Oman is upgrading its infrastructure – more specifically – ports, as a gateway to economic diversification. A steep decline in global oil prices between 2014 to 2017 weakened the Sultanate’s monetary funds. An alternative strategy applied to accelerate economic growth was to increase the role of private sectors and establish more SMEs. Imports and exports are essential cogs in the industrial wheel, and the Sultanate has been revamping its ports in Muscat, Duqm, Salalah and Sohar, to not just increase its industrial production, but also to exploit the Sultanate’s strategic location to its advantage in transforming Oman into a hub for foreign investment and international trade.

Ports and Free Zones

In line with Oman’s agenda to increase foreign investment, Oman has established free zones adjacent to some of its ports. These free zones will be the direct centers for the majority of Oman’s foreign direct investments (FDIs). International companies and investors will be allowed to establish their businesses within the free zones. Its proximity to ports is a calculated benefit – of ease in imports and exports – that will entice further foreign investment.

The various free zones established by Oman are:

• Salalah Free Zone
• Salalah Port
• Sohar Industrial port
• Sohar Free Zone
• Mazyona Free Zone
• Musandam Free Zone
• Duqm Port
• Duqm Free Zone

Oil Tanker Attacks and Significance of Duqm Port

The tanker attack allegedly carried out by Iran have led to a rise in U.S – Iran tensions. Subsequently, the Strait of Hormuz has become a volatile route for trade. Shipping companies may be wary of utilizing the trade route. This gives Oman the opportunity to present an alternative and safer trade route in the form of Duqm. With direct access to the Arabian sea, Duqm port’s tactical location may urge shipping companies to redirect their trade via Oman’s coastal line. This, in turn, will promote the Sultanate as a major player in foreign investment and trade.

Foreign Investment Regulation

Oman has issued several policies to encourage foreign investment, such as:

• Competitive service prices
• Exemption of tax for five years (extension may be granted in some cases)
• No income taxes
• Exchange of foreign currency at a fixed rate
• 100% Ownership of company within free zones

These incentives have been tailored specifically to allow for ease of trade, encouraging foreign investors to utilize Oman’s ports and free zones.

Foreign Investment vs. SMEs

While some may consider the growing number of foreign direct investments (FDIs) and companies as a threat to budding SMEs within the Sultanate, they pose none. In order to avoid competition between well-established foreign companies and the up and coming Omani enterprises, the country has limited FDI’s reach to its free zones, adjacent to its trading ports. FDIs within the main cities require the investor to find an Omani sponsor. Oman, as part of its economic diversification agenda, wants its SMEs and local industries to flourish, and carefully lays down policies that ultimately benefit its locals, whilst still managing to extend a fair offer to its foreign investors.

source: businessliveme

What is the best way to attract foreign direct investment to Egypt? Niveen Wahish sounds out the experts

Foreign direct investment (FDI) into Egypt fell to $6.8 billion in 2018, down from $7.4 billion the previous year, according to the UN Conference on Trade and Development (UNCTAD) 2019 World Investment Report.

However, Sherif Fahmy, a director at NGage Consulting in Cairo, believes that although the FDI was lower than expected in 2018, it is still the highest in the region.

The UN report showed that Egypt figured as the largest recipient of FDI in Africa that year. Fahmy said that global FDI flows had seen a 13 per cent decline in 2018, falling to $1.3 trillion. This had been attributed to US tax reforms in 2017, which provided tax incentives to US multinationals to repatriate foreign-held capital and invest it in the US economy, he said.

FDI into Egypt had reached around $8 billion in 2016, almost double the figure of 2014, prompting the government to target $10 billion in FDI. However, this did not happen despite multiple efforts.

Allen Sandeep, director of research at Naeem Holding, a consultancy, believes the government has done a decent job in laying the foundations for Egypt to be viewed as an attractive investment hub in the future by enacting bold economic reforms such as the phasing out of petroleum subsidies, taming inflation, and maintaining a competitive exchange-rate policy.

