Presentation slides from the UKTI Gulf High Growth UK Tour event in Glasgow on 9 June 2014.

1. UKTI
GULF HIGH
GROWTH UK
TOUR
GLASGOW
www.sdi.co.uk
9-13 JUNE 2014
GLASGOW
BELFAST
DURHAM
MANCHESTER
LONDON

2. Keynote Speech
Ian Gibbons MBE
Gulf High Growth UK Tour 2014
Ian Gibbons MBE
HM Deputy Consul General &
Director UK Trade & Investment Dubai

3. UKTI’s mission
• Support UK companies to grow their
business through international trade;
• connect UK business to the world’s top
commercial opportunities;
• attract high quality inward investment
to the UK; and
• establish whole-of-government
relationships with major wealth creators
to increase exports and investment.

4. Routes to Market & SDI Support
Colin Crabbe
Gulf High Growth UK Tour 2014
Colin Crabbe
International Senior Manager
High Growth Markets Desk Middle East
Scottish Development International

5. • Scottish Development International
(SDI) is the specialist inward
investment and trade arm of the
Scottish GovernmentScottish Government
• Single point of contact for all
international business development
needs

6. • Raise the ambition of more
Scottish businesses to think,
compete and trade globally
• Attract investment and talent
International trade
EconomicDevelopment
• Attract investment and talent
which builds on Scotland’s
globally competitive sectors
• Increase the global
competitiveness of the business
environment in Scotland
• Enhance Scotland’s image
globally
Foreign investment
EconomicDevelopment

7. About
Background
Started in 1981
Joint venture:
• Scottish Government
• Scottish Enterprise
• Highlands & Islands
EnterpriseEnterprise
People
230 staff
• 23 overseas offices
• Industry specialists
• Local staff throughout
Scotland
Budget
£36m

8. Supporting Scottish companies in their global growth
Trade
Identify market opportunities and provide
market intelligence
International strategy development
Inward Investment
Collaboration and risk reduction
Identify staff, training, property and
academia
Prepare businesses to do business
overseas
Identify business partners and finance
support options
Facilitate connections and business
relationships
Identify business partners
Potential financial assistance
Dedicated aftercare

9. Sectors
Financial &
Business Services
Energy Oil & Gas
Creative Industries &
Electronic Technologies Food and Drink
Tourism UniversitiesLife Sciences Other Growth Sectors
• Aerospace,
Defence,
Marine
• Chemicals
• Construction
• Forest Industries
• Healthcare
• Textiles

12. Month Events
January World Future Energy Summit – Abu Dhabi
January Arab Health - Dubai
February Gulf Foods - DubaiFebruary Gulf Foods - Dubai
May INDEX International Design Exhibition - Dubai
June UKTI High Growth Markets Tour - Scotland
Sept Dubai FDI visit to Scotland - Scotland
Oct Horizontal Mission
Oct GITEX Technology Week - Dubai
Nov ADIPEC Abu Dhabi International Petroleum Exhibition

13. Thank You

14. Gulf High Growth UK Tour 2014
Panel Discussion
Opportunities & Challenges in
United Arab Emirates, Kingdom of Saudi
Arabia, Qatar, Oman and Kuwait

15. Gula Al Sharafi
Gulf High Growth UK Tour 2014
Senior Trade Adviser
British Embassy, Kuwait

16. Why Kuwait?
• Kuwait is one of the richest countries in the Arabian Gulf region, enclosed by Saudi Arabia in
the south and Iraq in the north. It is the gateway into Southern Iraq which is an important
access point for UK companies
• Kuwait sits on an estimated 9% of the world oil reserves, a high percentage of which are
easily extracted.
• Second – most free economy in the Middle east.
16
• Second – most free economy in the Middle east.
• Trade has doubled over the last 5 years. The UK exported £531 million of goods to Kuwait in
2013. UK exports in the financial, legal and other service sectors are worth around £900m a
year.
• Kuwait Vision for 2035 is to transform Kuwait into a world class Financial and Commercial
Centre.
• Kuwait has just embarked on an ambitious Development plan. UK companies are well
placed to take advantage of opportunities in many sectors.
• Opportunities across a wide number of sectors, including Infrastructure, Transportation,
Energy, Training & Healthcare/Life Sciences, Retail and Finance.

17. Sam Oliver
Gulf High Growth UK Tour 2014
Trade & Investment Officer
UK Trade & Investment,
British Embassy, Oman

18. Why Oman?
• Relationship - UK’s special bi-lateral relationship with Oman. High level
collaborative engagement at ministerial level (to/from the UK)
• UK is Oman’s No. 1 FDI Partner (£3 billion)
• Education - UK is the top 2 destination for Omani students and nearly 20
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• Education - UK is the top 2 destination for Omani students and nearly 20
educational affiliations
• Oman’s aspiration to become Gulf’s logistics gateway
• Opportunities across a wide number of sectors, including Infrastructure, Energy,
Healthcare & Education & Training
• 2 HVOs – Railway and Sultan Qaboos Medical City

