Pioneering Experience

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5 Monthly Magazine Issued by the Abu Dhabi Chamber of Commerce & Industry Issue No.99 (First published in July1970) Something Different Editor - in - Chief Mohamed Helal Al Muhairi Administration & Editorial: Tel.: Fax.: Advertisement & Marketing: Tel.: Fax.: P.O. Box: 662 info@economytoday.ae Abu Dhbai - UAE Annual Subscription: Abu Dhabi and abroad AED or its equivalent, in addtion to postage cost Vision To be Recognized as the leading voice for the Abu Dhabi business community Mission We are the private sector s representatives working to Advocate policies, connect businesses and expand members opportunities by providing world-class members-related services with an aim to contribute to Abu Dhabi s sustainable economic development Pioneering Experience The recent high ranking of Abu Dhabi in the United Nations Development Programme, which placed the Emirate amongst the top world countries in human development, is merely not a sudden outcome; rather, it is the result of long-standing efforts and hard work that dates back to a more than 4-decade aged path when the UAE was established by Late Sheikh Zayed Bin Sultan Al Nahyan, the Founder Father, and then ably and determinedly pursued by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the UAE s President. This well advanced and honourable ranking of the UAE is a global recognition of the success of the country s development policies that reached a prominent stage, thereby enabling the UAE in general and Abu Dhabi in particular to top other cities and countries living the same experience and looking forwards to same end. Human Development is the noblest and most important cornerstone for the UAE s strategy and its framework aims to achieve a comprehensive development. For this unique experience, the man is the foundation for the Country s development and the UAE pays greater importance to develop human capitals in all aspects: materially, scientifically, know-how, healthcare to help them live and work in creative and proactive environment. The globally advanced ranking of Abu Dhabi in human development is the result of an insightful vision of its wise Leadership and the meticulously sound strategy of the country in present and future, which is based on a delicate determination of capabilities and needs, well-defined planning for goals and aspirations, fully understanding of all regional and international transformations coupled with full appreciation of national capabilities and local peculiarities. The UAE has proved through its high ranking in various international indexes that it is well experienced and capable of managing human resources and economic industries and that it adopts successful economic policies to utilise oil resources in development programmes and initiatives that are positively and directly reflected in the daily life of community. Abu Dhabi will pursue the path of remarkable achievements driven by the wisdom and insightfulness of its Leadership as well as the principles of sustainability and community enablement, which are parts of Abu Dhabi Economic Vision Mohamed Helal Al Muhairi

6 Issue No Abu Dhabi s Economy Moving Steadily Towards Grand Development Family Companies In House Integrated Strategy to Promote SME Competitiveness Al Maryah Island.. World of Unrivalled Environments

7 REPORT Abu Dhabi s Economy Moving Steadily Towards Grand Development Abu Dhabi Economy Today The United Nations Development Programme has placed Abu Dhabi amongst some of the leading places globally in human development index, taking up the 29th position, according to the first Human Development Report unveiled by Abu Dhabi Department of Economic Development in cooperation with United Nations Development Programme for the UAE. The report shows that the GDP per capita for nationals exceeded $ 100,300 (AED 368,000) in 2008 compared to $ 64,000 (AED 235,000) in 2005 with a growth rate of 56%. GDP per capital for non-locals was $36,700 in 2008 compared to 23,500 in The report highlighted a decline in the oil participation in GDP of Abu Dhabi from 70% to 50% coupled with the shrinking role of government participation in economic activities from 31% to 6.7%. Abu Dhabi s economy experienced a growth rate of 30% in the current prices in 2011 and GDP grew from AED 492 billion in 2006 to AED 806 in 2011, registering a growth rate of 64% in the last five years despite the tough economic condition the world has seen in recent years. Besides, Abu Dhabi achieved unprecedented level of milestones in human development, especially in healthcare and education, fueled by its strategy and the Leadership s insightful vision to invest in its financial resources. The gross domestic product at current prices doubled for the capital of Abu Dhabi between 1975 and 2010 about 24 times; increasing from 26 billion dirham in 1975 to 620 billion dirham in 2010, with an average annual growth rate of about 9.0 per cent. Excluding oil, non-oil GDP at current prices rose from around six billion dirham in 1975 to more than 312 billion dirham in 2010, where it doubled more than 55 times, or had an average annual growth rate of around 11.5% on average. 7

