Final - Doing Business With Gcc [group-3]

Oil Rigs

DOING BUSINESS WITH GULF COOPERATION COUNCIL PRESENTED BY:  BINITI BHUSHAN

- 16  GAURAV SHARMA - 26  SIDDHESH GURAV - 29  SARVESH HEGDE - 31

Prayer Rugs

About GCC Official languages

Arabic

Membership

Arab states of the Persian Gulf

Leader of GCC Secretary-General

Abdul Rahman Ibn Hamad Al-Attiyah

Population wise Total Area

267,31,000 sqkm

GDP

823 Billion USDollar

Per capita

22.8 USDollar

GULF COOPERATION COUNCIL FOUNDATION:  The Gulf Cooperation Council was established on May 21, 1981.

 GCC promote stability and economic cooperation among Persian Gulf nations.

 GCC removes all barriers within GCC countries for cross country investment

and services trade.

 GCC member nations abolished customs duties.

GULF COOPERATION COUNCIL OBJECTIVES:  Formulating similar regulations in various fields such as economy, finance,

trade, customs, tourism, legislation and administration.  Fostering scientific and technical progress in industry, mining, agriculture,

water and animal resources.  Establishing scientific research centers.  Setting up joint ventures.  Encouraging cooperation of the private sector.  Strengthening ties between their peoples.  Establishing a common currency by 2010.

GULF COOPERATION COUNCIL ORGANISATIONAL STRUCTURE:  The Supreme Council: The highest authority of the GCC, and is comprised of

the heads of all member states. It convenes yearly in one regular session.  The Ministerial Council: Composed of the Ministers of Foreign Affairs or other

ministers acting on their behalf. It convenes every three months.  The Secretariat-General: Charged with the function of preparing studies related

to cooperation, coordination, and integrated plans and programs for joint work. Also preparation of periodic reports on the work of the GCC, follow up on the implementation of the resolutions, and prepare reports and studies.

Stages for Setting up an Enterprise Stages

Objective

Action Plan

Anticipated risks and hurdles

End Result

Non availability of complete information

One location

Stage:1

Familiarity with Find a right partner GCC

Stage:2

Get to know more Demand potential and Demand analysis about the production other player’s strengths facilities

Sure of succeeding

Stage:3

Understand legal Appoint specialists Terms are favorable to formalities and to draft local partners agreements

Get ready to setup

Stage:4

Locate and setup

Stage:5

Markets – local & outside

Right kinds of people (technical and managerial)

Possible resistance if Production at low Indian bosses are costs appointed

Develop interior Local tariff and nonReduced cost and markets and tariff barriers in competitiveness network out of GCC provinces

GULF COOPERATION COUNCIL MEMBERS: BAHRAIN

OFFICIAL NAME:

KINGDOM OF BAHRAIN

Capital:

Al Manamah

Area:

707 sq km (273 sq mi)

Population:

726,617 (2008 estimate)

Languages:

Arabic (official), English, Persian (Farsi), Urdu

Religious Affiliations:

Muslim, Christian

Currency: Major trade partners:

Bahraini Dinar (BD)

For Exports For Imports

India, U.S.A., Saudi Arabia, South Korea and Japan Saudi Arabia, U.S.A., France, U.K., and Germany

Economic Indicators: GDP growth (annual %)

7.6 %(2008)

GULF COOPERATION COUNCIL MEMBERS: KUWAIT

OFFICIAL NAME: Capital:

STATE OF KUWAIT Kuwait City

Area: Population:

17,818 sq km (6,880 sq mi) 2,535,446 (2008estimate)

Languages:

Arabic (official), English widely spoken

Religious Affiliations:

Muslim, Roman Catholic, Hindu

Currency:

Kuwait Dinar (BD)

Major trade partners: For Exports For Imports

Japan, U.S.A., South Korea, Singapore and Pakistan. U.S.A., Japan, U.K., Germany, and China

Economic Indicators: GDP growth (annual %)

8% (2008)

GULF COOPERATION COUNCIL MEMBERS: OMAN

OFFICIAL NAME:

SULTANATE OF OMAN

Capital:

Muscat

Area: Population:

309,500 sq km (119,500 sq mi) 2,566,981 (2008 estimate)

Languages:

Arabic (official), English, Baluchi, Urdu, Hindi

Religious Affiliations:

lbadi Muslim, Hindu, Christian

Currency:

Omani Rial (OR)

