Boken Final Lowres

“No matter how many buildings, foundations, schools and hospi- tals we build, or how many bridges we raise, all these are material entities. The real spirit behind the progress is the human spirit, the able man with his intellect and capabilities”. - Sheikh Zayed, President of the UAE, 1971-2004.

© FocusOn UAE 2009 International Business Association for Students KTH www.focus-on.se EDITOR Louise Gustafsson AUTHORS Lovisa Corp, Jakob Dehnisch, Kristofer Dreiman, Louise Gustafsson, Many days have passed since we first started off this project and our journey to- Per Nordqvist, Andreas Takanen, wards the unknown. Looking back, this journey has been something extraordinary Harde Kader, Lydia Lilja, in many ways for all of us. Not only have we experienced a new country and its Michel Thomas culture. We have also learned a great deal about ourselves and the importance of working together as a team. During our stay in the UAE we visited some of the world’s most impressive sites, had inspiring meetings with people and gained GRAPHIC DESIGN experiences that will last a lifetime. Yet, we would never have come this far if it Per Nordqvist was not for all the hard work put in to this project by its members and by the help Lovisa Corp of others. We are all truly thankful for the opportunities that have been given to us and grateful for being part of this year’s project, FocusOn UAE 2009. PHOTOS We would like to thank all the people involved in this project for their support Members of FocusOn UAE 2009, and efforts. Without them the project would not have been possible to realize. Embassy of the UAE in Stockholm A special thanks to all our project partners and our supervisor Professor Gunnar Benediktsson, for giving us the responsibility to run this year’s FocusOn. PRINT Members of FocusOn UAE 2009 Swepo Grafiska 3

Introduction F ocusOn is a yearly international student project ¬at the Royal Institute of Technol- ogy in Sweden. The project is carried out by nine dedicated students, with different backgrounds and experiences, close to re- ceiving their Master’s degree. The project is conducted as a course with the excep- tion that responsibilities normally handled by the faculty rest upon the students. This includes setting up course goals, adminis- trating the work, finding project partners and finally presenting the result at a fair and through a book. The first project, Project Brazil, was realized in 2001, and since then a new project has been initiated each year to find its In order to acquire valuable experiences destination in different countries around the and to fulfil our objectives, we conducted a world with a new challenge and a unique study visit to the UAE in June 2009. While aim. The different projects have brought in the UAE, our stay was fairly straightfor- fantastic insights about business climate, ward. We arrived with curiosity, unwritten cultural experiences and ongoing busi- notebooks and a hope to find answers to ness projects in various regions. FocusOn our open-ended questions. Our aspiration has also been an important opportunity was to discover what the country would for the participating students to improve bring upon us. We gathered valuable in- their entrepreneurial skills and likewise to sights about the country and its conditions encourage relations between students and by visiting construction sites, universities, the business community. Even though the entrepreneurs, officials and several differ- specific aim of the projects has been different companies in the region. ent, the main purpose has always been to go beyond the boundaries of nations and Throughout this book, we will provide the to enhance the understanding among stu- reader with what we think have been the dents for different cultures and regions in most valuable insights from our journey. the world. Hence the aim of this book is not to provide a complete report about the UAE - The objective of this year’s project has been rather it is a book about the experience to achieve an enhanced understanding of and discoveries we have made throughout the business climate in the UAE, along our journey. Some may ask: why the UAE? with exploring business and work oppor- Although it is an interesting question we tunities in the country for young Swedish do not intend to go through it here. The engineers. We also sought to examine dif- answer is far too extensive and would not ferences and similarities between the UAE fit on this piece of paper. Instead we hope and Sweden to achieve a more compre- you will find your answer to that question hensive understanding of the country. by reading this book. Enjoy! 4 5

The story and the background of the FocusOn-project next step was to invite companies to join the D uring the academic year 2000-2001 one of the students of the Engineering Physics project as partners or sponsors and there was a close contact with the Brazilian Embassy in E Z program of KTH, Björn Hedström Modée, was an exchange student in Brazil. He had been highly involved in the student activities of the Stockholm, a contact of essential importance. The main aim of the project was to study technology transfer from subsidiaries of Swedish World Leaders in program and made use of his social skills to es- companies in Brazil. After having visited Bra- tablish a lot of contacts during his stay. At that zil the group wrote a report about the project time I was Director of undergraduate studies of and organized “Dio do Brazil”, which can be Sandwich Composite Solutions the Engineering Physics program, and I normally kept an e-mail contact with the students while summarized in two words: Great success! they were abroad. In our correspondence The success stimulated the interest among I find the roots of what later on, i.e. in Sep- other students to continue on the same path, tember 2001, after discussion between Björn and next year we had a project where the Modée and Finn Lennartsson, who met in a main goal was to study the implications of course in advanced problem solving, evolved JAS-export to the Republic of South Africa. The into the idea of starting a student project of a group that went to RSA in 2003 consisted of new kind. It was an autonomous student proj- six students from Engineering Physics and four Reducing manufacturing costs and improving to offering this level of worldwide support and ect, under the guidance of me, but without my students from other programs. In the next proj- quality is central to the way that DIAB works with supply chain security. A proven range of high involvement in planning or performance of the ect, where the students went to Mexico, the its global customer base. With 17 strategically- performance cores and an extensive series of project. We decided that we would limit the interest from students from other programs had located operations, DIAB is in a unique position to value added services, means that DIAB is able to number of members to ten students, and the increased immensely, so there were five stu- support its customers wherever they are located. truly partner with its customers in all aspects of the group was created in a short time, with nine dents from other programs than Engineering No other core materials manufacturer comes close manufacturing process. students from Engineering Physics and one Physics. This trend continued in the following student from Engineering and Business Man- projects that went to India, Brazil (II), Argen- agement. Björn Modée and Finn Lennartsson tina and RSA (II). The RSA II group created a cores kits processing engineering training acted as Project Managers and my role was logo in order to give a common identity to all more of a consultant and discussion partner projects under the name of FocusOn. www.diabgroup.com and of course the contact person at KTH. Both I and Professor Göran Grimvall, who was re- It has been a great pleasure and I sponsible for the educational program of Engi- am very proud of having had the op- neering Physics, agreed to accept the project portunity to be involved in all these DIAB_FocusOn_Ad.indd 1 9/9/09 11:16:48 as a part of the educational program and it projects as well as the project of this was listed as a course giving credits towards year, reported in this booklet. I an engineering degree. The President of KTH, hope this kind of student ac- Professor Anders Flodström, also gave his tivity may continue for many moral, and even some financial, support. The years to come. GUNNAR BENEDIkTSSON Lecturer Emeritus Department of Theoretical Physics 6 7

36 64 79 81 CONTENTS INSPIRATION The Masdar initiative 64 Formula 1 – Grand Prix on Yas Island 68 From Kumla to Abu Dhabi 71 Sara Svedjedal 74 Introduction 5 Thomas Widegren 75 UNITED ARAB EMIRATES LIVING IN THE UAE Geography 12 Things to see 78 UAE – Past and present 15 The Culture Clash 87 Future of the UAE 29 Guidelines for living in the UAE 88 BUSINESS THE PROJECT Business in the UAE 37 Our travel diary 92 Career opportunities 45 Project Members 96 Financial Markets in the UAE 52 Partners 101 The Higher College of Technology 58 Special thanks 103 8 9

The UniTed ArAb emirATes is A smAll coUnTry consisTing of seven emir- ATes. in The middle eAsT, where eAsT meeTs wesT, The coUnTry hAs TrAnsformed from sAnd To A globAl hUb. fUTUrisTic bUildings, AmAzing projecTs And incredible plAns Are The fUTUre of The UAe. iTs AsTonish hisTory is worTh reAding AboUT As well As iTs coming fUTUre. 1. UNITED ARAB EMIRATES

Geography The UAE is strategically located in the Middle East region near the transit points for world crude oil. The country has sea borders towards the Gulf of Oman and the Persian Gulf. Its land borders stretch against Oman, Saudi Arabia and also a small part of the land border with Qatar. Abu Dhabi, the largest emirate, accounts for 87 per cent of UAE’s total area. The country has at the moment a 700 km long coastline. However, it is increasing due to several inventive projects in Dubai like the Palm Jumeirah. There are about 200 offshore islands, some bordering on Iran. Iran consequently fully annexed some of them in 1992, and this has been a source of ongoing dispute between the countries. The country’s topography varies, although the largest part consists of desert. The climate also varies between the coastal regions, the deserts and the mountainous areas. UAE’s climatic conditions are strongly influenced by the Indian Ocean. The climate is generally hot and dry with temperatures reaching above 45o C in July and August. The temperature in January and February can drop down to between 10oC and 14oC. During the late summer months, a humid southeastern wind known as the sharqi makes the coastal region especially unpleasant. The average annual rainfall is less than 120 mm in the coastal area. In some mountainous areas annual rainfall can reach 350 mm. The winter season accounts for the largest volume of rain. The most frequently occurring natural hazards in the region are sand and dust storms. The lack of natural freshwater resources is being overcome by modern desalination plants. However, these plants are not always the most environmentally friendly ones, accused of spreading toxic ele- ments into the ocean. Desertification of land, and beach pollution from oil spills, are examples of other environmental issues. Comparison UAE-Sweden Sweden UAE 12 UNITED ARAB EMIRATES GEOGRAPHY 13

UAE PAST AND PRESENT 1. History and development T hroughout history, the geographic region that today forms the United Arab Emirates (UAE) mostly consisted of sand and small villages. Bedouins have lived there in scattered tribes for approximately 5000 years. The small scale tribe societies survived on what the surroundings offered, and from time to time tribes were in conflict with each other. When new irrigation techniques were invented it became possible to create agricultural areas, which resulted in an expansion of settlements. The region has since then flourished during different periods, influenced by trade and conflicts. Foreign trade started off with caravan traffic, focusing on trade with camels and minerals. It continued by seaborne travel to India during the Roman Empire. Seafaring was then a mainstay for a long time. The southern coast of the Persian Gulf and its sheikhdoms was converted to Islam in the seventh century. For centuries to come, the coastal region was embroiled in disputes and became known as the Pirate coast. Parts of UAE also came under the influence of the Ottoman Empire in the 16th century. Further on during the 16th century, the Portuguese started to use the ports along the coast for trading and also for regional supremacy. This ended up in rivalry with the Ottoman Empire. The Portuguese were followed by other European countries such as the British Em- pire. The British also became involved in conflicts with the local rulers. After intense naval battles at the beginning of the 18th century the British signed a number of treaty agreements on maritime truce with the local sheikhs. The following relative calm at sea promoted 14 UNITED ARAB EMIRATES UAE – PAST AND PRESENT 15

1962 First export of oil from Abu Dhabi Historical moments in the United Arab Emirates 630 ad 1930 Collapse of the natural pearl market; Arrival of envoys from the Prophet first agreements signed by rulers of Mohammad and the start of Dubai,Sharjah and Abu Dhabi for oil converting people to Islam exploratation 0-250 ad 1968 The British government announced its intention to Extensive trade network along the Gulf linking the Mediterranean, Mesopotamia and India withdraw from the Gulf region, which was followed by discussions of forming a federation of the emirates 1300-300 bc Introduction of new irrigation technology followed by an expansion of settlements; 1820-1864 Publication of the first accurate charts and maps of the Gulf area 1971 use of iron and evidence of writing, using South Arabian alphabet 2500-2000 bc 1800-1820 Formation of the State of the United Arab Emirates Trade connections with Mesopotamia; first use of copper resources 1498-1600 Portuguese circumnavigation by Vasco da Gama using Arab navigation information; followed by Repeated English East India Company attack on Qawasim navy; general treaty of peace between the British government and the main Qawasim sheikhs of Ras al-Khaimah, Ajman, Sharjah, Dubai and Abu Dhabi 5500 bc rivalry between Portuguese and Ottoman in the Gulf; first detailed description of the coast of UAE 1720 1764 Sharjah and the UAE east coast under the control of Qawasim, 2004 Evidence of human settlements in UAE Growth of English trade in the Gulf and increasing Anglo-Dutch rivalry a federation of tribes originally from the Oman coast Growth of English trade in the Gulf and increasing Anglo-Dutch rivalry the pearling industry. Pearls had been exploited for centuries, but also insisted that the resources of the country should be used for pendence on the federal budget. Another challenge is that UAE’s for development and problem solving. it was now the trade thrived and provided the local people with the benefit of the people. Zayed aroused others enthusiasm and population size is 25 times larger than when the federation was both employment and income. However, in the 1930s the pearl personally funded small-scale development programmes such as created. At the same time, the native population has decreased to Another emerging challenge is how to keep the country and its market collapsed because of the depression and the Japanese building of modern schools. Income from the oil export suitably around 10-20%. This is a great challenge for the leaders, and part people together in the future. The difference between just one or invention of the cultured pearl. In 1968, the British announced provided the means to fund the rapid development. of the solution has been to create an advantageous system for the two generations is immense. Two generations back, most natives their intentions to withdraw from the Gulf region. This was part native population. As an Emirati you receive e.g. free education, where Bedouins living in tents, using camels for transportation in of the decolonization influences of that time but also because of Today the country consists of seven different emirates, each with a housing and healthcare. the surrounding desert. Today, their grandchildren can take advan- economic strictness. One of the sheikhdom leaders, sheikh Zayed, great degree of independence. When UAE was created, many of tage of the rapid development, and they use all modern facilities, then saw the opportunity of establishing closer ties between the the smaller emirates saw themselves as vulnerable. They needed Culture and identity maybe having a luxury villa and fancy cars in the garage. Many neighbouring emirates. What also contributed strongly in uniting the federation both for development and protection. The pride in Today UAE is still very much based on traditions from the historical claim they enjoy the advantages from the country’s growth but not the emirates was the large scale oil exploration that started around one’s own emirate is still greater than the one for UAE as a country. tribe society. The culture also evolves around Islam and traditional the cost of social and cultural change. The economic downturn 1970. The federation to be known as the United Arab Emirates Further, being a successful professional in one emirate does not Arab culture. UAE is a liberal country compared to the rest of the can be an opportunity to strengthen their customs by a reduced was formally established on 2 December 1971 with sheikh Zayed guarantee advantage in the other ones. In that way, the harmony countries in the region, and this is explained by the unique socio- number of foreigners coming to the country. The leaders also need as President. between the emirates is still under development. The emirates are economic conditions. The culture has changed in line with the to provide the younger generations with the traditional culture in Unlike other countries in the region where oil money has ended at the same time very different from each other, and the income development and arrival of other ethnic groups and nationalities. order to familiarise them with the ways of their ancestors. Ways up in leaders’ pockets, UAE has managed to develop the country. differs largely within the country. The development within them has Today the tribe still constitutes an important part of the country’s to solve this is through education for both boys and girls. Many UAE´s modern development is said to be a result of sheikh Zayed’s also depended on the local leader and the given resources. Dubai ruler ship. The society is built up by a transfer of people that can families behave in a traditional way in-house but when at work leadership and his visions for the country. He travelled the country and Abu Dhabi are the two dominant emirates, and they go their contribute to the development; those working in the UAE work for they are part of the globalised world. The integration of women in and thereby got to know its people and their needs. His visions own way since they have the resources. The other five emirates the Emirates and their local leaders. This is in line with the thoughts businesses and government is very much decided within the family were then formulated to achieve the wishes from the people. He bear the stamp of limited resources, meaning lack of oil, and de- of the old tribe society. The sheikh and his family were responsible and at its own pace. 16 UNITED ARAB EMIRATES UAE – PAST AND PRESENT 17

