Posted on

Foreign ships, containers tripled

The number of foreign ships stood at 784 in 2017-18 fiscal year, which was only 282 in 2012-13 fiscal. The number of containers was 43,000 in 2017-18, whereas it was 20,717 in 2015-16

Arrivals of foreign ships and containers have tripled in Mongla port in a period of five years, thanks to massive development and modernization initiatives to upgrade the second largest sea port in the country.

The number of foreign ships stood at 784 in 2017-18 fiscal year, which was only 282 in 2012-13 fiscal. The number of containers was 43,000 in 2017-18, whereas it was 20,717 in 2015-16, according to data of Mongla port .

With the growing interests from the port users, the port authority has garnered enhanced revenue from its services.

In the Fiscal Year (FY) 2016-17, the revenue earning has seen an upward trend by 15%, which turned to 50% in FY17-18. Arrivals of foreign ships and cargo handling have also increased simultaneously.

According to port users, without problems, such as poor navigability in the jetties, lack of adequate instruments to handle containers and difficulties in the customs, export-import business in the Mongla port would have boosted further, improving the financial standards of the locals as well.

Mongla port Chairman Commodore AKM Faruque Hasan said: “Among the 10 approved development projects intended for the port, seven are currently under progress.

“Once these projects- financed by India and China- are completed, the port will be better mobilized,” he added. “The government is constantly monitoring port development.”

Port users are increasingly attracted to Mongla port due to its enhanced efficiency, and better services, the chairman said.

Profitable since 2009, but problems remain

The chairman further said, after 2009, the Mongla port has been experiencing profits.

Currently, the port has six self-owned jetties, seven individually owned jetties and 22 anchorages- all of which are capable of handling 34 ships at the same time.

The port has the capacity to handle more than 10,000,000 metric tons of cargoes, 70,000 containers and more than 20,000 vehicles through four transit sheds, two warehouses, four container yards and two car parking yards.

Mongla Customs Clearing and Forwarding Agents Associations President Md Sultan Hossain Khan said: “According to data provided by the Chittagong customs house, 10% of the imported goods go through a physical checkup after entering the Chittagong port.”

“However, in Mongla customs house, 100% of the imported goods go through a physical checkup,” he said. “This is why importers do not want to bring ‘capital machineries’ through this port.”

He said due to the financial losses and harassments, many are unwilling to use the port.

Port Chairman Commodore AKM Faruque Hasan said as number of containers are low, the customs authority checks almost all consignments, although there is a provision of examining as low as 10% of the total consignments.

He said currently 70-80% of the capacity is used by the port users.

Meanwhile, port users say, the port can be used to its fullest potential with the cooperation of all concerned parties.

Mongla port user Shipping Agent and Managing Director of Stevedors Messrs Nuru and Sons HM Dulal informed: “Ships are continuously entering the Mongla port. Port users have increased their scope of work, creating more employment for workers.”

Former MP of Bagerhat-3 constituency- which comprises of Mongla-Rampal upazilas- and Khulna City Corporation Mayor Alhaj Talukder Abdul Khaleque said the Mongla port has gone through a lot of developments after the current government came to power.

“Through capital dredging, navigability was increased in 145km of channel area,” he said. “We are trying to ensure a safe, pollution-free and environment-friendly channel.”

The government has taken different initiatives to increase port usage. Among them, constructions of Padma Bridge, Khulna-Mongla railway, Khanjahan Ali Airport, 1320 megawatt of coal-based Rampal power plant, Special Economic Zone (SPZ) in the Mongla port area with the joint initiative of Bangladesh-India, and expansion of Mongla EPZ are some of them, the mayor said.

He hoped the construction works for all these projects will be completed by 2020-21.

According to port sources, the Mongla port does not have sufficient infrastructures. The port is going to be even busier after the construction of the Padma Bridge. And if all port-related activities of Khulna are to be transferred to Mongla port, the overall facilities of the port must be increased.

With that end in mind, Bangladesh is now seeking loans from India.

Aid from India

India will be providing Tk6,245cr in loans in the Tk6,585cr Mongla developmental project. The project, which started in June, is estimated to end by 2022.

The objective of the project is to increase the capacity of the Mongla port, as well as provide modern facilities for port users.

Port authorities say the project has a total of 12 components. They are: constructions of jetty-1 and jetty-2 container terminals, container handling yard, container deliver yard, security systems, roads, yard sheds, security walls automation, service vessel jetty, office, MPA tower, port residential complex and community facilities, mechanical workshops, equipment yards, equipment sheds, MT pools, marine workshops, signal rail crossing, overpass, entertainment sector, expansion of the preserved areas and other infrastructures and administration buildings and purchase of five harbour crafts.