Major trade partners: For Exports

China, Japan, South Korea, U.A.E., and Thailand

For Imports

U.A.E., Japan, U.K., U.S.A., Saudi Arabia

Economic Indicators: GDP growth (annual %)

6.6% (2008)

GULF COOPERATION COUNCIL MEMBERS: QATAR

OFFICIAL NAME: Capital:

STATE OF QATAR Doha

Area: Population:

11,427 sq km (4,412 sq mi) 812,842 (2008 estimate)

Languages:

Arabic (official), English

Religious Affiliations:

Muslim, Roman Catholic, Hindu, Buddhist

Currency:

Qatari riyal (QR)

Major trade partners: For Exports

Japan, South Korea, Singapore, U.A.E., U.S.A.

For Imports

Japan, Germany, U.K., and U.A.E., U.S.A.

Economic Indicators: GDP growth (annual %)

7.1% (2008)

GULF COOPERATION COUNCIL MEMBERS: SAUDI ARABIA

OFFICIAL NAME: Capital:

KINGDOM OF SAUDI ARABIA Riyadh

Area: Population:

2,240,000 sq km (864,900 sq mi) 24,573,100 (2008estimate)

Languages:

Arabic (official), English (for business)

Religious Affiliations:

Muslim, Christian, Hindu

Currency:

Saudi Riyal (SR)

Major trade partners: For Exports For Imports

U.S.A., Japan, South Korea, Singapore and France. U.S.A., Japan, Germany, U.K., and France

Economic Indicators: GDP growth (annual %)

5.9% (2008)

GULF COOPERATION COUNCIL MEMBERS: UAE

OFFICIAL NAME: Capital:

UNITED ARAB EMIRATES Abu Dhabi

Area:

83,600 sq km (32,300 sq mi)

Population:

Religious Affiliations:

4,533,145 (2008 estimate). Arabic (official), Persian (Farsi), English, Hindi and Urdu. Islam, Christian, Hindu

Currency:

U.A.E. Dirham (Dh)

Languages:

Major trade partners: For Exports

Japan, South Korea, India, Thailand and Oman.

For Imports

Japan, United Kingdom, Germany, and U.S.A.

Economic Indicators: GDP growth (annual %)

10.2% (2008)

GULF COOPERATION COUNCIL ECONOMIC ENVIRONMENT: BAHRAIN:  Limited oil resources will be maximized by next 10-15 years.  Diverse economic base – service sector emerged as leading sector.  Bahrain's port and airport facilities has turned the country into a regional transport hub.  Developed a regional banking sector whose assets stand around US$100bn.  Manufacturing sector -ALBA’s (Aluminum Bahrain) US $ 1.7 billion expansion project will increase the annual production to 827,000 tones from 307,000 tones.  Construction sector is heavily reliant on government infrastructural contracts.  Large private sector tourism and housing projects have been planned.

GULF COOPERATION COUNCIL ECONOMIC ENVIRONMENT: KUWAIT:  Dominated by petroleum, which accounts for 90-95% of the merchandise export earnings.  Trade/GDP ratio, a typical measure of the openness of the economy, is around 70%.  Kuwait Petroleum Corporation (KPC) has the overall responsibility for investment in the country's domestic and foreign oil industry.  Construction sector is dominated by public sector contracts.  Substantial expansion of infrastructure to allow hub for the rebuilding and reconstruction of Iraq.

GULF COOPERATION COUNCIL ECONOMIC ENVIRONMENT: OMAN:  Hydrocarbons form the most important sector.  Diversification program to promote gas-based industries and tourism and to increase the role of the private sector in the development of industries and infrastructure. QATAR:  Oil and gas are the main drivers of the economy.  Manufacturing, building, and construction sectors, as well as other sectors, such as finance, insurance, real estate, and trade have also shown impressive growth.  To invest in Qatar, all sectors are opened except banking, insurance, real estate and commercial agencies.

GULF COOPERATION COUNCIL ECONOMIC ENVIRONMENT: SAUDI ARABIA:  Dominated by the oil sector.  Oil revenues used to develop the agriculture industry, as well as other industries.  Government encourages the development of the manufacturing sector in a bid to increase economic diversification and to create employment opportunities.  Construction sector has accounted for 5.4% of GDP in 2004 and employed approximately 15% of the workforce.

GULF COOPERATION COUNCIL ECONOMIC ENVIRONMENT: UNITED ARAB EMIRATES:  Heavily dependent on oil and gas.  Construction sector has been a primary beneficiary of the boom in non-oil development.  Dubai - the tourism industry .