Sheikh Zayed bin Sultan Al Nahyan Sheikh Zayed was born 1918 in Abu Dhabi. He was one of four sons of Sheikh Sultan, the ruler of Abu Dhabi between 1922 and 1926. Zayed travelled around the UAE to gain an understanding of the country and its people. He was first chosen as ruler representative in Abu Dhabi’s eastern region. His first task was to stimulate the local economy, formulate a visionary city plan and plant trees in Al Ain. He succeeded on bringing progress and in 1966 Zayed was named ruler of Abu Dhabi and a few years later also president of the UAE. Zayed was reappointed presidency four times and president for more than 30 years. 2. Political System Administratively, the UAE is a loose federation, and the federal One of the initiatives was the launching of a UAE Government power has developed slowly. This is due to the historical back- Strategy covering 21 topics such as social, economic and public ground before the federation, when institutions of government sector development. already existed in each emirate. The rulers agreed to sign a pro- visional Constitution in 1971 to provide for effective governing Another fundamental reform initiated was designed to enhance the of the UAE. Still, the constitution assured considerable power for public’s participation in the government. The first step was carried each emirate and also control over natural resources. This provi- out in 2006 through indirect elections to the country’s parliament, sional solution lasted until May 1996 when the UAE Federal Su- the Federal National Council (FNC). What earlier had been the preme Court approved some new modifications, making it perma- case was that each FNC member was appointed by each ruler. nent. At that moment, Abu Dhabi was also proclaimed the capital Now instead, each parliament member was elected by members of the federation. The current Council of Ministers, including the of an electoral college established by each ruler. This initiative is prime minister and the group of ministers, was appointed in 2008, designed both to make the government more responsive to the according to the proposal of the Vice President and Prime Minister needs of the country’s population and to ensure that it is better HH Sheikh Mohammed bin Rashid Al Maktoum. equipped to cope with the challenges of development. The incentives are being implemented by the Executive Councils of each Despite the massive economic growth and the social dislocation emirate. Questions have been raised whether a western gover- caused by the growing population of the UAE, the state has en- nance model like democracy will be suitable in a tribe culture. joyed political stability largely due to marrying the traditional to Over time, issues between parties have been solved through coun- the modern. This enabled the country to develop a modern admin- selling and direct dialogue with the local leader. Personal relations istrative structure while ensuring that the traditions of the past are are very important, and what form of democracy UAE will adapt maintained. However, everything can be improved, and recently is still under development. The country does not want to end up in steps have been taken to reform the structure of the government. disorder like some neighbouring countries. The country’s development is carefully planned Development in the the desert; construction of with great visions and Master Plans. Abu Dhabi city in the 1970’s. 18 UNITED ARAB EMIRATES 19

year 1980 1985 1990 1995 2000 2005 Millions of 109,833 100,4 123,541 157,144 259,247 491,265 In 2006 the UAE had 15-25% of the world’s building cranes. This reflects the massive effort that was put on diverse the 3. Economic Development GDP countrys income from oil and gas. The turbulence that impacted the global economic system in 500 2008, also affected UAE’s economic performance. Accordingly, 400 it is interesting to grasp the latest economic developments. One Millions of AED lesson learned was that with integration of global markets comes, 300 apart from opportunities, also vulnerability. Events in one part of the world affect economies throughout the world. The UAE’s GDP 200 growth in 2007 was 5.2 per cent, compared to 11.5 per cent in 100 2006. Estimates for 2009 vary from zero growth up to 6.9 per cent. Despite a stagnated global economic growth, UAE sustains 0 the future position as one of the fastest growing economies on a 1980 1985 1990 1995 2000 2005 global scale. In fact, UAE is now the second largest trade nation in Year the Arab World. This is impressive due to the fact that the country’s population only constitutes 1.4 per cent of the total Arab population. UAE’s main trading partners, import and export combined, are all in Asia. Top of the list is Japan followed by China and India. UAE is also the third most important re-export centre in the world after Hong Kong and Singapore. As one of the world’s largest suppliers of crude oil, the country initially benefited by last year’s high oil prices. Most of the crude oil and almost all gas are exported to Japan. When the recessionary cycle took place, the price of oil halved. The economic change was however not solely due to the value of oil and gas. The non-oil sector performance was equivalent to 64.1 percent of the country’s overall GDP. For Dubai, the non-oil sector is even larger, and the recession has affected the emirate even more. With high debts tional laws are not applicable within the free zones. Instead, the Even if the non-oil sectors today have a significant impact on the Loading depot for Star Oil in Jebel Ali free- and the financial system’s lack of capital, many projects ran out of free zones have their own laws and courts. By clear and simple economy, the importance of oil and gas is still strong. However, zone port. UAE currently holds the worlds sixth money when banks and other institutions cancelled their loans. To- largest oil reservs and the leaders estimate that standards, companies are eager to establish their business within in times when the debate centres on sustainability and renewable day Abu Dhabi contributes around 60 % of UAE’s GDP and Dubai they will last for about 100-150 years. the different zones. energy, the dependence on fossils is expected to decline. These 30 %. Abu Dhabi is also both the largest emirate and oil producer. challenges are also dealt with in the emirates policy agendas. In The other five emirates equally share the remaining parts of GDP. The importance of diversification different ways, the government focuses its resources to increase Diversification of the economy has become synonymous with future the importance of the non-oil sectors. In the last four years, support Fixed investments in the UAE are the main drive of economic sustainable growth. From the establishment of the state in 1971, was given to more than 1000 projects. The latest technologies growth and employment creation. Investments are made across a diversification has been the focus in government policy and for and modern facilities are being developed to feature a new manu- wide range of sectors with private sector investments accounting the country’s leaders. Since the new federation to a great extent facturing basis. As an example, construction of water desalina- for the largest rate of total investment. There are four primary sec- was funded by oil and gas sales, investments were initially made tion units, aluminium smelters and steel fabrication units are being tors attracting investments. These are hydrocarbons, manufactur- in hydrocarbon and energy industries. Today, UAE’s most impor- carried out. Sectors like chemicals, metals and minerals, textile ing, transport and communications, and real estate. Just over the tant non-oil sectors affecting the economic growth are: construction and clothing, pharmaceuticals, and jewellery will utilize these new last years the UAE industry profile has gone through considerable and building, manufacturing and industry, real estate, the financial plants. It is, though, important to understand that the significant adjustments. Focus is nowadays on high technology with emphasis sector, and tourism. When travelling through the country, especial- natural resources is the means by which diversification can be on knowledge-based industries. ly Abu Dhabi and Dubai, one can easily observe the economic ac- achieved. Image: Chopper Shoot tivity looking at all building cranes, actually making up one of the Except in the free zones, UAE requires at least 51% local citizen highest concentrations of building cranes in the world. In 2010, UAE also has a strong focus on transportation in its strategic plans. ownership of all businesses operating in the country. This is part UAE is expecting to attract 11.2 million tourists. This contributes to Ports and airports have been developed in combination with the of the strategy to place emiraties into management positions. Na- strengthening the development of the hotel and hospitality industry. development of own shipping and airline companies. The aim is 20 UNITED ARAB EMIRATES UAE – PAST AND PRESENT 21

Burj Al Arab Burj Al Arab is a famous luxury hotel dominating the skyline of Dubai. The iconic hotel rises 321 meters above the artificial island it is standing on, creating a landmark for Dubai and the UAE. to become a major transportation hub between Europe and Asia. UAE’s financial sector is also of growing importance. As a difference, Abu Dhabi’s industrial base is more dominated by large scale projects in comparison with other emirates where more focus is on smaller enterprises. See section below for an outline of Dubai and Abu Dhabi’s solutions. Dubai and Abu Dhabi Dubai has for a long time differentiated itself from the other emirates by being a local trade centre, especially with Iran. When oil was discovered in Dubai one realized that it would not last for long. With this understanding the leaders of Dubai travelled the world and realized that Dubai should be a trading point like Sin- gapore. 30 years later this is what Dubai has become in the Mid- dle East. It is a stable trade centre in a region that in many ways is turbulent. This has attracted many companies and contributed to the success story of Dubai. The emirate has also established different free zones were more than 6500 companies are established. Today Dubai is a centre for financial services, logistics, tourism and a hub for companies’ regional operations. The input from the oil and gas industry is only 3 per cent. Abu Dhabi has until recently had a more moderate development philosophy. Development shall come in a way that is manageable for the people. Some claim that it has been a too slow development, for the resources have been available. When sheikh Zayed died in 2004 and his 19 sons spilt the legacy, a rapid development took place. The emirate is now implementing several strategic plans with focus on industrialisation and tourism. However, with over 90 per cent of UAE’s oil reserves and likewise large gas reserves, the export of these raw materials will still play a significant role. In addition, Abu Dhabi wants to increase the production of refined and semi-refined products. With these initiatives, Abu Dhabi wants to create a society that is sustainable the day their sources run out. Another area of growing importance for Abu Dhabi is tourism. The emirate is currently undergoing a re-branding and has launched dozens of tourist attracting projects, which will be described later on. 22 UNITED ARAB EMIRATES 23

4. Overseas investments as part of the economic strategy State owned companies and funds have been set up to make strategic investments globally. These overseas investments are part of the country’s economic strategy and much attention was given to diversifying the way assets are being invested. The aim is to bring long lasting benefits to UAE and ensure a safety net for future generations when the country’s energy resources run out. Interestingly, much of what is happening in the UAE economy is linked to these funds and associated companies. The investments include, among other, ownership in large multinational companies and those of interest for future global challenges. During the last years an intense discussion has taken place regarding global financial goals and political intentions with these sovereign wealth funds (SWF). A series of discussions were arranged to cool political nerves and build bonds between the UAE SWF’s investors and the countries they where investing in. Abu Dhabi has eight such SWF’s, and Dubai has several others. Some of them will be listed and described below. Mubadala Development Company: Emirates Airline Mubadala is solely owned by the Abu Dhabi government. The company is focusing on devel- Presently it is the world’s seventh largest airline in terms of oping a diverse portfolio of commercial initiatives. It manages approximately US$ 10 billion international passengers. The Emirates Airline has impressive in regional and international investments and functions as a catalyst for Abu Dhabi’s strive expansion plans. In autumn 2008 they had 288 new aircrafts towards economic diversification. Mubadala is an important player in local initiatives such on order, among them the new double-decker Airbus 380. Emir- as the Abu Dhabi Future Energy Company, the company behind the clean-energy Masdar ates fly to over 100 destinations in 62 countries. It flights account Initiative. It also owns a majority in Dolphin Energy, a company pumping gas from Qatar to for 40 per cent of all flight movements in and out of Dubai Interna- Abu Dhabi. Further, Mubadala also has a 50 per cent ownership in Emirates Aluminium, tional airport. For the financial year 2008 the net profit increased which is building the world’s largest aluminium smelter. Finally, Mubadala and General by 54 per cent to US$ 1.36 billion. Electric (GE) agreed in 2008 to form a global partnership encompassing initiatives including finance, clean energy, R&D, aviation and corporate learning. Abu Dhabi Investment Authority (ADIA) ADIA’s mission is to maintain the prosperity of Abu Dhabi through Abu Dhabi Ship Building (ADSB) sound management of the emirate’s investment assets. This institutional ADSB is a UAE public joint stock company listed on the Abu Dhabi Securities Ex- investor was established in 1976 and manages holdings across differ- Emirates Airlines is the fourth biggest change (ADX). 10 per cent of the company is owned by the Abu Dhabi government, ent sectors. It does not seek an active role in the companies it invests in. carrier in the world in terms of scheduled international passenger-kilometres flown. 40 per cent by Mubadala, and 50 per cent by 6000 UAE national shareholders. ADSB is the largest major shipbuilder in the region and has an order book worth US $681 million. Following its establishment in 1996, ADSB has evolved from Jafza Jebel Ali Free Zone retrofitting vessels into building new craft from steel and aluminium, and most Jebel Ali Free Zone (Jafza) is one of the largest and fastest growing free recently carbon fibre composite. It is the only naval shipyard in the Middle East zones in the world. Jafza companies contributed 77.60 per cent of Dubai’s providing both building and support to services for naval vessels in the region. non-oil foreign trade figures in 2007. It offers business and tax incentives to corporations and serves Dubai Port, which ranks ninth in the world in terms of container traffic Dubai World Dubai World is a contributor to Dubai’s global investment programme. It plays a major role in the economic growth of the emirate by investing in International Petroleum Investment Company (IPIC) four strategic areas: transport and logistics, maritime, urban development, IPIC is wholly owned by the Abu Dhabi government. It has been established and investment and financial services. Their portfolio contains world known to invest in the hydrocarbons and related sectors outside of Abu Dhabi. IPIC companies and recognized projects. It includes the Economic Zones oversee a diversified portfolio of petroleum assets that includes exploration and World (EZW) which is operating free zones around the world. It also has production rights in 11 countries. It does not participate in the day-to-day man- ownership in Nakheel, which is the property developer behind projects agement of companies it invests in, except in exceptional cases. IPIC typically such as The Palm Island and The World. targets a significant minority equity participation level of 25 to 40 per cent. 24 UNITED ARAB EMIRATES UAE – PAST AND PRESENT 25

5. Workers conditions UAE has no industrial tradition, and it is a country that is developing at a rapid rate. The speed is realized due to the many guest workers coming to UAE. They often come to UAE to seek better possibilities than in their home countries and thus on a voluntary basis. As a result of the rapid development, the demand for workers is large. When recruited, many workers do not even have an industrial background. Those firms recruiting from India, the Philippines and China have taken less or non responsibility for their workers. What has been promised has not been fulfilled, caus- ing a lot of problems for the workers. One problem is that they do not receive any salary or receive it later than promised. Another problem is longer working hours than expected, or that the housing standard for workers is rather poor, sometimes without functional AC and fans. Fundamental to all these problems in UAE is the lack of proper legislation regarding human and workers’ rights. The multinational companies are in general good regarding these types of responsibilities. Measures have been taken to deal with the problems, and an ongoing dialogue with sender countries is seen as an important step. Further, electronic payment systems are being in- stalled, and housing standards for workers are being implemented.