8 8 REPORT human development is an integral part of all-out and sustainable development the Emirate is witnessing in all aspects with an aim to build a knowledgebased economy, diversify income, promote infrastructure and alternative energy resources, education, healthcare, arts and culture, and openness on the whole world, all of which are moving through well-defined strategies and plans incepted from Abu Dhabi Economic Vision Meeting Community Needs Building Successful and Prosperous Community HE Sheikh Nayhan Bin Mubarak Al Nahyan, the UAE s Minister for Higher Education and Scientific Research, stated that the report reflects the wisdom and the confidence the Leadership of Abu Dhabi and its commitment to giving significant priority to building human talents, and the optimal use of natural resources to shape the Emirate as a global capital city. Moreover, the report provides an objective human development state dissertation and assessment, listing the positive and negative elements that affected the current findings. HE expressed his pride over the pivotal status of Abu Dhabi in the region and worldwide thanks to the directives of HH General Sheikh Mohammed bin Abu Dhabi amongst world s top names in human development indexes Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces aimed to establish a comprehensive economic and social development in Abu Dhabi based on a knowledge community with the human capital prepared to manage this community, further prosperity and welfare whilst upholding the national identify. We are proud to be here in Abu Dhabi, where we live, thanks to the vision of its Leadership, a unique and modern example of social and economic progress is being set. HE stressed that in light of the human development of both Abu Dhabi and the UAE, this report is clear evidence that human resource and human capital are the true fortune to the progress and development on nations. HE Sheikh Nahyan stated that the Emirate strives to build knowledge-based economy Nasser Ahmed Alsowaidi, Chairman of the Abu Dhabi Department of Economic Development (DED) emphasised: "It must be noted that the goal of the authors of this report was not to prepare a theoretical, academic research paper, but to provide a living instrument to trigger the public debate, urge policy formulation and respond to people and government hopes in raising awareness among citizens on the challenges facing the Emirate at a time of worldwide crisis." HE Mohammed Omar Abdulla, the Undersecretary, Abu Dhabi Department of Economic Development, said, The preparation of this report is in line with aspiration of our wise Leadership on the need of human development and their role in promoting the community and achieving sustainable development as per Abu Dhabi Economic Vision Human: Centre for Development HE added, HH Sheikh Khalifa Bin Zayed Al Nahyan has clearly set the future of the UAE by developing human resources and optimising their skills to encourage the local man power to take up their natural position in the development progress for a brighter future. HE stated the enhancement of human has enabled Abu Dhabi to take a prominent position amongst world s leading countries in human development as Abu Dhabi s experience has become a catalyst for comprehensive developments. Abu Dhabi has become a remarkable example for development and progress in the region in all aspect, driven by its future vision to diversify income and streamline non-oil sectors whilst mov-

9 ing towards building a knowledgebased economy by developing human resources, education, and healthcare in particular. Bucking the consequences of global financial crisis, Abu Dhabi s economy has proved resilient and firm thanks to reforms and incentive programmes aimed to help mitigate the crisis in a record time. Healthcare and Education HE Mohammed Omar Abdulla explained that Abu Dhabi experienced a rapid growth in healthcare sector. The number of hospitals in the Emirate reached 33 in 2010 and health centres 465 while available beds were estimated 3600 that year. He stated that progress in healthcare encompassed the provision of capable medical cadres, the development of delicate medical specialties with necessary scientific tools and equipment whilst working to boost the local capabilities in various fields and providing worldclass healthcare services. In education, HE stated that government spending grew steadily in recent years, reaching AED 7.3 billion in , thereby enabling the Emirate to achieve remarkable strides with an aim to mobilise all available resources to widespread knowledge, update syllabuses and help ensure quality education. Efforts in higher education centred on meeting the needs of working marketplace, setting up various scientific research and technological centres to address requirements whilst comprehending some of leading international academic institutions such as the Sorbonne, INSEAD, and New York Universality in Abu Dhabi, he added. Women and Environment HE reiterated the commitment of Abu Dhabi s Government to granting women a greater role in the community by stressing a social culture that supports the role of women who has been instrumental in life, achieving remarkable successes in various positions and roles. He also stated that Abu Dhabi s Government paid a special attention to the environment and natural resources conservation for future generations in line with the principles of sustainable development the Emirate is aiming to achieve by the support of both locals and residents. Recommendations The report highlights the need to promote human talents in technology, creativity and invention whilst creating a Oil participation in GDP is below 50% and GDP per capita is AED 315,000 more attractive environment for educational institutions and working to set legislations and incentives to encourage the private sector to direct investments in productivity activities. The report also underpins the need to prepare development reports periodically in order to enable the Emirate to benchmark the level of human development achieved and set necessary development plans and programmes to raise the standards of living as well as further Abu Dhabi s competitiveness amongst world s leading countries and regions. The report also recommended embarking on special studies to diagnose the status of man power in the Emirate and link it to the economic vision. According to the report, there is a need that Abu Dhabi Economic Vision adopts alternative strategies for investment to decrease the need for foreign man power such as projects that require intensive capital and skilled labour while moving to invest overseas on creativity-centric projects. The report also highlights the need of educational institutions to work more closely whilst focusing on developing human talents in technology and academic curriculum. With regards to working marketplace, the report calls for finding a mechanism to link true efforts to transform into a knowledge economy with an active management able to optimise the labour market into an environment that can adapt to economic transformation by encouraging the private sector to invest in knowledge and technology. The report also called for assessing efforts aimed to attract locals to set up small businesses, prepare training programmes and suitable supervision to help them achieve success. In addition, the report highlights the need to set legislations and incentives to motivate the private sector to direct its investments in production activities vital to the economy whilst helping achieve stability of the private capital. Finally, the report recommended more support to the local women, especially in creativity-related activities and entrepreneurships whilst linking plans related to strategic projects that require sophisticated knowledge and technology with educational programme and overseas scholarships. 9

