Ervaring met zaken doen in de Golfregio

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1 Ervaring met zaken doen in de Golfregio

2 UAE Quick Facts Country Area - 83,600 sq km Population Million (2012) Capital - Abu Dhabi Nationals Vs. Expatriates 16.6% Emirati (citizen) 23.0% other Arabs 42.3% South Asians 12.1% other Asians 6.0% other expatriates Over 185 Nationalities Type of Government Federation of seven emirates

3 Map - United Arab Emirates The 7 Emirates

4 UAE Quick Facts Religion - Islam Languages - Arabic (official) - English Time - NL + 2 / 3 hrs Duty - 5% * Main Commodities * Excluding Freezone Tax - None Business Days - Sunday to Thursday Business Hours hrs to 1700hrs Seasonality (Ramadan)

5 UAE Quick Facts Currency 1 UAE Dirham = 100 fils Exchange Rate = Fixed against USD USD 1 = AED Major trading partners; - Japan - China - USA - UK - India - Pakistan - Iran - S. Korea - Germany - Italy Major Export products (US$ 314 billion); - Crude oil - Natural gas - Re-exports - Aluminum - Dried fish - Dates Major Import products (US$ 273,5 billion); - Machinery - Manufactured goods - Foodstuff - Transportation equipment

6 UAE Key Growth Factors World Class Facilities in Ports Dubai Airport - Ranked 3 rd busiest airport in the world Jebel Ali Seaport - Ranked 8 th busiest seaport in the world Upcoming largest airport in the world Dubai World Central Government systems using cutting edge technology Government Regulations aimed at promoting industrial investments UAE economy grew by 5.2% in 2013

7 What you should know?

8 The Gulf Co-operative Council (GCC) o Saudi Arabia, Kuwait, Oman, United Arab Emirates, Bahrain and Qatar o Total population estimated at 45 million inhabitants. o GDP (nominal) o Est $1,103,235 million o Per capita $22,083 o The GCC is a political and economic union / trade bloc operating in different domains, including health.

9 The GCC Single registration (e.g. Pharmaceuticals): Pharmaceuticals Pharmaceutical companies Pharmaceutical companies manufacturing sites Single currency future plan but already US $ pegged Single pharmaceutical label Pricing harmonization plans Common Language

10 Relationships matter No easy money Don t believe the hype

11 Ahlan wa Sahlan - Customer Key Notes to the Middle East Why? Market: 287 Million+ (GCC: 45 Million) Leverage against the competition Closer to Market Understanding & Initial Points Complexity of market red tape GCC Structure Duties Regulations Relationships Where to be: Freezone or local market? Why? Licensing types, governing regulatories Importer / Exporter Codes (GCC) Conformity Requirements: SASO, Kucas etc. Initial Stock at existing distributors/dealers? Forecast Information, how accurate? Revised export pricing to markets?

12 Middle East Hub solution - Why Strategic region Cost benefits Ship by sea Bigger production runs Reduced complexity at source Working capital will reduce long term Commercial benefits Stock availability increases MOQs more easily met Produce to forecast not to order Local demand fluctuations less acute Speed of delivery

13 A Complete Solution from the Center of the Middle East One operator Providing control for the entire supply chain: Warehousing Air Courier Airfreight Road freight - LTL and FTL Ocean freight Customs Clearance Documentation Services Mode /Transit Time (Days) Jordan Syria Lebanon Kuwait Bahrain Qatar Oman Jeddah Dammam Riyadh Egypt Airfreight Courier 2 to 3 2 to 3 2 to 3 1 to 2 1 to 2 1 to 2 1 to 2 1 to 2 1 to 2 1 to 2 2 to 3 Airfreight 3 to 4 4 to 5 3 to 4 2 to 3 2 to 3 2 to 3 2 to 3 2 to 3 2 to 3 2 to 3 3 to 4 LTL 7 to 8 8 to 10 6 to 8 4 to 5 2 to 3 2 to 3 1 to 2 4 to 5 3 to 4 3 to 4 6 to 7 FTL 7 to 8 8 to 10 8 to 10 4 to 5 3 to 4 3 to 4 1 to 2 4 to 5 3 to 4 3 to 4 8 to 10 Transit Times are provided on a door to door basis, subject to customs and duties, considering pick up as day 1 UAE Same Day subject to cut-off

14 Getting started Setting up legal entity Local / Freezone Trade license Importer code Understanding the Bill of Entry process (inbound & outbound) Customs process Approvals based on UAE HS-codes Warehousing requirements Route risk assessments Trial shipments

15 Solutions KSA In general facilities at port and seaport are not up to standard to handle temperature sensitive products. All shipments require temperature loggers for SFDA / Customs to assess whether product can enter. Ever changing requirements KSA road freight solution Multiple ways for entry into KSA; Al Bathaa border Causeway Bahrain Qatar Freezone to Freezone (Dammam)

16 Solutions KSA Different requirements per product Average transit time DXB JED = 7 days Average transit time DXB RUH = 5 days including customs clearance at Sila border. After initial teething problems, solution works due to; Alignment with SFDA, Dedicated strategic border agent Validated supplier Training of drivers Regular visits

17 Growing demand Eastern Africa Triangle model in Africa creates opportunities for Dubai Initial stage of development Facility upgrades needed Infrastructure challenges Isolated shipments Egypt / Irak / Iran / Levant region Relatively short distance from Dubai Road, Sea & Air Large markets Depending on political situation Growing demand One language

18 Growing demand South West Asia Asia is only a couple of hours away Largest market in the bigger region Conducted study with customer on feasibility, testing via DXB vs ex Europe. Higher throughput Dubai, higher container utilization rate Postponement / VAS to be performed in Dubai for shipping into Indian continent Avoiding time consuming bureaucracy in India through storing in DXB Warehousing Infrastructure & local expertise in place through JV-partner which allows for offering complete end to end solution Organization is geared up towards the future

19 What we have learnt over the last few years Its not all about the price Even the most simple things can be made difficult Temperature does have an effect on people Customer SERVICE is key Devil is in the detail Standard won t cut it. Harmonize Products Try to expand the process end to end

20 What we have learnt over the last few years (continued) Regulations can change overnight Partnership is key Relationships matter Things take time Nothing is impossible - mentality Region is relatively young, yet develops at a high pace There are rules and regulations, and rules and regulations Dutch mentality alone won t cut it

21 What we have learnt over the last few years Strong E-government, linking all aspects of trade Global vs local (CTPAT AEO - ADR) Part state of the art, part going back in time Adjust, be flexible, enjoy Insha'Allah

22 Eric ten Kate Den Haag, 16 Juni

23 COMPLIANT TRANSPARENT INNOVATIVE Moving Life Forward Thank you