Future of the UAE Burj Dubai The building, costing 20 billion USD, will be the world’s tallest residential building with its height of 818 meters, 160 habitable floors, and a total floor area of 334.000 m2. The exact height is not yet announced in order to enable last minute justifications to outgrow competitors. The groundbreaking took place in September 2004 and it is estimated to open late 2009. It has beaten several records during the construction, among them the record for the building with most floors (160 floors), and the record for the longest and fastest elevator. W hen Sheikh Mohammad bin Rashid Al Maktoum was given the responsibility for the oil sector in the 1990’s he realized the importance of diversifying the single-tack economy. During the coming years, a vision for Dubai was formed and later also a plan for the nation of UAE. The development of the UAE is a fast paced movement, and the long term future visions are fulfilled and evolved rapidly. The ten year plan, announced by Sheikh Mohammed in the year 2000, was realized in half of the time planned for it. The current vision, Dubai’s strategic plan (DSP), is well on its way. But the economic development of Dubai is not unaffected by the financial crisis; many of the initiated projects have been put on hold during the crisis. The government officials belittle the economic crisis and say that it is only temporary and that the market will stabilize within a couple of years. The critics, on the other hand, counter the calm- ing words from the officials and identify the crisis as only the start and foretell the situation to get worse. In the long run though, even the critics agree, Dubai will be saved by its huge container trans-shipment business, its airline (the Emirates), the tourism, the aluminium smelters, its role as a regional hub and of course by a little help from friendly neighbours. The UAE is not only facing the challenges of the world wide economic crisis, it also faces difficulties on a national level. The gap between the different emirates is increasing. Abu Dhabi and Dubai are becoming richer and the development in the northern emirates gets left behind, so that other emirates than Dubai and Abu Dhabi are rarely mentioned in the news or official reports. Another challenge for the UAE in the future is the fact that there are relatively few UAE citizens living in the country; exact figures are hard to find but the UAE nationals are less than 20 % of the total population. The rest of the population consists of foreign guest workers and expatriates. Since the UAE is completely dependent on foreign Image: SOM labour, this is likely to create problems in the future when better conditions for the guest workers are demanded. 28 UNITED ARAB EMIRATES FUTURE OF THE UAE 29

What is the future of Dubai? Several visionary projects are planned in the future for the UAE. The projects are driven by the Sensational projects in Dubai and ruler’s will to diversify the economy beyond the ...and what about Abu Dhabi? Abu Dhabi oil towards a sustainable development. Image: Nakheel The industry sector is the fastest growing indus- The main reason for Dubai’s fame is without a The DSP is developed for five sectors: economic trial branch in the UAE. The main reason is the doubt its sensational construction projects. In development, social development, infrastructure, vast investments in steel and iron industries in 2006 Dubai employed more than 25% of the land & environment development, security justice Abu Dhabi as well as the focus on petrochemi- world’s construction cranes, and there was liter- & safety and government excellence. In other cals. Oil and gas are the only natural resources ately no limit to the mind bending projects. Bear words: Dubai’s major focus is and will continue available in the UAE, which gives the country in mind that most of the cranes today are put on to be on the tourism, trade, transport, construc- very cheap energy. As a result of the energy sup- hold and that many of the planned projects will tion and finance sectors. Along with these fo- ply the country is focusing on energy intensive not be realized or are severely delayed, includ- cuses there is also progress with an increased businesses. ing the projects described here. democratization process. Dubai’s latest project, to secure its position as the finance stronghold Abu Dhabi recently announced an ambition to Where Dubai focuses on the family & beachside of the Middle East, is DIFC, Dubai International become a global capital of the future. To be able luxury tourists, Abu Dhabi wants to induce the Financial Centre. to realize that plan they are focusing on sustain- tourist to become more interested in the fine arts able development and economic diversification. and culture. Furthermore, Abu Dhabi which has To be able to keep up with the continuously The economic diversification will be implement- had a more moderate development and has a growing city, Dubai is planning some major in- ed through a knowledge economy supported secure economy due to the large oil reserves, frastructural improvements. A metro, stretching all by private investments and strong public-private also faces a more stable future. The initiated and the way from Dubai to Abu Dhabi, which will partnerships. planned projects in Abu Dhabi are therefore also be the world’s longest automated rail system, is more likely to be completed. The World currently under construction and will soon be fin- One great example of the new initiatives in Abu The World project covers an area of ished. The launch of the first stage of the metro Dhabi is Masdar City. Masdar will be the cen- In UAE the distance between idea and action nine times six kilometres. The islands will be in September 2009. forming the world map will all have tre of a great number of clean-tech companies is not very long. This, combined with great vi- different themes. All of the islands and a centre for post-graduate education in re- sionary skills and a big portion of courage, Dubai International Airport, the world’s sixth busi- forming North America will become a newable energy and sustainable technologies. makes the development pace extreme, and it resort named Coral Islands. Brunei and est airport 2008 with the astounding traffic of Finland will be fashion themed resorts, Masdar is both an initiative for education and allows amazing projects, such as Masdar and 37 million passengers considering it only has while Greece will be the private development within the sustainable energy sec- Burj Dubai, to come true. This kind of risk tak- two runways, will soon be accompanied by the island of Tommy Lee and his girlfriend tor, and also a city based on renewable and ing and a fast internationalization also makes Pamela. Although 60 % of the islands Al Maktoum International Airport. The new air- sustainable principles. the economy very sensitive to sudden changes, are sold the development is right now port will be situated near Jebel Ali port and it will on hold and it is uncertain whether it e.g. the economic crisis dominating the world have six parallel runways. will be finished or not. Abu Dhabi is not only investing in green energy; today. It is important to remember that the UAE is the country also has the ambition to use nuclear an autocracy, and everything happens with the power for energy production. 25 % of the total will of the Sheikh. It can be stated with certainty energy consumption is planned to be produced that many more amazing projects are bound to by nuclear power in the future. To realize the emerge from the UAE. ambition, six new nuclear power plants will have to be built. The cost of building them would in rough numbers be US$ 30 billion, which is twice the budget of the whole Masdar initiative. The reason for nuclear power to be so interesting for a country like the UAE with enormous energy reserves, the oil, is that they are short on the preferred fuel for the power generators. Another reason is to be able to maintain the low energy prices for the energy demanding industries. One Nakheel Tower of the greatest challenges of introducing nuclear Even before the completion of what is power is the reaction from the rest of the world, supposed to be the world’s tallest building, Burj Dubai, approximately 800 meters high, primarily the US, taking into consideration UAE’s the Nakheel Tower in Dubai has been an- neighbours, such as Iran, hungry for materials for nounced with a target height of more than making nuclear weapons. 1200 meters. 30 UNITED ARAB EMIRATES FUTURE OF THE UAE 31

Yas Island guggenheim Yas Island is the biggest initiative realized in Abu Saadiyat Island Dhabi. It will be an island for tourists with attractions Saadiyat Island, Arabic for “The Island of happiness”, like Ferrari World, a world class F1-track, Warner will be the centre of cultural institutions e.g. Guggen- Bros Movie World etc. Yas Island is right now under heim, the Louvre and museums about Emirati culture, in construction and it demands the labour of 70.000 Abu Dhabi. World famous architects like Jean Nouvel, construction workers. and the London-Arabic superstar architect Zaha Hadid ferrari experience are right now designing the buildings for these cultural institutions. Book your tickets to the UAE for 2018, because this is when this amazing project is planned to be completed. performing arts centre louvre maritime museum formula one track the yas hotel 32 33

The UAe is A growing economic hUb And iT ATTrAcTs differenT brAnches And compAnies To The region. excellenT condiTions, sUch As TAx free environmenT, Are The reAson why yoU cAn find world leAding compAnies here. There Are A considerAble nUmber of opporTUniTies for everyone, especiAlly engineers, in The region. enrich yoUrself by reAding This chApTer AboUT The exciTing work life And The compAnies AcTive in The region. 2. BUSINESS

Business The Emirates Towers dominate the skyline of the south city centre of Dubai and is situated next to the financial centre. In the towers you can find a hotel, offices and a shopping mall as well as the Crown Prince of Dubai, Mohammed bin Rashid Al Maktoum, office. in the D UAE uring the last decades the UAE and the Gulf region have been flourishing economically. The exploration of oil and gas reserves in the 1970’s attracted companies and investors from all over the world to establish business in the region. That trend has continued, and today new companies establish themselves in the country every year. UAE should be seen not only as a growing country but also as a part of the wider region, The Gulf. The Gulf region consists of six countries; Oman, Qatar, Kuwait, Bahrain, Saudi Arabia and the UAE which independently over 6000 companies operate in the Jebel are growing, but together these countries Ali Free Zone, and the number of Free are becoming an economic hub. Their Zones in the country is increasing. optimal location creates huge opportunities for foreign investments. The leaders of Dubai have always used the proverb, “If we build the facilities, the Dubai, as an emirate, has never had demand will come”. Dubai is today an as much oil as Abu Dhabi, and it excellent location for companies since it early concentrated on becoming is the centre of the Gulf Region, which is independent from the oil. In the growing and developing. As a part of the 1970s the leaders in Dubai de- Middle East with excellent location, Dubai cided to develop Dubai into a is not only a good option for companies hub for business and services, a that want to be active in the Gulf region, Singapore for the Middle East. Dubai has recently also become a finan- The port in Dubai, Jebel Ali, cial centre with a prominent position on the was built in the 1970s, and world market. in direct connection to it a huge free zone with excel- Abu Dhabi, the largest and also richest lent infrastructure was es- emirate, has faced a more sensible de- tablished. The idea was velopment since the 1970s, but lately the to combine the possibili- development has increased. Today Abu ties that the port gave Dhabi strives to become a hub for culture with a tax free zone and sustainable development. The country to attract foreign is becoming more and more open towards companies to invest foreign investments, and Free Zones are in the area. Today being developed. 36 BUSINESS BUSINESS IN THE UAE 37

Why business in the UAE? UAE offers businessmen and investors several ad- offers foreigners the possibility of a tax free envi- vantages. The country has a growing economy ronment without governmental control and laws. and offers advantages such as Free Zones, no income taxes, a flourishing financial centre etc. The Establishing a business in the UAE is not very dif- country has political stability and is a member of ficult. Although foreign investments are restricted the World Trade Organization, WTO. From a when it comes to ownership, setting up a busi- Swedish perspective there are such advantages ness in the country generally is a fast process. as good political relations with Sweden, an em- It takes, on an average, 20 days to establish a bassy in Abu Dhabi, and the Swedish Business new business in the country. The demands are Council being present in Abu Dhabi. simple; the investor must have a certain amount of economic capital in order for the company to As part of the overall goal for the development be approved. Companies do not pay income of the country, the leaders of the UAE decided tax, corporate tax or sales tax, and employees in the 1970s that the country should grow and do not pay income tax. attract foreign investments. Not only did they create prerequisites for foreigners, the leaders also To allocate and attract companies to the UAE, created a safe and secure situation for the coun- the government in the country has created spe- try of UAE; a stable governmental situation and cial zones that are especially well prepared for the prospect of a growing financial market, and companies. In a Free Zone there are special con- they already had a great geographic situation ditions, which are more advantageous for com- between east and west. panies than establishing within the UAE. All these conditions have been the reason for the All seven emirates are today active in develop- development of the country into an economic ing Free Zones, and the Gulf region, especially The markets and the business sectors hub in the Middle East. It has also been a reason the UAE, is a centre for business in the Middle Today’s situation for several thousand foreign investors and com- East. Dubai is one of the world’s leading desti- panies to relocate their business to the region. nations for business travellers and the airport in Small business is big business. Dubai is Results of the economic crisis – unsold Dubai and the UAE have for a number of years been funded by loans, and since several banks The conditions are not only great location, ex- Dubai is one of the world’s busiest airports. It is a transit hub for a lot of trading routes cars left in the desert. According to been synonymous with spectacular and enor- around the world are close to bankruptcy proj- over the world. One step from the surveys in 2009; 54 % of the expats cellent facilities and a possibility for expansion, easy to make business in the UAE, and there is glamorous business quarters you will consider moving and 46% of the mous buildings. The country consisted up until ects are put on hold. In Abu Dhabi the situation but foreign companies have also been attracted a great opportunity to combine it with holiday find foreign workers who work for very businessmen consider relocating due 40 years ago only of small fishing villages in is more sensible and projects are still operating. to the UAE by special economic favours. UAE and pleasure. basic salaries. to the economic situation. the desert. Since then, the growth of the country All projects run by the government in the UAE and the vision has created a huge demand for are still running, and other projects are slowly infrastructure and construction. Architects, spatial recovering. And even though the situation might planners, design engineers, contract workers be difficult right now, other countries in the Gulf etc, i.e. all personnel concerned with building region do not face the same crisis as the UAE. infrastructure and buildings have experienced a In Oman, Qatar and Saudi Arabia there are still great market in the UAE during the past 10 years. projects being started. Consultants companies in The number of skyscrapers is enormous and the the UAE are now widening their field of work highways are wide and definitely comprise more and seek new projects in the Gulf region. Due lanes than you would ever find anywhere in Swe- to short distances and great transportation it is den. The infrastructure sector has been the major possible to be located in UAE and operate some- part of the growth in the UAE; more or less a where else in the region. dream for an architect and a nightmare for a traffic planner. Companies operative in the UAE but located in a free zone do not experience the same economic Today, due to the economic situation on the world fluctuation as the companies operative within the market, many of these projects have been put on country. The Free Zones are divided into different hold. Hosting almost 20 % of all building cranes “themes” attracting different kinds of companies; in the world, of which right now most are stand- e.g. the media city, the biotechnology centre, ing still, it might seem the end for infrastructure health care city etc. These host a number of dif- projects in the UAE. The truth is, though, that the ferent companies within in the specific branch, crisis hit Dubai harder than the rest of the emir- which are meant to help and support each other. ates. In Dubai, most activities and projects have These companies follow the world market. 38 BUSINESS BUSINESS IN THE UAE 39

Sector development Although the economic crisis in the world hit hard on many projects, especially infrastructure and building projects in Dubai, the tourists are still interested in the country. Tourism and travel employ 8 -9 % of the population, and the number is increasing. People come to UAE for business and pleasure. The five-star hotels and huge malls attract people to spend money and live a life in luxury. Tourism is one sector with great prospects in the UAE. Along with the tourism the retail sectors are also growing. Households and the population are wealthy which increases the private consumption. Along with increasing tourism the retail sector together with the service industry faces really good times in the UAE. There is also a demand for companies and personnel within the health sector. The real estate industry has been facing hard times after the economic crisis after sev- THE GAC SPIRIT eral years of flourishing business. Right now the Companies normally create a strong atmosphere situation does not look very good but for sure; and culture in order for the mixture of nationalities Downtown Burj Dubai is a centre for there will be a turn on this market. The question shopping, business and tourism. In to coexist and cooperate. One good example of this is only when. Since the real estate market has the UAE business is combined with is the spirit of GAC, Gulf Agency Company, operating been boosted by the tourism industry, these sec- pleasure and five-star luxury. Recently a strategy, to involve UAE citizens in the in Jebel Ali Free Zone in Dubai. GAC is a world leading tors go hand in hand. If there are tourists and if foreign companies, was launched. The company in shipping, logistics and marine services with its the number of expats continues to increase, the strategy means that all companies must headquarters in UAE. They have created a strong business real estate sector will recover. have one citizen employed. The busi- culture with legible values, the GAC spirit. This is one ness climate is dominated by personal contact. way of uniting all different people from different cultures Another sector that has had an upswing during working within the company. The GAC Spirit unites the the past years is the technology and science employees and they are distributed a newspaper, market. Renewable energy and engineering is GAC Chat, regularly. As an “international” em- a sector of special interest especially in Abu ployee at GAC you are supposed to move Dhabi. The sector is increasing both in popular- between different locations every three ity and number of job opportunities. The Mas- The business climate in the UAE is built up by years. This also helps build the dar Institute is a new project under development. personal contacts. Your education does not have GAC Spirit. This will be a great job opportunity for a lot of the same importance as your personal skills and people in the coming years. your personality. If you are trustworthy and social you are likely to get more responsibility. Young Business climate expats from Western Europe will probably get The business climate in the UAE is dominated more responsibility and a more prominent posi- by the enormous mixture of nationalities, as only tion in the business hierarchy than they would about 10 % of the population is natives, emira- have had in their home country. ties. Since almost all employees are ex-pats or guest workers it creates a special atmosphere, Compared with the business climate in Europe more or less like a family. All larger, global, there are great differences, especially when it companies have their own “spirit”. The UAE comes to payments and invoices. In the consul- government has recently presented a new strate- tant business it is normal to get paid less than the gy for increasing the number of higher educated contracted amount. A signature on a contract is UAE citizens and to involve these in the compa- not a guarantee. Debt collection agencies do not nies active in the country. A program has been exist, which the opposite from the western world. launched which demands all companies within There are no trade unions, leaving the employ- the UAE to have at least one citizen employed. ees in more or less unsecure situations. 40 BUSINESS 41