10 10 REPORT Family Companies: Pivotal Role in Fueling Economy and Achieving Business Sustainability Abu Dhabi- Fadia Ammar Participants at the Family Companies Forum organised by Abu Dhabi Chamber of Commerce and Industry stressed that family companies play integral role in supporting the local economy and achieve sustainable development, highlighting that such companies are the cornerstone of economic activities in the GCC, the Middle East, and larger world as they fuel the local economic growht. Speaking to Economy Today at the Forum, participants have highlighted challenges and difficulties facing family companies, especially project funding and governance as well as management transition from one generation to another. Entrepreneurship HE Nahyan Mubarak Al Nahyan, the UAE s Minister of Higher Education and Scientific Research, praised the great efforts by HH Sheikh Khalifa Bin Zayed Al Nahyan, the UAE s Presidents, HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, and HH General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, to foster and incentivise

11 entrepreneurship and initiative-taking in the UAE, helping the UAE be amongst world s top advanced countries. HE stressed that the majority of family companies are prospering in the region owing to their owners entrepreneurship, who, generation after generation are keen to take make use of the available opportunities, venture and take the initiative, making the region a vital trade hub for the Middle East, Asia and South Europe. In his keynote address opening the Forum, HE highlighted that the UAE s wise Leadership realises the importance of economic and human development and the need to promote and marry traditional trade aspiration with the new globalisation factors, given that family companies have played an integral role in the progress of the country and possess know-how and creativity to adapt to changing local and international circumstances. HE said, The general policy in the UAE encourages locals to own their businesses and motivate university and college students to start their own projects through various initiatives where the Government can provide support and consultancy as well as funding and training to entrepreneurs. This has tremendously helped flourish the business of family companies in the new global economic environment. HE set four factors that can help prosper family businesses as an engine for employment and economic growth. These are: creativity, inspiring thinking and capital as they are the cornerstone to motivate business pioneering and sustainable family companies, and secondly the international cooperation that helps business prosper and exchange of best practices as well as know-how on key challenges facing entrepreneurs and their businesses. The third factor relates to suitable taxation policies, the provision of financial support, and use of state-of-the-art technologies to ensure the success of businesses, while the fourth factor, according to HE, focuses on more HE Sheikh Nahyan Bin Mubarak: Family companies own creative thinking and have been Instrumental in the Country s successful economic drive 11

12 12 REPORT Fatima Al Jaber: We look Forwards for a more sustainable and knowledge-based economy Al Fahim: Government companies are our first competitors and our business dropped by 50% Kanoo: Family Companies have always been the cornerstone of the economy future awareness of family companies via model business leaders, advertising campaigns, competitions and awards, communications networks and encouragement of community servicing concept. Distinguished Opportunities HE Engineer Fatima Obaid Al Jaber, Chairwoman of Business Women Council- Abu Dhabi, and Board Member of Abu Dhabi Chamber of Commerce and Industry, confirmed that the Forum is a great opportunity to review the role of family companies in the Middle East and to discuss the possibility of other projects in the UAE, the region and a number of European countries. According to her, the Forum offers a very important platform where leading businessmen, business decision-makers and entrepreneurs from around the world gather together to share views and ideas and exchange expertise and know-how on the world s best business practices and trends, all of which will help fuel the economic performance and development of the Abu Dhabi. Al Jaber stressed that family companies in the GCC exceed 80% of the total number of companies, making them a pivotal player in the economic performance whilst helping nurturing a new vibrant and enthusiastic generation of entrepreneurs who can ably manage businesses. With the current global economic circumstances that have necessitated the need for intensive focus on available opportunities via family companies as well as on challenging facing the Middle East region, those companies are deemed to play a more prominent role that meets the market update and nature, especially following the endevours of many companies to diversify their business to counter the tough market conditions, she said. Al Jaber stated that ADCCI is committed to providing full support to owners family companies to achieve expansion and profitability and help them better manage their projects, highlighting that the Chamber has taken various steps and initiatives with an aim to furnish investors with a flexible and friendly environment. ADCCI has made available a number of economic studies and pieces of advice as well as databases that offer investors from the around the globe a full understanding of all economic aspects and business opportunities in Abu Dhabi. Abu Dhabi possesses a number of unique economic factors such as the distinguished competitive investment atmosphere, a modern legislation system, a high-end management framework as well as world-class infrastructure encompassing modern airports, ports, telecommunications as well as free zones, and facilities, all helping pour in foreign investments from around the world to the Emirate, She added. Al Jaber also stressed that Abu Dhabi s Government is keen to diversify its economic activities with an aim to raise the profile of Abu Dhabi as the regional and international business and financial hub in line with Abu Dhabi Economic Vision 2030 and its key business disciplines: aviation, aerospace, defense, pharmaceuticals, biotechnology, tourism, healthcare, equipment, minerals, transport, trade, logis-