Mongla port started its journey on December 1, 1950. It was opened 48km north of Khulna and 131km upstream of Bay of Bengal as “Chalna port”. In 1954, the name was changed to Mongla port for the convenience of the entry of foreign ships, port sources said.

Jute and jute-related goods, prawns, clay tiles, leather and other goods are exported through this port currently. On the other hand, food grains, fertilizers, machineries, vehicles, LP gas, coal, limestone, palm oil, wooden logs, stones and other goods are imported.

Source:https://www.dhakatribune.com/business/2018/11/11/foreign-ships-containers-tripled

Posted on

Economic prospects for Myanmar favorable, but downside risks intensified: World Bank

scion Industrial ENgineering

While the economic outlook for Myanmar is looking “favorable,” with growth projected to rise to 6.8 percent in 2018-19 from 6.4pc before, the risks to those prospects have “intensified,” according to the World Bank’s Myanmar Economic Monitor (MEM), which was released in Yangon yesterday.

Lower tourism arrivals resulting from the ongoing Rakhine crisis could weaken tourism spending and demand for related services such as hospitality and transport, feeding into a broader slow down in the economy, for one.

Meanwhile, investor concerns about the reputational risk of operating in Myanmar as well as perceptions of a weakening in the pace of economic reforms could lead to declines in foreign direct investments. (FDI). This would come at a time when the funds are needed to stem a further widening of the current account deficit.

Fewer investments could also result in a slowdown in manufacturing and agriculture, the two sectors which drove a faster pace of growth in the previous fiscal year.

Policy priorities

However, a significant slowdown in growth is unlikely if the policies and government tools installed are deployed wisely. Among the policies in place is the upcoming Myanmar Sustainable Development Plan (MSDP), a draft of which is now being reviewed by the government.

The MSDP aims to translate the government’s 12-point economic plan and sector plans into “a clear set of policy priorities and has been welcomed as a significant step forward,” according to the MEM.

“The MSDP, which lays out a comprehensive and prioritised policy reform agenda, holds the promise of offering the much-needed unifying and coherent roadmap for reforms for the country,” the report said.

The other priority for Myanmar is to break out of the cycle of low revenue and low public spending. At 15pc of GDP, Myanmar has among the lowest tax collection as a share of GDP in the world.

Myanmar also spends less as a share of the budget on capital projects and on critical priorities such as education and health than other lower middle-income countries.

“In the last three years, budget execution rates have been 92 pc on average and have never risen above 94pc,” the MEM reported.

To break the vicious fiscal cycle of poor tax collection and public spending, the government has options such as reallocating capital spending from less important to priority areas like energy and transport as well as education and health.

The government is also working on reducing its reliance on central bank financing to the more sustainable option of issuing sovereign debt, or borrowing from institutional investors. Since last year in fact, the Central Bank of Myanmar has already wound down its financing of the fiscal deficit, which is also one reason why inflation has tapered to its current level of 5.5pc compared to 7pc the year before, according to the World Bank.

Positive prospects

On the whole though, the prospects are positive. Myanmar is expected to continue building on its new Investment Law and Company Law to enable foreign participation in key sectors such as banking and insurance.

Currently, Myanmar has one of the highest levels of restrictions for FDI on insurance and banking, so further liberalisation “can potentially generate new momentum for driving private sector investment,” the report said.

Meanwhile, global conditions also appear to be supportive of domestic growth. Global growth rose to 3.1pc in 2017 from a post-global financial crisis low of 2.6pc in 2016. So far, emerging economies like Myanmar have gained from higher demand in developed economies.

Supported by faster growth rates for output and new orders, the Nikkei Myanmar Manufacturing Purchasing Managers’ Index, or PMI, rose to 55.5 in April from 53.7 in March, implying a strong level of expansion in Myanmar’s manufacturing sectors.

Higher global demand, if it continues, will also bode well for the Myanmar agriculture sector. Last year, demand for locally-produced rice and other crops helped to accelerate the country’s GDP.

Source;https://www.mmtimes.com/news/economic-prospects-myanmar-favorable-downside-risks-intensified-world-bank.html

Posted on

ADB opens new Bhutan office

scion Industrial Engineering

Asian Development Bank (ADB) Vice-President Mr. Wencai Zhang together with the Prime Minister Tshering Tobgay and Finance Minister and ADB Governor Namgay Dorji joined an inauguration ceremony of a new ADB office in Thimphu on July 3, hailing the move as a significant moment in the ADB-Bhutan partnership, the Manila-based bank has said.

