Dubai s World Expo 2020 Bid

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1 Dubai s World Expo 2020 Bid Dubai Airports A Global Aviation Hub on the Rise DUBAI // PROMOTION 1 Under the theme Connecting Minds, Creating the Future, Dubai is bidding to host the 2020 World Expo, one of the world s oldest and largest international events. Many leading UAE companies are supporting the bid, including those featured in the following pages. Dubai Airports CEO Paul Griffiths in Dubai International s Terminal 3 The latest additions to Dubai International including the recently opened Concourse A and Terminal 3 (2008), both of which cater exclusively to Emirates airline are gleaming, light-infused pieces of architecture with soaring ceilings, enormous atriums and an ambience of luxury. One might imagine that the head of this airport, which over the past decade has more than doubled its passenger and cargo capacities and volume, might have an impressive office to match. Instead, CEO Paul Griffiths operates from a comfortable but unremarkable office in the 14-year-old Terminal 1, whose only window is an interior view into the hall housing passport arrivals and baggage claim. Why not a more picturesque office location? The risk is you start to lose contact with reality, and I d rather be in the thick of it, says Griffiths. There s no doubt that Griffiths is in the thick of the global aviation industry, with Dubai Airports steadily expanding its role as one of the world s largest and most important international aviation hubs. The company, formed in 2007 with Griffiths as its first CEO, operates both Dubai International and Dubai World Central (DWC), the city s second airport, which opened in 2010 and currently serves primarily cargo traffic. Third-Busiest International Airport Dubai International is now the third-busiest international airport in the world, in terms of both cargo and passengers, according to Airports Council International s latest figures. With more than 150 airlines of which 35 provide a dedicated freight service serving more than 260 destinations across six continents, Dubai s two airports are connected to virtually every corner of the world. A series of successfully delivered infrastructure developments have enabled smooth growth: Passenger capacity increased from 8 million in January 1998 to 75 million in January Capacity is further expected to reach 90 million by 2018 and nearly 100 million by Our strategy is to allow Emirates, flydubai and all the other airlines operating here to access high-quality facilities delivered at the right time to enable the continuous growth of aviation in Dubai in an unconstrained way, explains Griffiths. Mega Cargo Capacity Cargo infrastructure also has grown substantially, most recently with the 2008 opening of the Cargo Mega Terminal (CMT), which increased Dubai Concourse A opened for business in January. International s capacity to 2.5 million tons a year. Two years later DWC opened, providing air cargo operators with new capacity and landing-slot convenience. In only its second year, the airport handled about 10% of all of Dubai s air cargo: approximately 220,000 tons. Griffiths says fast growth in air cargo is the result of Dubai s central location amid growth markets and integrated, multimodal logistics networks that include a bonded sea-air interface and a bonded road link between the two airports. Previously, Griffiths says, freight from Asia would fly to Europe for distribution. Now it is coming into Dubai, which is being used as a distribution hub for Europe and for the region, which includes the Middle East, the Commonwealth of Independent States (CIS), India and Africa. Continued cargo growth is supported by a 25% increase in capacity at Dubai International s CMT, while other upgrades to existing facilities will further enhance capacity and connectivity between Dubai s two airports. Dubai Airports is a strong supporter of Dubai s World Expo 2020 bid, and it provides powerful support to the effort because it is well equipped to handle the large influx of Expo visitors. We ve got a track record that provides pretty conclusive proof that we ve dealt with massive growth on a continuous basis and also delivered very high-quality services, Griffiths says.

