by 2015. Moreover, the government recently completed a master plan allowing the Ghana Grid Company to begin refurbishing and replacing outdated infrastructure. With new projects either on schedule for completion or about to be launched, Ghana’s water and power sector is likely to improve in the short term. This chapter contains interviews with Kweku A Awotwi, Chief Executive, Volta River Authority; and Charles Darku, Former CEO, GRID.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18Mexico’s construction industry had a difficult year in 2013. After growing 4% in 2011 and 1.9% in 2012, the accumulated losses for the sector during the first nine months of 2013 amounted to a 4.5% reduction in construction activity. An acceleration of government spending before the end of the year allowed the sector to finish with a more modest reduction of 2% in construction activity, with the sector accounting for 7.6% of GDP in 2013. The homebuilding sector has been the worst affected. Reeling from a crisis that left some of the country’s largest home builders in bad shape, the real estate sector is finding ways to grow in other segments. Investment coming through new property trusts is pushing the sector to rally around more profitable markets, while demand for office, industrial and commercial space continue to sustain the real estate sector. This chapter includes an interview with Alonso Quintana Kawage, CEO, Empresas ICA.
Explore chapterHealth
Buy digital copy of this chapter - £18With a growing population and a rise in the incidence of non-communicable diseases placing greater demands on health services, efforts are being made to boost capacity in Kuwait’s health care services. As some $3.2bn in projects are planned, the private sector can look forward to a greater number of partnerships with the government. Efforts to tackle lifestyle diseases will intensify, especially as privatisation frees up new resources to be dedicated to Kuwaiti nationals and as public awareness of the issue rises. This chapter contains an interview with Qais Marafie, CEO, Kuwait Life Sciences Company.
Explore chapterTransport
Buy digital copy of this chapter - £18Ghana’s pursuit of middle-income status, bolstered by developments in the oil and gas sector, has put a corresponding strain on its transport networks, particularly at ports and airports. The government has committed to expanding facilities at airports to better meet the demands of a rising number of flights and an increasing amount of passengers. The first step of the proposed improvement works at Tema and Takoradi ports will be a dredging operation increasing draught to 16 metres at each facility. Major road upgrades include the Eastern Corridor Roads Project, which commenced in 2012 and will rehabilitate 800 km of road between Tema and Kulungugu. The government is seeking to improve these facilities through public-private partnerships. Although the largest projects will take some time in coming to fruition, the government has shown strong commitment to bolstering economic growth through infrastructure enhancement. This chapter contains interviews with Nils Smedegaard Andersen, Group CEO, A.P. Moller-Maersk Group; and Doreen Owusu-Fianko, Managing Director, Ghana Airports Company.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The Moroccan construction sector witnessed a significant slowdown in 2013 due to a confluence of factors, including regional instability and a shortage of access to financing. Cement consumption, which is considered a key performance indicator, dropped from 15.87m tonnes in 2012 to 14.87m tonnes in 2013. Nevertheless, the Ministry of Habitat and Urban Planning continued to help drive sector activity and provided strong financial incentives to real estate developers to invest in social housing. The sector is expected to rebound in the medium term, with growth of 4% projected. In the longer run, it should see an uptick in growth as European economies begin to improve. Activity in the real estate sector has fallen, but stabilised, following an earlier boom between 2007 and 2008. In 2013, the sector remained stagnant, growing by 0.4% y-o-y by the third quarter, with transaction volumes down by 5.3%. The sector has been buoyed by a government-sponsored incentives aimed at attracting real estate developers and builders to the mid-range segment, where there is a housing deficit. The luxury segment has witnessed a sharp fall in demand and developers have refocused their activity away from rural areas and smaller towns and towards bigger cities. Prices are expected to remain stable for the luxury segment, while mid-range property is likely to see prices increase in 2014. In 2014, activity will be driven by a number of major mixed-use projects in Casablanca and Tangiers. This chapter contains interviews with David Toledano, President, Federation of Construction Materials Industries (FMC), and Youssef Ibn Mansour, President, National Federation of Real Estate Developers (FNPI).
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18A key contributor to the economy, manufacturing accounted for 24.5% of Malaysia’s GDP in 2013, ranking it second only to the services sector (55.2%) and well ahead of mining (8.1%), agriculture (7.1%) and construction (3.8%). As Malaysia increases its global trade via participation in trade agreements such as ASEAN and the Trans-Pacific Partnership Agreement (TPPA), enhancing efficiencies and competencies is becoming crucial for the country to maintain its economic edge. As the global economic recovery begins to accelerate, investment into Malaysia’s industrial sector is rebounding from an off year, with the country attracting 29% more approved capital inflows in 2013 than the previous year. With Malaysia’s natural resource base able to provide a wealth of inputs for downstream applications, in addition to the country’s strong base of supportive services, cost competitiveness and strategic location within ASEAN, the domestic manufacturing sector is well placed for further expansion. This chapter contains an interview with Alois Hofbauer, Regional Head, Nestlé Malaysia/Singapore.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Despite lower international prices for some of Colombia’s key cash crops, the agriculture sector ended 2013 posting growth of 5.2%, higher than overall economic growth of 4.7%. Coffee’s 22.3% expansion made it the sector’s shining star in 2013. However, the various challenges the sector faces, in particular increased international competition as a result of a number of recent free trade agreements, led to a series of strikes involving multiple subsectors in the first half of 2013, which culminated with a large-scale national strike mid-year, placing agriculture centre-stage politically. The government of Juan Manuel Santos Calderón, re-elected for a second term in June 2014, has prioritised agricultural development and an increasing budget reflects the government’s commitment to revitalising the sector. Stable growth has continued into the first three months of 2014, with the sector expanding 6.1%. With the possibility of negotiating a peace agreement strengthened by the re-election of Santos, the next decade could see the sector play a more prominent role in the national economy.