He said that measures such as the new investment law with the one-stop-shop to facilitate set up and the various incentives it offers in free zones had been important to changes in the balance of payments, drops in yields on treasury bonds, and levels of interest shown by investors in international bond issuances.

Fahmy added that the government intended to take further measures to accelerate the automation of procedures. It was also committed to policies designed specifically for value-added and technology-oriented sectors that contribute to overall economic growth and decrease unemployment, he said.

The government’s investment act in particular is designed to promote investment in less-developed regions to enhance living standards.

While Fahmy was optimistic that Egypt could attract more FDI to reach around $8-8.5 billion in 2019-2020, Sandeep believed that for FDI to pick up as a result of the reforms being enacted a time frame of five to 10 years was needed.

In the meantime, he stressed that the government must engage more in investor roadshows and strong PR and marketing impetus to improve awareness externally. Risk perceptions about Egypt, whether on politics, the economy or security, were a lot different outside than within the country, he said.

This had meant that risk premiums were mispriced, resulting in sluggish investor interest both for foreign portfolio and foreign direct investment. He suggested that new venues for investment needed to be prioritised in areas such as the services sector.

Business-process and knowledge-process outsourcing and IT-enabled services were good options for Egypt, he said, because it had a strong edge in terms of human capital.

Alexandria University economics professor Mohamed Abed agreed on the need to coax investment towards areas with potential for Egypt. He lamented the fact that around 60 per cent of incoming FDI poured into the oil-and-gas sector, while more was needed in manufacturing because that was what created jobs.

Around 10 per cent of FDI goes to manufacturing at present. This was mostly directed towards domestic consumption, however, whereas what was needed were export-oriented industries that could generate hard currency, Abed said.

Fahmy explained that according to the UNCTAD report, foreign investment in Egypt was skewed towards oil and gas, as significant discoveries of offshore gas reserves had attracted investment and the country became a net exporter of gas in January 2019.

British Petroleum, he said, had increased its investment stock in the country to more than $30 billion. Egypt also signed at least 12 exploration and production agreements with international oil companies in 2018.

However, Fahmy said the UNCTAD report also showed some large foreign projects had been announced in other sectors, such as a $2 billion Ukranian project by Nibulon to upgrade Egypt’s grain-storage infrastructure and a $1 billion Saudi project by Artaba Integrated Holdings for the construction of a medical city.

In addition, the Chinese Shandong Ruyi Technology Group had signed an agreement to invest $830 million in the construction of a textile area in the Suez Canal Special Economic Zone (SEZ).

Fahmy said that companies opening up in Egypt were not there just for the domestic market, but “for the entirety of the two billion people that represent countries that are part of free-trade agreements and encourage the flow of goods into international and regional markets.”

However, FDI into Egypt could also be affected by global conditions. Sandeep said that the ongoing trade war with China instigated by the US could have long-lasting global impacts, both directly resulting in the flight of capital out of emerging markets and indirectly because of the spillover impacts due to contagion.

Geopolitical risks due to tensions between Iran and the Gulf countries and the US could also affect the price of commodities such as oil and could impact trade, tourism, and Suez Canal receipts, Sandeep said.

source:ahram

The Ministry of Commerce and Industry said that it is setting up Investment Services Information Centre as first front for local and foreign investment.

This is decided in view of the outcome of the study about the reality of investment in the Sultanate as well as the government’s approach to strengthen roles of various sectors and support the idea of economic diversification.

The Investment Services Centre is aimed at developing investment environment in the Sultanate and making establishment of projects of various types easy by increasing transparency and speed of procedures and services, promoting foreign direct investment in Oman and overcoming obstacles being faced by the investors.

Engineer Ibrahim Bin Saeed Al Mamari, Chief Executive Officer, Investment Services Centre, said: "The vision of the Ministry of Commerce and Industry is to work through this centre seriously and address the challenges in the investment in the Sultanate of Oman.

It is also meant to find suitable solutions by opening direct channels with investors, and taking recommendations into account. It will help the investment sector in the Sultanate."