How to establish a business in the UAE? Businessmen and entrepreneurs who seek to start a business or branch and operate in the UAE have two main options. The first option is to establish a company within the country, which may be difficult due to bureaucracy and ownership restrictions, and the second option is to establish within a Free Zone. Free zones are beneficial since they offer a 100% tax free environment and allow 100% foreign ownership. Göran Svensson, CEO at Swede Dreams, moved from Sweden to the UAE a few years ago. In Abu Dhabi he established a Jebel Ali is one of the largest ports in the world. In company that produce direct connection to the port you find the Jebel Ali high quality beds for ho- Free Zone. Next to it the largest airport in world tels. Swede Dreams has is under construction. It will have six 4, 5 km long become a real success parallel runways. story, read more about Swede Dreams in the Inspiration chapter. Free Zones In UAE there are several Free Zones, especially Free Zone hosts over 4000 different companies, in and around Dubai. Foreign companies can and this Free Zone is enlarging by 20 % every establish a company in a Free Zone. It is then year. Since the Free Zone is located between the exempted from the rules of ownership and spon- motorway and the port it offers an optimal loca- Partnership Ownership in the UAE sors that dominate the situation in the country tion for larger companies dependent on good Setting up a business within the UAE requires Finding a sponsor and co-owner may be difficult elsewhere. In the past the incentive to start the logistics. that the company is sponsored /owned, wholly depending on your previous contacts in the coun- Free Zones was to generate more business in owned or partly owned, to at least 51 %, by a try. However, it is necessary to find a sponsor be- the region and thereby boost the local economy GCC UAE citizen. There are several different possible cause without a UAE national as an owner in the as well. The Gulf Cooperation Council, GCC, consisting ownership compositions however; most options company it is not possible to set up any business. of Saudi Arabia, Qatar, Bahrain, Kuwait, Oman are not suitable for foreigners. There are, howev- The setting up might be difficult and hampered One major advantage of establishing a business and the UAE has an economic agreement to en- er, two options made to suit foreign investments; by bureaucracy and administration, so the best in a Free Zone is that all companies within the dorse investments within the GCC region. GCC Joint Venture and Limited Liability Companies. way to proceed is to be present on site and per- Free Zones are exempted from all import and was established in 1981 after Great Britain’s sonally present the idea. Personal contacts are corporate taxes. Companies only pay taxes if withdrawal from the region in 1971. The coun- Joint Venture is a contract between a UAE nation- necessary, so it will not be possible to set up they sell anything to the UAE i.e. from the Free tries shared a similar economic, political and al and a foreign investor. The sponsor or local a business from home. All must be done in the Zone into the country. Free Zones have their social heritage but lacked military defence and The Embassy party must own at least 51 % of the company but UAE since everything depends on your contacts own legislation and often both good location protection. The objective of joining in GCC was The Embassy is situated in Abu Dhabi. profits and losses are shared among the owners. and your relations. For those who are interested Its main purpose in the region is to and infrastructure. Establishing in a Free Zone is to integrate and establish cooperation between A Joint Venture must not be published or licensed in starting a business in the UAE there is help serve the Swedish citizens working not free, and different Free Zones have different the member states in all fields; e.g. economy, and it is possible to operate without it. available. Specialized companies, embassies and living in the UAE with practical fees. There are several different Free Zones to finance, trade, tourism, administration etc. The matters. They also serve the Swedish Swedish Business Council and other organizations provide a wide range government with practical matters and The purpose for the presence of the choose from; the choice usually depends on the GCC enables economic and business activity A Limited Liability Company (LLC) is the most of support for investors. acts as their helping hand on site. Swedish Business Councils in the business category and the specific needs of the in the countries. This can be an advantage if common way to establish a company in the UAE Another and more recent activity of the UAE is to facilitate and help Swedish company. Access to transportation and suppliers a company wants to establish a branch in any as a foreigner. A LLC can be formed by at least Branch and representative offices Embassy is to facilitate businesses and businesses that want to establish or might be more important than good facilities etc. other country within the GCC. companies in the region. Since the to expand anywhere in the region. In two and a maximum of 50 persons. The same A company already active somewhere in the number of Swedish citizens and Swed- the UAE the Swedish Business Council The fees depend on facilities, access to transpor- ownership shares as in Joint Venture, i.e. mini- world is allowed to open a branch office or a ish companies in UAE and the Gulf has a branch office in Abu Dhabi that tation etc. within the Free Zone. Setting up a business mum 51 % ownership by local and maximum 49 representative office in the UAE. In order to do region has increased there is now a offers information and help to those When setting up a company or a branch in the need for contacts between citizens and who are interested in establishing in the % by foreigners are used. The division of profits this, the company must obtain a license and have active networks. The Embassy promotes region. The Swedish Business Council There are Free Zones all over the UAE but espe- UAE, the best way to proceed is to get help from and losses among the owners can be negotiated a Service Agent. A service agent must be a UAE Sweden and the Swedish companies assists Swedish companies and can cially in Dubai and Abu Dhabi. The Free Zones people with the right experience. The Swedish and is not required to follow the same shares as national or a company that is fully owned by a for the UAE nationals in order to make offer knowledge about the business have different focuses e.g. Dubai Media City, Embassy in cooperation with the Swedish Busi- the ownership. Management responsibility in an them choose a Swedish company or a climate, the market and ownerships etc. UAE national. This is a good option for larger Dubai Internet City etc. The largest Free Zone ness Council, situated in Abu Dhabi, offers great Swedish alternative. The Embassy also Companies can also receive practical LLC can be vested in any of the owners or even companies already established somewhere else serves citizens with practical help e.g. help with registration and contacts with is Jebel Ali Free Zone. Jebel Ali is the port of help to Swedish citizens that are interested in do- third parties. in the world. passports. sponsors. Dubai and one of the world’s largest. Jebel Ali ing business in the region. 42 BUSINESS BUSINESS IN THE UAE 43

Career opportunities D ubai and Abu Dhabi are all about large-scale and grand visions, as are the career prospects recession, fewer opportunities are available now than only a year ago. The situation is not as bad as for highly motivated competent sometimes portrayed in the media, people. The go-get atmosphere though, and the economy is still combined with the scale and growing and new companies are pace of projects entails an envi- starting. Abu Dhabi, with substan- ronment where quick promotions tial economic muscles, is investing and increased responsibilities are largely in large long-term initia- normal. The lifestyle and the com- tives, and there is still a demand petitive salaries have encouraged for skilled professionals. In the thousands of professionals to relo- other emirates the living standard is cate to the UAE. Dubai has been lower, the career opportunities less booming for years, but as the emir- and the number of guest-workers ate is highly affected by the world much lower. CAREER OPPORTUNITIES 45

Working in UAE What attracts professionals to work in the UAE is There are generally two types of professional ex- the opportunity of a fast career, the competitive pats in UAE, first the singles in their twenties who salaries and some of the world’s most interesting are looking for a fast career and the chance of projects in architecture, urban planning, sustain- making some serious money. They tend to stay able energy and finance. On the less positive for about two to three years. Finding a job back side, a lot is done with seemingly impossible home with similar benefits and responsibilities deadlines which often involve a lot of overtime can be challenging. The other type is those who and weekend work. When your job needs you, bring their family, and they tend to stay longer. you are expected to turn up, no matter what the Once you are accustomed to having a maid, a consequences may be for your personal life. driver, a gardener and other services, it is hard Business is done differently and deadlines are to move back to Sweden where very few jobs for example often not met. Also, a contract is not offer that kind of comfort. final, it can be renegotiated and you might be paid less. In UAE it is imperative to maintain a One thing to consider before buying a house good relationship with your stakeholders, which or an expensive car is that if you were to be involves having innumerable cups of coffee and made redundant, you have only 30 days to find meeting family etc. These aspects can seem dis- a new job or you must leave the country. In the couraging to a Swedish person, but those who aftermath of the credit crunch a lot of people in stay in UAE think the benefits and opportunities Andreas Frandevi at Deloitte worked There are a lot of Swedish companies in the Dubai had to leave, selling their belongings for hard to get established in the UAE but UAE and it is a good idea to see if they are outweigh the inconveniences of culture clashes. thinks it was worth every effort. hiring if you would like to relocate to the UAE. only a part of the real worth. The lifestyle Salaries Whereas “Work hard – play hard” definitely is Exactly how much you would earn as a profes- the motto in Dubai, Abu Dhabi tends to keep a sional in UAE is difficult to pinpoint. It is however slightly lower, more “mature” profile. Dubai en- safe to say that you would make more than in joys a western atmosphere with nightclubs, wom- Sweden and in addition, there is no income tax. en in bikinis and great shopping. Abu Dhabi on The average income in Abu Dhabi is supposedly Accommodation does not come cheap in Dubai however if the contrary has less to offer in terms of nightlife 50 000 AED (100 000 SEK), but statistics is you are prepared to pay a significant amount of money, there For those relocating with family there is a strong and leisure for the younger generations. Regard- is some pretty amazing property. The Dubai Marina is one of Swedish community with weekly Swedish tutoring not UAEs strong side point. (This is why they are less of where you live though, the lifestyle is what the most attractive areas to live in. for children over 6 years old for example. getting help from SCB, apparently the best in attracts thousands of well-educated Americans the world in statistics!) Because of the large in- and Europeans. Allegedly, it is common to buy come differences, services are a lot cheaper and your first Porsche within the first three months of you can afford hiring people at an early stage employment. Housing, further discussed below, in your career. A monthly housing and/or car is expensive but domestic help is not. For a fairly allowance is rather common as well as medical well-paid job it is standard to keep a maid and insurance, and it is important to consider all the often a driver. A maid costs about 1000 AED benefits before signing a contract to ensure it is (2000) SEK per month. competitive. Discouraging to many is the fact that it can sometimes take up to six months before you The expat community in UAE is very active and get paid and this is important to discuss this with the social scene is, particularly in Dubai, diverse your employer beforehand. and welcoming. There is no lack of activities in UAE, and you can enjoy some of the best golf- Housing arrangement courses, beaches, restaurants and shopping in Rental rates in both Abu Dhabi and Dubai are still the world. Some of the more unique experiences high, comparable to central London and Man- are dune dashing, camel racing and skiing in hattan, despite the economic downturn. Sharjah, the middle of the desert. TimeOut Dubai is the with a more conservative profile, is only a short essential guide to what is going on in Dubai. drive from Dubai but very different in terms of 46 BUSINESS CAREER OPPORTUNITIES 47

There is no shortage of things to do in the UAE. Besides indoor activities such as shopping, dining and skiing(!) the desert offers exotic experiences. Make sure not to miss “Dune Dashing”, a crazy drive in the sand dunes, and watch the sun set on the endless sand. accommodation prices. It is thus possible to get away with a cheaper rent, but it depends on what kind of standard you require. Generally, the living standard in Dubai is good and there are few rundown buildings. Beware of scam agents, as the house market is a bit of a jungle. If you are signing a contract to come work in the UAE from abroad, the employers normally offer some kind of assistance in finding housing. This is negotiable however, and you should make sure to find the solution most suitable for you. Assistance can be in the form of them paying for your first hotel stay; alternatively some companies have apartments and others provide you with a monthly housing allowance. The policies vary between different companies but it is important to negotiate a good package, as accommodation will be one of your highest costs. Buying an apartment is also an option, and prices are much lower now, especially in Dubai. Foreigners have been able to buy property since 2002, and there has been intensive speculation with ongoing constructions since then, resulting in exceptional prices which are now reaching more reasonable levels. Holidays and workweek Fridays and Saturdays are generally free, although many jobs only considers Friday as weekend, and in a lot of senior positions you are 48 BUSINESS CAREER OPPORTUNITIES 49

expected to work overtime. A 48 h work-week is What is sought after? the standard; however, for high profile or finance As the Universities in UAE are all very young and positions it is not uncommon to work 12 hours struggling to live up to international standards, a day six days a week. There is no prescribed people with foreign education are recruited. vacation; the standard is 4 weeks but this will be American or British education is most highly de- negotiated upon employment. The standard for sired, but European Universities are also well Swedish companies is the same as at home, 5-6 thought of. Mainly experienced professionals weeks of holiday. During Ramadan and the hot- are recruited, and it is not common to head-hunt test summer months business tends to slow down. people straight from campus. It is however by no How to find that job means impossible to get a job right after finishing Who is recruiting? your degree, but you might have to be slightly Almost all the Swedish professionals the project- There are several websites where more creative. Worth considering is that Swedes group met in UAE had been recruited though you can find jobs in UAE. Amongst and Europeans are much more expensive to hire their job in Sweden. They are either working for the most relevant for engineers are: than professionals from for example India or Ban- the same company, only now in UAE, or they gladesh, and therefore it is important to prove were recruited by clients of their old job. This is www.bayt.com that you will bring more to the table. If extensive of course the safest and most convenient way to www.monstergulf.com training is needed, they might as well train some- be recruited. If you do wish to work in UAE in the www.jobsindubai.com one at a much lower cost. Swedish companies future it is a good idea to choose an employer www.manpower-me.com/home relate to KTH and your diploma, and it might be connected with the region. www.kershawleonard.net easier to land a job there than at a company www.clarendonparker.com with little experience of Sweden. Those who do For those who do not want to wait around to be www.hays.ae know Sweden typically have a positive image head-hunted, going down and engaging in the of the country, and Swedish engineers have a job hunt locally is an option. This is increasingly Masdar is recruiting on all levels and will continue to do good reputation although they are considered common and significantly improves your chanc- so for a number of years. The website is the best way to expensive. es of getting hired. It is critical to start networking find these jobs, but you can also contact the HR depart- fast and to be explicit about the fact that you Recruitment process ment for an open application. are looking for a job. Business happens through The process of hiring varies considerably be- connections and so does a lot of the recruiting, Finally there are about 250 Swedish companies and oth- tween local, international and Swedish compa- it is therefore important to establish a network. er organizations operating in the region where there might nies, and perhaps more importantly, whether you Linked-in and other social media can be an im- be openings for internships, thesis work etc. For example are head-hunted or seeking a job locally. Gener- portant tool. It is essential to consider that the cost both NASDAQ/OMX and the Swedish Trade Council ally though, more emphasis is put on your per- of living in UAE is high, and to make sure you are planning to take on interns. sonality and whether you are trustworthy, com- Almost every big Swedish company have enough funds to support you when search- pared to the process in Sweden. If you do end is represented in the UAE. The easiest ing for a job. It is not uncommon to combine and most common way to get a job in Equal opportunities? up at an interview, you should not be surprised a vacation with the opportunity to network and these companies is to go through the There are a lot of opinions about the equality between if you are mainly discussing non-work related is- Swedish branch and then apply for a meet potential employers. Networking is the key, men and women at work in UAE. The majority of the sues over a number of cups of coffees. transfer within the company. and if you have contacts in the region you should women the project-group met did not see it as a problem definitely meet them and see if they have any larger than anywhere else in the West, but UAE is none- ideas on where your experience could be sought theless a traditional society. SWEA, Swedish Women’s after. You can also go through HR-departments, Educational Association is an organization for Swedish if the company you are interested in have one, women abroad, which is active in UAE, if you have and send them your CV asking if you could meet inquiries about working conditions for women, them for lunch and discuss future opportunities. contact them. There are a number of recruitment agencies with which you register your CV; their services should www.swea.org be free and they get paid by the company if they hire you. You can register with a number of agencies, but it is advisable not to depend on them to find you a job, you still need to put yourself out there. There is a very active Swedish community, and people tend to be very helpful. Contact the Swedish Embassy or the Trade Council for de- tails on how to network with other Swedes. 50 BUSINESS CAREER OPPORTUNITIES 51