Explore chapterAgriculture & Fisheries
Buy digital copy of this chapter - £18As part of efforts to tackle the country’s over-reliance on mineral and energy exports, the government is supporting the growth of the agriculture sector to promote diversification. Forestry, agricultural and fishery activity currently accounts for one third of the economy and remains the principle livelihood of the vast majority of Papua New Guinea’s citizens. Agriculture exports dropped from $1.54bn in 2011 to $1.1bn in 2012, according to the central bank, with much of the decline due to falling commodity prices. Looking forward, commodity prices should rebound with demand gaining momentum after a stronger first quarter in 2014. Several agricultural subsectors such as forestry, palm oil and fisheries have developed highly profitable, yet more environmentally responsible, business models. Planned improvements in transportation infrastructure are due to pave the way for more efficiency and expansion into untapped areas. This chapter contains interviews with Greg Worthington-Eyre, CEO, Trukai Industries; and John Kasu, Managing Director, National Fisheries Authority, and a viewpoint from Tommy Tomscoll, Minister of Agriculture and Livestock.
Explore chapterLogistics & Transport
Buy digital copy of this chapter - £18As new constitutional reforms start to take shape, Mexico is investing heavily in its transport and logistics infrastructure. Increased economic activity has put pressure on the existent road and rail networks, prompting the current government to assign a bigger slice of the federal budget to the improvement of connections by land, sea and air. Total investment (public and private) in the transportation and communications sectors is expected to reach $99.45bn between 2013 and 2018. Between 54% and 57% of all of Mexico’s cargo depends on road transportation. In the coming years the government plans to add some 19,000 km of roads to the existing 377,000 km, alongside improvements to urban transportation, airports, ports and rail system. With its eyes set on becoming a regional transport hub, the government hopes a new public-private-partnership law, published in early 2012, will help attract more private investment into the sector.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter contains an outline of the legal framework in which local and foreign investors operate. It also contains information on the new companies law, regulations regarding the conduct of boards of directors and moves to protect minority shareholders. This chapter also contains an interview with Alex Saleh, Partner, Al Tamimi & Co.
Explore chapterConstruction & Real Estate
Buy digital copy of this chapter - £18The influx of capital and burst of growth that followed Ghana’s discovery of oil in 2007 led to a construction boom in 2011-12. Sourcing materials, however, has been problematic and in 2012 the World Bank reported that Ghana needs to spend $26bn on infrastructure, including basic road, housing and utilities upgrades, to support economic growth. As Ghana continues to channel new-found oil revenues into its infrastructure, and the private sector takes an increasingly active role in helping to meet housing shortfalls and infrastructure rehabilitation requirements, the sector is set to remain attractive to foreign investment. Property development in Ghana is growing, with increased demand in the residential, office and retail segments in major urban areas. Stronger collaboration between the private and public sectors could see housing become accessible to a largely untapped middle- and lower-class market. With expansion continuing at a steady pace and the middle class slowly realising its purchasing power, real estate in Ghana is set to offer long-term rewards for patient investors. This chapter contains an interview with Nana Kwame Bediako, President and CEO, Petronia City Development.
Explore chapterAgriculture
Buy digital copy of this chapter - £18Unfavourable weather conditions characterised by cold temperatures and drought took their toll on a number of key crops in 2012. However, better weather conditions and abundant rainfall in 2013 allowed for higher domestic production, particularly in the cereals segment, which produced 9.7m tonnes, up 89% compared to 2012. Morocco’s primary sector still plays a significant role in terms of job creation, trade, rural development and overall headline GDP. At present, agriculture contributes around 15% of GDP. In 2013 the sector accounted for 39.4% of total jobs and 72.7% of rural jobs. Agricultural goods represent about 12% of the overall value of exports and constitute a key source of foreign exchange earnings. The value of imported agricultural goods ranges between 14% and 24% of total imports, and key imported products include wheat, sugar and powdered milk. As the country pursues its plans to modernise agriculture and increase support to producers and small-scale farmers, production should continue to expand. Nevertheless, output, notably in cereals and fruits and vegetables, remains vulnerable to changing weather conditions, and efforts to mitigate risks will be a determining factor in securing revenues for both farmers and agribusinesses. This chapter contains interviews with Aziz Akhannouch, Minister of Agriculture, and Ali Berbich, Chairman of the Management Board, Zalagh Holding
Explore chapterResearch & Innovation
Buy digital copy of this chapter - £18The economic growth Colombia has seen over the past decade is multiplying opportunities to strengthen research and innovation, while new investment from a growing number of firms already operating in the country is helping to raise the sector’s profile. Averaging 0.18% from 2009 to 2013, investment in research and development (R&D) remains well below regional neighbour Brazil’s 1.2% and the OECD average of 2.4%. However, it is set to reach 0.2% in 2014. A marked imbalance between private and public investment remains, with only about 30% of R&D in Colombia being conducted by private businesses, compared to 65-75% in OECD countries. Nonetheless, an impetus to improve the laws for intellectual property, coupled with funding programmes for innovation at small and medium-sized enterprises, continues to push private companies to modernise. This chapter contains an interview with Juan Camilo Quintero, Executive Director, Ruta N.