"From very first day, we started on the basis of the study about the performance of the portal InvestEasy to learn about the major challenges being faced by the investors.

This also helped us in knowing that to which level we have reached in the integrated electronic connectivity with all organisations concerned with the commercial registration, licensing and issuing permits of different times.

We have actually wanted to complete the procedures of investment swiftly without any hassle," he added.

"We would also look into the service and how it complies with the international standards in making the it more transparent so that environment for investment can be made more attractive to take advantage of the competitive atmosphere of the Sultanate.

This is important for Oman to gain its position both at regional and international levels," he pointed out.

He said that practically, eight government organisations have been linked with the system of ‘Invest Easy’ at different levels with the plan to link them completely.”



Al Mamari said that recently, a number of improvements have been made in the services provided through "Invest Easy” portal for commercial registration, commercial agencies, licenses etc.

These improvements are aimed at simplifying and making business environment suitable.

He said that 10 per cent of work on the plan is over. The next phase is called "Invest Easy Version 2", will also include Intellectual Property, licenses, permits, connectivity with other organisations and annual reports. It will also have mobile application and a dashboard.

Al Mamari said that the coming phase required concerted efforts of all parties involved in the success of the investment in the Sultanate. The Investment Services Centre has developed an ambitious plan which includes the main partners of the public and private sectors.

It is aimed at constructive dialogue and creation of joint platform where all can work in the interest of investment and removal of all obstacles.

He said that the plan would be announced shortly. For the plan a set of discussions with the concerned organisations were held and their recommendations were taken into account. It would make Oman as suitable place of local as well as foreign investments.

He said that the centre was working directly under the guidance of the honourable minister in coordination with the implementation and follow up unit so that whatever has come out in these discussions are implemented in toto to achieve the objectives.

He said that the centre was currently working on restructuring its administrative set up and developing strategies which are consistent with the role of the centre, in line with the investment and the business environment of the world at the regional and international levels.

The centre is also working to understand major challenges related to the Sultanate's position on business map in the annual report of the World Bank and to work to improve the its regional and international status gradually.

He said that to achieve this goal, the centre was working currently on developing a mechanism which divides investment projects into two one is Funnel Strategy and the second is Implementation Process. It is aimed at identifying strategic projects and focus on it without ignoring others.

He said that this strategy depended on the international standards agreed upon with the main partners.

Engineer Ibrahim Al Mamari said that the centre would include a specialised team for studies and planning to make a base as a solid ground for the development of investment plans and programmes.

Source: Timesofoman

The Sultanate of Oman is a beautiful place known for its sandy beaches, spectacular waterfalls, and unique cultural and architectural heritage.

Strategically located in the south-eastern coast of the Arabian Peninsula, it occupies 300,000 sq. km of area of which 1700 sq. km are covered by the coastline making it a marine country.

It is the part of Gulf Co-operation Council (GCC) and is considered as one of the most important logistics centres of the region.

Oman has achieved a stable balance between remaining true to its roots and being a globalized country.

It has been focusing on driving economic growth and is now considered a high-income economy by The World Bank. The Sultanate of Oman is working towards formulating policies that would not only decrease the dependency of the economy on the export of oil but will also secure FDI’s from foreign investors. Let’s see some of the reasons that make setting up a business in Oman such a lucrative option for you.

Reasons to Choose Oman As A Business Destination

World Bank issued its annual Doing Business report for 2019 in which the Sultanate was ranked 78 in the Ease of doing Businessglobally.

The International Monetary Fund (IMF) also has stated Oman to become the fastest growing economy in the GCC region and the sultanate’s real GDP is expected to increase by 5% in the year 2019. Some of the key features that makes Oman a very beneficial option are highlighted below:

1.Strategically Located

Oman also holds the status of a marine country and due to its tactical location, controls one of the most important naval trade routes in the world, the trade route between the Arabian Gulf and the Indian Ocean. 

