Transcript Dubai part 2

DUBAI – THE MOST IMPORTANT
CITY IN THE WORLD?
ECONOMY
• GDP 2008 $82.11 BILLION (SIMILAR TO KUWAIT
AND PERU)
• DUBAI’S ECONOMY BUILT ON OIL INDUSTRY
• NOW ACCOUNTS FOR <6% OF REVENUES
• 2% OF UAE GAS REVENUES
• OIL EXPECTED TO BE GONE IN 20 YEARS
ECONOMY
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REAL ESTATE & CONSTRUCTION - 22.6%
TRADE – 16%
ENTREPOT (WAREHOUSE)– 15%
FINACIAL SERVICES – 11%
TOURISM - 10%
ECONOMY
• TOP EXPORTS TO INDIA ($5.8 BILLION),
SWITZERLAND ($2.37 BILLION) & SAUDI
ARABIA ($0.57 BILLION)
• TOP IMPORTS ARE FROM INDIA ($12.55
BILLION), IRAN ($5.8 BILLION), IRAQ ($2.8
BILLION) & U.S. ($7.57 BILLION)
• INDIA (AS OF 2009) DUBAI LARGEST TRADE
PARTNER
KEY ADVANTAGES
I. STRATEGIC LOCATION: BETWEEN THE FAR
EAST AND EUROPE ON THE EAST-WEST AND
AFRICA ON THE NORTH-SOUTH AXIS
KEY ADVANTAGES
KEY ADVANTAGES
KEY ADVANTAGES
• PROSPEROUS - AMPLE SUPPLIES OF
CHEAP ENERGY AND PRIMARY
ALUMINUM; ALSO ADJACENT TO MAJOR
REGIONAL SUPPLIERS OF VITAL AGROEXPORT COMMODITIES .
KEY ADVANTAGES
• DIVERSIFIED - VARIED AND
SIGNIFICANT IMPORT REQUIREMENTS
GENERATE OPPORTUNITIES FOR PRODUCT
SUPPLIERS AND RE-EXPORTERS
•OPEN - NO EXCHANGE CONTROLS,
KEY ADVANTAGES
KEY ADVANTAGES
POLITICAL AND ECONOMIC STABILITY:
PART OF UAE  LOW-CRIME AND
POLITICALLY-STABLE COUNTRY
• ALSO, THE UAE ENJOYS FINANCIAL AND
MONETARY STABILITY
KEY ADVANTAGES
• THE GOVERNMENT HAS A LONG,
CONSISTENT COMMITMENT TO PROBUSINESS, LIBERAL ECONOMIC POLICIES
INCLUDING THE PROTECTION OF
PROPERTY RIGHTS. FOREIGNERS ARE
PERMITTED OWNERSHIP RIGHTS OF UP
TO 49% FOR LIMITED LIABILITY
COMPANIES ESTABLISHED
KEY ADVANTAGES
KEY ADVANTAGES
III. OPEN AND FREE ECONOMIC SYSTEM:
NO DIRECT TAXES ON CORPORATE
PROFITS OR PERSONAL INCOME (EXCEPT
FOR OIL COMPANIES THAT PAY A FLAT
RATE OF 55% AND BRANCHES OF FOREIGN
BANKS THAT PAY A FLAT RATE OF 20% ON
NET PROFIT GENERATED WITHIN DUBAI).