GCC ANNOUNCED PROJECTS 2008-10 GCC PROJECTS ALL SECTORS ($ MILLIONS)

GCC PROJECTS BY COUNTRY ($ MILLIONS)

GULF COOPERATION COUNCIL FDI FLOWS AND INVESTMENT POLICIES : BAHRAIN:  Government has focused its efforts on the entry of new and private firms.  Government seeks domestic and foreign private investments for large infrastructure projects.  Foreign-owned companies are eligible for partial financing. KUWAIT:  Companies can be established with 100% foreign capital.  Foreign investors can transfer ownership of their investment to another foreign or national investor.  Foreign investors have the right to transfer their profits and capital abroad.

GULF COOPERATION COUNCIL FDI FLOWS AND INVESTMENT POLICIES : OMAN:  Foreign investors, especially in the industrial, information technology, tourism, and higher education fields are particularly welcomed. QATAR:  Solid base of attractive investment packages - politically and socially stable.  Successful in reaching joint venture agreements with foreign partners to develop its massive gas reserves.  Law allows real estate to be leased to foreign investors for them to establish their investments projects.  Foreign investors are free to make transfers related to their investments.

GULF COOPERATION COUNCIL FDI FLOWS AND INVESTMENT POLICIES: SAUDI ARABIA :  Government encourages FDI in infrastructure, including power, water, telecommunications, and transportation.  The FDI law allows foreign investment in all sectors except for specific activities

contained in a "negative list".  Foreign investors are no longer required to join with local partners.

GULF COOPERATION COUNCIL FDI FLOWS AND INVESTMENT POLICIES: UNITED ARAB EMIRATES:  Leading sector of FDI inflows are oil and gas field machinery and service; power and water; computers/peripherals; medical equipment and supplies; airport development and ground equipment; telecommunications; and franchising.  Foreign investor may share of up to 49% in a company.  Foreign investors can establish a branch or use commercial agency agreements,

and can also set up businesses in free trade zones.

GULF COOPERATION COUNCIL INCENTIVES:  Planned and serviced plots are provided for industries in the industrial estates.  Ready built factories 25 years (renewable).  Annual rent for land plots US$ 0.65/sq m for first 5 years and there after US$

1.30/m2.  Rent for built-up factory building US$ 5.2 to 10.4 /sq m.

GULF COOPERATION COUNCIL INCENTIVES:  Electricity US$ 0.06/ KW/H.  Water US$ 0.007/gallon  Exemption from Customs duty is allowed on Raw materials, Plant &

machinery and spares imported for industrial production.  Local Products are given 10% advantage over imported goods on Government

purchases

GULF COOPERATION COUNCIL INCENTIVES:  Oman is the only country in the whole of GCC which has its own National credit

guarantee agency.  KOM (Knowledge Oasis Muscat) provide state of the art infrastructure facilities

with high bandwidth up to 155 Mbps to ICT firms with 100% foreign ownership, and tax free income for 5 years subsidized Incubator facilities to IT startups and first generation entrepreneurs.  Foreigners can own properties in designated areas for a lease period of 99

years.

GULF COOPERATION COUNCIL BUSINESS CULTURE:  Business appointments in the Gulf region are necessary.  Businesspeople prefer face-to-face meetings, and business is mostly done

against an intensely personal background.

 You should abide by the local standards of modesty, and dress appropriately.  Business cards are common but not essential to Gulf business culture. If you do

intend to use business cards while in the Gulf region, ensure that you have the information printed in both English and Arabic.

 Gift-giving in the region is appreciated, but not necessary. If you are offered a

gift, however, it is considered impolite and offensive if you do not accept it.

FOREIGN TRADE OF THE GCC COUNTRIES MAJOR EXPORTS AND IMPORTS: BAHRAIN

KUWAIT

OMAN

QATAR

S.A. Mineral products, Chemical products, Plastic products, Reexports, Base metals and Machinery, articles. Appliances,

U.A.E.

