AACCI Business Forum & Expo May 2011 Setting the Scene Kym Hewett, STC, MENA

Australia Unlimited A Thousand Words

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Tackling The Market Difficult because it is really a collection of sub- regions –Maghreb –Mashreq –GCC –Iran and Turkey For most Australian SMEs the GCC/ UAE is a good place to start

Australia Unlimited Market Drivers Arabian Spring Oil revenue Growing share of savings Young populations Growing middle class Infrastructure Import propensity

Australia Unlimited Australian Exports to the Region 2009/10 MarketExports ($Am) UAE1974 KSA1533 Kuwait525 Egypt411 Oman404.. Syria7 Regional Total$A6.6 billion

Australia Unlimited Market Exposures Stake Risk

Australia Unlimited Risk vs. Potential

Australia Unlimited MENA Region Opportunities Strategic Infrastructure Agribusiness Education Selective Clean technology Financial services Adv Manufacturing Image Source: Opportunistic Mining/resources Healthcare/ICT Prof/bus services

Australia Unlimited 3 Take Home Messages Infrastructure Food Security North Africa

Australia Unlimited Infrastructure – Mega Opportunity Transport and logistics  GCC rail freight initiative  KSA, UAE, Qatar, Oman  Integration with ports roads and airports  Rail mission KSA is MENA largest project market –Residential, social infrastructure UAE second largest project market  Abu Dhabi main focus  Regional initiatives Qatar fastest growing construction market  2022 World Cup  Commercial, leisure and industrial

Australia Unlimited Food Security 1.7% of GCC is arable – pressing regional issue Saudi, Qatar and UAE have acquired 3.5m ha Opportunity has several streams  Reinforces established food trades  Direct investment in agricultural production and processing  Agricultural funds  Export of agricultural technology o Water conservation o Crop protection and veterinary services o Seeds, fertilisers

Australia Unlimited North Africa Libya Tunisia Algeria  Energy & mineral investment  Agribusiness Morocco

Australia Unlimited Morocco- Key Facts With a populations of 32.2 million, economy is third largest in North Africa; Private consumption per head at $1,610 AUD is one of the highest now in Maghreb Last two years have seen Moroccan economy grow by 5% and 4.2% respectively and unemployment declined from 19% in 2000 to 9.8% in Financial system is one of the more developed in North Africa. It is sound and well regulated Construction sector has slowed but is still strong; Tourism increased from 3 million to 8.2 million between 2000 and 2009 and will remain strong. Economy is diversifying but agriculture employs about 44% of workforce but under the Green Morocco Program diversifying;

Australia Unlimited Morocco- Changes in Australian Engagement Official Mission by Moroccan Agricultural Minister in March 2010 with 15 senior business people has opened the door under Morocco’s Green Morocco Plan- which calls for the conversion of 1.4 million HA to higher export valued added products- and means that Morocco will become a larger importer of broad acre crops. Upgrade of Morocco’s irrigation systems of 500,000ha, as well a expansion of an additional 400,000 Ha Upgrade of Agricultural Systems and methods- across the board and creation of 2,000 projects on a database for PPP consideration. Results have seen Australian companies now working on key agricultural projects of national importance and scale.

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Morocco - continued Since opening up of Morocco’s mining and energy sector in 2000, several Australian companies are actively seeking either exploration or mining licences in Morocco and ONHYM mission to Australia in October last year has resulted in 5 companies applying for hydrocarbons licences in the mining sector; Now looking at opportunities in the renewable energy sector and under Morocco’s ambitious 2000MW Solar Energy Program ONHYM is planning a major mining mission to Australia in November and they are keen for Australian partnerships.

Australia Unlimited Morocco - continued A number of major visits are forecast this year and they include:  Visits by Minister of Foreign Trade and Minister for Health from Morocco- look at e-heath and oncology solutions, ICT, and Advanced Manufacturing;  Visit by Moroccan National Biotechnology Centre to look at Algal Biofuels and renewable energy;  ONHYM to lead a mining and exploration mission in November. In Morocco, we now have a full country program encompassing a complex trade and investment program in agribusiness, and niche opportunities in defence, infrastructure and mining sectors

Australia Unlimited Austrade in the MENA Region For my organisation, the Australian Trade Commission, Dubai serves as our regional headquarters for MENA. The region is in reality a collection of distinctive sub regions: –The Maghreb –Egypt and the Levant –The CGG –Then going north, Iran, Azerbaijan and Turkey We have eleven points or presence across these different markets The role of Austrade’s offices in all cases is to provide a bridge between Australian businesses and local businesses which can be used create trade and investment deals Australia has two major assets in the pursuit of business opportunities in the MENA sub region.  First there is an excellence of fit between the demands of the market and Australian supply capability.  Second the Australian brand is well regarded and recognised as standing for no nonsense delivery, advanced technology and knowhow and competitive pricing