هذا المستند سري وكل ما ورد به من معلومات للإستخدام الحصري من قبل العميل الصادر بإسمه

1. Supporting Al Gharbia SMEs for sustainable economic development of the region ADSG session, Masdar City هذا المستند سري وكل ما ورد به من معلومات للإستخدام الحصري من قبل العميل الصادر بإسمه

2. Introduction of Western Region Development Council -WRDC Vision Priorities To lead Al Gharbia of Abu Dhabi into becoming a model of sustainable economic and social development by setting the standard of excellence in the development of people, enhancement of infrastructure and improvement of enterprises. • Create incentives to attract and keep qualified workforce • Improve workforce skills/ tackle barriers to employment • Promote and support regional investment • Market and promote Al Gharbia as a travel destination • Enhance product / concept offerings to promote business development 1 People 4 Marketing &Promotion 2 3 Infrastructure Enterprises Mission To provide the residents of Al Gharbiawith a higher quality of life through promoting employment, improving infrastructure and increasing business efficiency and investments. • Support small and medium sized enterprises (SMEs) • Increase participation in the knowledge economy • Diversify region revenues by supporting new industries • Deliver an improved infrastructure enabling future development • Promote development of a healthy, sustainable, safe and high quality environment

3. Brief introduction of Al Gharbia Abu Dhabi Emirate Statistics AG - 40,000 km2 AD - 67,000 km2 40% Area 60% AG - 123,000 AD - 1.57 Million 8% 92% Population AG - AED 181bn. AD - AED 362 bn. 50% 50% GDP Source: Area: Abu Dhabi Municipality, 2010 Population: SCAD, 2010 GDP: Abu Dhabi Chamber of Commerce & Industry, 2009 GDP (WR) est. 90% of the AD Oil Sector GDP, 2010

4. Al Gharbiais forecasted to develop rapidly Non O&G GDP Population +6.4%p.a. +5.5%p.a. Citizens population *Notes: All data exclude O&G Sales activity; ** Excludes construction workers Sources: Team analysis; UPC Model; WRDC Model

5. Development already started as Abu Dhabi government investing heavily in the region • Nuclear plant in Braqa • Baraka is chosen as the preferred location of the nuclear plant – first in the Middle East. Billions of investment to satisfy country needs in electricity. Project under construction • Increasing refinery capacity, new oil & gas fields, expanding petrochemicals • Several projects of ADNOC group of companies - New Refinery, Green Diesel Plant and Expansion of Sulphur Handling Terminal , other • Borouge 2 completed, Borouge 3 and Borouge 4 in planning • Expansion and diversification of chemicals sector • Nafta cracker and downstream chemical plants. Planning phase • EtihadRail • Shah-Ruwaisrailway planned to be build in 2011 – 2013. Starting construction • Linking Al Ghrabia with other Emirates and later GCC. Initial planning • Desert Islands project • Project includes several island lodges, Equestrian Centre, Dive and Sport Fishing Centre, Youth Outdoor Camp & Anantara Conference Centre • Housing and commercial real estate development • Plans to develop residential neighborhoods throughout Al Gharbia; schools, parks and commercial markets are parts of development. Started

6. How can we ensure that development of Al Gharbia is sustainable?

7. Three types of challenges of sustainable development of the region • Fragile environment • Potential pressure on fragile desert, coast and marine environment from heavy industrial and transportation development • Growing population, more guest workers and visitors raise challenges of resources management • Quality of life in small, dispersed communities • Quality of teachers, doctors, other community service sectors are lower than in other parts of the Emirate • Young people migration to big cities with more jobs and recreational activities • Limited opportunitiesfor local business and growth • Limited business opportunities to serve local population • Limited chances to attract private investments in infrastructure & real estate currently • Gap in skills among local entrepreneurs

8. SME sector is key to sustainability of economic development (Example of Korea) Strong SME sector is the major contributor to job creation and value added of the country Note: Value Added = Sales-Costs

9. Majority of Al Gharbia SMEs are small, local services focused and dispersed Majority are micro and small businesses… … in retail and services … scattered across Al Gharbia • Source: WRDC database of active National entrepreneurs in Al Gharbia (input from TAMM, DED licensing databases); total number ~280

10. For many Al Gharbia SMEs it is difficult to make money and survive • Al Gharbia SMEs focusing on serving local community (~70%) face challenges of making economics work • Low volumes due to small population size • High costs (especially rentals) due to lack of investment into real estate