“The new office will meet our country operations needs and ensure that our growing personnel and resources will match Bhutan’s developmental aspirations in the Twelfth Five Year Plan and beyond,” Zhang said. “Moving into this new office signifies a long-term commitment in ADB’s partnership with Bhutan.”

Zhang paid courtesy calls on the Prime Minister and Finance Minister in which they discussed the country’s development challenges and ADB’s role in addressing these. Despite Bhutan’s impressive economic performance, its economic growth has been driven mainly by a few sectors, particularly hydropower and its related construction. Bhutan needs to continue and enhance efforts to broaden its economic base to sectors that generate employment, particularly to address the increasing youth unemployment problem.

Since the start of operations in Bhutan in 1982, ADB has invested more than $700 million in sovereign and nonsovereign operations and provided more than $50 million of technical assistance to Bhutan.

“ADB’s finance helps improve the life quality of people,” said ADB Bhutan Country Director Kanokpan Lao-Araya. “We aim to contribute to the strong foundations on which Bhutan is building a vibrant economy.”

ADB has started preparing a new Country Partnership Strategy (CPS) 2019–2023 to support development priorities in the Twelfth Five Year Plan, which will be finalized and endorsed by the new government after the general election. Prior to the finalization of the new CPS, ADB will prepare a Country Operations Business Plan (COBP) 2019–2021. The COBP will support priority areas, such as better access to finance for the private sector including small and medium enterprises and cottage and small industries, among others.

During the day, loan and grant agreements were signed for the two projects approved to date by ADB’s Board of Directors in 2018. One is a $10-million loan to help improve urban infrastructure and services of the secondary towns of Samdrup Jongkhar, Sarpang, and Trashigang. The other is a loan and grant package totaling $53 million to promote growth in and around the country’s major border city of Phuentsholing by developing a township area adjoining the city protected by new defenses against floods and riverbank erosion.

Posted on

What will MSCI’s emerging market status mean for Saudi Arabia

scion pvt ltd

Anaylsis: What will MSCI’s emerging market status mean for Saudi Arabia
The kingdom’s inclusion on MCSI’s Emerging Market index will provide billions of dollars in passive inflows just as the country is seeking to modernise its economy.

In a highly Significant but not unexpected move, global index compiler MSCI reclassified Saudi Arabia as an emerging market last week, a milestone that experts believe will lead to significant inflows of foreign capital and provide a boost to the kingdom’s economy.

With 32 stocks, Saudi Arabia will now become the third largest MSCI country from the EMEA region, behind only South Africa and Russia.

MSCI’s move is the latest in a string of announcements that promise to facilitate inflows of foreign money into the Saudi economy.

In March, rival provider FTSE announced that it would upgrade Saudi Arabia to emerging market status, while S&P Dow Jones said in May that it was holding consultations with investors in a bid to determine whether it would do so as well.

Saudi Arabia ready
The decision comes at an important time for the kingdom as it continues to take steps to modernise its economy and make things easier for potential investors – a stark contrast from the initially restrictive environment they faced after the country opened its capital markets to foreign direct investment in mid-2015.

Bassel Khatoun, managing director of Frontier and MENA for Franklin Templeton Emerging Markets Equity, tells Arabian Business that since being added to the MSCI’s watch list in June 2017, “the Saudi Capital Markets Authority and Tadawul have continued to make substantial modifications to its equity market infrastructure and accessibility to ensure it meets the criteria for [the] upgrade”.

The inclusion, he added, was a “historic, milestone achievement for the Kingdom’s equity market”.

Many of Saudi Arabia’s stock market reforms – which were largely meant to fulfil the requirements of index compilers such as MSCI – included reducing the minimum asset threshold required from institutional investors to $500m from $5bn, aligning Tadawul’s trade settlement times with international standards and allowing fund managers to aggregate orders.

The reforms have clearly had an effect already, with the Tadawul All Share Index rising 14 percent in 2018 in anticipation of the status upgrade, with foreign inflows to stocks positive nearly every week of the year so far.

Market impact
MR Raghu, managing director of Marmore Mena Intelligence, a research house that focuses on trade and commerce in the region, says that Saudi Arabia is projected to have a weight of 2.7 percent in the index, with the possibility of as much as 4.6 percent if the proposed public offer of five percent of the shares of Saudi Aramco bears out.