Explore chapterTourism
Buy digital copy of this chapter - £18In 2013 tourism was the sixth-largest contributor to Malaysia’s economy, making up $16.1bn of gross national income, from seventh place in 2012. The government and the private sector have taken many concrete steps in recent years to ensure the arrival of more and more visitors, be it for business or leisure. In the year marked by two Malaysian Airlines tragedies, the industry is making a strong effort to regain the confidence of travellers, both foreign and local. ASEAN was Malaysia’s largest source of visitors in 2013, with 19m arrivals, or 74% of the total, according to the Ministry of Tourism. Top source countries were Singapore, Indonesia and China. An open-skies policy for ASEAN members, set to take effect in 2015, is likely to boost competition between carriers and lead to improvement in services. As South-east Asia in general becomes an increasingly popular destination, Malaysia’s tourism sector looks likely to loom increasingly large on global travel maps in the years to come. This chapter contains an interview with Ahmad Razlan, CEO, Sepang International Circuit (SIC).
Explore chapterTourism & Entertainment
Buy digital copy of this chapter - £18Selected by the current government as a pillar for growth, the tourism sector contributes more than 8% to national GDP and is the fourth-most-important source of foreign currency. With the exception of 2009, tourist arrivals have increased steadily from 22.9m in 2008 to 23.7m in 2013. Foreign exchange inflows generated by the sector also registered an increase of 8.5% in 2013, reaching a record $13.8bn, 3.4% higher than the previous record of $13.37bn in 2008. However, despite positive growth in the past few years, Mexico’s tourism sector has lost competitiveness in the international arena. A combination of internal insecurity and a deficient transportation network remain its most significant challenges. Nonetheless, with the current administration’s policies to diversify both the tourist offering and source markets, the sector should be able to regain some of the competitiveness lost in recent years and develop segments, such as cultural tourism, which until now have been underexploited. This chapter includes an interview with Claudia Ruiz Massieu, Minister of Tourism.
Explore chapterTourism
Buy digital copy of this chapter - £18As a country of over 600 islands, 800 languages and unmatched biodiversity, culture and nature are the primary attractions for visitors to Papua New Guinea. Although the country has a long history of tourism, the sector has remained largely undeveloped and accounts for only a small part of PNG’s economy. As the costs of travel are falling, thanks to factors such as an increase in hotel rooms and the depreciation of the kina, PNG is becoming a more attractive destination. Airport infrastructure is being upgraded and the country’s main airports are under renovation. The National Airports Corporation is also looking at the possibility of linking more of the regional airports to international destinations. Meanwhile, cruises are becoming a popular way to see the country and an increasing number of cruise operators are adding PNG to their itineraries. Still, PNG faces many challenges; given its terrain and environment it will be difficult for the country to beat neighboring Thailand and Indonesia in terms of sheer visitor numbers. However, with selective investments and the right policies, the country could find itself with a strong and growing local tourism industry. This chapter contains an interview with Tony Honey, Owner, Tufi Resort.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels in Kuwait, as well as contact information for important government offices, embassies and other services. It also contains useful tips and information for first-time and regular visitors alike.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Ghana has been successful in increasing penetration beyond the regional average. Having reached 100% by the end of 2012, penetration figures touched 102.7% as of February 2013 – figures that are well above the 53% norm for African countries and even the developing world average of 89%. However, average revenue per user is beginning to fall as penetration rises, prompting operators to increasingly focus on selling data, providing value-added services and lowering infrastructure costs. With six operators active, the telecoms market is quite competitive, and this has generated a host of ancillary benefits for the country. Ghana’s stable investment framework, combined with a strong education system, rising per capita income levels and increasing bandwidth capacity mean the nation offers sizeable opportunities in ICT.. The country has benefitted from improved networking infrastructure, by both the public and private sector. These sorts of investments will have significant knock-on effects beyond increasing access. In the meantime, Ghana’s IT sector will be driven by state spending on its e-government programmes such as the Eastern Corridor project. In the medium term, the private sector will begin to play a larger role in the development of the industry as more of the nation’s businesses begin to follow the government’s lead and move online. This chapter contains a roundtable with Phillip Sowah, Managing Director, Airtel; Michael Ikpoki, Former CEO, MTN; Adil El Youssefi, CEO, Tigo; and Kyle Whitehill, Former CEO, Vodafone.
Explore chapterTable Of Contents
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ICT & Media
Buy digital copy of this chapter - £18Colombia’s telecommunications market is going through intense growth as operators strive to enhance their offers in a growing array of services. The sector achieved revenues of $13.9bn in 2012, compared to $2.6bn in 2000, according to figures by the OECD. Much of this dynamism has come from the introduction of 4G services, for which five operators won licences in the 2013 government auction, and several companies have already started commercialisation of new 4G offers. Meanwhile, increasing convergence of telecommunications services is prompting the rise of triple play. While América Movil’s Claro continues to dominate the market, growing numbers of mobile internet users are creating demand for new products and services, and adding on to investment opportunities for telecommunications operators, equipment providers and content developers. This chapter contains an interview with Alberto Samuel Yohai, President, Colombian Chamber of Informatics and Telecommunications; and a viewpoint with Mariana Garcés Córdoba, Minister of Culture.