The location makes Oman the confluence of the African and Asian continents, which lead to various financial and business opportunities.

2.Availability of Numerous Amenities

A strong infrastructure, commercial connectivity, and security are some of the steps taken by the Ministry of Foreign Affairs and Commerce which encourages entrepreneurs to seize the investment opportunities and contribute to the development of the economy.

3.A Developing Economy

The economy of Oman has grown by leaps and bound over the years. The Sultanate has made huge social and economic improvements and has seen achievements such as multi-lane highways, equipped hospitals, state-of-the-art schools, and universities etc.

Oman is also looking to leverage its position as a beautiful country with rich cultural heritage and focus towards tourism.

4.Revenue Generation from Non-Oil Products. 

Although the discovery of oil was very crucial to Oman’s economy at the initial phase, it is focusing more towards diversifying the economy and investments in the foreign sector and incorporation of businesses in Oman are encouraged.

Non-Oil revenue for Oman is to form 16.5 % of GDP in 2019.

5.Easy Tax Rates

You don't have to pay any income or individual tax. A company only needs to pay a flat rate of 15% corporate tax after establishment.

All goods move freely across the GCC without any customs duties.

6.A Step towards the Growth of Oman (Vision 2040)

Oman’s vision 2040 strategy aims to develop multiple sectors like infrastructure, tourism, technology, hotel, transport, manufacturing, and mining industry. This initiative forecasts an increase of 31 billion riyals by 2040.

7.Ongoing Projects of Oman

For the prosperity of the economy, Oman has many projects which are ongoing or in the pipeline in different sectors. Some of the projects which are nearing completion are Salalah LPG Project, Mina Sultan Qaboos Waterfront etc.

It is very clear that there are many benefits of setting up a business in Oman.

The location, the government incentive and the future vision for Oman, all provide a very conducive environment for you to start a business in Oman and help the Omani economy.

Source: businesssetup

Abu Dhabi will commit up to 1 billion dirhams ($272 million) to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

U.S. tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.

Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.

The emirate launched a 50 billion dirham ($13.6 billion) stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic.

The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a 500 million dirham fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.

The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.

Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.

Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.

Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.

Incentives mapped out by the government include housing, office space and health insurance as part of the 1 billion dirham commitment, Ajami said.

Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.

source: Reuters

Managing Director and Head of Brokerage at CI Capital, Karim Khedr, anticipated Egypt to gain a substantial amount of foreign direct investments (FDI) by the end of 2019 which is the last year of Egypt’s economic programme with the International Monetary Fund (IMF).

“Egypt’s investment climate is improving remarkably. The authorities are implementing the subsidy reform which is very important not only for foreign investors but also for the state budget,” Khedr informed Daily News Egypt.

Subsidy was a very considerable burden on the Egyptian budget, so the reform will allow the country to increase its spending on other key areas such as education and health, added Khedr.

Egypt aims to attract as much as $11bn in FDIs in fiscal year 2018/19, up from $7.9bn in the previous year, said Planning Minister, Hala El Saeed in August 2018, adding that FDIs are expected to reach $20bn by the end of the government’s development plan in 2022, driven by ongoing economic reforms.

Foreign investors want to ensure that reform plans are going well, in cooperation with the IMF which approves the confidence of the Egyptian economy’s outlook, mentioned Khedr, echoing the importance of the FDIs to bring the capital into the market, knowhow, in order to create job opportunities and increase the consumption that positively affects GDP growth.

“We saw a significant improvement in the external sector including the tourism sector’s revenues throughout 2018 which is very important for the availability of hard currency,” mentioned Khedr, noting that Egypt’s economy is still facing some challenging.

The high interest rates’ environment, inflation, and subsidy for some products are all challenges for the authorities in 2019, said Khedr, noting that finding solutions for these challenges are key elements to guarantee that these economic programmes are successful.

Additionally, Khedr said that his corporation aims to expand regionally in 2019, yet it depends on available opportunities, affirming that Egypt is a key major market for CI Capital.