“The inclusion of Saudi Arabia in the FTSE and MSCI EM indices is likely to increase the flow of foreign funds to Saudi Arabia… classification by MSCI is expected to result in around $10bn of passive inflows into the country,” he notes, adding that the figure is in addition to the $5.5bn of capital expected from the FTSE inclusion.

Additionally, Saudi Arabia’s reclassification on the MSCI index is expected to have a significant impact on the fixed-income market.

State Street Global Advisors’ managing director and sector head of emerging markets debt, Abhishek Kumar, says that last week’s announcement “will make fixed income indices sit up and take notice”.

“Fixed income index providers have not yet made any announcement about the index’s inclusion of Saudi Arabia’s domestic currency debt in the mainstream bond indices,” he says.

“The availability of bond prices has been one of the main hurdles for index inclusion. However, with the listing of domestic bonds on Tadawul, regular prices for around a quarter of government debt issued [in Saudi Arabia] have become available.”

Source:http://www.arabianbusiness.com/equities/399209-anaylsis-what-will-mscis-emerging-market-status-mean-for-saudi-arabia

Posted on

Bahrain’s Gulf Air set to increase flights in summer schedule

Scion Industrial Engineering

National carrier says flights during the peak summer period will jump by 200 more weekly flights compared to 2017

Gulf Air, Bahrain’s national carrier, has announced its summer schedule, increasing capacity and flights to and from several popular destinations between mid-June and mid-September.

Gulf Air flights to the Jordanian capital city of Amman will increase to triple daily, while flights to the Lebanese capital city of Beirut will increase to double daily.

The popular summer destination of Istanbul in Turkey will be served with 12 weekly flights during the peak summer period while Athens, Greece will be served by seven weekly Gulf Air flights.

Gulf Air flights to Larnaca, Cyprus have permanently increased to a daily service and Baghdad in Iraq has also permanently increased to a five weekly service, the airline said in a statement.

It added that the airline’s flights to Multan in Pakistan have already increased to five weekly while capacity on its Cairo, Khartoum and Addis Ababa routes have also been boosted.

Gulf Air also said that its first Boeing 787-9 Dreamliner serving London Heathrow, will see increased capacity and enhanced on-board products and services from June 15.

It said it will increase its flights during the peak summer period by 200 more weekly flights compared to 2017.

Regionally, the airline’s upcoming network expansion will see it launch five weekly flights to Abha and Tabuk in Saudi Arabia from June 15, three weekly flights to Alexandria, Egypt from June 10 and two weekly flights to Sharm El Shaikh, Egypt from June 16.

In India, Gulf Air has launched daily flights to Bangalore and seven flights weekly to Calicut from June 15. Alongside this, the airline will offer five flights weekly to Casablanca in Morocco from June 11 and five weekly flights to Baku in Azerbaijan from June 12.

Gulf Air CEO Krešimir Kucko said: “Not only will our upcoming network additions better connect our valued passengers to the places and people that matter the most, our summer 2018 schedule will see us increase flights to several popular destinations.

“The frequency and capacity increases that Gulf Air will implement in the coming months are in response to the demand on these key routes.”

In 2018, Gulf Air’s network will serve 49 cities in 26 countries.

http://www.arabianbusiness.com/transport/395921-wkd-bahrains-gulf-air-set-to-increase-flights-in-summer-schedule

Posted on

Unbound Bahrain set to become MENA’s newest and most exciting innovation festival

Focusing on key trends and developments in the digital economy, unbound Bahrain will host some of the Middle East’s most exciting entrepreneurs next week at the Bahrain International Circuit (BIC).

The two-day event, which is part of the Startup Bahrain Week, will take place on Wednesday 7th and Thursday 8th March under the patronage of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and Chairman of the Economic Development Board (EDB). The event will link startups with corporates and creativity with entrepreneurship, while featuring live demonstrations and product showcases, panel sessions, workshops and more.

unbound Bahrain will see a range of leading speakers, including keynote remarks from Daniel Seal, Founder & CEO, unbound, H.E. Khalid Al Rumaihi, CE, Bahrain Economic Development Board, H.E. Simon Martin CMG, British Embassador to the Kingdom of Bahrain, and Mazin Khoury, Chief Executive Officer, American Express Middle East.

Daniel Seal, CEO & Founder of unbound, said: “We’re incredibly excited to be a part of the Kingdom of Bahrain’s emerging innovation ecosystem and the anchor event of the very first Startup Bahrain Week. I’m thrilled to have worked with the forward-thinking Bahrain Economic Development Board to create such a valuable moment for this game-changing region.”