13 Al Ghurair: Our business portfolio in line with the UAE s sustainable development tics, education, media, and telecommunications. Abu Dhabi is committed to raising a knowledge-based sustainable and flexible economic system whilst enabling the private sector to play a more prominent role in the all-out development, given the importance of this sector to raise the standards of performance. Governance Principles Al Jaber stated that the family companies constitute of the UAE s companies, most of which are being restructured to face the changing economic circumstances and slowing economic growth worldwide despite the fact that the UAE is the best internationally with growth rate registered at 3.8-4% for the current year. With the global economy deemed to slow in years to come and the reservation of most banks to fund new longterm projects, this creates pressure on companies, calling them to focus on governance, find new opportunities, creativity, attract new talents and fresh ideas, and lower the level of expansion, she added. The family companies, following their exponential expansion in various new aspects, are restructuring their efforts in core businesses rather than on sub-projects. The governance before offering their shares in the financial market will benefit those companies when management moves from one person into board members, and this might happen in the second generation that has a different view in taking decision, Al Jaber concluded. Legislations and Regulations Mohammed Abdul Jalil Al Fahim, from Al Fahim Group, focused on the need to a complete regulations and legislations relating to protect the rights of the family companies and inheritance as owners are hesitant to venture with the lack of laws that are in line with the future of those companies. The majority of family companies in the UAE have been affected by the consequences of global financial crisis that has limited the scope of development and growth by 50%. This is coupled with the sharp competition of companies that have entered the market with no need to a local dealer as well as the competitiveness from government companies. We are transforming from the second to the third generation, posing various challenges and competition. We hope that legislations in the UAE will enable the third generation to work in the family companies and develop them via training, excellent management and hard work. Family companies lost enthusiasm to offer their share in the financial markets in view of the low prices in those markets and lack of investors interest in share, rendering this venture unsuccessful, Al Fahim concluded. Internal Issues Mohammed Abdul Latif Kanoo, Chairman of Kanoo Tourism Group, rejected calls for governance in the family companies as such companies already have their own governance while there is no need to unveil the issues of the companies unless there is a law for that. Family companies have strong internal ties and the external interference means the company is weak, resulting in mistrust 13

14 14 REPORT Abu Ghazala: UAE s companies are the most successful business examples in the Middle East of people in its businesses. Internal difficulties and faults should not be revealed to public as they are the company s secrets. The family companies have been the cornerstone for the country s economy, but they are facing various challenges such as management and business movement from one generation to another and the need to ensure new management is able to develop businesses, the competition of government companies and publicly joint companies that have great budget to attract big projects, he added. The local and global economy has been affected by the financial crisis as companies, following 2008, started to lower the level of development to achieve balancing and face challenges. Things went back to normal. Kanoo concluded. Sustainable Development Saeed Mohammed Al Ghurair, of Al Ghurair Group, stated that family companies are keen to sustain business within the family, moving from one generation to another while other companies expand and enter into joint ventures. Al Ghurair Group aims to support and develop its existing businesses, optimise capabilities and work to represent the UAE overseas by establishing offices in financial market in line with sustainable development in the UAE. Family companies play an integral role in the economic development. The real problem of family companies in the region lies in the weak cash flow and the low economic level, which need more focus on their core business. Besides, some of the challenges facing family companies are to uphold the founding fathers legacy whilst working to foster and develop these foundations in line with developments of economic markets and changing economic atmosphere as the majority of such companies are able to adapt to transformations in the business environments. Continuous Education Dr. Talal Abu Ghazala, the Founder and Chairman of Talal Abu Ghazala Group and Partners highlighted the role of education, human talents and use of state-of-the-art technologies to develop family companies. He stated that the Group has been able since its inception to establish 28 specialised companies with 80 offices and 150 representatives worldwide to cater to various needs in technical, educational and consulting services. Family companies constitute 60-80% of the total global companies, and the UAE s families are one of the most successful examples in the Middle East as the owners of these companies pay great efforts to develop them locally and internationally. Many speak of generation dispute, but form me there no such a dispute as the real problem lies in the fact that those companies are not prepared to be transformed from one generation into another. The owners still feel that the would-be management is either not ready or lacks the proficiency to pursue business, all of which requires a separation between management and ownership to uphold success. Small family companies are no less important than large incorporations as

15 Sawiris: Some family companies prefer to work in the shadow for envy concerns Cruborg: The necissity for a governmental support for SMEs they employ 80% of workforce and help support the development and progress of the economy compared to incorporations that greatly use media and advertising. There is a need to adopt governance in both family and non-family companies through implementing supervision, auditing, and accounting on performance and setting responsibilities and authorities for management, Abu Ghazala added. Decentralisation Stage Samih Sawiris, Chairman of Orascom, stated that family companies are looking for worthy opportunities in their home countries, with the next step being such opportunities inside and outside. He explained that this requires great efforts and time as well as the capital to expand. According to Saweras, the main challenge for this approach is to reach decentralisation, i.e., getting away from direct management framework with all employees and empowering all employees with greater freedom to take decision. Sawiris feels sorry that some companies adopt an internal accounting system that does not match international systems and that they are not transparent in unveiling the nature of profits and businesses for various concerns such as envy, which hinder those companies to enter financial markets. He also stated that family companies in the Arab region constitute 80% of the private companies with tremendous competitive capabilities and dynamism to operate actively. Matters are now different as family companies have been affected by the global financial crisis and the majority of them are unwilling to finance long-term projects. Small and Medium Enterprises Jorgen Cruborg, Chairman of BMW Charity, said that the company aims to attract the young aged to take part in forming and developing the civic community, taking part in the social projects, fostering leadership skills, and promoting a pioneering leading generation that can help create sustainable cooperation between the public and private sector and expand future social, political and academic programmes. According to him, the Company will utilise its strong ties between Germany and the UAE to attract the young and enroll them in special training and preparation programmes. The UAE in general and Abu Dhabi in particular have excellent investment opportunities and tremendous human and material capabilities with the ability to rapidly develop both in all economic and social aspects. The government subsidies should be directed to the middle class in the local community as this segment is able to support the economy and take greater part in the sustainable development. With the young constituting 80% of the UAE s population, there are many ambitious people who are able to set up projects and support the local economy by incepting SMEs that require the government support go compete in both local and global markets. This approach will help diversify economy as the great number of SMEs will make their participation in the GDP vital even though each company has a very minimum share, Jorgen concluded. 15