Explore chapterAgriculture & Plantations
Buy digital copy of this chapter - £18A major push to boost efficiency in the agriculture and plantations sectors is under way, with the government allocating some RM6bn ($1.8bn) to the sector in its 2014 budget to support a drive for greater productivity, among other strategies. The bulk of agriculture’s contribution to GDP comes from plantation crops, which accounted for 36.5% of the sector’s value in 2012, followed by rubber (8.2%), forestry and logging (11%), poultry (7.3%) vegetables (8%), fishing (14.4%) and fruits (4.1%). The state aims to transform the sector from its small-scale production model into an agribusiness-based sector with more efficient holdings producing more value-added products. Meanwhile, higher-value products will require the implementation of higher-quality standards and well-certified production processes when it comes to ensuring sustainability. In the future, the sector may see its valuable contribution to the country’s economy continue to grow, along with prosperity of rural and urban populations. This chapter contains an interview with Emir Mavani, Group President & CEO, Felda Global Ventures. (FGV).
Explore chapterOriental
Buy digital copy of this chapter - £18The 2003-13 royal initiative, the region’s 10-year economic development programme introduced in 2003, has transformed the Oriental’s economy, placing a strong emphasis on local industry, value-added agricultural production, application of new technologies and a reduction in economic reliance on Algeria. The region has many advantages, including its Mediterranean coastline, a fertile agricultural environment in the north, diverse topography and a young population. However, the region still has a number of hurdles to overcome. The authorities still have a long way to go to reduce the role of the informal economy, for instance, and support the growth of SMEs at a local level. The region is nonetheless well positioned to see a significant increase in growth. Considerable public investment in infrastructure over the last decade has benefitted companies throughout the construction, public works and building materials sectors. With improved infrastructure, new turnkey zones for potential investors, and a spate of investments in the service and social sectors, the scope for growth in the Oriental region is significant.
Explore chapterAgriculture
Buy digital copy of this chapter - £18For the past decade the agriculture sector has grown marginally – at an annual average rate of 0.9% – as the rest of the economy continues to industrialise. Its contribution to national GDP was estimated at 3% in 2013, down from 3.4% the previous year. The prevalence of small-scale farmers, limited financing options and widespread rural poverty are some of the factors behind the slow pace of expansion. In the past three years adverse climatic conditions have also affected the sector. While some segments of the Mexican agricultural sector, such as fruits and vegetables, have benefitted from the North American Free Trade Agreement (NAFTA) since 1994, others, namely grains, have been adversely affected by increased competition with highly subsidised and efficient US producers. Efforts to diversify export markets, coupled with production-oriented policies and an agrarian reform to be announced in 2014, could bring some much-needed dynamism to the sector. This chapter includes an interview with Luis Rebollar González, President and General Manager, DuPont México, Central America & Caribbean.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Health care in PNG is poised to see major changes. Perhaps the most significant recent development has been the introduction of fee-free health care. The government committed $8.13m to the programme in 2014, which began officially on February 23 of that year. The refurbishment of Port Moresby General Hospital is receiving major government support, as it is hoped that the renewed facility will act as a catalyst for improvements throughout the country. PNG needs to put the resources being committed to good use while they are available and not waste the political capital that is being expended. If the planned reforms are successful, they could have a widespread social and economic impact. Meanwhile the government continues to view the improvement of the education system as a top priority. It has set aside $4.06m in 2014 for the Higher Education Institution Recapitalisation programme, which aims to establish a task force to improve university infrastructure. To address the shortage of teachers in PNG the government is increasing salaries and is actively recruiting foreign staff. The country is committed to the sector in terms of political will and increasing expenditure, and over time schools have seen great improvements as resource wealth enters the economy and supports the national budget. This chapter contains interviews with Pascoe Kase, Secretary of Health; Grant Muddle, CEO, Port Moresby General Hospital; and Joe Williams Lalie, Executive Director, International Education Agency.
Explore chapterIndustry & Retail
Buy digital copy of this chapter - £18Given the country’s growing consumer population, limited product penetration and stable business environment within ECOWAS, the manufacturing sector in Ghana has impressive potential. However, like many countries in the region, commodities have taken precedence over industrial growth. As a result, manufacturing contributed 6.9% to GDP in 2012, a significant drop from 10.2% in 2006. Imports of consumer goods grew to $902.2m in the fourth quarter of 2012, a rise of 11.2% over the same period in 2011. As the economy expands and incomes rise, demand is expected to continue growing. While Ghana’s industrial sector faces its share of battles, the government is investing in a variety of projects that are geared towards tapping the country’s potential. The retail industry grew 14% in value between 2006 and 2011, buoyed largely by increased sales of fast-moving consumer goods. Although the domestic market is relatively small, with one of the world’s fastest-growing economies and an upwardly mobile population Ghana is increasingly attractive for producers and retailers of consumer goods. Formal retailers, however, continue to face a variety of challenges, from securing adequate space to informal competition and operating in a cash economy. This chapter contains interviews with Roland Agambire, Chairman & CEO, RLG Group; and Manoj Lakhiani, Chairman, Blow Group.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18In 2014 Malaysia’s ICT sector ranked highly in international indices, including internet and telephony competition, knowledge absorption and cluster development among other measures. Out of Malaysia’s population of 30m, 15.2m people use the most popular networking sites, spending an average of 16 hours a week online, far more than their counterparts in other South-east Asian countries. With a good base of talent, skills and technology, a wide range of supporting policies and programmes, an active local market and a good reputation, Malaysia has built an impressive foundation in IT. It now has to focus on going from a strong local player to becoming a regional leader and finding a way to establish its IT corporations and entrepreneurs internationally. This chapter contains interviews with Zam Isa, CEO, Telekom Malaysia; and Badlisham Ghazali, Former CEO, Multimedia Development Corporation (MDeC).