As part of the two-day event, Brinc and C5 will also host ‘Face-Off on The Track’ for startups at the seed stage and scale-ups to present their companies and tell their stories live at a pitching session. $25,000 will be awarded the first place winners in each category, while the runners up will receive $10,000 each.

Also, American Express Middle East, in partnership with IBM, will host a hackathon to develop solutions to make digital payments more accessible – promising to bring together some of the most innovative minds to tackle a vital challenge. Hack@The Track offers a grand prize of $20,000 for the winning team, and $10,000 and $5,000 for the runners up, with solutions judged on simplicity, creativity, impact and design.

Mazin Khoury, CEO, American Express Middle East said: “American Express Middle East’s Hack @ the Track will bring some of the region’s finest minds from Fintech, eCommerce and Digital Innovation together in one competitive, immersive and highly exhilarating event. And as a proud sponsor of unbound Bahrain and a founding partner of Fintech Bay, we’re delighted to be a major contributor to the future development of Bahrain’s digital economy.”

Tech giant, Microsoft, will host 50 of MENA’s most innovative startups, showcasing tech from across the region as part of the ‘unbound50’. The tech company will also host a workshop on Artificial Intelligence on the Future Stage.

“Start-ups are the backbone of any economy, and Bahrain is seen as a productive ground and a regional center for them to create, innovate and grow.” said Saif Al Hosni, General Manager, Microsoft Bahrain and Oman. “We want start-ups to work smarter by having easy access to enterprise grade technologies such as the cloud, Artificial intelligence and Machine learning – so they can unleash their potential to achieve more.”

Mobile and data services operator, Zain, will celebrate the International Women’s Day -on Thursday 8th March- by hosting a Main Stage panel championing female entrepreneurship in the Kingdom of Bahrain. The panel will feature a selection of the country’s finest female founders. As a Gold Sponsor, the telecom company will provide WiFi throughout the festival and host a Zain Lounge.

John Kilmartin, Executive Director of ICT, Bahrain Economic Development Board said: “We recognise the major role entrepreneurship is playing in economies around the world – encouraging growth, accelerating economic diversification and creating jobs. We are proud to be a sponsor of Startup Week and see first-hand how startups, corporations and government entities can collaborate further and become the driving force in our economic transformation.”

Source:http://bahrainedb.com/latest-news/unbound-bahrain-set-become-menas-newest-exciting-innovation-festival/

Posted on

Iran’s automotive industry: a potential draw for investors

Iranian non-oil exports had been growing even before sanctions were lifted by the USA and European Union earlier this month. According to the UNESCO Science Report: towards 2030, released in November last year, ‘companies deprived of oil and gas revenue have shown a propensity to export technical and engineering services to neighbouring countries.’ Since the nuclear deal was signed last July, the World Bank has observed a surge in interest among multinational companies in investing in Iran. One sector attracting attention is Iran’s automotive industry.
After oil and gas, the automotive industry is Iran’s biggest, accounting for about 10% of GDP and employing about 4% of the labour force. There was a boom in local car manufacturing between 2000 and 2013, driven by high import duties and a growing middle class. The imposition of fresh sanctions in July 2013 prevented Iranian companies from importing the vehicle parts upon which domestic cars rely, causing Iran to cede its place to Turkey as the region’s top vehicle manufacturer.

Traditional export markets for Iranian automobiles include Algeria, Azerbaijan, Cameroon, Ghana, Egypt, Iraq, Pakistan, Senegal, Syria, Sudan and Venezuela. The sanctions imposed in 2013 hit automobile exports particularly hard, which had doubled to about 50 000 cars between 2011 and 2012.

The Iranian car market is dominated by Iran Khodro (IKCO) and SAIPA, which are subsidiaries of the state-owned Industrial Development and Renovation Organization. IKCO was founded in 1962 and SAIPA in 1966. Both companies assemble European and Asian cars under license, as well as their own brands. IKCO is the biggest car manufacturer in the Middle East. In 2012, it announced plans to reinvest at least 3% of company sales revenue in R&D.

In 2008 and 2009, the government spent over US$ 3 billion developing infrastructure to enable vehicles to run on compressed natural gas. The aim was to reduce costly petroleum imports, owing to an insufficient refining capacity in Iran. With the world’s biggest natural gas reserves after the Russian Federation, Iran rapidly became the world leader for the number of vehicles running on natural gas: by 2014, there were over 3.7 million on the road.