2 2 DUBAI // PROMOTION Dubai Duty Free Curating Some of the World s Most Valuable Retail Spaces COLM MCLOUGHLIN Executive Vice Chairman of Dubai Duty Free There are many ways to qualify the success of Dubai Duty Free (DDF), but perhaps DDF s most evident achievement has been its success in making its retail spaces some of the most valuable on earth. On average, every square meter of DDF-managed space generates nearly $81,000 in annual sales which stands in sharp comparison to the global dutyfree industry average of $34,000. What s even more impressive is that DDF s retail space generates 25% more revenue per square meter than that of Apple, one of the world s most successful technology marketers. Its U.S. retail stores average $64,735 per square meter, making it by far the top U.S. retail chain, according to marketing research firm RetailSails. In addition, over the past year DDF opened its first hotel, the Jumeirah Creekside Hotel; launched duty-free operations at Dubai s border with Oman; extended its sponsorship activities into the fast-growing sport of darts; and further upgraded its merchandise management system, which is now 90% automated and the only such system in the Middle East. DDF always takes what it has learned from existing operations to continually evolve the design and layout of its retail spaces, both at new terminals and concourses, and in the renovation of existing spaces. Early 2013 sales figures reveal that DDF s focus on continuous improvement is certainly paying off. While overall DDF turnover is up 11% since the start of the year, turnover is up 17% at Dubai International Airport s brand-new Concourse A, and Concourse B which together handle all of Emirates Airline s flights, says McLoughlin. In addition to accommodating Emirates Airbus 380 fleet, Concourse A is proud to be welcoming some new product lines within DDF s 8,000-squaremeter retail environment, which will include the Chanel, Gucci, Hermès and Salvatore Ferragamo brands. Employer of Choice Another way to judge a company s success is by looking at its relationship with its employees. At DDF, few employees leave, with annual staff turnover at just 7.9%. This is one-third the 24% average turnover rate for full-time retail employees in the United States, according to the Hay Group, a global management consultancy. In addition, DDF which employs 5,600 people, including 1,642 new hires during 2012 received 65,000 resumes last year. McLoughlin himself is regularly approached by people offering him their resumes, hoping for an opportunity to work at DDF. DDF upholds its strong employee retention rate through continuous training programs, including 900 events in 2012, and numerous CSR activities. For example, three DDF employees recently participated in a 450-kilometer Gulf for Good charity bicycle ride through Cambodia and Vietnam. All told, the Dubai Duty Free Foundation contributed to 60 different charities last year alone. Finally, the retailer prides itself on its strong internal promotions policy. According to McLoughlin, DDF hasn t made a senior appointment from outside the organization in 12 years. Today, DDF operates 26,000 square meters of retail space across three terminals at Dubai International Airport. Through the careful and innovative curating of its product offerings and retail layout and design, DDF ensures that this retail space is some of the most valuable on the planet. Thirty Years of Innovation Even after 30 years, DDF continues to pursue nonstop innovation, and it is indeed a key driver of the retailer s success. In the past year, DDF has introduced multi-language digital signboards within its retail operations, which, according to DDF Executive Vice Chairman Colm McLoughlin, signify a move forward in our thinking and a way to improve our service to customers. We want to be up to date from the point of view of promotions and marketing, he explains. Dubai Duty Free shopping complex Concourse A

3 Economic Zones World Free Zones with Business-Enhancing Trade Ecosystems DUBAI // PROMOTION 3 Dubai is world renowned as an international trading hub, and one of the most significant facilitators of this trade is the Jebel Ali Free Zone (Jafza). This sprawling trade, manufacturing and logistics district located on 57 square kilometers adjacent to Jebel Ali Port and the cargo terminal at Dubai World Central airport is home to 6,918 companies from across the globe. In 2012 alone, more than 400 companies set up in the free zone, 26% more than in Of the new companies, 27% were from Europe, another 25% were from the GCC, and 21% were from Asia-Pacific. 9% percent of the new companies were from the Americas, while the remaining 18% were from the rest of the world. These figures show the growing interest of both developed and emerging economies in the Middle East, says Salma Ali Saif Bin Hareb, CEO of Economic Zones World (EZW), which operates economic zones and sector- specific industrial parks in the UAE and around the world, including its flagship Jafza. More than 75% of Jafza-based companies are engaged in trading, with another 11% involved in industrial activities, 8% in services and 3% in logistics. The fastest-growing sector by value in 2012 was machinery and equipment, followed by electronics and electrical products, petrochemicals, steel and food. Hareb says the growth in machinery and steel is largely driven by massive investment in the infrastructure sector, while growth in electronics, electrical and food products is attributed to the region s growing population and significant increases in disposable income. Sophisticated