FINANCIAL MARKETS provide close analogues to almost all financial products, including various debt instruments and IN THE UAE fixed income investment vehicles. Islamic finance In the late 19th Century, the Ottomans intro- In addition to the riba, the Islamic law also produced western-style banking to the Islamic world hibits bayu al-gharar (trading in risk, where the to finance their expenditures. While some Is- Arabic word gharar is taken to mean “risk” or ex- lamic jurists approved of modern banking prac- cessive uncertainty). There are several definitions tices, the majority found those practices to be for ghara across the Muslim countries, and jurists violations of Islamic law, sharia, which prohib- have sought many complete definitions of the its usury, (Arabic term: riba, with the definition: term. Today a concept of yasir (minor risk) exists; without counterpart, i.e. collecting interest from where a financial transaction with a minor risk is lending money etc.) as well as investing in busi- deemed to be halal (permissible) while trading nesses that provide goods or services considered in non-minor risk (bayu al-ghasar) is deemed to contrary to Islamic principles ( i.e. alcohol, pork, be haram (forbidden). Today Islamic finance is gambling, etc). one of the fastest growing segments in global financial services. The first bank was established By the 1970s, theoretical discussions of Islamic in 1975, and today accounts for over US$700 economics had given rise to practical discus- billion assets provided by more than 300 finan- sions of Islamic finance and how Muslims could cial institutions across 75 countries. replace the conventional financial practices (deemed to be usury) with Islamic alternatives. There are many contract and institutional forms A profit and loss sharing partnership called: used within the industry collectively known as Mudharabah was suggested as an alternative Is¬lamic finance, and the specifics vary across to interest-based lending. This kind of partnership countries and sectors. The most common Islamic survived in some Islamic financial practices (as concepts used in Islamic finance are profit shar- a substitute for interest bearing deposits). How- ing (Mudharabah), safekeeping (Wadiah), joint ever, with the help of Islamic jurists and lawyers, venture (Musharakah), cost plus (Murabahah), Islamic financial practitioners were soon able to and leasing (Ijarah). U AE’s financial markets have played an important role in the of the raised funds has been invested in the property market and Murabahah (not to be confused with Mudharabah) is in an Islamic economic growth of the country as well as for the diversifica- in various mega-size construction projects. But the dependency on mortgage transaction, where the tion of its industry. In the short span of three decades, the country foreign capital has also made UAE and especially Dubai more bank, instead of lending the buyer has been partly transformed from a predominantly oil exporting vulnerable to global crises. The major indexes in Dubai have gone money it purchases the item for economy to a regional financial centre. The location of the coun- down by more than 50 %, and the credit market in Dubai has him. The bank then re-sells the item to the buyer at a profit, while try, at the crossroads of the major international capital markets suffered a great deal from the global crises. However, despite allowing the buyer to pay the New York, London (in the West) and Hong Kong (in the East), the global crisis and diminishing funds, Dubai seems to have no bank in instalments. However, makes it a natural hub that connects the Middle East with the rest plans of giving up the title as the “number one financial hub” in the the fact that it is profit cannot be made explicit and therefore there of the global financial network. Middle East. For instance, as late as March 2009 the London’s are no additional penalties for late Global Financial Centers Index (GFCI) ranked Dubai as the lead- payment. In order to protect itself The development of financial markets has enhanced UAE’s ability ing financial centre in the Middle East and the fourth most competi- against default, the bank asks for to raise funds with both local and foreign capital. A large amount tive one in Asia. strict collateral security. 52 BUSINESS FINANCIAL MARkETS IN THE UAE 53

Financial institutions in the UAE There are three stock exchanges in UAE; the first two are located in Dubai (NASDAQ Dubai and Dubai Financial Market), and the third one is located in Abu Dhabi (Abu Dhabi Securities Market). Naturally, there is also a gold exchange in the country (Dubai NASDAQ OMX corporate facts Gold & Commodities Exchange) and a crude-oil exchange (Dubai NASDAQ OMX is the world’s largest exchange company, op- Mercantile Exchange). erating all over the world. The Group was created in February 2008 through a merger between the American stock exchange The major financial centre in the country is the Dubai International NASDAQ and the Swedish OMX AB. The company owns and Financial Centre, DIFC. The centre works as a near-shore financial operates stock markets in Stockholm and New York, and six more hub for the Middle East, containing a capital market designated stock exchanges in the Nordic and Baltic regions. The company as a financial free zone. The centre has been established to create also own 1/3 of NASDAQ Dubai. an environment for growth and economic development in the UAE and the wider region, by providing the needed legal and business The Group is the world’s largest provider of exchange technology. facilities as well as infrastructure with international standards. DIFC It delivers trading, exchange technology and public company ser- is home to over 750 companies including some of the world’s vices across six continents, with over 3,700 listed companies. Its largest banks and financial services firms. technology is used by more than 70 exchanges around the world, including the ones in Abu Dhabi and Dubai. The centre claims to be the world’s fastest growing international financial centre with an aim to develop the same stature as New NASDAQ OMX Group is currently very active in the UAE capi- York, London and Hong Kong. DIFC is also a free zone, and firms tal market arena, with the regional headquarters covering Middle operating in it are eligible for benefits such as a zero tax rate on East, Africa and South Asia in Dubai. The company has a long profits, 100 per cent foreign ownership, no restrictions on foreign history in the region through working with Egypt, Abu Dhabi and exchange or repatriation of capital. Palestine since 1998. NASDAQ Dubai, the international stock exchange, owned NASDAQ Dubai and Dubai International Financial Centre is the work by Borse Dubai and NASDAQ OMX, is an international stock place for all nationalities, Swedes included. The stock exchange is NASDAQ OMX facilitates the development of financial markets in exchange between Western Europe and East Asia. The stock the employer for several Swedes. Erik Ricknell, Vice President Head of exchange building creates a gateway and landmark for Dubai’s Surveillance and Risk Management at NASDAQ Dubai. the Middle East by providing education, advisory services, trading International Financial Centre. and post-trade technology for established and start-up markets. In the Middle East alone NASDAQ OMX provides Advisory Services and technology to 10 markets. NASDAQ OMX and the UAE market James Martin, NASDAQ OMX General Manager in the Middle NASDAQ Dubai is an exciting and eventful workplace East and Africa explains that the financial market in UAE works filled with action. The financial crisis changed the situation differently from the models often seen in the western world. The but it is still a coveted place to work in. It employs nationali- markets are retail dominated and working hard on improving trans- NASDAQ Dubai ties from the whole world. parency and corporate governance. DIFC incorporates the NASDAQ Dubai, which is an international stock exchange between Western Europe and East Asia. The stock With the retail focus in mind, it may not have been so surprising exchange enables companies in its region to raise both interna- that the Dubai Financial Market index went down by more than tional and regional capital. NASDAQ Dubai is also the largest 75 % during the worst time of the financial crisis. The expectations stock exchange, in terms of listed companies in the UAE. The NAS- of a boost in share price after an IPO, an Initial Public stock Offer- DAQ Dubai region includes the United Arab Emirates and the rest Jeff Singers ing, has also been extremely high, and it has not been unusual, in of the Gulf Cooperation Council (GCC), the wider Middle East Nasdaq Dubai, the international the past, that the share price has been appreciated by 200-300 and North Africa, Turkey and the Indian sub-continent. stock exchange owned by Borse % in the first two weeks. However, many of these offerings have Dubai and Nasdaq OMX group has plans to expand its deriva- eventually collapsed in price or continued to trade below their DIFC and NASDAQ offer an international working environment, tives trading with listing of more offering price. and you will find it very common for expats to work here. The regional equity derivatives on the educational background of the people working at DIFC varies, exchange in the second quarter Despite the market downturns, James Martin says he is quite opti- of this year, Jeff Singer, Chief Ex- from lawyers and economists to engineers. Several of the people mistic and confident about the future. There are a lot more areas ecutive of Nasdq Dubai told Gulf working at DIFC are also relatively young and career driven. News on September 3 2009. to be developed in the marketplace, and when realizing that the 54 BUSINESS FINANCIAL MARkETS IN THE UAE 55

“ If you want to work with things that already have been made then NASDAQ OMX is probably not the right company for you. At NASDAQ OMX it is more about being the ‘pioneer’, suiting those who want to come up with new solutions and inventions. Employee at NASDAQ OMX, Middle East “ NASDAQ OMX offers a great opportunity for those who are aiming for an international career. The company offers a great challenge within various fields such as sales, system development, public company advisory, consultancy service, trading, etc. Four questions to NASDAQ OMX: What characterizes the people working at NASDAQ OMX? Working at NASDAQ OMX means that you are surrounded by some of the most talented and analytical professionals. The employees of NASDAQ OMX have diverse professional backgrounds and a strong desire to perform analytical work at the very highest level. What kind of qualifications should one have to work at NASDAQ OMX? At NASDAQ OMX, there are career paths for both specialists and generalists, and we are interested in people with different professional, academic and cultural backgrounds. In which way can NASDAQ OMX offer international careers? As we are an international company; most of our employees work on a global basis with col- leagues and customers all over the world. Some of our employees are on long term or short term international assignments. Do you offer internships and master theses at NASDAQ OMX? There are currently no internship offerings at NASDAQ OMX, and we occasionally offer maters theses. The best way to keep updated about this is to visit our website, www.nasdaqomx.com/ whoweare/careers. market is only 10 years old it is difficult not to see further growth in al-gharar: trading in risk). However, the regulators in the country a longer perspective. There is also a significant amount of unlisted are working hard to ensure that its laws follow the best interna- companies in the region. According to James Martin, it is impor- tional practice possible. tant to stay firmly in the market even in bad times to show good faith and to gain necessary trust from the clients. Trust and engage- The introduction of new products is also more complex, with an ment are very important in the UAE, as James Martin express it “it’s increase in products that are Sharia compliant. James Martin also not enough to solely provide a good product in this country – the mentions that it is important to be innovative here in order to come deal must also be based on trust and good relations”. up with new solutions and products that fit the specific needs and the regulations of the UAE market. However, being innovative The Islamic law, Sharia, has a strong influence on the financial does not seem to be any problem for NASDAQ OMX, according regulations and laws in the UAE, which makes the regulations a to James Martin the company’s strength is its innovative thinking or bit different from the ones that businesses may be used to in many as he put it: “ the people at NASDAQ OMX have always been western countries. For example, short selling is not allowed and entrepreneurial, and the company has always encouraged people derivatives are an area of keen debate (Islamic law prohibits bayu to think in new ways”. 56 BUSINESS 57

The Higher College of Technology ..and higher education in the UAE At the Higher College of Technol- ogy in Abu Dhabi the students have all possibilities to succeed with their studies. The library have the only centre for supercomputing in the region. During our stay in the UAE we visited one cam- example, men and women study separately at different colleges. Women in the UAE tend to be more interested in education than the men. I n the middle of the 1980’s the rulers of the UAE identified a need to develop a higher education system within the country. In 1988 the High- Today the HCT has 16 000 students, of which 10 000 are women. The school works closely with the business and industry sector in order to a high technological environment with wireless internet, an interactive learning portal, sonic chairs pus, Abu Dhabi Men’s College. The school offers quality education with great facilities. Students receive their own computers from the start of This might be a result of the past situation and the already good prospects for young UAE men. The situation for women in the UAE is changing and of course; Starbucks Coffee. er College of Technology, HCT, was established create an up-to-date, high quality and relevant their studies and take part of interactive learning and it is becoming more and more accepted for as a respond to these thoughts. At first there were education for young UAE nationals. There are during their programs. Supportive technology, women to work and make a career. The learning four HCT colleges. Today there are sixteen dif- alumni-networks and sponsorships for active stu- wireless systems and constant online education environment in the UAE is more interactive, and ferent male and female colleges throughout the dents. Sponsored students have the possibility material enhance the students’ performing possi- the colleges require attendance at classes. seven emirates. It is nowadays the largest higher to be integrated in the working life at an early bilities. The Abu Dhabi Men’s College offers the educational institution in the UAE. The school of- stage. Generally, the students are attractive for students a newly updated and high technology The UAE is currently reforming the education fers over 80 different programs in English at four companies and often receive prestigious jobs af- library where the focus is on interactive learn- system in order to meet the upcoming demand different credential levels. The main direction of ter graduation. The HCT cooperates with several ing. At the library there is an interactive learn- for higher education. The country’s population is the school is technology and communication, but different famous universities around the world, ing zone with the latest, both necessary and young, and in the coming decade an increasing there are several different programs to choose such as the Massachusetts Institute of Technology, sometimes unnecessary, equipment. The nearby number of young UAE citizens are about to be from. Some of the programs are: business, com- Harvard, Stanford and UCLA. It also hosts the independent learning centre and a Starbucks educated. In the academic year of 2007-2008, munication technology, education, engineering Centre of Excellence for Applied Research and coffeehouse have also increased the presence about 650 000 students were educated at all technology, health sciences and information Training, CERT, which is the single education pro- of students. Education in the UAE is sometimes levels in the school system in the UAE. Despite technology. vider for the Middle East region. CERT also hosts unlike the Swedish way of studying; thus for the expansion of education facilities within the 58 BUSINESS HIGHER COLLEGE OF TECHNOLOGY 59