19. Gareth O’Brien
Gulf High Growth UK Tour 2014
Director of Trade & Investment
British Embassy, Qatar

20. Why Qatar?
• Fastest growing economy in the world over last 7 years and highest GDP per capita in 2013
• $220bn spend on infrastructure over next 8-10 years in lead up to Qatar 2022 World Cup
and Qatar 2030 Vision
• Third largest proven reserves of natural gas - 13% of world total
• Shell has largest single investment in Qatar - GTL plant at Ras Laffan ($21bn) - their largest
investment globally
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investment globally
• Qatar is UK’s third largest export market in the Arab World, around £2bn. UK export of goods
up 67% in first quarter of 2014
• Large sovereign wealth funds ($200bn) - with investments of £30bn in UK and growing
• Opportunities across a wide number of sectors including Infrastructure, Healthcare,
Education & Training, Security, Transport and Retail
• Four HVOs: World Cup, Rail, Education & Food Security
• A lot of high level interest - 24 ministerial level visits in financial year 2013/14
• Home to 20,000 UK nationals up from 1,450 in 1995

21. Mohammed Shokat
Gulf High Growth UK Tour 2014
Consul General,
British Consulate-General, Jeddah

22. Why Saudi Arabia?
• Saudi economy is the largest in the region.
• UK exports in goods and services worth over £7bn. UK second largest cumulative
investor with over 200 JVs estimated at £11.5bn
• Vast programme to upgrade human and physical infrastructure, with 2014 Budgeted
spending at $228bn
• Key sectors for Govt spending: education, health, transportation, water – all are being
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• Key sectors for Govt spending: education, health, transportation, water – all are being
targeted by UKTI as High Value Opportunities
• In last 12 months, UKTI have helped UK companies achieve a total of just over £1bn
within the HVOs
• Fastest growing sectors in 2013 were the construction (8.1%), transport and
communication (7.2%), as well as the retail sector (6.1%).

23. Rob Kelly
Gulf High Growth UK Tour 2014
Deputy Head of UKTI Abu Dhabi
UAE

24. Why UAE?
• UK’s 12th largest trading partner globally with value of bilateral trade in goods and
services estimated at around £12 billion for 2013-14
• UAE is the Logistical Hub of the Middle East. Dubai has Jebel Ali Port & Emirates. Abu
Dhabi has Etihad & KIZAD. In addition, 36 Free Zones in the UAE make the region one
of the most attractive global entrepots
• Home to in excess of120,000 UK Nationals, approximately 5,000 UK
companies/subsidiaries 1,000,000 UK visitors each year
24
companies/subsidiaries 1,000,000 UK visitors each year
• UKTI provided assistance to approximately 2,000 UK companies considering exporting
to the UAE in 2013-14
• Opportunities across a wide number of sectors, including Infrastructure, Energy,
Education & Training & Healthcare/Life Sciences

25. Case study –
Sharing experiences
Gulf High Growth UK Tour 2014
Roddy Hammond,
Worldteachers Recruitment

26. Coffee Break
&
Networking opportunities
Gulf High Growth UK Tour 2014
Networking opportunities
Sign up for one to one meetings at the
registration desk
first come first served basis

27. Gulf High Growth UK Tour 2014
Panel Discussion
Doing Business and Setting up in theDoing Business and Setting up in the
UAE, KSA, Qatar, Oman and Kuwait
Panelists:
HSBC / KPMG / Pinsent Masons / British Offset

28. Gulf High Growth UK Tour 2014
Finance Considerations
Carlos Guallart,
Export Financial Adviser,
UK Export Finance

29. UK Export Finance - Brief History
29

30. Who we are:
UK Export Finance is the operating frame of the Export Credits Guarantee
Department, which is the UK’s Export Credit Agency
Its statutory purpose is to support exports and investments made overseas
30
– UK Export Credit Agency established in 1919
– We complement, we don’t compete
– We support exporters of all sizes and sectors
– Trade finance and Insurance Solutions Group for smaller exporters and
medium size companies

31. What we do
– Provide assistance to exporters on trade finance and credit insurance
transactions whether in the private market or through UKEF products and
services;
– Provide trade credit insurance to exporters against the risk of non-payment for
31
amounts owed under export contracts;
– Provide guarantees to banks to support working capital financing;
– Provide guarantees to bank to issue contract bonds on behalf of exporters;
– Provide guarantees to banks and issuers in the debt capital markets in respect
of medium/long term loans to overseas buyers who purchase goods and
services from UK exporters;
– Lending directly to overseas buyers who purchase goods

32. What if I need to provide a bond to the overseas
buyer?
32
buyer?
Bond Support Scheme

33. Bond Support Scheme
When you sign an export contract with an overseas buyer, your customer may
ask you to provide a bond from your bank.
There are several types of bonds:
33
• Advance payment bond
• Performance bond
• Warranty bond
• Bid bond
Your bank can help you by issuing the bond on your behalf to the overseas buyer

34. Banks often ask exporters to provide cash to issue the bond and cover the risk
=
Bond Support Scheme (cont.)
However we have to consider two issues:
34
=
Leave small companies without the working capital they need
Banks will limit the total value of bonds they’ll issue for a company
=
You might exceed this limit if you win several export contracts and they all
require bonds