“Investment banks expect Egypt to take over large interest of the foreign investors’ interest over the next couple of years as a result of Egypt’s economic improvements and future potential. Foreign investors’ positive outlook for Egypt was clear over our latest third annual MENA investor conference where many investors were there,” mentioned Khedr.

However, Khedr said that Egypt’s implemented reform measures don’t have the full positive impact on the investor’s views to invest in Egypt yet, as there are other challenges that still face the economy such as high inflation rates, adding, “we hope that the interest rates will decline sometime in 2019, which will encourage investors conduct increased business in Egypt.”

The Central Agency for Public Mobilisation and Statistics (announced earlier in December 2018 that the annual inflation rate hit 15.6% in November 2018, compared to 26.7% in November 2017.

CI Capital is an investment bank in Egypt with market-leading investment banking, securities brokerage, asset management, and research franchises.

source: Dailynewssegyptailynewssegypt

Microsoft and Telecom Egypt, an Egyptian telecom company has entered into a partnership, where the tech behemoth will extend its cloud network in the North African country. The announcement was made on Wednesday at the World Mobile Congress 2019.

As a part of the partnership, the telecom will improve the performance and boost reliability for the customers of Microsoft services by delivering low-latency connectivity around Egypt.  The partnership will help Microsoft to cater to the local market in Egypt and will help to boost connectivity in the Middle East too.

With the new development, the country will get a direct connection to Microsoft’s global infrastructure. It will improve the delivery process for many services for customers.

For delivering its services inside Egypt, Microsoft will use its latent network optimization while its network investment will boost capacity.

The newly upgraded network connectivity in the country will integrate the tech behemoth’s global network to transatlantic and trans-Arabian paths.

Apart from that, the new development will speed up connectivity in the North African region and also help to enhance connectivity to the new Microsoft cloud regions in the UAE and South Africa.

The global network of Telecom Egypt was created with the help of investments that were carried out in private international submarine cable systems and consortiums.  The company has become a choice for content partners because of its reach and capacity in the international platform.

The country’s ideal geographic location across the sea has helped the company to connect over 11 cable systems from the east and 13 from the west.

source: Thesiliconreview

Emirate attracts over $21 billion in foreign capital in just three years

Dubai: Dubai is officially the world’s most popular destination for foreign companies looking to invest in smart technologies.

From 2015 to 2018, the emirate attracted a total of $21.6 billion in foreign direct investments for artificial intelligence and robotics, said to be the highest in the world.

Most of the investments came from the European Union and the United States (US), accounting for $5.7 billion and $3.9 billion, respectively.

The figures were released in connection with the Annual Investment Meeting (AIM) 2019, which will be held in Dubai from April 8 to 10. The event is the world’s leading platform for FDI, aimed at facilitating strategic networking and promoting investments.

The UAE is looking to increase capital inflows from foreign companies, to sustain the economy. In late 2018, a UAE decrees was issued to promote and develop the country’s investment environment and attract FDIs in line with national development policies.

According to the law published in the Official Gazette, a foreign direct investment unit is to be established in the Ministry of Economy. This will be “responsible for proposing foreign direct investment policies in the country and determining its priorities, and setting up associated plans and programmes, and work on their implementation following their approval by the UAE cabinet.”

Organisers of the upcoming annual investment meet said the latest data indicate that Dubai is fast emerging as the global destination for investment in smart technologies.

The AI industry’s economic contribution by 2030 is forecast to reach 33.5 per cent locally and 45 per cent globally.

“Digital growth is significant to the growth of the economy. In the UAE, it is in line with UAE Vision 2021, which aims to position the country as a top spot for tech investments,” said Dawood Al Shezawi, CEO of annual investment organizing committee.

“Disruptive technologies like AI, blockchain, internet of things (IoT) boost the productive capacity of countries and also the global GDP. To maximize its benefits, countries need to integrate new avenues that will drive more investments in these solutions,” added Al Shezawi.

