The MENAT Region

United Arab Emirates

The seven Emirates that constitute the UAE have both extensive natural resources and strong financial sectors, contributing to a large annual GDP, helped by a government vision to create a pro-business environment contributing to sustainable development of the country and a regulatory environment, foreign trade and investment policies to support this. Dubai is a city of both commerce and tourism with plans to become a cultural hub in the region and also a ‘smart city’ through extensive digital connectivity.

In 2013, the Emirate of Dubai won the right to host the first of the World Expo in the Middle East. Keeping with the entrepreneurial and pioneering spirit of the UAE, the theme of Expo 2020 is “Connecting Minds, Creating the Future”, and the event is expected to generate significant economic benefit across the region.

The 2019 World Bank report on the ‘Ease of Doing Business’ ranks the UAE first across Arab countries, and 11 th place overall among the 241 countries ranked. 

Abdul Latif Jameel International is based in the Emirate of Dubai in the UAE, and coordinates businesses in a number of international markets.

Turkey

Turkey is the 18th largest economy in the world and with a sizeable population of approximately 80 million people – Young, dynamic, well-educated, connected and multi-cultural – 43% of whom are under the age of 25.

This large domestic market opportunity includes 59 million broadband internet and 82.9 million mobile phone subscribers and 69.5 million credit card users in 2019.  It’s geographic position also saw over 209 million airline passengers in 2019.  Turkey has had a customs union with the EU since 1996, and in 2015, was the 2nd biggest reformer among OECD countries in terms of its foreign direct investment restrictions 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2015).

Abdul Latif Jameel affiliate, ALJ Holding AŞ, has conducted operations in Turkey since 1998, from its offices in Istanbul.

Morocco

Continuing its simplification of administrative procedures for businesses and strengthening the commercial regulatory framework improving transparency, the country launched a number of industry sector plans to stimulate sustainable economic growth. This reform is marked by an innovative approach to public-private partnership with greater participation of the private sector in industry development policies and funding. These strategies are designed to speed the development of key sectors including agriculture, fishery, mining, renewable energy, logistics and as automotive, aerospace and services with high added value.

With a strong economy, an attractive business environment, and a drive into renewable energy, it offers a number of investment opportunities.

Algeria

Located at the Northern tip of Africa, Algeria is the third most important economy in the MENA region. It is home to over 42 million people and is Africa’s largest country, with a landmass of 2.4 million km².

With a GDP of more than USD $170 billion, Algeria has achieved a 20% reduction in poverty over the past two decades thanks to new social policies aligned with the UN’s Sustainable Development Goals.

A country rich in natural resources, Algeria has the 10^th largest reserves of natural gas in the world, and it is the 6^th largest gas exporter globally. With 3,000 sunshine hours per year, it’s also diversifying into renewable energies. 

Egypt

Structural reforms have proven successful, helping to stabilize the economy, sustain growth and lay the groundwork for more dynamic private sector participation in the future.

The country has recently adopted a bold reform plan with three pillars of business reform, attracting FDI, and investor care, moving toward fiscal sustainability,  reducing economic risk and increasing investor confidence. 

Now, Egypt looks to a brighter horizon with new industries emerging and increasing opportunities for job creation.

Bahrain

Bahrain has a track record as a modern international business economy over several decades, a skilled workforce and liberal business environment, offering 100% foreign ownership of business assets and real estate across most sectors.

Financial services in particular has thrived for over 40 years and was judged the Gulf’s most sophisticated financial market by the World Economic Forum Global Competitiveness Report 2016. Banking forms the largest of the sector and has expanded rapidly. Increased infrastructure development across the region creates a need for structured finance and lending products and trade finance opportunities are increasing with the GCC’s integration into world markets. 

Jordan

Jordan is gaining popularity as an international business and investment hub with its unique combination of attributes that create an attractive environment for foreign business and investment. 

Strategically located at the convergence of Europe, Asia and Africa, it is a transportation hub of the Middle East with access to the Red Sea through the Port of Aqaba.  It boasts a stable political environment, a skilled workforce and has a firm commitment to private sector development including ‘Free Zones’ and incentives to promote inward investment.  It operates a free market-oriented economy with policies based on outward-oriented, private sector-led approach. Along with significant advances in structural and legal reform this creates an attractive investment climate.

Kuwait

Kuwait has always been a country open to foreign investment – The Kuwait Investment Authority is the oldest sovereign wealth fund in the world tracing its roots to 1953, and the Kuwaiti government is willing to diversify its economy and has launched an open policy to foreign investments. Today, 100% foreign ownership, open markets for foreign trade and foreign direct investment incentives, and large oil reserves, help deliver one of the world’s highest GDP per capita for a young connected consumer population.

Lebanon

With a non-interventionist stance to private investments, Lebanon offers one of the most liberal investment climates in the region encouraging free market competition and furthering the development of the private sector. Low corporate tax rates and competitive taxation schemes, bilateral investment treaties, many free trade agreements and a regulatory framework that create transparency are also defining factors in encouraging inward investments totaling US$ 2.34 billion in 2015 according to the 2016 UNCTAD World Investment Report. 

Oman

A key driver in the government’s plans to diversify the economy and create growth and investment opportunities is building a strong infrastructure base.  Nearly US$ 20bn was allocated between 2011 – 2015, to develop the transport infrastructure to strengthen trade, logistics and tourism sectors for growth and investment. Oman’s GDP growth rate has trended positively over the last decade, with investment regulations allowing 70% foreign participation in companies and various tax exemptions. Growth is expected to accelerate to 3.7% in 2020 driven largely by the rise in natural gas output as production from new fields comes on stream. 

Iraq

An economy poised for potential resurgence, abundant numbers of educated and talented people available and a pro-business fiscal environment, Iraq has much to offer.

There are numerous green and brownfield opportunities for investment across all sectors of the Iraqi economy. The Government of Iraq has identified hundreds potential opportunities in key  sectors including construction, manufacturing industry, agriculture, tourism, housing, telecommunications and healthcare.

Sources:

• World Bank Reports
• IMF Reports
• OECD Reports
• World Economic Forum Global Competitiveness Report
• UNCTAD World Investment Report
• GEDI Global Entrepreneurship & Development Institute
• National Government Investment Departments (various)