35. Bond Support Scheme (cont.)
How can UKEF help?
UKEF can issue a partial guarantee to your bank
=
Share the risk with your bank
Enables the bank to issue the bond/s without requiring as much of your cash
35
UKEF
up to
80%
Your
bank
20%
Enables the bank to issue the bond/s without requiring as much of your cash
No minimum – maximum value / term
Improves your working capital
Bond

36. How it works? (e.g. £1M Export Contract)
International BuyerUK company
Export Contract
30% upfront payment
Bond Support Scheme (cont.)
36
30% Advance payment bond
20% Performance Bond
10% Warranty Bond
Your Bank £300K
£200K
£100K
Bank will ask the exporter for cash before issuing the bond
£300K £200K £100K
UKEF
Could
guarantee up
to 80% of the
value of the
bond £40£60K £20K £120K
£600K+
+ +
+
=
=

37. – We provide government guarantees to participating banks who issue
bonds on behalf of UK exporters. (e.g. performance, warranty, bid
bonds)
– Specific contract
– Support extends to all bonds related to an export contract (e.g.
Bond Support Scheme (cont.)
performance, warranty, advance payment, bid bonds)
– Covering up to 80% of the bond value
37
Eligibility
– UK based exporter
– 20% Minimum UK content

38. Benefits
– The bank is able to issue the bond
– Sharing the risk with your bank enables it to issue more bonds on your
Bond Support Scheme (cont.)
38
– Sharing the risk with your bank enables it to issue more bonds on your
behalf or to issue a bond without requiring as much of your cash or
collateral
– No minimum or maximum contract values or duration
– Improves your working capital

39. Case Study / J&C Joel
http://vimeo.com/63897556
Bond Support Scheme (cont.)
39
http://vimeo.com/63897556

40. What if I need export working capital?
40
What if I need export working capital?
Export Working Capital Scheme

41. Export Working Capital Scheme (cont.)
How it works?
International BuyerUK company
Export Contract
41
UKEF
Could guarantee up to 80% of the approved
facility
75% of the export contract
Not enough security
Contract is too big
Financial situation
Your
Bank
UKEF
Shares the risk with the bank =
Enables exporters access to finance

42. Export Working Capital Scheme (cont.)
How it works?
We provide a partial guarantee to the bank in order
to increase its capacity to lend you the money you
need to deliver your export contract.
UKEF
up to
80%
42
need to deliver your export contract.
We can guarantee up to 80% of the approved
facility.
The maximum value of the finance must be no more
Than 75% of the export contract’s value
Export contract value
Approved facility
80%
UKEF
up to
75%

43. Export Working Capital Scheme (cont.)
– We provide government guarantees to participating banks providing
trade finance loan facilities to UK exporters to fund export contracts
– Specific contract
– Covering up to 80% of the loan value
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Eligibility:
– UK based exporter
– 20% Minimum UK content
– Finance up to 75% of the contract value

44. Case Study / JDR Cable Systems Ltd
http://vimeo.com/66330861
Export Working Capital Scheme (cont.)
44
http://vimeo.com/66330861

45. How do I protect myself against not being paid
by the overseas buyer?
45
by the overseas buyer?
Export Insurance Policy

46. Export Insurance
– We insure exporters against the risk of not getting paid by overseas
buyers or of not being able to perform a contract due to specific events
(e.g. war, political or economic events)
– Specific contract
How can UKEF help?
– Specific contract
– No minimum contract / Premium starts from £ 250
– All sectors, up to 95% cover
– Not for EU / Rich OECD markets below 2 year risk horizon
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Eligibility:
– UK based exporter / Customer based overseas
– Exporter must have been refused to get insurance from private sector
– 20% Minimum UK content

47. Trade Finance and Insurance Solutions
Bank based schemes / No cost to Exporter
No security required by UKEF
47
No security required by UKEF
Formal application through bank
Insurance policy via insurance broker or direct

48. What if I need Export Finance Advice?
48
What if I need Export Finance Advice?
Free consultation with an Export Finance Adviser

49. Export Finance Advice
– Assist exporters, banks, insurance brokers and intermediaries with
advice and guidance on UKEF products and services
– Assist exporters with applications for UKEF support and liaise with
How can UKEF help?
– Assist exporters with applications for UKEF support and liaise with
banks and insurance brokers as needed
– Provide guidance to exporters in accessing private market trade and
credit insurance, and provide suitable introductions
– Provide free assistance and guidance
49

50. Export Finance Advice (cont.)
50
Carlos Guallart, Export Finance Adviser,
Scotland
Tel: 07580 742533
Email: carlos.guallart@ukef.gsi.gov.uk

51. TAKE YOUR
BUSINESS
FURTHER.FURTHER.

52. Gulf High Growth UK Tour 2014
Closing Remarks
Ian Gibbons MBE
HM Deputy Consul General &
Director UK Trade & Investment Dubai

53. Networking Lunch
followed by 1-2-1 sessions
Gulf High Growth UK Tour
followed by 1-2-1 sessions
Sign up for one to one meetings at the
registration desk
first come first served basis