Explore chapterHealth
Buy digital copy of this chapter - £18In a little more than a decade since the introduction of the Popular Health Insurance Scheme, Mexico has made vast strides in extending coverage and is now closer than ever to attaining universal coverage. Nonetheless, rapidly changing demographics have boosted demand for medical services and put significant pressure on the sector, which is now faced with the task of increasing capacity to effectively meet health care needs, while expanding access in rural and remote areas where infrastructure is lagging. But even though health expenditure has increased in the past few years, at 6.3% of GDP it remains below the OECD’s average of 9%. The past few years have also seen a marked expansion of the private sector, along with significant growth in sub-sectors such as pharmaceuticals, medical devices and medical tourism. A sector reform already announced for 2014 is expected to increase integration and reduce the fragmentation that has beset the sector.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter breaks down the tax environment in Papua New Guinea, examining corporate taxation, residence rules, and other information useful for those interested in investing in PNG. It also features a viewpoint from Jonathan Seeto, Territory Senior Partner, PwC, analysing how PNG’s current tax review initiative may contribute to the economy.
Explore chapterTourism
Buy digital copy of this chapter - £18The possibility of a peace deal after decades of conflict promises to be a game changer for Colombia’s tourism sector. Authorities are getting ready to capitalise on this, rolling out a number of infrastructure projects and providing the sector with additional institutional support in preparation for the post-conflict influx of tourists, and efforts seem to be paying off. The sector has grown at an average annual rate of 5.5% in the past three years, according to the Ministry of Commerce, Industry and Tourism. Arrivals increased by 7.34% in 2013, surpassing 3.7m visitors, while revenues rose from nearly $3.2bn in 2012 to more than $3.6bn, making tourism the third-most important source of foreign currency, behind oil and coal. The sector’s recent performance bodes well for achieving the government’s target of reaching 4m visitors and attracting $4bn in tourist revenue by the end of 2014. Meanwhile, the hotel industry continues to attract significant foreign interest through a 30-year tax exemption law.
Explore chapterEnergy & Environment
Buy digital copy of this chapter - £18As a net importer of energy, Morocco is faced with the challenging proposition of satisfying rising local demand while keeping its import bill in check. As a result, energy independence is at the top of the government’s agenda, bundled with efforts to improve domestic energy infrastructure, such as refinery capacities, storage and power generation, and more efficient use of cleaner energy sources. With consumption figures and global commodity prices rising, the government’s balance sheet has been under increasing pressure. According to the Minister of Energy, Mines Water and Environment, total expenditure on energy imports – dominated by crude and refined oil products – rose from 7% of GDP in 2009 to 10.7% in 2011, when it equalled Dh85bn (€7.55bn). Bold energy policies have attracted significant investor interest in recent years, and as a result, an increasing number of players are addressing opportunities in the upstream segment. Morocco is also looking south, where promising growth in the West African market is generating interest among policymakers’ in developing grid connections. Significant challenges remain, however, in terms of funding government-owned entities and so far largely unsuccessful hydrocarbons exploration. This chapter contains interviews with Amina Benkhadra, Managing Director, National Hydrocarbons and Mining Office (ONHYM), and Ali Fassi Fihri, Managing Director, Office National de l’Electricité et de l’Eau Potable (ONEE)
Explore chapterLegal Framework
Buy digital copy of this chapter - £18This chapter examines the legal framework related to doing business or investing in Papua New Guinea. It also features a viewpoint from Stephen Lewin, Partner, Leahy Lewin Nutley Sullivan Lawyers, on the laws surrounding customary land in PNG.
Explore chapterSport
Buy digital copy of this chapter - £18Colombia’s recent enhanced sports competitiveness at the international level is raising the sector’s commercial prospects. The government’s commitment to the promotion of sports is particularly visible in the budget allocated to Coldeportes, the body responsible for the promotion and management of sports resources, which increased from $167m in 2013 to $178m in the 2014 budget. The private sector is still relatively shy in this area. However, the success of the Colombian national football team at the Brazil 2014 World Cup seems to be raising the private sector’s interest. Colombia went from having a single sponsor in the late 1980s to becoming financed and promoted by large firms such as Bavaria, Movistar, Avianca and Pacific Rubiales. While the attention of the media and the general public remains focused on football, which also tops the rankings in terms of attracting sponsorships and investments, other sports have gradually begun increasing their profile within the country. This chapter contains an interview with Andrés Botero, Director, Administrative Department of Sport, Recreation, Physical Activity and Use of Free Time.
Explore chapterEducation & Health
Buy digital copy of this chapter - £18The Malaysia Education Blueprint 2013-25 was launched in September 2012 and is now implementing phase one, which runs to 2015. With a solid foundation to build on, the government is eager to raise education standards and broaden access in conjunction with the goals it has set for 2020. Two key elements of this are foreign direct investment and collaboration from private institutions. For Malaysia to achieve its developed nation goals by 2020 it will need 500,000 new employees in the fields of science and technology, according to the Ministry of Science. One government goal is to have at least one domestic institution ranked among the world’s top 50 by 2020, and at least three in the top 100. The highest-placing university in recent rankings made 167. Malaysia boasts a strong health care sector backed by government investment and engagement with the private sector. The number of medical tourists to Malaysia rose from 617,000 in 2012 to about 700,000 in 2013, a function of the country’s rising global reputation. With the ASEAN Economic Community single market set for launch in 2015, the Malaysian health industry needs to prepare for an increased flow of workers and stiffer competition in segments like medical tourism. Higher standards and quality should be the sector’s aim as it tackles new public health concerns and begins to adapt. This chapter features an interview with Idris bin Jusoh, Minister of Education II.