16 16 REPORT UNB receives the Sheikh Khalifa Excellence Award Diamond Category A prestigious accolade for Union National Bank H.H. Sheikh Mansour bin Zayed Al Nahyan, presents the SKEA-Diamond Category-to Moh d Nasr Abdeen, CEO of UNB. Union National Bank, one of the leading banks in the UAE, has scaled new heights in the field of Quality and Business Excellence by becoming the first ever Bank to receive the prestigious Diamond category Award at the Sheikh Khalifa Excellence Awards. In its 11th cycle the SKEA awarded the Diamond award to UNB s Chief Executive Officer, Mohammad Nasr Abdeen at a glittering ceremony held at the Emirates Palace, Abu Dhabi on 24th September, Mr. Abdeen said We are proud to have been awarded the Sheikh Khalifa Excellence Award and we value this award far more than any other international award, most importantly because it bears the name of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. In addition, the award is from the UAE, our beloved homeland, and was received in Abu Dhabi, the capital city of progress and development. Winning the highest level, the Diamond Award Category of the Sheikh Khalifa Excellence Award is both an honor and a challenge; an honor because this is an affirmation that Union National Bank has demonstrated the highest level of leadership quality, and a challenge because reaching the top and staying at that level continuously is difficult and requires strong will, hard work, and a vision that is compatible and consistent with the vision of the country's leadership. I would like to dedicate this award to our Chairman, H.H. Sheikh Nahayan

17 Mabarak Al Nahayan, UNB board members and our shareholders and all our valued clients for their constant encouragement and guidance, and UNB staff for their commitment in meeting and exceeding the ever rising expectations of the clients as well as community. The SKEA honour will encourage us to scale even greater heights in the future". "UNB is committed towards excellence, innovation and continuously aims at providing customers with outstanding financial services. At UNB we have set the highest standards of quality and competence. A pronounced adherence to quality and service leadership have always been hallmarks of UNB and these factors will continue to be strong differentiators in the years ahead as we continue to expand." added Mr. Abdeen. UNB has adopted the total quality management concepts and methodologies, quality management systems and a business excellence framework. A strong testament has been the string of awards and accolades that the Bank has won over the years with the Sheikh Khalifa Excellence Award (2002), Sheikh Khalifa Excellence Award- Gold (2005), Sheikh Khalifa Excellence Award-Gold (2009) Dubai Quality Award (2005 and 2009), the Sheikh Mohammed bin Rashid Al Maktoum Business Award MRM (2008 & 2011) leading upto the SKEA Diamond Award The Sheikh Khalifa Excellence Award has been introduced to recognize and celebrate the success of firms that have contributed and continue to contribute to the economic development of the UAE. The criteria for assessing the applications for the awards focus specifically on the factors that lead to outstanding business performance. In 2011, UNB became the first commercial bank in the world to be certified to the Integrated Management System (IMS) comprising of ISO 9001 (QMS), ISO (EMS) and OHSAS standards by LRQA. Spreading the concept of good practices across UNB Group, the IMS certification has been extended to UNB subsidiaries, Al Wifaq Finance Company and Union Brokerage Company in International and Local Accolades During 2011 and 2012, UNB has received numerous accolades (both international and local), some of which are listed below: Stevie Distinguished Honoree - Executive of the Year Financial Services for UNB CEO at the International Business Awards (2011) Stevie Distinguished Honoree - Company of the Year Financial Services at the International Business Awards (2011) The People s Choice Stevie Awards for Favourite Companies at the International Business Awards (2011) Golden Award for Quality from the Arab Administrative Development Organization member of the Arab League and Tatweej Academy for Excellence and Quality (2011) European Award for Best Practices in the Gold Category, presented by the European Society for Quality Research (ESQR) (2012) International Socrates Award for Best Enterprise as well as Best Manager of the Year to UNB CEO Mr. Mohammed Nasr Abdeen by Europe Business Assembly (2012) Mohammed Bin Rashid Al Maktoum (MRM) Business Award (2012) International Diamond Prize for Customer Satisfaction, presented by European Society For Quality Research (ESQR) (2012) 2012 Golden Europe Award for Quality & Commercial Prestige, presented by Otherways Management Association Club (2012) Best Banking Group in UAE, by World Finance Magazine (2012) UNB has been recognized in the World Finance 100 List for 2011(2011) UNB amongst Forbes Top 10 listed companies ranking in the UAE (2011) UNB amongst 50 Safest Banks in the Emerging Markets by Global Finance (2011) Dream Company to Work For recognition at the Asian Leadership Awards (2011) UNB recognized as a Superbrand (2011 & 2012) Brand Leadership Award at the Global Awards for Brand Excellence to Mr. Mohammed Nasr Abdeen UNB s CEO(2011) 17