The Centre for Supercomputing The Centre for Supercomputing is based in Abu Dhabi at the CERT (Cen- tre of Excellence for Applied Research and Training) Technology Park. At the campus you can find one of the world’s top 500 fastest computers. The computer at CERT is the fastest in the Middle East, South Asia and North Africa region. The computer offers 5.7 Teraflops of supercomputing power (flop = floating point operations per second). The computer is based on the IBM Blue Gene/L, the fastest and most muscular computing platform in the world. This computer is an on-demand computer available for companies, private and public parties to access. country, it is more common for UAE nationals to ters of Engineering and masters of Information study abroad. Each year the number of students Technology. These master’s programs are avail- going abroad is increasing due to the lack of able for all nationalities. Further, in September higher education. The UAE has until recently only 2009 another new higher education is about to offered bachelor degree diplomas. Apart from start in the UAE. The Masdar Institute of Science the offered higher education levels abroad, the and Technology (MIST) will open in Masdar City. future professional possibilities might also be at- The school will offer higher education at master tracting. and doctoral levels. The Masdar Initiative in itself is specialized in science and engineering of However, a master education in Business Admin- advanced energy and sustainable technology. istration has started at the HCT. In September This is also the direction of the education at the 2009 three more master’s programs will start: school. In September 2009, 100 students will masters of Cultural and Creative Industries, mas- start their education at MIST. 60 BUSINESS

The greAT condiTions for compAnies Along wiTh good cAreer opporTUni- Ties for yoUng professionAls hAve ATTrAcTed yoUng wesTerns To The region. ThoUsAnd of swedes hAve Ac- cepTed The chAllenge And now live And work in here. Their sTories Are fAscinATing And inspiring. meeT some of Them And reAd AboUT Their UniqUe sTories And geT inspired! 3. INSPIRATION

Masdar city is under construction, but when finished it will be the The group were warmly welcome at the construction first ‘zero carbon’ city in the world with a population of 90.000. site by Omar Zaafrani and Mohammed Al-Qassimi. the Masdar T he United Arab Emirates has the world’s second largest emis- sions of carbon dioxide per capita, only exceeded by Qatar. The UAE also has one of the largest oil reserves in the world, holding 8 per cent of the total reserves. The oil consumption is not likely necessary number of researchers and companies needed to fulfil its vision. Masdar is part of the Abu Dhabi Future Energy Com- pany and is 100 per cent owned by Mubadala, a state owned company investing capital generated from the oil. Masdar itself initiative to decrease at a pace that is desirable. However, Abu Dhabi has initiated Masdar as a project to take the first steps away from the hydrocarbon-producing economy. If the initiated Masdar project is is also an investment company focusing on green investments. Its key initiatives are Masdar City and the Masdar Institute of Science and Technology (the Masdar Institute or MIST), described below. successful and more similar initiatives will be realized, an actual change might become reality. Masdar City is currently an enormous construction site in Abu Dhabi, close to the regional airport. It is said to be the world’s Masdar, which means ‘the source’ in Arabic, is a multibillion dol- first ‘zero carbon’ city, meaning that the city will have a collective “For the first time in history, more than half of the world’s population now lar project with four principal objectives: to drive the economic emission of greenhouse gases that sums up to zero. The city will lives in cities, with their traditional energy inefficiencies, waste and pollution. diversification of Abu Dhabi, to maintain and expand Abu Dhabi’s use 100 per cent renewable energy generated from solar panels, position in global energy markets, to transform Abu Dhabi from a geothermal energy and the world’s largest hydrogen plant. It has We must fundamentally re-think how cities can conserve energy and other technology consumer to a technology developer/exporter and to a zero waste ambition and plans to use the water more efficiently resources. We must heavily employ new technologies and even create new make a meaningful contribution to a sustainable development. The so that the total usage will be one fifth compared to a similar city. urban models as we are doing in Masdar City” project has, as a first step, been executed to create an ideal envi- 80 per cent of the water will be recycled, and waste water will be ronment and infrastructure for research and business development reused as many times as possible. within the field of sustainability and clean technology. By providing - Masdar CEO Dr. Sultan Al Jaber the right conditions Masdar hopes, in a second step, to attract the The city is planned to have a population of 90.000 with 40.000 64 INSPIRATION THE MASDAR INITIATIVE 65

residents and 50.000 daily commuters. The popu- and doctoral degree level programs focused on lation will be kept cool with the help of narrow energy and sustainable development. The Masdar shaded streets and smart architecture that creates a Institute aims to become the centre for research natural airflow. Since automobiles will be banned within the fields of renewable energy and sustain- within the city, a system of Personal Rapid Tran- ability. It has the ambition that 50 per cent of the sit (PRT) will be constructed. PRT is an automated student’s time will be devoted to research. The Mas- vehicle that drives people over scheduled routes dar Institute will offer programs such as Mechani- chosen by the passenger, like a personal bus that cal Engineering, Materials Science and Engineer- only stops at the station the passenger decides. ing, Water and Environment, IT and Engineering Systems and Management. When Masdar City is Masdar’s flagship investment will be Masdar PV, a completed in 2015, the Masdar Institute will have company producing a thin film of photovoltaic. The 800 enrolled students. PV film will later on be used in the construction of solar panels. The first $600 million investment will The critics say that the goals of Masdar City are fund construction of plants in Germany and in Abu impossible and that Masdar is manipulating figures Dhabi. Another key investment is the Finnish manu- to make them look right, e.g importing garbage facturer of wind turbines, WinWinD Oy. from other areas to burn and produce energy. Al- though this is something worth taking into consider- The Masdar Institute collaborates with Massachu- ation when further examining the project, Masdar setts Institute of Technology (MIT) to create master City is still indisputably a step in the right direction. Swedish cleantech in the UAE A project has been initiated in automated waste collection ONE PLANET LIVING BY WWF the UAE to promote Swedish systems. When we met Her- WWF has formulated ten principles that must be fulfilled to reduce the world’s current over consump- cleantech companies and also man Esterhuizen at Envac’s Yas tion. We exceed the earth’s resources and the principles are set so that one planet is enough. To be to increase the general aware- Island project, we learned that able to qualify for the “One Planet Living” initiative you have to fulfil the ten sustainability principles. ness of clean technology. The they have completed a 5.3 km Masdar City is the first planned city to follow these principles: Swedish companies are mar- system of pipes. The system will keted through the concept Sym- suck waste from different inlets 1 Zero Carbon Through the use of solar 4 Local and Sustainable Materials 7 Natural Habitats and Wildlife bioCity. The concept describes and enhances sustainable placed on the island to a processing point at the outskirts of panels, wind, energy from Using renewable and recycled All important species will be solutions for city development. the development, creating the waste etc. materials. preserved or replaced. Sweden has set a new stan- largest underground waste col- dard within this field with proj- lecting system in the world. The 2 Zero Waste 99% of the waste will 5 Local and Sustainable Food 8 Culture and Heritage The architecture of the city ects like Hammarby Sjöstad. 35 inlets will be able to handle 25 tonnes of rubbish each have to be re-used, recycled, Food with low environmental must integrate the local values. Ten Swedish companies are in- day, something that will be put composted or burned. impact. 9 Equity and Fair Trade volved in the SymbioCity proj- to test during the F1 races that 3 6 Sustainable Transport Sustainable Water ect, and we have met one of can attract up to 50.000 rac- Fair salaries for all the them in the UAE, Envac. Envac ing fans. Zero carbon emission The water consumption per workers building the city and is constructing underground through public transport, capita should be decreased for those working in the city. carpooling and supporting to at least half of the current initiatives with low emission transports. consumption. 10 Health and Happiness Facilities and activities for all demographic groups. 66 THE MASDAR INITIATIVE 67

Formula 1 Grand Prix on Yas Island D uring our visit at Envac on Yas Island, 30 minutes outside Abu Dhabi, the head manager Michael Merriman showed us around the new unfinished Formula One track, called the Yas Marina Circuit. We did not expect anything spectacular, but being there and seeing the race-track taking form was a unique experience we will never forget. For the last couple of years the Formula One Grand Prix Finale has been held in Brazil, but this year it will finish in Abu Dhabi. The track is designed by the legendary German architect Hermann Til- ke, who for example designed the Bahrain, Valencia and Sepang tracks. The Yas Marina circuit on the Man Made Island will have a course that runs through a hotel, a pit lane that runs under the track, and has 20 turns, in other words it is designed as the Arabian version of Monaco Grand Prix Circuit. Approximately 50,000 spectators will be accommodated, and every seat on the circuit will have its own special view. Along the start and finish there are ports for private yachts, which have already been sold out. As we stood there on the asphalt in the heat we all pictured the opening. The sound of screaming engines, the smell of gas being pumped into the cars, the atmosphere and the cheering crowd. The vast amount of people working and the pace of the construction makes it hard to think that only 20 years ago most of this country was only desert. The track is however far from finished, and with only four months left at the time of our visit to November 1st, finishing on time seemed impossible to us. The asphalt has been laid down on the track, but that is also the only part of the circuit that has been fin- The ports for the private yachts ished, the rest is under construction. Actually, the entire Yas Island were set at a price of $1 mil- is unfinished. There are rumours saying that the race will be held lion each, and on the day of at night, when the visitors cannot see the unfinished work surround- the announcement they were ing them. However there are about 70 000 people working 24 sold out within one hour. Af- hours a day, seven days a week, despite the heat. The workers terwards, the leaders thought are mainly from India, Pakistan and Bangladesh, and Michael the ports were sold too cheap explained to us that in order to get any work done you need a and gave back the money to very good negotiator who is respected by all ethnicities. When we the buyers only to put them up asked Michael if he thinks they will finish by the 1st of November, for auction instead. he answered with a smile “Inshallah”, meaning “If it is God’s will” (or “God willing”). 68 INSPIRATION FORMULA 1 – GRAND PRIX ON YAS ISLAND 69

From Kumla to Abu Dhabi a true success story I t was not until we participated in the Swedish embassy’s June 6th celebration that we realized just how many success- In order to set up a business in UAE, they needed to find a local partner, and it was not long before they met a couple of locals ful Swedish entrepreneurs there are in the interested in their idea. Their knowledge of UAE. We found the stories of those who the UAE culture and the etiquette was lim- started a business from nothing to be most ited, but they tried their best. After a long interesting. We met two Swedish business- time and numerous cups of coffee with the men who saw an opportunity in UAE and locals, talking about everything but busi- seized it. They took a substantial risk in a ness, the Swedes finally broke the ice and country they knew nothing about, looking talked about their idea. The locals were for “The Swede Dream in UAE”. interested, with some modifications to the business plan, and they shook hands, but The story begins in a small Swedish town, nothing happened. The duo did not give Kumla. Göran Svensson ran the family up however, and tried again with a differ- business he had taken over from his fa- ent partner. ther, as a subcontractor making bed mattresses. With a lot of connections in the Rashid Al Mazroui, the chairman of the Al industry in Sweden, Svensson met the al- Mazroui group, was an ideal partner with most 20 years younger Mathias Nilsson, his extensive knowledge about the indus- a sales manager at the Hästens beds, from trial and commercial infrastructure in the Köping. The business relation soon turned region and with his contacts all over the into friendship, and one day, in Novem- world. Mr. Al Mazroui was interested and ber 2004, Svensson got a phone call that invited the Swedes to his summer house in would change his life. Nilsson wanted to Austria. During the two day stay in Austria try selling mattresses to the hotels in Dubai. they spent about 15 minutes discussing Although Svensson did not know much business, where Mr. Mazroui sorted out the about that part of the world, he was easily ownership by claiming 52% and making convinced, and soon they were on a plane himself the chairman of the new mattress to the Middle East. company, “Swede Dreams”. FROM kUMLA TO ABU DHABI 71

Göran Svensson and Mathias Nilsson chose to establish their business in UAE with the support of a local investment partner, the local Emirati Rasheed Mohamed Al Mazroui, who also received 52% of the stock shares. Because of their need for local contacts in the hotel industry, having a local partner was the best option rather than operating from one of the free zones. This way they are free to operate in the UAE and do not need to pay the 5% import tax. Back in Sweden, people thought Svensson was upon realizing the two Swedes had avoided hir- crazy starting a business that far away at his ing a servant. The first outcome of the meeting age. Despite the negative reactions, he had no was Svensson hiring someone to serve coffees. plans of retiring yet. He sold his family business Mr. Al Mazroui´s reaction may have appeared in Kumla, packed his bags and convinced his a little bit odd to a westerner, but to the Emiratis wife to join him. Together they left a very normal a business necessitates hiring servants. Swedish life for a new, very different one in the UAE. Their strategy for doing market research was fairly straightforward; they simply walked around Once in the UAE, several challenges awaited in hotel areas and counted the number of rooms the Swedes. They had to find a factory and buy where they could fit their beds. Without enough the machines necessary for the business. Re- references and a well-known brand it was a cruiting people was also a bit of a mine field. challenge to sell their products in Abu Dhabi. In Svensson remembers an episode where he learnt the beginning, the sales quantities were small, an important lesson about how you need to do and they had to work hard for each project. business in the UAE. The driver was their first One day, after several months of hard work, recruitment and the “right-hand” of the company. it all changed as they received a call from a On their first business meeting with the their busi- new hotel in Dubai who wanted to order 4950 ness partner Al Mazroui in the factory, Svensson mattresses. The future was finally starting to look called for the driver, who now also took care of bright. Today, the business is doing well, and serving beverage, and asked him to bring some they receive numerous calls every day from ho- coffee to the chairman. The Emirati was furious tels wanting to get in on those Swedish beds. 72 INSPIRATION