Explore chapterEducation
Buy digital copy of this chapter - £18Despite education spending in line with OECD standards, the quality of Mexico’s school system has lagged significantly behind the organisation’s other members. In large part this has been due to a powerful teachers’ union, which has traditionally stood in the way of efforts to reform the sector. Having made considerable advances in extending coverage, particularly at the basic education level, the attention has now shifted towards improving quality. The structural reform passed in 2013 aims to establish a results- and performance-based educational model. While educational results will take a few years to be noted, the reform lays the foundation for a model based on evaluation and development. The sector, which was selected as a pillar for economic and social development in the National Strategic Plan 2013-18, should be set to support further professionalisation of the country’s workforce. This chapter features an interview with Jesús Ancer Rodríguez, Rector, Universidad Autónoma de Nuevo León.
Explore chapterTourism
Buy digital copy of this chapter - £18After cocoa exports and gold mining, tourism is the top foreign currency earner in Ghana’s economy, generating some $694m of foreign currency for the government in 2012. The industry is vital to overall economic growth and is expected to contribute 5.4% of GDP by 2023, growing at a rate of 4.5% between 2013 and 2023. The new 15-year National Tourism Development Plan, which runs from 2013 to 2027, aims to boost the sector’s performance via several partnerships with international organisations, including the EU and UNESCO. Hotel development in Accra and Takoradi is expected to continue to drive investment, providing for business travellers’ needs in a rapidly growing economy. In the long term, Ghana’s proximity to Europe, and the fact that multiple cultural and ecological destinations are located on or within a short drive from the country’s coastal strip, are factors that continue to open new opportunities for investment. This chapter contains an interview with Sampson Donkoh, Deputy Chief Executive, Ghana Tourism Authority.
Explore chapterEducation
Buy digital copy of this chapter - £18The expansion of enrolment at all levels achieved by Colombia since 2002 is noteworthy. Increasing the quality of the educational system has also become a priority, though improvements in this area have been difficult to implement. While recent international and national evaluations show small improvements, they also reflect substantial inequalities between urban and rural areas, socio-economic backgrounds, and public and private sectors. At the tertiary level, even though enrolment has risen significantly in the past decade, it remains below 50%, the target established in the government’s National Policy for Education 2011-14. The government attempted to introduce an ambitious reform in early 2011 designed to address some of the most pressing issues at the tertiary level but wide-scale opposition led to the withdrawal of the proposal in late 2011. Nonetheless, the national debate on education reform continues, and the sector is likely to remain a priority for the re-elected government. This chapter features an interview with María Fernanda Campo Saavedra, former Minister of National Education.
Explore chapterConstruction & Engineering
Buy digital copy of this chapter - £18Buoyed by prolonged government stimulus, Saudi Arabia’s construction industry, the second-largest sector in the economy after oil, is experiencing rapid expansion, with no shortage of contracts in any segment. From housing and utilities to transport infrastructure, public spending is driving the contracting industry forward. While operational challenges remain, including concerns over the tightening of labour regulations, contractors are likely to benefit from favourable conditions for the foreseeable future.
Explore chapterTax
Buy digital copy of this chapter - £18The financial reform that became effective in January 2014 not only increased the tax base but also introduced several changes to the Mexican tax system. Featuring an interview with Carlos Méndez, CEO, PwC México, this chapter provides an overview of the recent tax reform, covering areas such as income tax, taxes on dividends and capital gains, among others.
Explore chapterThe Guide
This chapter features useful information for visitors to Papua New Guinea, including a suggested hotels listing, contact information for government ministries, business associations, foreign missions and other important resources, as well as facts about languages, visas, etiquette and other tips. It also includes a features piece about coral conservation efforts in the waters of PNG.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18The continuing implementation of expansive reforms, including the Single Spine Salary Structure and updates to the National Health Insurance Scheme aimed at providing universal health care, made 2012 a turbulent year for Ghana’s health sector. The Ministry of Health has seen its budget swell as the government attempts to address deficiencies in the sector, and remains committed to delivering universal health care through infrastructure upgrades and enhanced staff development. Although some indicators have been declining, the overall health of Ghanaians has improved in recent years, and seems set to continue on an upward trajectory into 2014. As the largest recipient of state funding in the country, the Ministry of Education (MoE) is tasked with transforming the country’s economy from resource- to knowledge-based and ensuring that graduates are prepared to enter the fast-changing workforce. The main focus of the MoE’s strategic plan for 2010-20 is to provide basic education to all children, bridge the gender and accessibility gaps, and emphasise science and technical education. This chapter contains interviews with Dr Pilar Mateo Herrero, President, Inesfly; and Ernest Aryeetey, Vice-Chancellor, University of Ghana.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter gives an overview of Malaysia’s tax environment, focusing on the regulations and rates that affect businesses and investments. It also features an analysis of the new tax on goods and services that is set to go into effect in 2015.