KEY ADVANTAGES
• CUSTOMS DUTIES 4% WITH MANY
EXEMPTIONS,
• 100% REPATRIATION OF CAPITAL AND
PROFITS IS PERMITTED, THERE ARE NO
FOREIGN EXCHANGE CONTROLS, TRADE
QUOTAS OR BARRIERS
• LIBERAL VISA POLICIES PERMIT EASY
IMPORTATION OF EXPATRIATE LABOR
OF VARIOUS SKILL LEVELS FROM
ALMOST ALL OVER THE WORLD CANADA
KEY ADVANTAGES
IV. WORLD CLASS INFRASTRUCTURE AND
SERVICE SECTOR
• HEAVY INVESTMENT IN TRANSPORT,
TELECOMMUNICATIONS, ENERGY AND
INDUSTRIAL INFRASTRUCTURE HAS
ENABLED IT TO HAVE ONE OF THE BEST
INFRASTRUCTURE FACILITIES IN THE
WORLD
KEY ADVANTAGES
• 21 SPECIALIZED FREE ZONES OF
INTERNATIONAL DISTINCTION
• TWO WORLD CLASS SEAPORTS
• A MAJOR INTERNATIONAL AIRPORT
(WITH A NEW ONE CURRENTLY BEING
BUILT - UPON COMPLETION WILL BE THE
BIGGEST AIRPORT IN THE WORLD)
• CARGO VILLAGE, A MODERN HIGHWAY
NETWORK (AND AS OF END OF 2008 A
DRIVERLESS METRO SYSTEM AND
UPGRADED PUBLIC BUS TRANSPORT
SYSTEM)
KEY ADVANTAGES
V. COMPETITIVE COST STRUCTURE
•NO FOREIGN EXCHANGE CONTROLS
•NO TRADE BARRIERS OR QUOTAS
•COMPETITIVE IMPORT DUTIES (5% WITH
MANY EXEMPTIONS)
•COMPETITIVE LABOR COSTS – LABOR
FORCE IS MULTI-LINGUAL AND SKILLED
•COMPETITIVE ENERGY COSTS
•COMPETITIVE REAL ESTATE COSTS
•NO CORPORATE PROFIT OR PERSONAL
INCOME TAXES
KEY ADVANTAGES
VI. HIGH QUALITY OF LIFE, EXCELLENT
LIVING CONDITIONS
•DUBAI’S PRIVATE SECTOR HAS INVESTED
HEAVILY IN REAL ESTATE SUCH AS
HOTELS, RESIDENTIAL AND COMMERCIAL
PROPERTIES, RECREATIONAL AND
LEISURE FACILITIE
•LOW CRIME, CLEAN ENVIRONMENT,
TOLERANCE AND CULTURAL DIVERSITY,
COSMOPOLITAN LIFE STYLE, MODERN
PUBLIC ADMINISTRATION, AVAILABILITY
OF A WIDE RANGE OF CONSUMER GOODS
AND SERVICES
KEY ADVANTAGES
VII. STRONG LOCAL COMMERCIAL
TRADITION AND WIDE CHOICE OF
POTENTIAL BUSINESS PARTNERS
KEY ADVANTAGES
VIII. EXTENSIVE FOREIGN TRADE
NETWORK & MAJOR ACHIEVEMENTS IN
EXPORT AND RE-EXPORT PERFORMANCE
•EXTENSIVE FOREIGN TRADE NETWORK
EXTENDING TO 179 STATES THUS
OFFERING EXTENSIVE CHOICE OF
POTENTIAL GLOBAL MARKETING OUTLETS
•PART OF THE WORLD’S THIRD-LARGEST
EXPORT AND RE-EXPORT CENTRE AFTER
HONG KONG AND SINGAPORE.
KEY ADVANTAGES
IX. RAPIDLY DEVELOPING
MANUFACTURING SECTOR PRODUCING A
WIDE RANGE OF HIGH QUALITY,
COMPETITIVE EXPORT PRODUCTS
• ALUMINUM INGOTS, FABRICATED METAL
PRODUCTS, TEXTILES AND READY-MADE
GARMENTS, GOLD AND JEWELLERY,
PREPARED FOODSTUFFS, CONSUMER
ELECTRONICS, REFINED PETROLEUM,
CHEMICAL AND NON-METALLIC MINERAL
PRODUCTS
ECONOMY
• GOV’T DECISION TO SHIFT FROM RELIANCE ON
OIL TO SERVICE TOURISM- ORIENTED CITY
(2004-2006)
• 2007 – RANKED 8TH AS MOST VISITED CITY –
6.54 MILLION
• EXPECTED TO  TO 15 MILLION TOURISTS BY
2015
• LARGE SCALE DEVELOPMENT PROJECTS  TO
TALLEST SKYSCRAPERS & DEVELOPMENT
PROJECTS IN THE WORLD.