18 18 Abu Dhabi Chamber Visits South Korea A delegation from Abu Dhabi Chamber, led by HE Khalfan Saeed Al Kaabi, Vice Chairman of Abu Dhabi Chamber, paid a visit to South Korea with an aim to enhance the economic and trade relations between the companies and establishments in the emirate of Abu Dhabi with their Korean counterparts. During the visit, the delegation held a number of meetings with representatives of the largest companies and a number of officials and dignitaries from Korean investment and economic establishments. The meetings focused on increasing the bilateral investments and showcasing the investment opportunities and facilities the related parties in Abu Dhabi provide for foreign investors. The meetings of the Chamber s delegation attracted heads and representatives of the biggest industrial companies in Busan and Seoul cities in Korea who expressed their willingness to invest in the Emirate of Abu Dhabi and initiate industrial projects, benefiting from services and facilities provided for foreign investors. HE Al Kaabi said that the meetings aimed at pave the way for more investment opportunities in the Emirate of Abu Dhabi for the South Korean companies which will benefit from the great capabilities and distinguished facilities for all investors and types of businesses. He added that such meetings help bolster trade and economic relations between the two sides in the future especially in the fields of small and medium enterprises. The members of the Chamber s delegation who attended meetings encompassed HE Mubarak Salem Bin Ham Al Ameri, the second Vice-President of the Abu Dhabi Chamber; and Board members HE Abdul Jabar Al Sayegh, Omair Al Dhaheir, Naser Al Mumari, and Huda Al Matrouchi. The meeting was also attended by Hamad Al Salmeen Al Mansouri, Head of Al Mansouri Group, Members of the Abu Dhabi Business Women Council: Reed Hamad Al Dhaheri and Rafiaa Hilal Al Qubaisi, Riyadh Al Soufi, Director General of Aqila Company, Anwar Aqila, Director of Business Development at the company, in addition to representatives of local banks and companies in different fields and sectors as well as representatives of 22 of the biggest companies operating in the Emirate of Abu Dhabi. The delegation also paid a visit to LG Electronics and took a look at the latest products of the company. The representatives of the company delivered a presentation to the Emirati delegation stressing the awareness of the company to provide high efficiency products that provide a better lifestyle and environment-friendly products that rationalize the consumption of power, especially in air conditioning to 60%. His Excellency Ki Wan Kim, Executive Vice President of LG, stressed on the awareness of the company in the customer s satisfaction and keeping the well-fame of

19 the company in addition to the awareness of the company in integrating the contribution to the environment with the commercial growth through incentives to innovate environment-friendly products. He said that the exports of the company exceeded $50 billion for the current year, $4 billion of which are exported to the GCC. The company exported products to the UAE that is worth more than $1.5 billion which is 25% from the total exports to the GCC. Industrial Cooperation with Gujarat Government of India Discussed HE Khalfan Saeed Al Ka abi, First Vice President of Abu Dhabi Chamber of Commerce and Industry, called upon Indian industrial companies to expand their strategic partnership with the UAE s companies. This came during his meeting with HE Kamal Dilani, the Idustrial Governor of Gujarat Government of India which was attended by HE Abdul Jabar Al Sayegh, ADCCI s Board Member, and Mr. Mohammed Al Nuimi, Executive Director of the Communications and Business Sector at the Chamber, as well as a number of Abu Dhabi company representatives. Al Ka abi stressed that ADCCI is keen to support the Indian companies looking to invest in the Emirate which is experiencing remarkable growth and prosperity by providing required facilities in all industrial sectors. Dilani showcased facilities and investment incentives offered by the Gujarat Government of India to set up investment projects as well as the Government s plans to enhance the industrial sector, calling upon Abu Dhabi s companies to make use of these facilities to establish businesses there. 19