Explore chapterTelecoms & IT
Buy digital copy of this chapter - £18Following rapid growth in SIM card sales and an even faster drop in tariffs, Moroccan telecoms operators seem to have entered at the tail end of the race for a market share of the voice segment. The number of mobile customers grew by 8.73% in 2013, reaching approximately 42.4m. This far exceeded the target set under the government’s “Digital Morocco 2013” strategy. Pre-paid customers dominate the local market with 95% of total subscriptions. The post-paid segment is also on the rise, seeing a growth rate of 14.38% year-on-year in 2013. The local telecoms market it dominated by three providers each with strengths in different segments as well as operations in North and West Africa. In March 2014, the government gave the green light for the ANRT to launch the 4G licensing process. Tendering is ongoing, with licences set to be issued by the end of the year and infrastructure migration to begin before 2015. As 4G licences are waiting to be awarded, mobile data is set to attract attention in 2014 and beyond, accelerating ongoing infrastructure investment plans and giving local content developers a boost. While IT has significant growth potential, it also faces a number of challenges. Morocco’s domestic IT sector is highly fragmented. As of year-end 2013, the industry was home to more than 200 service providers, most of which are small sized and operating at the local or regional level. The sector’s gross turnover in 2013 was estimated at Dh36bn (€3.2bn). Under the €460m Digital Morocco strategy, the government is targeting a number of goals related to SMEs, including upgrading IT infrastructure, growing cooperation with state-owned entities and increasing the share of IT investment from SMEs from 0.5% to 1%. This chapter contains interviews with Azdine El Mountassir Billah, Managing Director, National Telecommunications Regulatory Agency (ANRT), and Mohamed Horani, CEO, Hightech Payment Systems.
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Buy digital copy of this chapter - £18Though it has seen advances in coverage in the past two decades and has inched closer to attaining universal coverage, the health sector is also seeing pressure from escalating costs due to increased coverage and an ever-expanding mandatory health plan. In 2012 the public sector accounted for 75.8% of total expenditure, with the private sector making up the other 24.2%. Total health care expenditure represented 6.8% of GDP for the same year. Meanwhile, some sub-sectors areas are registering stable growth. A dynamic private sector is pushing medical tourism forward, in the process adding to the country’s expanding infrastructure capacity. Attracting more than 50,000 medical tourists in 2013, the industry reported revenues surpassing $220m in 2013, up significantly on the $130m recorded in 2012. The local pharmaceutical industry grew 6% in 2013, while the medical device market, valued at $1.2bn in 2013, is projected to grow at a compound annual growth rate of 13.3%, reaching $2.2bn by 2018, double its current size.
Explore chapterLegal Framework
Buy digital copy of this chapter - £18The year 2013 was one of legal reforms in Mexico. The political agreement Pact for Mexico enabled the enactment of a number of key changes since President Enrique Peña Nieto took office in 2012. Featuring a viewpoint from Amílcar Peredo Rivera, Partner, Basham, Ringe y Correa, on what to expect from the recent, wide-ranging legal reforms, this chapter explores the effects of the energy, telecoms, financial and labour reform.
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Agriculture
Buy digital copy of this chapter - £18Saudi Arabia is one of the largest producers and exporters of agricultural goods in the region and is self-sufficient in a number of areas, including milk, eggs and dates. The sector has seen a notable shift towards higher-value and less-water-intensive crops, and a gradual phasing out of domestic wheat production in favour of imports. Efforts are also being made to boost aquaculture and fisheries, as well as acquire land abroad to help ensure food security. This chapter contains an interview with Fahd Balghunaim, Minister of Agriculture.
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Buy digital copy of this chapter - £18Focusing on corporate environment, foreign direct investment, tax and incentives, ownership, and competition law, this section examines the legal framework for operating businesses and investing in Malaysia. This chapter also features a viewpoint from Raphael Tay, Corporate and Practice Development Partner, Chooi & Company.
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In addition to an article on the highlights of Mexico City’s vast array of museums, this chapter contains useful information for business and leisure travellers, including a list of hotels, phone numbers for important government ministries and agencies, business associations and foreign missions.
Explore chapterMedia & Advertising
Buy digital copy of this chapter - £18A strong tradition of press freedom across all segments characterises the Ghanaian media sector. However, few providers have a truly national reach, with most focusing on a small market or a share of the largest cities. Radio remains a key outlet; its ability to reach rural regions makes it attractive, and it is a sought-after feature for mobile phone buyers. With Ghana reaching mobile penetration of 100%, media content that is easily consumable on mobile handsets will be increasingly important. New sources of advertising revenue have developed in the past three years as the number of international and domestic advertising agencies operating in Ghana has increased. Billboards remain the preferred advertising method for certain sectors, in particular telecoms, consumer goods and public awareness campaigns. The six telecoms companies account for roughly 30% of advertisements that appear on the nation’s most popular radio and television stations. While traditional forms of advertising will continue to be important, a number of new marketing channels are expected grow in relevance over the next few years.