Thomas Age 65 Profession Regional Manager at Cavotec Middle Widegren East Tip for those wishing to Be humble and be prepared to work work in Dubai hard. Save your money and don’t forget Sara Age 24 I to pay for retirement annuity. Svedjedal Education Sigtuna Boarding School Thomas has been living and t started in 1992, which was a tough country it was finally decided that the new financial year and a huge turning point branch was to be established in Dubai. Tip for those Look for jobs from Sweden but do not working in Dubai for the last in Thomas’ career. At that time, Thomas Naturally, Thomas got the question if he wishing to work underestimate the importance of actually 15 years. He recently retired worked as CEO for the Swedish branch was interested in taking on the task of in- in Dubai being in Dubai. Combine your job search from his position as a manag- within the Cavotec group, a newly found- dtroducing Cavotec to the Middle East. He ed company in the steel industry. How- accepted the offer and an began a long with a vacation, book meetings and in- ing director for Cavotec Middle ever, after some trouble with associated journey. However, it was not only to pack terviews, and try to meet as many people East, a corporation that he companies and a shattered partnership a bag and leave. His wife would not speak as possible. Familiarize yourselves with founded in 1992 as an affili- Thomas was suddenly without a job. He to him for fourteen days, but after arrange- We met Sara Svedjedal, 24, early one morning for the country, the major companies and the ated company within the Cavo- turned to his brother, CEO for Cavotec ing a trip for them both to the region, it only group and together they decided to aim took a couple of days before she gave him coffees at Starbucks. history. Knowledge implicates interest. tec group. He has experienced for new markets. a hug and said “Let’s move here!” the ups and downs of creating S ara moved to Dubai just over a year ago and has had the chance to experience both the burning heat of economic responsibilities and opportunities at a similar position in Sweden. The rewards simply outweigh the drawbacks. Although Sara By the time we finished the coffees, the Sheik calls asking where she is, they are flying to Saudi Arabia the day after and a business in the United Arab Emirates and seen the immense Figuratively speaking, they tossed a dart at a map of the world and it landed right where the Arabian emirate Dubai is situ- In Thomas experience, establishing a business in the Middle East demands more hard work than many other regions, but growth as well as the cold sweats when the works in a very male environment, she the Sheik needs to be briefed for the meet- development of the emirate ated. They did not know much about the when the hard work is done and after hav- sudden panic on the financial markets was does not consider it to be a problem work- ings. As she walks of we are left thinking area, but they had a feeling the market ing established some good relations, work- spreading. Sara was recruited from Hill ing as a woman in Dubai. With tougher that in no other country would a twenty- Dubai. would suit them well. Thomas was as- ing in the Middle East is easier. It is hard and Knowlton in Stockholm where she had times, she has noticed an increased ques- four-year-old have the kind of position Sara signed to investigate the potential of the to get accepted and recognized, but you been working on Borse Dubai’s acquisition tioning of the merits of women, often per- has. market, and he traveled around the re- gradually build up trust and a network of of OMX for a long time: After the project haps surprisingly by other women, but the gion for about a year. It did not take long clients. It is important to learn about and was finished His Highness Sheikh Moham- difference from Sweden is not as big as before he realized that this was in fact a respect the culture of the people since there med Bin Rashid Al Makoum asked her to many expect it to be. The perks of living very interesting market for the company. are no written rules about how to behave, come and work for him in Dubai, and a in Dubai are, according to Sara, the cos- The process of finding potential customers how to dress and so forth. The tolerance is week later she signed an offer she simply mopolitan environment and the people you and partners was fairly straightforward. high among the locals, but you can easily could not resist. Her current position, being meet, as well as the lifestyle; the dinners, However, there was a lot of reading in destroy a trust by acting disrespectful. the Sheikhs closest assistant at Dubai Hold- the apartments, the weather and also the the Yellow Pages and he emits that his tal- ing Investment Group has changed consid- opportunities and go-get attitude dominat- ent for entrepreneurship has been abun- One other difficulty that he mentions is the erably since the credit crunch. Where she ing the atmosphere of the city. For the right dant. One thing Thomas also realized lack of knowledge among clients. When used to be flying around the world look- person a fast career is very much a pos- was the importance of developing and working in Europe you often meet engi- ing at potential investments for the Dubai sibility. On the negative side, the expat liv- maintaining personal relationships with neers with high technical knowledge and Group, she now spends a lot more time ing does tend to get lonely. People tend the customers in order to gain trust. “You experience whereas in Dubai you often in Dubai with internal tasks. The workload, to stay only a couple of years, and it is need to drink a lot of coffee and it takes meet young people with less practical ex- about 12 hours a day often including hard to form long lasting relationships. Fur- a great deal of patience to sit down with perience. It makes it harder to motivate a week-ends, is harsh at times and difficult thermore, Sara mentions things which often people and chat about everything except high price. During the years and despite to combine with a personal life; however are complaints from Swedes abroad, little business.” difficulties, Cavotec Middle East has man- Sara did not hesitate to take the job as it vacation, bureaucracy and complicated aged to do very well, today representing would take years to have the same kind of company politics. After several trips back and forth to the around thirteen percent of the group. 74 INSPIRATION

The UAe does noT only offer good cAreer opporTUniTies, This is Also The plAce where yoU eAsily cAn combine bUsiness And pleA- sUre. in dUbAi The shopping And lUxUry is overwhelming, And The beAch is noT fAr AwAy. The coUnTry Also offers An exciTing deserT wiTh loTs of pleAsUre. To Under- sTAnd The ArAbic cUlTUre, reAd This chAp- Ter AboUT whAT To see And do And how To behAve. 4. LIVING IN THE UAE

The Emirates Palace offers fabulous interior, coffee with gold sprinkled on The Emirates Palace top and beatiful cars to look at. Things to see Located in the capital of the UAE, the Emirates Pal- ace is a national landmark and one of the most expensive hotels ever built. We entered the Emir- ates Palace garage in our rental KIA and parked next to cars like Bentleys, Rolls-Royces and May- bachs. It became clear to us that this was not a regular low budget hotel. Inside the hotel we were welcomed by a huge gold decorated lobby and dozens of servants. Although this was a very pecu- We would like to share our experiences from liar experience for us all, we have to admit that for some of the most exciting sights and places a couple of seconds we felt a bit royal. That was during our stay in the UAE. Anyone travelling to not all; when our ordered coffee was served we recognized that they had put shredded gold on top the UAE should take the opportunity to visit and of the milk foam. For 40 Dirham’s (approximately enjoy these attractions. 80 SEK) we got a cup of Arabic coffee with some cookies topped with gold. The gold was no taste sensation, but the experience gave us an idea of how things sometimes are valued differently in this country.

Dune bashing and the Bedouin life Dune bashing, which is also known as desert safari, is very popular in the UAE. We booked an afternoon trip heading for the desert. At first, we waited 20 minutes for an additional car at the commission store. We all turned a bit scepti- cal about the whole thing, as we thought this was some kind of tourist scam. However, after a couple of hours of roller coasting along the sand dunes in the beautiful desert and a marvellous sunset on top of a huge dune, we finally changed our minds about the trip. As the sun set we headed towards a Bedouin campsite. At the campsite we were invited to enjoy camel rides and flavoured sheesha, a traditional water pipe with flavoured tobacco. To our great surprise we were also invited to the po- dium to dance traditional belly dancing. Although none of us knew how to belly dance, rejecting the dance was not an option. Completely exhausted after the bashing and the belly dancing we ended the evening with an Arabic buffet next to the blaz- ing bonfire. 80 LIVING IN THE UAE THINGS TO SEE 81

The Downtown Burj Dubai Skiing in Dubai Downtown Burj Dubai is also called the old We experienced many out of the ordinary things town, not because the town is old but because in the UAE, but maybe the most unusual expe- a lot of its architecture has been inspired by the rience of all was when we stepped into a ski past. The old town is located next door to the dome in the middle of the desert. We went to 818-meter high spire of Burj Dubai, the tallest the Mall of the Emirates in the afternoon to spend building in the world, and the Dubai Mall which some time away from the sun. The Mall of the is the biggest shopping mall in the world. As if Emirates is a shopping centre and an indoor ski that were not enough, in the centre of it all lies resort that opened in 2005. When we looked the Dubai Fountain. It is the world’s tallest per- down on the ski slope in the minus 4 degrees ski forming fountain. We were sitting at a restaurant facility, knowing that is was 45 degrees outside, next to the fountain when the music kicked-in at we could not stop thinking how unnatural this in 7 pm without premonition and 83 000 litres of fact was. Although it may have been extremely water jetted 150 meters into the air. The Dubai unnatural and energy consuming it was great fun Fountain is one of the world’s most advanced to ski there and for a change it felt good to be water, light and sound fountains. A couple of freezing. hours after the restaurant visit, we found ourselves sitting at the Address Hotel’s sky bar on the 63rd floor enjoying a couple of cocktails with a nice panorama view over the skyline and the fountain show. To the right: Strange to get dressed for snow activities with 45º outside. To the left: Burj Dubai reaches for the sky Below: A chairlift takes you to the top and Below: The fountain, the old town Souk for the youngest their is a playground at and Dubai mall. the bottom of the slope. 82 LIVING IN THE UAE THINGS TO SEE 83

Grand Mosque Sheikh Zayed Mosque (Grand Mosque) in Abu Dhabi is the sixth largest mosque in the world. It opened in 2007 and it rises 115 meters in height. The mosque is decorated completely with marble and the outside courtyard covers 17 000 m2. Altogether the mosque can accommodate up to 40 000 worshippers at the same time, of whom 1500 in the main hall. 84 LIVING IN THE UAE FROM kUMLA TO ABU DHABI 85

T he UAE is a religious country, and 96% of the citizens are Mus- lims. Most of the local costumes and traditions are rooted in Islam, and although UAE is an open society accepting other reli- the Culture gions, it is important for Westerners to understand the culture and the core values. Family is considered very important; everybody is protective of their family as it is a part of their roots and history. Usually the father in the family is the provider and the mother takes care of the Clash house and children. However, almost all Emirati household have maids. This traditional arrangement is nonetheless changing, and the government is striving to include women in the workforce. To- day, about 70% of the students in University are women and they have attained some politically important positions such as Minister of Foreign Trade and Supreme Court judge. A key component of UAE etiquette is to show respect towards their women. You can usually tell who is Emirati by the way they dress. As part Politeness and hospitality are important virtues, and Emiratis are of the local custom the men wear dishdasha, a wool fabric dress great hosts. If you are in the UAE and are invited to join a local for in various colors depending on occasion, usually white, combined dinner, it is rarely the guest who pays. It is a part of their way of with a white or red-checkered headdress. Women wear a long showing gratitude and it is a very rude to turn down an invitation black robe, called abaya, that covers their normal clothes and (if the host invites you to dine in their home, you are supposed to they also combine it with a headscarf in public. People of other eat with your right hand). How strictly the religious rules are fol- religions and traditions can wear any clothing they like, such as lowed depends on the emirate. The emirate Dubai is by far the a bikini on the beach, but in public places you are expected to most liberal, whereas Sharjah and the other smaller emirates with dress a bit more conservatively and to respect the local custom a smaller population of westerners are much more conservative. and tradition. Although the majority of the population practices Islam, UAE is The official language is Arabic, however communicating in public tolerant to other communities and not only accepts their customs, and doing business in English is not a problem. but tries to accommodate for them as much as possible. Alcohol, for example, is served in restaurants and hotels where the locals UAE always seeks to promote the best in its traditions and customs also can enjoy it. However, it is not accepted to appear drunk in so that the nation becomes vibrant and attractive to all the people public, and drunk driving is a severe offence. visiting and living in the country. THE CULTURE CLASH 87

Guidelines for living in the UAE Alcohol Alcohol is only served in designated areas, mainly hotels. In Dubai, you can obtain a license which entitles you to buy alcohol, however only in limited quantities. Do not drink and drive. This is a severe offence in UAE and can result in a prison sentence. Currency The currency of the UAE is the Dirham. If the currency is finished at an exchange office, you could also change your SEK into USD. (SEK 1 ≈ Dh 2) Dress Code Emergency Health Service Ramadan In a business context it is important to dress Ambulance service can be called at 998 or If you are going for a business trip or want to appropriately, normally dark suit, and women 999. There is a 24-hour municipality emergen- search for a job, just make sure it is not during should not wear too revealing clothes. A lot of cy number for Dubai- 04 2232323 and Abu the Holy Month of Ramadan. During that month companies are not that strict about dress-code, Dhabi-02 777 929, telling you the locations of all Muslims fast from sunrise to sunset. Eating, but it is best to be on the safe side. It is also open chemists. drinking and smoking in public during daylight actually an offence not to wear business attire hours is not accepted. First time in the UAE when in a government or business building. New residents and newly employed in UAE Tax are advised to stay at a hotel for some weeks To avoid having to pay Swedish tax, make sure before buying any permanent residence. Living you register yourself as Utvandrad at the Swed- is very expensive, and rental apartments are ish Tax Agency, upon relocation. rare. Buying apartments and real estate is, despite the economic situation in the world, Trade union very expensive. There are no trade unions in the UAE. Marriage – living together as man and woman Transportation Men and women are not allowed to live The best, and almost only way, to get around together unless they are married is by car. Men and women are not allowed to kiss in public. Unemployment If you lose your job you have only 30 days to Passport and visa find a new job, or you must leave the country. You must be in possession of your Swedish passport valid for six months from the date of ar- Vaccinations rival in UAE. Swedish citizens do not need any Don’t worry about this. There are no require- visa. Other countries have their own restrictions. ments for immunizations; however a certificate is Contact your embassy for information. If a man required for cholera and yellow fever if you ar- is employed in the UAE, his family will receive rive from an affected area. But we recommend resident’s permit upon request. If a woman is immunization against polio and Hepatitis A. employed in the country it is not as easy for her family to be allowed to live in the country. GUIDELINES FOR LIVING IN THE UAE 89

Body language in the Basic Arabic Phrases UAE and amongst Arabs As-salamu Aleykum | Peace from Allah transcends upon you formal way of greeting, to which the reply is: ...in business - Alaykum As-Salaam | And upon you be peace The Chin Scratch A sign of showing that an Emirati is thinking and usually wanting you Marhabbah | Hello to wait until he/she is finished, they scratch or hold their chin or beard non formal way of greeting, to which the reply is: (if a male). - Marhabbteen | Hello Conversational staring Shukran (jazeelan) | Thank you (very much) During a presentation of a business plan or so, if an Arab stares you in the eye as you speak, it means that he is giving you his full attention. It To which the reply is: is important that you reciprocate, not avoiding eye contact. If you do - Aafwaan | You’re welcome not get eye contact, try another strategy, because usually that means that they do not care about what you are saying. Ahlan wa sahlan | Welcome To which the reply is: The cup - Ahlan beek | Welcome to you The indication that they want you to slow down in speaking is usually a hand signal of putting all the fingers together, cup like. Inshallah | If Allah wills This phrase is used in reference to a future, since all things are at Al- The finger on the Nose/Beard/Head lah’s will. So if you say, see you tomorrow, you might be replied with Means the person understands what you are talking about. Inshallah. Indeed, it is used in numerous contexts. Hand on Heart Maashallah | Whatever Allah wills To show genuine respect, humbleness and thankfulness, the Arabs place their hands on their heart, usually in combination with a small This is used when complimenting something, usually in the context bow meaning thank you. This can be compared with the Swedish of family or health. traditional male bow and women curtsying. Mabrook | Congratulations This is used in any congratulatory context. ...in public The Nose Touch If you see two male Emirates being very close with their mouths, do not be surprised. They are just greeting each other accordingly to Bedouin tradition. Men holding hands Do not be shocked if an Emirati you know suddenly starts holding your hand. This is nice sign of friendship. If this intimidates you, the Emirati will think you are insecure about your sexuality. So do not hesitate, hold on to that hand! Cheek kissing Guys kissing each other on the cheek is considered normal and not linked to homosexuality; this is usually combined with a hand It is good to know some local shake. It is a sign of friendship, and it is common amongst male habits arabic phrases in order to stay out of trouble and to get a friends. good price at the souk. 90 LIVING IN THE UAE GUIDELINES FOR LIVING IN THE UAE 91