Customer Service Jafza has continued to build on its success as an important international trading center by implementing several innovative projects over the past year. These projects included expanding Jafza s online service offerings, so that today more than 90% of its key services are SALMA ALI SAIF BIN HAREB Chief Executive Officer of Economic Zones World available through the Internet. In addition, Jafza s customer relationships management software is the largest and most sophisticated in the region. The free zone also established two incubation centers to attract more Jafza the region s business hub: Connectivity quotient small- and medium-size enterprises from South Korea and China. Given Jafza s size, it s not surprising that it accounts for more than 25% of Dubai s total trade and 50% of its total exports. Put another way, the combined economic activity of the companies operating from Jafza account for approximately 21% of Dubai s GDP, Hareb says. In fact, the free zone annually attracts approximately 40% of total foreign direct investment into the UAE. Jafza is Dubai s premier trade and logistics hub, while the free zone benefits from its home in Dubai. Both support, complement and continue to build on each other s strengths and successes, explains Hareb. Dubai s world-class transportation infrastructure facilitates global investors fast access to a market of over 2 billion people in West and South Asia, the Commonwealth of Independent States (CIS) and Africa. Infrastructure for Growth Dubai s infrastructure is one reason Hareb gives for why the emirate is the best choice to host the 2020 World Expo. She also is excited at the prospect that hosting the expo in Dubai will allow global industry to realize the huge potential in the region. Hareb cites Dubai s myriad other advantages for serving as Expo host: Dubai has an excellent track record of hosting world-class events and conferences ; it s within an eight-hour flight of 80% of the world s population; and more than 120 international airlines serve the city. These same qualities serve Jafzabased tenants every day. But, as Hareb says, the overall benefit to companies is greater than each individual asset: We have successfully nurtured a unique trade ecosystem that reduces cost and enables new opportunities for growth while ensuring that every business is in the right location to network and grow.

4 4 DUBAI // PROMOTION Drydocks World Pushing Boundaries and Delivering Quality KHAMIS JUMA BUAMIM Chairman of Drydocks World The expression undersea hotel usually conjures up images of opulence, excess or even science fiction. But for Drydocks World (DDW), designing, engineering and building an undersea hotel is not so different from what the company does every day. That s because the bread and butter of the world s largest dry docks operation is constructing fixed and floating platforms sometimes of enormous size primarily for the offshore oil and gas and the renewable energy sectors. With both above- and below-water components, these structures have similar engineering properties to DDW s proposed Water Discus Hotel. We have to push beyond the boundaries of what mankind knows today, says Khamis Juma Buamim, Chairman of Drydocks World. One of the strengths of Dubai is that it is always thinking beyond. When you think beyond, you inspire a culture that looks to tomorrow rather than today. DDW began in 1983 with ship repair; today it operates primarily in offshore and marine engineering, ship repair and maintenance, shipbuilding and conversion, rig building and refurbishment, and converting ships into FPSO (floating production, storage and offloading) and FSO (floating storage and offloading) vessels. World Firsts When Buamim joined DDW in 2010 as its chairman, the company was in the midst of a major debt restructuring and broader reconfiguration of its business model. We saw that ship repair was not going to make us famous or progress us. We needed to go beyond, to go to the next level, explains Buamim. He says the company identified a long-term opportunity in serving the offshore oil and gas and energy sectors. Our strategy is to deliver niche projects. Already we have a really impressive record; we ve managed to capture projects that are world firsts. With more than 20 years of experience in marine and offshore work, and a top reputation for safety and quality, over the past three years DDW has won highly competitive bids for projects totaling more than $375 million. At the same time, it has continued to expand its existing repair and maintenance business. Some of these megaprojects include the conversion of two large oil tankers into first-of-a-kind modular capture vessels for a consortium of the world s largest oil companies, as they move to address environmental and safety concerns raised by the 2010 Deepwater Horizon oil spill. Other one-of-a-kind projects include construction of the world s largest offshore platform, housing a high-voltage directcurrent transformer that will serve offshore wind farms in Germany. DDW also is building the world s largest internal turret, the core operational command structure for the largest-ever manmade floating object. The 11,500-ton turret will be installed on the Prelude FLNG (floating liquid natural gas) facility, which will condense natural gas from gas fields off the coast of Australia. Reinvent and Innovate Drydocks World is a wholly owned subsidiary of Dubai World, and last year DDW completed a $2.2 billion debt restructuring that has freed the company to focus on growth, says Buamim. In addition to operating