Explore chapterHealth & Education
Buy digital copy of this chapter - £18Significant strides have been made in improving health indicators, particularly in terms of maternal and child mortality rates. Costs, however, are likely to remain a major obstacle, with out-of-pocket expenditure accounting for approximately 53% of spending on health care. A 2011 constitutional amendment enshrined access to health care as a basic right and the authorities are working to expand coverage. The Medical Assistance Regime (Régime d’Assistance Médicale, RAMED), first launched in 2009, aims to provide 8.5m impoverished people – around 27% of the total population – with medical assistance to enhance access to medical and health care service. As of end-2013, around 7m people were benefiting from RAMED coverage. Ongoing negotiations to extend insurance coverage will be key to ensuring universal access to health care services. The expansion of rural health care, notably emergency services, should also contribute towards reducing the disparity in service provision throughout the country. The Emergency Plan 2009-12 has channeled substantial funds into the education sector, allowing better infrastructure to facilitate an increase in school enrollment rates. Nevertheless, a number of challenges still need to be addressed to improve access to education in rural areas and ensure greater gender equality. Launched five years ago, the Emergency Plan 2009-12 aims to boost schooling levels in the kingdom, enhance the quality of teaching and infrastructure, and improve higher education and scientific research. Net enrolment in primary education went up from 52.4% to 98.2% between 2005/06 and 2012/13, while middle school and secondary school also saw improved enrolment levels. The growth of private universities and the proliferation of PPPs in higher education should help Morocco absorb a rising number of prospective students, as well as allow the country to create offerings in line with the needs of the job market. This chapter contains interviews with El Houssaine Louardi, Minister of Health; Mehdi Zaghloul, President, Maroc Innovation et Santé; and Larbi Bencheikh, Managing Director, Office of Vocational Training and Employment Promotion (OFPPT).
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Buy digital copy of this chapter - £18In conjunction with prietocarrizosa, this chapter outlines the substantial changes Colombia’s legal framework has undergone in recent years, affecting an array of areas such as public-private partnerships, dispute resolution and simplified stock corporations. Additional reforms are expected in other areas such as health care and social security over the coming years. This chapter features an interview with Martín Carrizosa, Founding Partner, prietocarrizosa.
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This chapter features useful information for visitors to Malaysia, including suggested hotels, contact information for government ministries, business associations, foreign missions and other important resources, and facts about language, visas, etiquette and other useful tips. It also includes a features piece navigating the use of titles in Malaysian society.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Deloitte & Touche, OBG explores the taxation system, examining Ghana’s investor-friendly environment. This chapter contains a viewpoint from Andrew Opuni-Ampong, Managing Partner, Deloitte & Touche.
Explore chapterTax
Buy digital copy of this chapter - £18Featuring an interview with Cesar Cheng Vargas, president, Deloitte Colombia, this chapter explores recent changes to Colombia’s tax system implemented in 2013, touching on areas such as corporate income taxes and reorganisations, tax havens, capital gains taxes and value-added taxes, among others.
Explore chapterTax
Buy digital copy of this chapter - £18In conjunction with Mazars, OBG explores the taxation system, examining Morocco’s investor-friendly environment. OBG talks to Kamal Mokdad, Managing Partner, Mazars Morocco, about the evolution of the tax system.
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Table of Contents
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Legal Framework
Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Ghana, in partnership with Bentsi-Enchill, Letsa & Ankomah. This chapter contains a viewpoint from Kojo Bentsi-Enchill, Managing Partner, Bentsi-Enchill, Letsa & Ankomah.
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As the peace negotiations between the government and FARC continue, Colombia’s art scene has begun to reflect the country’s newfound optimism. This chapter also includes helpful information for visitors, including hotel listings and contact information for various institutions such as embassies and government agencies.
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Buy digital copy of this chapter - £18OBG introduces the reader to the different aspects of the legal system in Morocco, in partnership with Lefèvre Pelletier & associés. This chapter includes a viewpoint from Alain Gauvin, Partner, Lefèvre Pelletier & associés, as well as an interview with Romain Berthon and Lina Fassi Fihri, Partners, Lefèvre Pelletier & associés.
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This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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The Guide
This section includes information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.
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Tourism
Buy digital copy of this chapter - £18Recognising the important role of tourism in achieving the wider goals of development in Saudi Arabia, including job creation and increased economic diversity, considerable efforts are being made to expand the industry. A new Umrah Plus visa allowing for longer stays after religious pilgrimages has been introduced and, in combination with a focus on expanding and rehabilitating heritage and historic sites, this should help to boost visitor spending. PPPs are targeted as the preferred method for boosting private sector involvement in the sector. This chapter contains an interview with Prince Sultan bin Salman bin Abdulaziz Al Saud, Chairman and President, Saudi Commission for Tourism and Antiquities.
Explore chapterTax
Buy digital copy of this chapter - £18This chapter contains an outline of the tax system including an introduction to overall system, an overview of corporate income tax, and an explanation of Zakat rules. In addition, there is an explanation of the regulations introduced by the New Income Tax Law. The chapter also contains an overview of the regulatory environment for potential investors. This chapter contains a viewpoint from Jacques Fakhoury, KSA Country Leader, PwC.
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Buy digital copy of this chapter - £18This chapter features an overview of the law for both local and foreign investors, as well as an outline of regulations on owning property for non-GCC nationals. It covers up-to-date laws on intellectual property and copyright, as well as environmental guidelines for construction projects and some new standards for disclosure of financial information. This chapter includes a viewpoint from Salman Al Sudairi, Managing Partner of Riyadh Office, the Law Office of Salman M. Al-Sudairi in Association with Latham & Watkins.
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The guide contains listings of some of the leading hotels and resorts in Saudi Arabia, as well as contact information for key government offices and relevant services. It also features useful tips and information for visitors.
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Table Of Contents
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Table of Contents
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Tax
Buy digital copy of this chapter - £18In partnership with Deloitte, this chapter gives an overview of Brunei Darussalam’s tax environment as it applies to businesses and investors. It also features a tax viewpoint from Pengiran Moksin, President, Brunei Darussalam Institute of Certified Public Accountants, and Partner, Deloitte, on the tax environment.
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