20 20 Cooperation Agreement Inked with Toulouse Chamber HE Khalfan Saeed Al Kaabi, the first Vice President of Abu Dhabi Chamber of Commerce and Industry, signed a cooperation agreement with the French Toulouse s Chamber of Commerce and Industry. The agreement was inked by HE Allen De Cresnozou, and was attended by HE Abdul Jabbar Al Sayegh, ADCCI s Board Member, HE Mohammed Helal Al Muhairi, Director General of the ADCCI, Mr. Mohammed Al Nuimi, Executive Director of Communications and Business Sector at the Chamber. Al Kaabi called upon the French companies operating in Toulouse to benefit from available opportunities in Abu Dhabi, especially in industries that are the cornerstones of Abu Dhabi Economic Vision HE stressed that ADCCI is keen to facilitate the business of companies operating in the Emirate by providing them a package of services, information and guidance on establishing new ventures whilst supporting them to setting a network of international partnerships between private sector in Abu Dhabi and their counterparts worldwide. Abu Dhabi Chamber invites Finnish companies to develop investments in Abu Dhabi His Excellency Saeed Al Dhaheri, Board Member of the Abu Dhabi Chamber of Commerce and Industry, received a Finnish delegation led by HE Ilkka-Pekka Simila, the Finnish Ambassador to the UAE, at the Chamber s Tower in Abu Dhabi. During the meeting, HE Al Dhaheri said that Finnish companies possess great expertise in a number of sectors of interest to the business community in Abu Dhabi, stressing that cooperation between the Finnish companies and their Emirati counterparts would help establish development project in the Emirate as well as to the sustainable economic development as a whole. The Board Member invited businessmen and companies from Finland to visit Abu Dhabi to explore the unrivalled opportunities that the Emirate has to provide. He also urged the Emirati businessmen and companies to invest in the private sector of Finland, a country that offers stability and a strong competitive environment for its businesses to grow. HE Essi Alaluukas, CEO of the Lahti Regional Development Company, and Mr. Mohammed Al Nuaimi, Executive Director of the Communications and Business Sector at the Chamber, attended the meeting along with representatives of Finnish companies in Finland and representatives of more than 20 companies operate in the Emirate of Abu Dhabi.

21 Call to Establish Joint UAE-Ukraine Businessman Council HE Nasser Al Shamsi, Board Member of Abu Dhabi Chamber of Commerce and Industry, met with HE Kostyantyn Hryshchenko, the Ukrainian Minister of Foreign Affairs, to discuss means for consolidating economic and investment cooperation between companies operating in Abu Dhabi and Ukraine, especially in establishing joint industrial ventures. Al Shamsi stressed that ADCCI. ADCCI Discusses Business and Investment Opportunities with Hong Kong Her Excellency Engineer Fatima Obaid Al Jaber, Board member at the Abu Dhabi Chamber of Commerce and Industry, Head of the Contracting and Construction Committee, said that Abu Dhabi is experiencing a phenomenal economic growth as it becomes one of the region s foremost business centres, being a gateway for global players today, thanks to a competitive business environment that attracts investment from all over the world. This came during an extended meeting with a high profile Honk Kong Infrastructure Development and Real Estate delegation at the Chamber s Tower in Abu Dhabi. HE Fatima Al Jabber said that the unique reputation along with the friendly ties that link Hong Kong and the UAE provide us a strong footing to build a solid economic partnership. Dr. Raymond Ho, Legislative Councilor and Chairman of the Infrastructure Committee at Honk Kong Trade Development Council, expressed the interest of Honk Kong companies in expanding their businesses abroad, especially in the UAE markets in general and Abu Dhabi markets in particular through bilateral and joint cooperation between Abu Dhabi companies which operate in the construction sector and their Hong Kong counterparts. The meeting was attended by Abu Dhabi Chamber s Board Members HE Omair Al Dhahiri, HE Abdul Jabbar Al Sayegh, HE Abu Bakr Khouri, HE Dr. Qasem Al Oum as well as Mr. Mohammed Al Nuaimi, Executive Director of the communications and Businesses Sector at the Chamber. Cooperation Agreement Inked with Australian Center for International Commercial Arbitration Abu Dhabi Commercial Conciliation and Arbitration Center (ADCCAC) of the Abu Dhabi Chamber of Commerce and Industry (ADCCI) signed a cooperation agreement with the Australian Center for International Commercial Arbitration (ACICA). HE Mohammed Helal Al Muhairi, Director General of the ADCCI, signed the agreement on behalf of ADCCAC, and HE Prof. Doug Jones, President of ACICA signed off on behalf of ACICA. The signing ceremony was attended by HE Pablo Kang, the Australian Ambassador to UAE, and Mr. Mohammed Al Nuaimi, Executive Director of the Communications and Business Sector at the Abu Dhabi Chamber. 21

22 22 REPORT ADCO crowned with SKEA Gold Category In an honoring & dazzling ceremony on 24th September at the Emirates Palace hotel, Abu Dhabi; ADCO s Chief Executive Officer; Mr Abdul Munim Saif Al Kindy received the trophy for the Gold Category of the Sheikh Khalifa Excellence Award (SKEA) from His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs. ADCO, one of the leading companies within the ADNOC Group in the UAE, has reached a new peak in the field of quality and business excellence by achieving this prestigious Gold category award of the Sheikh Khalifa Excellence Award (SKEA) from the first attempt in the Oil & Gas sector. ADCO s CEO said, We as ADCO, are very pleased with this achievement, it is not only for our Company and the Employees but it s a testament to our Shareholders and the Community that we have a business framework that is now renowned on a world wide scale and it balances the needs of our people, our shareholders targets and giving back to the community. This recognition confirms the company s reputation as an excellence oriented organization and gives us the confidence that we are moving in the right direction with a pledge to continue to improve. Congratulations to all ADCO staff, ADNOC & Shareholders for this achievement certainly couldn t have happened without their continuous dedication and support. ADCO s CEO concluded by saying, Excellence is a journey of continuity and sustainability, as both are core elements in ensuring ADCO s policy and strategy, and are considered an immense responsibility for the entire ADCO organizational hierarchy at all tiers, levels and individuals for better contribution and innovation. This milestone is a testament to ADCO s dedication and commitment to continuous development and improvement based on best practices, policies and exemplary performance at all levels. This move begun with ADCO s strategic partnership with the Emirates Quality Association, ADCO is prepared and ready to work with SKEA and Abu Dhabi International Center for Organizational Excellence to promote and endorse a quality culture amongst the local community at large and in the Oil and Gas sector in particular.

