I recently had the privilege to travel with the Chief Minister and a group of local ACT companies, on a business mission to the United Arab Emirates (UAE) and the United Kingdom (UK). The mission centered on Dubai and Abu Dhabi in the UAE and London in the UK, both markets are of particular interest to ACT businesses due to their strong focus on services and both are major entry points for multiplier markets in the EU and Middle East.
However this is where the similarity ends. While not quite to the extremes as described by Dickens, and it is always dangerous to over-simplify any analysis, the UAE and UK are currently operating in vastly different circumstances. The UAE is an economy based upon the energy sector. Initially oil and increasingly natural gas the UAE has assured income as long as the Western World continues its passion for the internal combustion engine.
Certainly the UAE is experiencing the GFC. Twelve months ago, getting a taxi in Dubai and then avoiding the inevitable traffic jam was nigh-on impossible. This year with the economic downturn (combined it must be said with the introduction of a new metro rail system) my taxi travel was both fast and efficient. Kym Hewett, Austrade’s Senior Trade Commissioner in Dubai characterised it as in the boom times the commentators were writing in Trillions of dollars, now they are talking in billions. I understand that one project on the drawing board is a fast train linking the Gulf States with Saudi Arabia, Syria and Turkey and on into Europe.
For some companies on the mission, the major highlight of the UAE component included the GITEX IT and Electronics Trade Show. Over the course of five days over 133,000 people attended this show an increase on 2008. While the numbers of people from Dubai may have been down on usual this was more than made up by the number of visitors from other countries in the region. As an indication of this, the company I currently manage was able to negotiate agreements in three new markets—Oman, Bahrain and Kuwait. We also took enquiries from Afghanistan, Saudi Arabia and Iran.
On the other hand the UK is feeling the impact of the GFC far more acutely. In a briefing we received from the Commonwealth Bank’s representatives in London, they stressed that the UK has the highest debt levels in the western world, which means that consumer spending is very much subdued. As a result relationships are taking a longer time to develop, local presence and support is important, and any non-resident company must be able to demonstrate that they are in the UK for the long term.
Like the UAE, Government spending is important and the British Government is certainly leading the world in supporting a number of new environmental initiatives. The Mission benefitted from being able to inspect first‑hand the sustainable electric transport initiatives being developed in London, and meeting with the UK’s National Housing Federation to compare strategies for addressing affordable housing and initiatives to assist low- and moderate-income purchasers. Concepts, ideas and proposals from both of these initiatives can be seen in recent ACT Government announcements.
Therefore what can we make of this whirlwind tour of two economies. Firstly, the Middle East offers significant opportunities to ACT firms. These opportunities are not just limited to Dubai but beyond into other Emirates and beyond that into other Gulf States. The UK is certainly not travelling as well as it did a few years ago. However for companies prepared to make the long-term investment in the market there are opportunities particularly in new technologies.
Can I suggest that if you are interested in talking more about either of these markets then contact Chris Horsbrough from Austrade, Dita Hunt from the Chief Ministers Department or any one of the following companies who I am sure would be more than happy to speak about their experiences:
- Academy of Interactive Entertainment;
- CIC Group;
- Canberra Institute of Technology;
- eWay;
- John Walker Crime Trends Analysis;
- Poacher’s Pantry;
- QuintessenceLabs;
- Recruitment Systems; and
- The Wise Academy.
Finally can I express my personal appreciation to the Chief Minister, his team at Business and Industry Development, Chris Horsbrough and the team at Austrade in Dubai, Abu Dhabi and London for supporting ACT Exporters and putting together such an interesting and engaging business development mission.
The ASEAN-Australia-New Zealand Free Trade Agreement to start on 1 January 2010. What you should be doing now!
Author: Andrew Hudson, Partner at Hunt & Hunt
Although it has been the subject of some media coverage, we are pleased to provide the following reminder as to the commencement of the ASEAN-Australia-New Zealand Free Trade Agreement (“AANZFTA”) on 1 January 2010.
The AANZFTA establishes the ”ASEAN-Australia-New Zealand Free Trade Area” and confers a number of advantages on both importers and exporters dealing with those countries.
While there is a significant degree of information available through the websites of both DFAT and the Australian Customs and Border Protection Service, that information is general in nature and needs to be specifically adopted for those importing, exporting or providing services to those traders. There are also a number of traps to be avoided and a number of steps which should now be taken to ensure that parties secure the benefits of the AANZFTA as at 1 January 2010. Clearly, we would be delighted to assist your company with those arrangements. However, some issues to consider are as follows.
As always, there are benefits as well as risks with any new commercial arrangements. Proper due diligence and planning need to be undertaken. We are ready to assist with these matters and look forward to being of assistance to you and your clients to secure the benefit of the preferential arrangements under the AANZFTA at the earliest opportunity.