EXPORT ITEMS

Oil, Non-oil exports

Oil exports, Ethylene products, Manufactured fertilizers

Crude oil, LNG exports, ReOil and Gas, exports, Non- Non-oil oil exports, exports Refined oil

IMPORT ITEMS

Exports Machinery, Transport Machinery, equipment, Machinery, Fuels, Electrical Transport Pearls, Transport equipment, Machinery, equipments, precious and Transport Transport Manufactured equipment, semi-precious Agricultural equipment, Consumer equipment, goods, stones, products, Iron Agricultural goods, Foodstuffs, Base Jewelry, Base Food metal and and steel, Intermediate and live metal and products, Chemical and articles, Chemical articles, Chemical and goods, Capital animals, Agricultural allied goods and allied Chemicals and related products, products, Products, products, Textile Textiles and related Textiles and products, and textile Textiles and articles, Crude clothing articles, Artificial clothing Chemical and materials resins and plastic allied materials products

Oil and Gas, Re-exports, Free Zone

FOREIGN TRADE OF THE GCC COUNTRIES PROHIBITED AND RESTRICTIVE IMPORT PRODUCTS: Product Pig Representational objects of art Agricultural semen Books, magazines, films, tapes Pharmaceutical products Living animals, fresh and deepfrozen food Farm products Alcoholic drinks Toys Electronics and electricity Motorcar Chemicals

Prohibition

Special licenses

Certificate SASO (SAUDI ARABIAN STANDARDS ORGANISATION)

License

X X X X X X X X X X X X

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC TRADE RELATIONS:  India's total trade with GCC countries grew from USD 5.5 billion in 2000-2001

to USD 16.35 billion in 2004-2005.  Rise in both exports to and imports from the GCC countries have underlined the increase in India's overall trade with the region. (In USD Million) Country

India's Exports

India's Exports

India's Imports

India's Imports

2004-2005

2005-2006

2004-2005

2005-2006

Bahrain

156.46

192.25

121.87

189.56

Kuwait

421.44

513.73

305.94

461.85

Oman

267.67

408.43

20.61

265.59

Qatar

209.42

259.34

672.85

901.62

Saudi Arabia

1412.06

1809.77

1301.15

1632.34

U.A.E.

7347.88

8591.79

4641.10

4354.08

Total

9814.93

11,775.31

7063.52

7805.04

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC TRADE RELATIONS: BAHRAIN:  Accounted for 1.5% of India's exports to the GCC region and 1.6% of India's total imports from the GCC region in 2004-2005. KUWAIT:  Exports share of 4.3% of India's total exports to the GCC region. OMAN:  Increase in exports of machinery and instruments, manufactures of metals, and nonferrous metals. QATAR:  Smallest share of India's exports to the GCC region.

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC TRADE RELATIONS: SAUDI ARABIA:  Second largest trading partner after the U.A.E. in the GCC region.  Accounting for 14.6% of total exports and 18.3% of total imports during 2004-2005. UNITED ARAB EMIRATES:  Second largest market for India's exports, after the U.S.  Accounted for 9% of India's total exports, and imports from the U.A.E. accounted for 4.3% of India's total imports during the year 2004-2005.

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC TRADE RELATIONS: BAHRAIN

EXPORT ITEMS OF GCC

KUWAIT

OMAN

QATAR

Organic And Inorganic Metaliferrous Ores Metaliferrous Ores Chemicals; Organic Chemicals; And Metal Scrap, Fertilizer And Metal Scrap; Non-ferrous Metals; Metaliferrous Ores Non-metallic Manufactures; Inorganic And Metal Scrap; Mineral Artificial Resins Sulfur And Chemicals; Pulp Manufactures, Non And Plastic And Waste Paper; Unroasted Iron Ferrous Metals, Iron Materials; Sulfur Sulfur And Pirates; Artificial And Steel, Artificial And Unroasted Iron Unroasted Iron Resins And Plastic - Resins, Plastic Pirates; Materials; Pirates; Crude Materials, Dyeing Metaliferrous Ores Inorganic And Metal Scrap; Fertilizer; And Coloring Manufactures Of Chemicals; Materials, Fruits Pulp And Waste Metals; Transport Electronic Goods; And Nuts, TransPaper; NonEquipment; Cotton Pulp And Waste port Equipment, electrical Machinery; Yarn And Fabrics; Paper; Wool Raw; Pulp And Waste Electrical And Non-electrical And Iron And Steel Paper, Electrical Machinery Machinery Machinery; And Dyeing And Coloring Materials

S.A.

U.A.E.