About 3% of nanotech companies in Iran focus on the automotive industry. Iranian carmakers use nanotechnology to increase customer satisfaction and safety by providing such comforts as anti-stain dashboards, hydrophobic glass planes and anti-scratch paint. In 2009, researchers at Isfahan University of Technology developed a strong but light nanosteel as resistant to corrosion as stainless steel for use in road vehicles but also potentially in aircraft, solar panels and other products. Nanotechnology research has taken off in Iran since the Nanotechnology Initiative Council was founded in 2002. In 2014, Iran ranked seventh worldwide for the volume of papers related to nanotechnology. The number of papers per million inhabitants has consequently risen from 19 in 2009 to 59 in 2013, overtaking Japan (56 per million) and approaching the USA (69 per million) in the process.

The author of the chapter on Iran in the UNESCO Science Report argues that, indirectly, sanctions have accelerated the shift from a resource-based economy to one based on knowledge in Iran. The sanctions have hit the private sector hard, increasing the costs of finance companies and the credit risk of banks, eroding foreign exchange reserves and restricting companies’ access to foreign assets and export markets. Knowledge-based enterprises have been further penalized by limited access to high-quality equipment, research tools, raw materials and technology transfer. Despite this, the number of firms declaring activities involving research and development (R&D) more than doubled between 2006 and 2011, from 30 935 to 64 642. The author argues that, by isolating Iranian companies from the outside world, the sanctions have encouraged them to innovate. By erecting barriers to foreign imports and encouraging knowledge-based enterprises to localize production, they have helped small and medium-sized enterprises develop their business. Moreover, with unemployment high and Iranians well-educated, firms have had no difficulty in recruiting trained staff. The sanctions have also helped to reconcile research and development (R&D) with problem-solving and public interest research in Iran, he argues, after high oil receipts had divorced science from socio-economic preoccupations for many years.

The government first articulated its policy of developing a knowledge economy in 2005 in the document Vision 2025, its recipe for turning Iran into the region’s leading economy by 2025. Even the economic plan adopted by decree in 2014 for an ‘economy of resistance’ in response to the increasingly tough sanctions regime essentially reasserts the goals of Vision 2025.

Vision 2025 foresees an investment of US$ 3.7 trillion by 2025 to finance the transition to a knowledge economy. Much of this amount is to go towards supporting investment in R&D by knowledge-based firms and the commercialization of research results. A law passed in 2010 provides an appropriate mechanism, the Innovation and Prosperity Fund. According to the fund’s president, Behzad Soltani, 4600 billion Iranian rials (circa US$ 171.4 million) had been allocated to 100 knowledge-based companies by late 2014. Public and private universities wishing to set up private firms may also apply to the fund.

The Fifth Five-Year Economic Development Plan (2010–2015) set out to secure second place for Iran behind Turkey in the region in science, technology and innovation (STI). Within the plan, a National Development Fund was established to finance efforts to diversify the economy; by 2013, the fund was receiving 26% of oil and gas revenue.

According to Vision 2025, nearly one-third (US$ 1.3 trillion) of the overall investment in the transition to a knowledge economy is to come from foreign sources, which are to represent 3% of GDP by 2015. This target appeared somewhat optimistic in 2013, when foreign direct investment contributed just 0.8% of GDP. However, given the surge in interest among multinational companies in investing in Iran since the signing of the nuclear agreement last July, this target may now be within reach.

Source:http://www.unesco.org/new/en/media-services/single-view/news/irans_automotive_industry_a_potential_draw_for_investors/

Posted on

The Future of Manufacturing in the U.A.E.

The U.S.-U.A.E. Business Council released a new report on the latest developments in the U.A.E.’s manufacturing sector at a high-profile event in Abu Dhabi on Sunday, 28 January. Eng. Jamal Salem Al Dhaheri, CEO of SENAAT, and Badr Al-Olama, the Head of the Aerospace Business Unit at Mubadala Investment Company, provided keynote remarks at this exclusive business roundtable luncheon.

U.S.-U.A.E. Business Council President Danny Sebright, highlighted the U.S.-U.A.E. Business Council’s new report, titled “Making the Future: The U.A.E.’s Growing Manufacturing Sector“.

Eng. Jamal Al Dhaheri subsequently spoke about the state of the country’s manufacturing sector. He also provided insights into SENAAT’s plans and projects, including the recently inaugurated Ducab Aluminium Company (DAC).