23 REPORT Integrated Strategy to Promote SME Competitiveness Abu Dhabi Economy Today Industrial Consulting (GOIC), the UAE has taken the lead position amongst the GCC in the number of small facilities with 4414 with investments worth AED 5,130 billion ($1.4 billion). The Organisation highlights that the number of SMEs in the GCC and Yemen went up to reach 9251 small enterprises with a total investment of $4.9 billion and 374,000 man power. According to GOIC, the GCC countries are experiencing a noticeable growth of the number of medium enterprises, stating the number is 2208 with a total investment of $ 87.8 billion and 195,600 of man power. The industrial information department at GOIC highlights that the UAE comes in the first rank amongst GCC countries in the number of small enterprises (4414) followed by KSA (2422 with $ 2.3 billion investments and 91,000 work force) then Oman with 1023 enterprises worth of $ 479 million and more than 29,000 man power. Bahrain comes in the fourth place with 639 small enterprises with investments of $252 million and 26,000 workers, Qatar (390 enterprises with investments of $ 227 million and 17,500 of man power), and finally Kuwait with 363 with a total investment of $275 million and 14,100 work force. Integrated Federal Policy Small and medium enterprises (SME) help promote the national economy and whilst fueling the UAE s drive to achieve economic diversification. The widespread of SME means it is necessary to have a regulatory framework for this sector. Therefore, the law project for SME prepared by the Ministry of Economy in close cooperation with the some specialised federal and local entities is an important addition to the SME industry, helping promote the business of such companies. The participation of SME in the UAE is expected to reach 58% of the national economy by 2013, compared to 29%-40% internationally next year. Pioneering Position According to Gulf Organisation of Officials and banking experts highlighted the need to set forth an integrated federal policy to promote and encourage SME in cooperation with local governments and financial and banking institutions to reach a mechanism to fund, support and prepared locals to work in this sector that requires a new legislative framework on both federal and local levels. These topics were reviewed at the 3rd Middle East Forum for SME 2012 which was recently hosted in Abu Dhabi under the patronage of Abu 23

24 24 REPORT Dhabi Commercial Bank (ADCB) and saw the the participation of entrepreneurs, business pioneers, executives at banks and financial institutions and decision makers from private sectors as well as management consultants and representatives from government entities. Strategy to Promote Competitiveness UAE on Top of GCC s Small Companies Number (4,414 companies with AED billion investments) Business Pioneering Help Transform Creative Ideas into Successful Businesses Dr. Adeeb Al Afifi, Director-Foreign Trade and?export Support at the Department of Economic Development-Abu Dhabi (DED), unveiled that DED has set a complete strategy to build the competitive capabilities of SMEs via training programmes and workshops focusing on counter financial and market risks and crisis management. The need for this strategy comes following some banking reports showing that 50-70% of applications to set up SMEs are rejected by some banks owing to their inability to fulfill the conditions and sufficient documents and guarantees. Stressing the role of Khalifa Fund for Enterprise Development, Al Afifi explained that such projects are vital to the national economy as well as to banks and financial institutions as they enjoy a pivotal role in achieving economic prosperity, providing employment opportunities, and raising living standards. Growing Importance Amro Al Minhali, Deputy CEO of ADBC, expects that the Bank s funding for SMEs will grow by 40% this year compared to 2011 as ADBC has currently more than 30,000 SME customers and aims to double the number in line with the UAE s plans and Abu Dhabi 2030 Vision. Statistics show that SMEs account for 75% of the region s non-oil GDP. With the SMEs being one of the key engines to the national economy, the UAE is giving a prominent importance to supporting SME through various initiatives such as Khalifa Fund for Enterprise Development that help promote them, he said. Nilanjan Rai, Head of Business Banking Division, ADBC, stated that the establishment of a firm base to help SMEs prosper has become one of the key factors to achieve sustainable growth and social stability for countries where such projects play integral role, such as China where SMEs account from 60% of GNP and 68% of its total exports to the world. Colin Freezer, Deputy CEO, Head of Commercial Banking, ADBC, explained that SMEs have become the key participant in promoting the economic development whilst providing many employments in the local market. Performance Exceeds Expectations A survey conducted by Virtuzone on SME unveiled that economic expectations for the future are positive. 59% questioned stated that work and performance of their companies is better than expected, 60% achieved real profits and 49% are confident that the revenues of their companies will be better in the coming period (between one year and one year and a half). The Survey shows that the internet, the online commerce and technological progress have been the key factors for business pioneering according to 58% of answers while demographic and economic conditions are also key factors (33%). The survey included 153 individuals and SMEs that are licensed