its Dubai shipyard, DDW has a 33% stake in DDW-PaxOcean Shipyard Pte. Ltd., which operates four shipyards and facilities in Singapore and Indonesia that it manages. DDW also is developing Dubai Maritime City, a mixed-use real estate project with industrial and commercial districts and a vessel basin designed for the maritime industry. As Buamim discusses the underwater hotel, which could cost $70 million to $120 million depending on its size, he explains that the project brings our knowledge base from the oil industry to normal urban development. Ultimately, notes Buamim, the fact that DDW will transform its expertise in oil and gas engineering into a vision of luxury living is a perfect example of the company s commitment to constantly reinvent and innovate. Aerial view of Drydocks World Dubai: one of the most prolific shipyards in operation

5 Emirates NBD Innovative Bank Thrives in Fast-Paced Marketplace DUBAI // PROMOTION 5 In 1963, Emirates NBD opened the doors of its first branch near the bustling Dubai Creek. Today, as the bank is celebrating its 50th anniversary, it has the distinction of being the oldest local bank in the southern Gulf and one of the leading UAE banks in the region. A bank with 50 years of experience in a fast-paced society that has witnessed the influx of people from a variety of nationalities is a bank that has learned to understand the people of the society it has thrived in. This has been, and will continue to be, reflected in the type of innovative products and services Emirates NBD provides for its customers, says Rick Pudner, Chief Executive Officer of the Emirates NBD Group. Last year, Emirates NBD opened a representative office in Beijing, and, leveraging on emerging market opportunities, it was the first bank to offer a Chinese yuan account in the UAE. Pudner says offering yuan accounts delivers four benefits, including enhancing Emirates NBD s share of this important trade, expanding the bank s customer base of Chinese nationals in the UAE, providing other nationalities with the opportunity to diversify their currency portfolios, and supporting local SMEs that have Chinese affiliations. A Banking Powerhouse In December 2012, Emirates NBD announced its intention to acquire BNP Paribas Egypt, the company s first largescale regional banking acquisition. In 2012 the bank also introduced ebroker- Mobile, the first regulator-approved mobile trading application for UAE stock markets; a first-in-the-uae credit card that charges Dubai is a city that brings people together: It provides a perfect multicultural platform for the world s most brilliant ideas. Rick Pudner RICK PUDNER Chief Executive Officer of Emirates NBD Group no foreign currency transaction fees; and a debit card that is the region s first to serve as a payment method when boarding all types of public transport in Dubai. Moreover, Emirates NBD established a new wealth management platform encompassing private banking, asset management and brokerage activities as a center of excellence that serves the investment needs of the bank s direct clients as well as the clients of other units and subsidiaries within the group, according to Pudner. Furthermore, Pudner says, Emirates NBD seeks to be the dynamic wholesale banking powerhouse in the Middle East with a client-centric approach, based on superior credit processes, efficient and reliable operations and a high-performance culture leading to deep and mutually beneficial customer relationships. Emirates NBD, which is 56% owned by the Dubai government, is traded on the Dubai Financial Market. In addition to the flagship Emirates NBD bank, the company includes, among other subsidiaries, Emirates Islamic Bank, which last year consolidated with Dubai Bank to become the UAE s third-largest Islamic bank. Strong 2012 Results Emirates NBD delivered strong results in 2012 by keeping its focus on revenue growth and driving further profitability through cost management, Pudner says. Operating profits were AED 2.5 billion (US$681 million), up 82% from the prior year; total assets were up 8% to AED billion (US$83.94 billion); customer loans were up 7%; and customer deposits were up 11%, reflecting the bank s strong position in the market. The successful merging of operational activities into Tanfeeth, a fully owned subsidiary operating as a business process outsourcing (BPO) provider, has further bolstered company-wide efficiencies. Emirates NBD also boasted a solid capital position at the end of 2012, with its capital adequacy ratio at an extremely healthy level of 20.6%, notes Pudner. In addition, it raised AED 14.9 billion (US$4.06 billion) in medium- and long-term funding at very attractive pricing, he adds. Internationally, the bank witnessed growth in its existing operations in Saudi Arabia, Singapore and London, while the BNP Paribas Egypt acquisition, which still requires regulatory approval, reflects what Pudner refers to as Emirates NBD s interest in investing in growth markets with large populations as a strategy to drive geographic expansion, both organically and inorganically. Connecting Minds, Creating the Future The bank is, of course, enthusiastically supporting Dubai s World Expo 2020 bid. Dubai is a city that brings people together: It provides a perfect multicultural platform for the world s most brilliant ideas, Pudner explains. Moreover, as one of the UAE s biggest banks, with a multicultural staff of more than 7,000 representing 60 nationalities, Emirates NBD might be considered an embodiment of the Expo theme: Connecting Minds, Creating the Future, observes Pudner.