Mr. Al Dhaheri said: “SENAAT is a key contributor to Abu Dhabi Economic Vision 2030, strategically developing the Emirate into a global industrial player. As a fast-growing industrial champion with a track record in forging successful partnerships, we are currently managing AED 27.5 billion of industrial assets in metals, F&B, O&G services, and the construction and building materials sector. In line with Abu Dhabi Economic Vision 2030 & the Abu Dhabi Industrial Development Strategy, we continue to explore multiple investment plans and strategic projects and we look forward to strengthening ties with the international investment community in this journey.”

Badr Al-Olama, who also leads the organizing committee for the Global Industrialization and Manufacturing Summit (GMIS), then shared his thoughts on the future of U.A.E. manufacturing. “The U.A.E. is a story of transformation,” Mr. Al-Olama said. “With strong leadership, and a continued focus on long-term goals, our advanced manufacturing sector is set to share a quarter of the national GDP in the very near future. Growth in manufacturing is encouraging greater investment in developing specialist skills and promoting wider societal sustainability initiatives across the country.”

Mr. Al-Olama also discussed the role that Mubadala plays in this industrial transformation and on wider U.A.E. society. “At Mubadala, we believe that manufacturing, ultimately, has a transformative impact on society— by creating an agile economy that offers high-value employment opportunities that are more resilient to market dynamics.”

Following these keynote remarks, Mr. Al Dhaheri and Mr. Al-Olama engaged in a thoughtful discussion with senior-level attendees about the Fourth Industrial Revolution and the impact of 3D printing, automation, and artificial intelligence on industry. Finally, they discussed opportunities and challenges to manufacturing in the U.A.E. and provided detailed advice to companies considering establishing operations there.

Mr. Sebright concluded the event by stressing the wide range of opportunities the U.A.E.’s manufacturing sector provides for U.S. companies and investors. “This new report and today’s event demonstrate that the prospects for U.A.E. manufacturing are bright,” Mr. Sebright said. “There are substantial opportunities for U.S. companies who are considering establishing manufacturing operations in the U.A.E. or exploring commercial relationships with U.A.E. manufacturers.”

Source:http://www.manufacturingtrade.com/news-detail:30d40984-15e4-d5c0-6fe1-5a7c225ca449.html

Posted on

Qatar’s manufacturing sector registers exceptional growth

Qatar Economy

While the Qatari economy displayed an exemplary resilience to the impact of the unjust siege imposed by the Saudi-led bloc, the country’s manufacturing sector led the way in 2017 by clocking exceptional growth and unprecedented expansion.

Thanks to the concerted efforts by all stakeholders, Qatar has been able to transform the challenges into opportunities in almost every sector of the economy. While ramping up production of its existing industrial units, the country began setting up new factories to quickly move towards self-sufficiency.

According to a statement by the Minister of Energy and Industry HE Mohammed bin Saleh al Sada, the number of factories entering the production stage in the first six months of the siege doubled compared to the same period a year ago.

The minister’s statement hinted at the futile attempt by the siege countries to jeopardize Qatar’s economy.
In fact, Qatar’s economy has only picked up momentum since the siege with new plants in manufacturing, food, cement, plastic and steel sectors developed at a fast pace. Qatar has managed to attract huge investments into its manufacturing sector. According to a statement issued by Ministry of Energy and Industry, Qatar has attracted investments of about QR260 billion in its manufacturing sector.

“A total of 730 industrial facilities have been registered with the ministry. Qatar is putting a lot of efforts to realise the directives of the wise leadership in achieving a balanced and sustainable industrial development,” Sada was quoted as saying by Qatar Tribune.

In a bid to encourage local industry and small and medium enterprises, Qatar has provided incentives for industries such as fee exemption on equipment, raw materials and machine parts.

The manufacturing sector has become one of the most attractive investment opportunities in Qatar following the new legislation which facilitates the process while providing investors with a slew of incentives.

The ‘Own Your Factory in 72 Hours’ initiative launched by the Ministry of Economy and Commerce (MEC), after the blockade, has been a major draw. Under the initiative, 63 investors were shortlisted for setting up factories in Qatar worth a total of QR2.5 billion. The ministry has already provided licences to the shortlisted firms and begun allotting land for setting up the factories in New Industrial Area.

Ahmad Zeidan, head consultant of ‘Own Your Factory in 72 Hours’ initiative, told Qatar Tribune that the shortlisted investors had already started work on their respective projects.”Within one year, all the factories will begin production,” Zeidan said.

Launched as part of the MEC’s ‘Single Window System’, the ‘Own Your Factory in 72 Hours’ initiative, has drawn a huge response from both local and global investors.

The ministry set up a committee comprising representatives from 10 different ministries and government bodies to evaluate the applicant-investors.