Global players in the investment community, as well as high-ranking policy makers, leading academics and celebrated financial experts, are expected to attend at the upcoming annual investment meet.

Source: gulfnews

Source: gulfnews ublish LLC 2019. All rights reserved.

10 Reasons to Invest in Jordan

1. Unique and Strategic Location

• Situated at the convergence of Europe, Asia and Africa.
• Transportation hub of the Middle East.
• Access to the Red Sea through the Port of Aqaba, and other ports via neighboring countries.

2. Stable Political Environment

• Dedicated and stable leadership in the Hashemite monarchy, supported by a democratically elected Parliament.
• Guaranteed freedom of belief, speech, press, association and private property.
• Firm commitment to private enterprise system.

3. Free Market Oriented Economy

• Economic policies based on outward-oriented, private sector led approach.
• Ongoing privatization of major state-owned enterprises.
• Significant advances in structural and legal reform.

4. A Package of Incentives and Exemptions to Encourage Investment

• Projects are exempted from income and social services taxes by 25%, 50%, or 75% for a ten year period, depending on the location of the project.
• Imported fixed assets are 100% exempted from customs duties and taxes.
• Imported spare parts for fixed assets can be exempted from fees and taxes.
• Additional exemption from customs duties and income tax is granted for the expansion, modernization, or development of existing projects.
• Hotels and hospitals may purchase furniture and supplies without customs duties once every seven years for renewal purposes.

5. Access to Major International Markets

• Duty and quota free access to the US market through the Qualifying Industrial Zones (QIZ).
• Duty free access to EU markets.
• Access to more than 10 Arab countries through the AFTA.
• Bilateral agreements and favorable protocols with over 20 countries.
• Member of the Multilateral Investment Guarantee Agency (MIGA).

6. Free Zones and Industrial Estates

• The Free Zone Corporation manages two fully operational industrial parks in Aqaba and Zarqa, and two more under construction in Amman at the Sahab Industrial Estate and the Queen Alia International Airport.
• Five private free zones in Jordan employ over 2,500 people in industries such parks in Amman, Irbid and Al-Karak.
• Newly opened private industrial parks, including Al Tajamouat, Ad-Dulay1 and Gateway.

7. Qualified and Competitive Human Resources

• Abundant workforce. Young and highly educated population.
• 87% of the population is literate.
• 17% of Jordanians receive higher education.
• Highly competitive wage rates.

8. World Class Infrastructure and Communications

• State telephone company operates on a commercial basis, and is expected to privatize 40% of company in the near future.
• Choice of privately-owned Internet service providers.
• Direct Royal Jordanian flights to 47 Major Cities in Europe, the Middle East, the Far East, North Africa and North America. Served by 26 international airlines.
• Modern highway network Major trucking lines ensuring the movement of raw materials to and from the port of Aqaba as well as into and from ports of neigh boring countries.
• Jordan's port of Aqaba acts as a strategically located gateway to Jordan, the developing Red Sea region, and the Middle East as a whole.

9. Attractive Investment Climate

• Income and social services tax exemptions for up to 10 years.
• Total customs exemptions on imported fixed assets.
• Ease of licensing and registration procedures.
• Revenues on exports are exempted from income taxes.
• Export industries are not subject to customs duties on imported raw material.
• Free repatriation of capital, profits and salaries.

10. High Quality of Life

• Amenities of modern life are readily available and affordable.
• High quality public and private education provided in Arabic, English, and French.
• Health services in Jordan are of international standards at reasonable rates.
• Developed network in community, active local and international business associations and cultural centers.
• Traditional festivals, cultural entertainment events, and a wealth of archeological sites.
• Excellent clubs and restaurants.

Source: exchange jordan

Given how uncertain and volatile the global economic and political landscape currently is, with market uncertainty pervasive and investor confidence deteriorating, global private equity firms are on the lookout for stable, new markets where they can be certain not just of promising returns on investment but also an investor-friendly regime.