x Day 3 our travel diary We headed off to the giant construction site on Yas Island to meet with the Swedish company Envac. We were introduced to the company by a short presentation of its product and operations in the region. Herman Esterhuizen, Business Development at Envac also took us on an exciting tour around the island where he showed us their product – a system for automated waste management. Yas Island is also the location of the new Formula 1 race track in Abu Dhabi. Although waste management was much more interesting than we could ever imagine, the biggest experience was, without a doubt, when we took our rental car for a spin at the new For- mula 1 race track. Following the Yas Island experience, we continued the day by visiting the Abu Dhabi Higher College of Technology and the free zone DuBiotech. x Day 1 x Day 4 A group of nine jet-lagged KTH students arrived at Dubai International We packed our bags and headed straight for Dubai Airport early in the morning. With our first target in clear sight we headed where we met with Tom Smith, Director for Global straight for the Masdar city construction site, the future green city which Development at WSP. Tom gave us a fantastic intro- is being built close to the Abu Dhabi airport. We were welcomed at duction to Dubai and a short presentation of the com- the Masdar site by Omar Zafrani and Sara Al-Khalufi and Mohammed pany’s operations in the region. After the presentation Al Qassimi. At the site, we were taken on a tour and given an exciting Tom took us for a lunch at the foot of Burj Dubai – the presentation about the future carbon neutral city. tallest skyscraper in the world. During the evening we were invited to dine with Mohammed, whom we met earlier the same day at Masdar where he was doing an internship. Mohammed became a good friend, and during the following days he was our cheerful Abu Dhabi guide. x Day 2 x Day 5 Louise and Lydia from the group met with Sara Svedjedal, a young woman working for Sheikh Mohammed Bin Rashid Al Makoum. The rest of us visited Dag Krogdahl On the second day we visited the Swedish embassy in Abu Dhabi. Bruno Beijer, the Swedish ambassador, at IBM in Internet city. gave a presentation of UAE’s history, culture, business climate and much more. Participating at the meeting was also the Swedish lieutenant colonel PO Andersson, who is responsible for the Swedish military supply Later that day we got our first well deserved time off and headed straight for Palm centre in Abu Dhabi. Jumeriah and its waterland, Aquaventure. In the evening we celebrated an early Swedish National day at the Hilton Hotel in Abu Dhabi. We were surprised to get excellent Swedish food composed by a star chef. The festivity was arranged by the Swedish embassy, and many Swedes working in the country had been invited. This was indeed a great opportunity for us to do some networking and to book some last minute meetings for our visit in the country. 92 THE PROJECT OUR TRAVEL DIARY 93

x x Day 6 Day 7 We took the day off from meetings and visited the Gold Souk, known to be We visited GAC and Lars Bergström, IT Director, in the Jebel Ali Free Zone. the biggest gold market in the world. The most surprising thing about the gold GAC is one of the biggest shipping agencies in the world, and the company market, considering the fact that they had gold everywhere including a couple was founded in Kuwait 1956 by a group of Swedish shipping specialists. of gold bars nonchalantly thrown on the floor, was that they had almost no Later that day our local friend Mohannad took us to a local Beduin restaurant – guards at all. a very exotic experience since we all had to eat the food from the same plate, In the afternoon we went to the beach for a swim and some ice lattes. using only our hands. x Day 8 Kent Johansson aka PAX-Kent, considered to be one of the most well-known Swedes in the UAE, met us at our hotel. Johansson Day 10 told us about his experiences from 28 years in Dubai and how it works to run a business in the UAE. PAX-Kent is an architect, and gave an interesting aspect on Dubai’s change from desert to a high rise city. Half of the group drove to Jebel Ali Free Zone to visit Scania and Fabio Castello, General Manager, at their new supply plant. At Jebel Ali we also visited another Swedish company, Cavotec. x x x The other half of the group went to visit Nasdaq Dubai at the Dubai International Finance Centre (DIFC). Day 9 Day 11 We made a day-trip back to Day 12 We had a relaxed lunch Abu Dhabi to visit the Swedish meeting with Martin Tideström, entrepreneurs at Swede Dreams, Director at the Dubai Interna- the head of Ericsson Middle East tional Financial Centre, and and a management consultant We drove to the east coast to Day 13 Erik Ricknell, Vice President at at Deloitte. An intense but very experience the eastern parts Nasdaq Dubai. In the evening interesting day. of the emirate Sharjah. This we were invited to Anders was a great opportunity for us Lindquist’s (whom we had met Day 14 to see the huge differences of at Cavotec) house for a nice On the last day in the UAE, we met with Nadin Karadag and the country UAE. The country BBQ and a late night out. Robbie Wilkins from Nasdaq Dubai along with Lars Erik Bound- has a shifting geography and man and Annika Sundqvist, former KTH students, for a lunch at especially a versatile culture, the Dubai International Financial Centre. x We left UAE after two fantastic Sharjah is much more conser- x x weeks in the country. In the evening we had our last dinner in UAE together with some vative and Arabic than Dubai of the good friends we had made during our time in the UAE. and Abu Dhabi. 94 THE PROJECT OUR TRAVEL DIARY 95

Jakob Dehnisch Harde Kader Andreas Takanen Lovisa Corp Project Industrial Engineering & Management Project Manager Being part of the FocusOn proj- Industrial Engineering & Management Project Manager When seeing the green grass, Engineering Physics Media relations When looking back at the proj- Design and Product Realisation Web design I love traveling and FocusOn members ect has been a great challenge fountains and amazing sky- ect, I must say the main journey has given it another dimension. from which I have learned scrapers in the desert, it is clear was not the one going to the By meeting locals and local much about myself and the for me that the rulers of UAE Arab emirates but the way of companies as we did in UAE I many aspects of working to- want to give their people the getting there. By building a got the feeling of sneaking be- gether as a group. The project life they didn’t have when they name for the project and using hind the scenes of the country. Personal thoughts has been a lot of fun but also were young, 30 yearsago. It is it to attract sponsors, organiz- I’ve been amazed and over- sometimes demanding and dif- amazing how fast the country ing events on a tight budget, whelmed by what they have ficult and we have all made develops, sometimes in a pace planning the trip, writing ar- achieved and by their great vi- our sacrifices throughout this so fast it is hard for us to under- ticles for the book and many sions, but I have also realized project. However, when I re- stand. UAE is the place where other things. Although I have the backside of the explosive flect back to when we started, the best of the best meets up experiences from organizing development. The locals are while the financial crisis was and the highest level of life is Per Nordqvist and participating in different creative projects, this has been a small minority in their own country and struggle to main- at its worst, I cannot but real- lived. If you want to be a part Media Technology ize how far we actually have of that, you have to be there. a whole new challenge for me. tain their religion, history, lan- Graphic Design traveled together in this project. It has been an unforgettable Working with eight other dedi- guage and daily habits. Indeed, this project has been a experience and trip and I am cated high-performing ambi- On our way down to the UAE true journey for us all, a journey honored to have been able to tious KTH students has created I have never before gotten to I had a lot of expectations on that I am both proud of and share it with such an amazing a fast paced tempo and driven know a country this well in such what the country had to offer. glad to have been a part of. group of students. The hard me to a whole new potential. a short time. This project will I can just say that they were work we have been putting be a memory for life. overrun by miles! To sit in a During our trip to the UAE I into this project has paid off in th bar on the 65 floor with the have seen the many aspects good friendship and memories world’s highest building in front of this country. I have seen for life. of you and a massive city of the highest skyscrapers in the skyscrapers below your feet Starting from nothing together world, some of the most bold really makes it impossible to with eight highly motivated and visionary projects in mod- imagine that almost nothing of students we have got this proj- ern times, but also the enor- it existed only in the early 90’s. ect not just to be accepted mous gap that exists between That is what strikes me the most as a local student action but, local emirates and the huge with this country. Since there is more importantly recognized population of poor immigrant no lack of money at all the say- as something important and workers. However, knowing ing “anything is possible” re- valuable for the companies in that the UAE was founded less ally transforms into reality and the region. I am proud to be a than 40years ago makes it dif- instead of playing with dreams member of this group, and the ficult not to be amazed by its about what would seem like an experience that I have gained ambitions and the vast devel- extraordinary but impossible in various fields during the proj- opment of the country. project they can realize it in ect will be of use for me for the just a few years. rest of my life. 96 THE PROJECT PROJECT MEMBERS 97

Lydia Lilja Biotechnology Michel Thomas Event coordinator Industrial Engineering & Management Partner relations FocusOn was the highlight of my time at KTH. After years of I will never forget the trip, and Approaching my degree in In- exams, labs and assignments I I am forever grateful I got to dustrial Engineering and Man- needed a new challenge and experience the country the way agement I felt that I needed new input. Being involved in we did: the culture clashes, the one last challenge where I FocusOn has been time con- breathtaking architecture and could apply my theoretical suming but so much fun. I have the grand visions that seemed skills gained trough my educa- met people who I believe to borderline crazy. The UAE’s tion with my social and creative FocusOn UAE 2009 lived up be very important for my future Minister of Foreign Trade said skills. As I always have had a to all my expectations and it career and friends for life. The that they are not afraid to fall: passion for discovering the has really been very exciting project has prepared me for “if we fall, we fall forwards” world I chose to be a part of to be involved in the project. my professional life in ways no and that, in my opinion, is the FocusOn UAE 2009 knowing It has certainly been an experi- other course could have and I essence of the success of the this project would provide me ence I will take with me in my never regretted applying UAE. with this unique opportunity. further career. Kristofer Dreiman Industrial Engineering & Management Research Louise Gustafsson Civil Engineering After this project the UAE, in Partner relations my view, is the country of con- trasts. Here you will find the I love challenges, and being world’s tallest building and a member of FocusOn UAE amazing offshore projects, I hope that the country’s ambi- 2009 has been an inspiring a hot climate and cool shop- tions to develop renewable challenge! FocusOn is the ping malls, rich Emiraties next energy and clean technology most inspiring course I have The year with FocusOn, and to average foreign workers. In will be realized. If you want taken at KTH. I have learned especially our trip to UAE has the middle of the desert where an interesting job and have a lot about myself, and it has been an amazingly good time. Bedouins struggled some appropriate knowledge, this made me really enjoy my last The UAE is a fascinating coun- generations ago, there rises is the place to go. Also worth year as a student. FocusOn try with an incredible history. today one of the world’s new mentioning is all the different gathers students from different The UAE attitude “nothing is business, travel and research nationalities that shape the educations and gives them the impossible” is my best learning hubs. In the background lies country into something unique. opportunity to work together. from our visit in the country. a visionary strategy, far more For me, the UAE and its Arabic Learning to work with different transparent and in sharp con- roots stand at the intersection persons from different back- If you get the chance - visit the trast to Swedish conditions. where cultures from east and grounds and educations might UAE and explore the country For example, the mentality of west meet. During our trip the be the best way to prepare for beyond Dubai – there is so build before demand is present project group enjoyed local the approaching work life. All much more to see! Do not hesi- permeates many projects. This coffee, shisha and some hum- students should be given the tate to take part in FocusOn or way of thinking was interesting mus together with people from opportunity to participate in a any other project at KTH – it is and something I will remember all parts of the world. Worth project like this. a chance of a lifetime. as a future professional. recommending! 98 THE PROJECT PROJECT MEMBERS 99

Main partners Project partners Project sponsors PARTNERS 101

Department of the Treasury, Office of International Affairs, Occasional Paper no. 4 (2006), “Overview of Anders Lindquist, Cavotec References Islamic Finance” Special Thomas Widegren, Cavotec Dubai international Financial Centre, “Guide to Islamic Finance in or from the Dubai International Financial Centre” thanks to... Andreas Frandevi, Deloitte Marco Baccanti, Dubai Biotechnology & Research Park Government of Dubai, Department of Tourism and Commerce Marketing (2009), Dubai Official Pocket Anita Sahagian, Dubai Biotechnology & Research Park Guide Sara Svedjedal, Dubai Group Lund University 2007 Reyadh Alasfoor, The Gulf Cooperation Council: Its Nature and Achievements Göran Elfving National Media Council UAE, “United Arab Emirates Yearbook 2009” Ingemar Mellgren, Ericsson National Media Council UAE, “UAE at a glance 2009” Bo-Erik Dahlström, Ericsson Z/Yen Group and the City of London (March 2009), “The Global Financial Centres Index 5” Dick Allansson, Ericsson E-sources Bruno S Beijer, Embassy of Sweden Abu Dhabi Securities exchange, http://www.adsm.ae Klas Ljungberg, Embassy of Sweden AME Info (2009), http://www.ameinfo.com Michael Merriman, Envac Business Week, http://www.businessweek.com/globalbiz/content/jan2009/gb20090114_965802.htm Herman Esterhuizen, Envac Chopper Shoot, http://www.choppershoot.com Patrick El-Cheikh, Exportrådet Emirates Free Zones, http://www.emiratesfreezone.com Jonas Fågelberg, Exportrådet Emirates Update, http://emiratesupdate.wordpress.com Daniel Mokari, Exportrådet Expat woman, http://www.expatwoman.com P-O Andersson, FMLOG Dubai Expat, http://www.dubaiexpat.com Kajsa Wedar, Fortum Dubai Financial Market, http://www.dfm.co.ae Åsa Wistedt, Fortum Dubai Government, http://egov.dubai.ae/opt/CMSContent/Active/CORP/en/Documents/DSPE.pdf Lars Bergström, GAC Dubai Mercantile Exchange, http://www.dubaimerc.com Mats Gustafsson, Handelsbanken Dubai Strategic Plan, http://egov.dubai.ae/opt/CMSContent/Active/CORP/en/Documents/DSPE.pdf Erik Forsberg, Higher Collages of Technology GCC, http://www.gccsg.org/eng/index.php?action=Sec-Show&ID=3 Harald Öfverholm, Kaupting Gulf News, http://www.gulfnews.com Gunnar Benediktsson, KTH Higher College of Technology, http://css.hct.ac.ae/catalogues/catalogue07-08/view.asp?name=CERT. Lennart Johansson, KTH htm, http://www.hct.ac.ae Peter Gudmundson, KTH khaleej Times, http://www.khaleejtimes.com/DisplayArticleNew.asp?section=theuae&xfile=data/ Iradj El Qualqili, Masdar theuae/2007/february/theuae_february92.xml Omar Zaafrani, Masdar LA Times, http://www.latimes.com/entertainment/news/arts/la-ca-abu-dhabi28-2009jun28,0,6366306. Zarmineh Rab, Masdar Institute of Science and Technology story Mohammed Al-Qassimi Masdar, http://www.masdar.ae Mohanad S Nakheel, http://www.nakheel.com/en Teresa Fischer, NASDAQ OMX NASDAQ Dubai, http://www.nasdaqdubai.com James Martin, NASDAQ OMX NASDAQ-OMX Group, http://www.nasdaqomx.com Patrik Pohjanen, Nikon Nordic AB, Service Swedish Trade, http://www.swedishtrade.se Kent Johansson, Pax-Kent Swedish Embassy, http://www.swedenabroad.com/abudhabi Madeleine Tucker, Projectplace Shelter Offshore, http://www.shelteroffshore.com/index.php/living/more/expats_living_in_dubai Annika Sundqvist SOM, http://www.som.com Mats Rosander, Siemens That’s Dubai, http://www.thatsdubai.com Fabio Castello, Scania The Economist, http://www.economist.com/world/mideast-africa/displaystory.cfm?story_id=13988540 Sven Westman, Svenektra The Emirates network, http://guide.theemiratesnetwork.com/living/business.php Göran Svensson, Swede Dreams The Heritage Foundation, http://www.heritage.org/Index/country/UnitedArabEmirates Ambassador Najla Al Qassimi, The Embassy of the UAE Stockholm The Independent, http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of- Hazzam M. Almarouf, The Embassy of the UAE Stockholm dubai-1664368.html Tom Smith, WSP UAE Interact, http://www.uaeinteract.com Wikipedia, http://www.wikipedia.com Zawya, http://www.zawya.com/story.cfm/sidv52n34-3NC27 (August 2009), “UAE Financial System Remains Fragile, NBK Reports” 102 THE PROJECT REFERENCES AND SPECIAL THANkS 103

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