The committee received a total of 8,128 applications from investors in Qatar and more than 1,000 requests from 50 countries for winning the 250 investment opportunities covering eight major industrial sectors.

Out of the 9,128 applicants, the committee shortlisted around 900 investors for evaluation and meetings.
After holding more than 450 personal meetings with investors, the committee finalised the names of investors for 63 projects. More names will be announced at a later stage.

According to information provided by the ministry, out of the 63 investors, 22 will be setting up industries in the food sector.

While the overall manufacturing sector witnessed growth, there was more focus on food, medicine and other essential products with a view to tiding over the diplomatic crisis.

The Qatari government also partnered with the private sector to promote local products both in domestic and international markets.

The ‘Made in Qatar’ exhibition organised by Qatar Chamber in partnership with the Ministry of Energy and Industry and Qatar National Bank became a huge success.

The size of the area allocated for the exhibition increased from 15,000 square metres (sqm) last year to 30,000sqm this year. The number of exhibitors also doubled compared to the previous edition.

Qatar Chamber Chairman Sheikh Khalifa bin Jassim al Thani told Qatar Tribune that the siege has given birth to an”industrial renaissance” in the country.

Source:http://www.qatar-tribune.com/news-details/id/104216

Posted on

New labs to unlock growth in Oman’s fisheries sector

Plans to accelerate development of the Omani fisheries industry are gaining pace, with a series of temporary labs designed to help operators overcome challenges.

Launched in September by the Ministry of Agriculture and Fisheries (MoAF) and running until October 26, the fisheries labs brought researchers and industry experts together to look at ways to maximise growth in the sector, with a focus on aquaculture, catch and export.

Among the key goals of the project is boosting the contribution made by fisheries to GDP, increasing the value of fish products and creating more job opportunities for Omanis.

Push to more than double fish production between 2014 and 2020
The initiative forms part of a broader national roadmap, developed in cooperation with the World Bank. Fisheries has been identified as one of five key focus areas in the government’s current five-year development plan (2016-20), which seeks to ensure the industry’s sustainability through to 2040.

The government has pledged to invest $1.6bn under the National Fisheries Development Strategy 2013-20, with the aim of increasing production from 200,000 tonnes in 2014 to 480,000 by 2020, and creating 20,000 new jobs.

A cornerstone of the strategy is the establishment of a fisheries harbour at the Port of Duqm, where the government plans to create a special economic zone that will include 60 processing facilities, cooling and freezing stores, and ship maintenance workshops.

Robust fisheries growth, sector financing trends
These efforts come on the back of strong growth in the fisheries sector. Total fish production increased by 9% last year, and the industry has recorded average annual growth of 12.1% since 2011, according to the MoAF. Total catch volumes also rose over the period, from 158,000 to 280,000 tonnes. Fish production has exceeded 1m tonnes since 2011, contributing around OR975m ($2.5bn) to the economy.

This consistent growth, coupled with government support, has enabled the sector to attract substantial financing; fisheries accounted for 29% of all loans dispersed by the Oman Development Bank (ODB) in the first eight months of this year.

The ODB granted 1152 loans worth OR4.8m ($12.5m) to the fisheries sector, making it the second-highest recipient of funding from the bank, behind only industry, and ahead of agriculture, health and education.

Despite recent expansion, fisheries contributed 0.8% to GDP in 2016, demonstrating the significant growth potential of the industry and prompting the World Bank to call for national operators to move beyond only harvesting fish and establish themselves across the entire value chain. This includes processing, logistics, wholesaling, marketing and retail.

Fishing to boost Omani employment and self-sufficiency goals
Unlike many other industries in the country, traditional artisanal fishermen are responsible for the overwhelming majority of output, with small, local fishing operations making up 99% of production, according to the World Bank. An estimated 45,000-50,000 Omanis rely on fishing and related activities for their livelihoods.

October brought news that under a new scheme, an additional 700 licences will be made available to locals wishing to work in the traditional fishing segment – a sign the government is keen to encourage continued participation of Omanis in the sector.

The country also represents a strong homegrown market for its produce, with the population consuming almost double the global average amount of fish. As such, fishing plays an important role in long-term goals for food security and self-sufficiency.

Overall, Oman produces more fish than it consumes, meaning that it is able to export a substantial amount. Last year, it exported 41% of total produce caught, according to the National Centre for Statistics and Information. Further expansion would therefore boost international trade opportunities.

Source:https://oxfordbusinessgroup.com/news/new-labs-unlock-growth-oman%E2%80%99s-fisheries-sector