11. Other challenges of Al Gharbia SME sector • Entrepreneurs from Al Gharbia making business in traditional sectors (e.g. services, food and agriculture) are often at disadvantage vs. competitors located closer to main markets of Abu Dhabi City and Dubai (higher transportation costs, further away from technological innovations) • ADNOC Group of companies and WR Municipality are so far major providers of real opportunities for local entrepreneurs, but opportunities are often in low value add contracting services • There is a natural tendency from large companies to rely on their traditional, well established, often foreign suppliers and sub-contractors • There is lack ofregulation requiring big projects coming to Al Gharbia to procure from local suppliers and invest in their development WRDC needs help from ADSG members to support entrepreneurship spirit of Al Gharbia residents

12. How can members of Abu Dhabi Sustainability Group help?

13. What do local entrepreneurs really need Information Skills and knowledge Enablers & Funding • Information about opportunities for sub-contracting and services around big projects • Understanding of requirements of quality, time to deliver, etc. to win bids • Information on government strategies (sectors, SMEs, etc.) • Technical and business knowledge (value chain, economics, types of business models) of the sectors • Support in enhancing business skills • Recognition from large commercial entities and government that it takes time to develop strong SMEs • Various options of financing solutions • Government and semi-government procurement programs • Real estate infrastructure (incubators, zones, offices) Laws and regulations to support National SME sector

14. Examples of government entities support South Korea • Consistent government support since 1963, growing SME share of employmentto 77% • Among key success factors • Protecting SME business areas and supporting efforts to secure domestic market • PromotingSME-only business sectors; SME product procurement system of public organizations. • Expanding sub-contracting businesses • Promoting policies for heavy and chemical industries from mid-1970s - more subcontracting for localcompanies as parts, materials and services suppliers replacing imported parts and materials (localization) • SME Start-up Support Act (1986); Special Measures on Venture business support (1997) Kazakhstan • The Republic of Kazakhstan adopted changes and amendments to the Law on public procurement in 2009, introducing a 'local clause' in the public procurement law for goods - 20%, services and construction - 15%, thus limiting the purchase of foreign goods, services and works.A company with more than 50% foreign shareholding is considered as foreign and therefore excluded from participation in public procurement tenders, unless it fulfils all of the following criteria making it a 'national producer':  • the company is resident in Kazakhstan, • the company produces finished products in Kazakhstan, • the company uses no less than 85% of local workforce.

15. Examples of commercial entities support to local SMEs ARAMCO Korean Electric Power Corporation (KEPCO) • $12.7 B in service contracts and amendments to locally based companies • $2.25B in material procurement to local market • 27,000 jobs created for nationals in locally based contractors • Entrepreneurship Support Centre established. 24 graduates and 123 currently enrolled • Funding Ladies Projects partnering with ladies entrepreneurs foundation • Local Content Unit within Aramco provides consultancy to local suppliers whose bids failed • Procuring $3.3B worth of goods from local small- and medium-size enterprises (SMEs) • Providing $139m in “Power and Energy Loans” to financially ailing SMEs • Providing SME suppliers with a total of $131M worth of support divided between network and procurement.

16. Preliminary ideas of how you can help (need further discussion) • Share knowledge of your sector with your potential local SME suppliers through running seminars and courses • Share skills development trainings that you provide to your employees with your local SME suppliers • Review your procurement budgets, assess share of local SMEs in it today and identify areas where local SME suppliers may immediately or with time substitute foreign • Require your procurement teams to learn about local potential suppliers and identify ways to make small guy next door your supplier with immediate effect or with time • Encourage your existing local SME suppliers to increase quality of products and services in order to make them more competitive • Encourage your current foreign suppliers to establish partnerships with local entrepreneurs in order to transfer knowledge and share profits with local communities

17. Plus… Make support to local SMEs (especially if you operate in Al Gharbia) part of your Abu Dhabi sustainability efforts, monitor and report progress in your annual reports

18. القاعدة الرئيسية التي يستند عليها مجلس تنمية المنطقة الغربية ”أن تُصبح الغربية مكاناً مناسباً يعيش فيها أبناء الوطن وينشؤوا عائلاتهم، ويتمتعوا بمستوى عال ٍ من الحياة الكريمة. وأن تزخر المنطقة بالفرص الاقتصادية الواعدة للجميع“ www.algharbia.ae