Organic Chemicals; Inorganic Chemicals, Artificial Resins And Plastic Materials; Metaliferrous Ores And Metal Scraps; Leather; Gold And Silver; Fertilizer Manufactures; And Pulp And Waste Paper

Pearls, Precious And Semi-precious Stones, Gold, And Silver

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC TRADE RELATIONS:

IMPORT ITEMS OF GCC

BAHRAIN

KUWAIT

OMAN

QATAR

Cotton Yam Fabrics And Made Ups; Aluminum Other Than Products; Machinery And Instruments; Manufactures Of Metals, Paper Or Wood Products; Transport Equipment; Fresh Vegetables; RMG Cotton And Accessories; Manmade Yarn And Fabrics; And Primary And Semi-finished Iron And Steel

Basmati Rice; Glass, Glassware, And Ceramics; RMG Cotton And Accessories; Primary And Semifinished Iron And Steel; Petroleum And Crude Products; Manmade Yarn And Fabrics; Machinery And Instruments; Meat And Preparations; Manufactures Of Metal; And Oil Mills

Glass, Glassware, And Ceramics; Machinery And Instruments; Manmade Yarn And Manufactures Of Fabrics, Meat And Metals; Transport Preparations, Equipment; Electronic Goods, Primary And SemiPoultry Products, finished Iron And Plastic And Steel; Electronic Linoleum Products, Goods; Transport Manufactured Equipment, And Rubber Products; Wheat Pro-cessed Minerals; Meat And Preparations; Plastic And Linoleum Products

S.A.

U.A.E.

Gems And Jewelry; Plastic And Linoleum Products; Petroleum Basmati Rice; RMG Products; Manmade Cotton And Accessories; Yarn And Fabrics; Manmade Yarn And RMG Cotton And Fabrics; Non-basmati Accessories; Rice; Manufacture Of Manufactures Of Metals; RMG Manmade Metal, Machinery, Fibers; And Metal And And Instru-ments; Preparations Primary And Semifinished Iron And Steel; And Cotton Yarn And Fabrics

FOREIGN TRADE OF THE GCC COUNTRIES INDIA-GCC INVESTMENT RELATIONS:  A number of Indian joint ventures and wholly owned subsidiaries have been approved in

the GCC region.  Major areas of operations include software development services, engineering services,

tourism, readymade garments, chemical products, and agriculture and related activities.

FOREIGN TRADE OF THE GCC COUNTRIES TRADE POTENTIAL: Points are considered when identifying potential export items to the GCC regions:  India's export capabilities, and the commodities being imported by the GCC countries  Commodities for which India has a comparative advantage in global exports  Commodities whose exports to other countries have registered high growth  Commodities for which India has been doing well in other markets

FOREIGN TRADE OF THE GCC COUNTRIES INVESTMENT POTENTIAL IN SECTORS: BAHRAIN

POTENTIAL SECTORS

KUWAIT

Construction; Operation And Management Of Infrastructure Enterprises; Bank And Investment IT And Corporations; Telecommunicat Insurance Comions, Education panies; IT And And Training, Software Tourism, Health Development; Care, And Hospital And Financial Medicines Services Manufacturing; Land, Sea And Air Transport; Tourism; And Real Estate Investment

OMAN

QATAR

Foodstuffs, Chemicals, Petrochemicals, Agriculture Plastics And And Fisheries, Rubber, Metal Manufacturing Indus-tries, , Tourism And Engineering, Trading Education, Tourism, And Health Care Sectors

S.A.

U.A.E.

Water And Drainage; Telecommunication s; Air Transportation And Services; Railways, Roads, And Sea Port Services; Educational Services; Agricultural Services; And Health Services

Information And Communication Technology; Media And Entertainment; Financial Services; Construction And Real Estate; And Travel And Tourism

FOREIGN TRADE OF THE GCC COUNTRIES STRATEGIES TO ENHANCE COMMERCIAL RELATIONS:  Enhancing exports through local partnerships  Focus on trading activities in the GCC region  Cooperation in the banking and financial sectors  Focus on privatization programs  Entrepreneurship development

FOREIGN TRADE OF THE GCC COUNTRIES STRATEGIES TO ENHANCE COMMERCIAL RELATIONS: OTHER MEASURES:  Cooperate closely with development funds to set up projects in the GCC region.  Indian companies can enter into joint ventures and tie-ups with local companies for

contracts in Iraq.  Indian companies/institutions could also explore the possibilities of setting up technical

and vocational colleges and coaching institutes for higher education in the GCC region.  Indian companies can explore the possibilities of setting up IT parks, hospitals, hotels,

and tourist facilities.  Indian companies could also share their expertise in providing software programs and

services for banks and financial institutions in the region.

Kaaba

THANK YOU