CONSTRUCTION
• EMIRATES TOWERS – EMIRATES OFFICE
TOWERS (1,165’ – 12TH TALLEST BUILDING IN
THE WORLD) & JUMEIRAH EMIRATES TOWERS
HOTEL (1,014’ – 29TH TALLEST BUILDING IN
THE WORLD)
• COST $1.8 BILL
• COMPLEX 42 ACRES
• GARDENS, LAKES,
• WATERFALLS,
AND PARKING FOR 1800
CARS
CONSTRUCTION
• BURJ KHALIFA– TALLEST BUILDING IN THE
WORLD (2,717’)
• $1.5 BILLION COST
• RENT – SQ. FT. $4,000
• RESIDENCES SOLD FOR
$3,500 FOR SQ. FT.
• 900 APARTMENTS – 825 STILL
EMPTY (PRICE  40%)
CONSTRUCTION
• PALM ISLANDS– MAN MADE ARCHIPELAGO
(ISLANDS)
• PALM JUMEIRAH – 2,500 APARMTMENTS, 1,140
VILAS, 32 HOTELS – $12.3 BILLION
• PALM JEBEL ALI – 50% LARGER THAN
JUMEIRAH – 6 MARINAS, WATER PARK, SEA
VILLAGE, HOMES BUILT ON STILTS
• PALM DEIRA – 8 TIMES LARGER THAN
JUMEIRAH, INTENED TO HOUR 1 MILLION
CONSTRUCTION
• PALM ISLANDS– MAN MADE ARCHIPELAGO
(ISLANDS)
CONSTRUCTION
• THE WORLD ISLANDS – COSTS $14 BILLION
• AS OF 2011 ONLY ONE ISLAND OCCUPIED BY A
BUILDING (SHOW HOME)
• 260 ISLANDS
• CONSTRUCTION STOPPED
• SINKING?
CONSTRUCTION
• THE DUBAI MALL– LARGEST (BY AREA) IN
WORLD (6TH BY GROSS LEASABLE AREA)
• $20 BILLIOIN COMPLEX
• 1,200 SHOPS (2008 – 600 RETAILERS)
• 10-15 MALLS WITHIN MALLS
• 2009 – 37 MILLION VISITORS
• 2010 – 47 MILLION (27%) –DEPISTE EC
• ATTRACTIONS – SEGA INDOOR THEME PARK,
KIDZANIA, 22 SCREEN CINEPLEX, 160 FOOD
AND BEVERAGE OPTIONS, 250 ROOM HOTEL,
120 RESTAURANTS AND CAFES, ICE RINK,
CONSTRUCTION
• AQUARIUM AND UNDER WATER ZOO,
• $20 BILLION MALL
CONSTRUCTION
HYDROPOLIS UNDERWATER HOTEL AND
RESORT
•PROPOSED PROJECT
•COST - $300 MILLION
•TARGET – TO OPEN 2006  2010 NO
CONSTRUCTION
CONSTRUCTION
SKI DUBAI
• INDOOR SKI RESORT
• 60M HIGH INDOOR MOUNTAIN (5 SLOPES OF
VARYING STEEPNESS AND DIFFICULT)
• $400 MILLION
DUBAILAND – VIEWED AS A SEPARATE CITY
•ESTIMATED COST $325 BILLION
•AREA – 3 BILLION SQ. FT
•7 THEMES (THEMEPARKS, CULTURE & ART),
SCIENCE & PLANETARIUMS, SPORTS & SPORTS
ACADEMIES, WELLBING & HEALTH, SHOPPING &
RETAIL AND RESORTS & HOTELS
•45 MEGAPROJECTS AMD 200 SUB-PROJECTS
•TO-DATE – 22 PROJECTS UNDER
CONSTRUCTION
•3 ATTRACTONS OPEN (NOT COMPLETE) –
DUBAI MOTOR CITY, GLOBAL VILLAGE, AL
SAHARA DESERT RESORT