As a result, the UAE, with its pro-business environment, excellent infrastructure, relatively diversified economy and political stability, is quickly emerging as a preferred investment destination, renowned international investors Laurence Fink and Henry Kravis said at a panel discussion hosted at the Majlis Mohamed bin Zayed.

The discussion, entitled Adnoc as a catalyst for foreign direct investment: a global investment perspective, was held at Abu Dhabi's Al Bateen Palace on Sunday and was attended by Sheikh Hamed bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince Court, as well as other dignitaries.

Fink and Kravis' remarks were extremely topical considering that just hours earlier, their respective firms, BlackRock and Kohlberg Kravis Roberts & Company (KKR), had signed a landmark pipeline infrastructure investment agreement with Abu Dhabi National Oil Company (Adnoc).

The agreement is set to unlock $4 billion in value from Abu Dhabi's crude oil pipelines and marks the first infrastructure partnership between leading global institutional investors and a national oil company in the Middle East. It is certain to pave the way for further significant foreign direct investment (FDI) into Abu Dhabi and the UAE.

Kravis, co-founder, co-chairman and co-CEO of KKR, kicked off the panel discussion by saying he was delighted to take part in this discussion of Adnoc's "capital modernisation" agenda and the "vision for economic transformation" of His Highness Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

Kravis, who co-founded KKR in 1976 and is known as one of the pioneers of the private equity industry, said Sunday's landmark deal "sets an important precedent in the market that can demonstrate the potential for value-add foreign investment across UAE".

With approximately $200 billion in assets under its management, KKR invests capital across the world with the aim of being a partner in supporting economic development, growing companies and meeting the needs of its clients.

Fink, the founder, chairman and CEO of BlackRock, said it was "a privilege to be asked to be part of the Majlis", adding that "information exchanges such as this bring investors and countries together and create a closer community."

Fink is one of the most respected investors and business leaders in the world. He founded BlackRock in 1988 with seven partners, and under his leadership, the firm has grown into a global powerhouse in investment management. Today, BlackRock manages more money than any other investment firm in the world, with around $6 trillion in assets under management.

Kravis and Fink, whose firms are at the forefront of global infrastructure investing, went on to discuss global investment trends and opportunities for partnership in Abu Dhabi and the UAE and the importance of FDI in the country. FDI in the UAE has increased by 21 per cent between 2015 and 2017 to reach $10.4 billion. The United Kingdom, India and Saudi Arabia are the main investors in the country, with the bulk of the funds concentrated in the trade, real estate, energy, finance and insurance, manufacturing and construction sectors, the Majlis heard.

During the course of the discussion, Kravis and Fink covered key trends that affect the global and Middle East investment landscape. Drawing on their experience in investing across American, European, and Asian markets, the international investors discussed the potential for FDI and how their firms approach emerging foreign investment destinations like the UAE. The Majlis also heard why BlackRock and KKR decided to invest in UAE infrastructure assets, and why they feel it is becoming an increasingly attractive global investment destination.

Earlier in the day, Kravis and Fink joined Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, to sign a pioneering, multi-billion dollar investment partnership agreement between Adnoc, KKR and BlackRock. Under the terms of the innovative agreement, the investors will pay around $4 billion for a 23-year lease in the 18 pipelines that carry crude and condensate. Sovereignty of the infrastructure and the management of the pipeline operations will remain with Adnoc.

The partnership "paves the way for further significant foreign direct investment in the UAE", Dr Al Jaber said. "Adnoc has been undergoing a significant business transformation, underpinned by innovative partnerships and investments that are key to unlocking and maximising value across our full portfolio."

Following the wise guidance of the UAE leadership, Adnoc has been transforming into a more commercially-focused and performance-driven organisation and has hit significant milestones regularly over the last three years. Today's deal with BlackRock and KKR represents the next major step in the delivery of this smart growth strategy, demonstrating its expanded partnership model and more proactive management of its assets and capital. The Abu Dhabi government-owned oil giant received an AA long-term credit rating, the region's highest, from Fitch Ratings last week.

Source: khaleejtimes