ANALYST DAYS IN DUBAIGulf Overview

Sylvain Hijazi

10 March 2008

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Iraq

IranIsrael

Jordan

Lebanon

Saudi Arabia

Syria

Yemen

Kuwait

BahrainQatar

UAEOman

Currencies: Linked to US$

GDP: 416 B.USD

Population: 12.1 million

Total Area: 430,000 sq.km

Installed Capacity: 53GW (GT 35 MW + ST 18 MW)

Transport Rail: 0 km

Geographical context

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History of Gulf Countries (1/2)

Were under the British Military control

KUWAIT• The first country gained independence on June 19, 1961• Al-Sabah dynasty has had a close partnership with British Foreign relations and

defense since 1899OMAN

• The second country became independent on Nov.18, 1970• Sultan Qaboos bin Said Al-Said since 1970 (take over from his father)

QATAR• Became independent on Sept.3, 1971, Al-Thani family had relations with UK since

1850

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History of Gulf Countries (2/2)

BAHRAIN• Became independent on Aug. 15, 1971, Al-khalifa family had close relations with UK

since 1870

UAE• The federation formed in Dec.2, 1971 with 6 Emirates (excluding Fujairah). Fujairah

joined the federation in early 1972 (originally the idea was to create the Federation with 9 Emirates)

• The Federation members are: Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras Al-Khaimah and Umm Al-Quwain

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Gulf Oil & Gas Reserves

Oil Gas

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GCC Interconnection – Gas Link

Under construction Completed

• Actual Gas price 1.25$/Mbtu to 1.6$/Mbtu (still low versus other countries)• Gas price will be increased to 3$/Mbtu in 2010• Dolphin pipe line will start to feed by 2 bcf/d on next April 08 (instead of 1.2 bcf/d actual today)

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Regional policy GCC Interconnection - Electricity Link

The interconnections are to be constructed in 3 phases and will provide 600 – 800 MW of power to Bahrain, Kuwait, Oman, Qatar & UAE.

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Regional policy GCC Interconnection – Rail Link

Project realisation may come by 2015

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Economic situation

Macro Economic Data - Gulf Countries

(UAE, Bahrain, Qatar, Oman & Kuwait)COUNTRY Area

(km 2)Pop u l a ti on (Mi l l i on )

Oi l Res erve (Bi l l i on Ba rrel s )

Oi l Prod. (M i l l i on Ba rrel s

Ga s Res erve (Tri l l i on M3)

Ga s Prod. (b cf/da y)

GDP (Bi l l i on US D)

GDP Per Ca p i ta (USD)

Reven u e (Bi l l i on US D)

Exp en d. (Bi l l i on US D)

Exp ort (Bi l l i on US D)

In p ort (Bi l l i on US D)

Cu rren cy Exc.Ra te Vs US D

UAE 90,599 4.5 97.8 2.410 6.06 4.45 189.6 36,222 7.75 7.75 165.2 118.7 AED 3.67

BAHRAIN 695.3 0.8 0.125 0.188 0.09 0.89 16.9 21,330 3.4 3 16.1 10.9 BHD 0.38

QATAR 11,437 1 15.5 0.790 25.78 3.8 65.8 57,000 20 18 50.5 26.7 QR 3.64

OMAN 309,500 2.6 5.6 0.97 0.95 1.431 40.5 13,609 11.5 12.5 50.5 18.6 RO 0.39

KUWAIT 17,818 3.2 101 2.490 1.56 0.84 103.4 30,188 46 37.6 63.9 32.400 KD 0.29

Gulf Region

430,049 12.1 220.03 6 .848 34.44 11.411 416 88.65 78.85 346.2 207.30

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Bahrain

Bahrain was one of the first States in the Gulf to discover oil

The Kingdom of Bahrain is made up of 33 islands and is home to one of the largest aluminum smelters in the world.

Capital: Manama

GNI per capita: US$ 21,330

GDP: US$ 16.9 billion

Oil Reserves: 0.125 billion barrels

Oil Production: 0.188 million barrels per day

Population: 800,000

Area: 695.3 sq km

Exchange Rate: 0.38 Bahraini Dinar per US$

Gas Reserves: 0.09 trillion m3

Gas Production: 0.89 bcf/day

King: H.H. Sheikh HamadBin-Isa Al-Khalifah

Percentage Distribution of Population

Exp1%

National63%

TCN26%

Arabs10%

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Kuwait

The State of Kuwait is a small, oil-rich country nestling at the top of the Gulf, flanked by large and powerful neighbours - Saudi Arabia to the South, Iraq to the North and Iran to the East.

Capital: Kuwait City

GNI per capita: US$ 30,188

GDP: US$ 103.4 billion

Oil Reserves: 101 billion barrels

Oil Production: 2.49 million barrels per day

Population: 3.2 million

Area: 17,818 sq km

Exchange Rate: 0.28 Kuwaiti Dinar per US$

Gas Reserves: trillion 1.56m3

Gas Production: 0.84 bcf/dayAmir : H.H. Sheikh Sabah

Al-Ahmad Al-jaber Al-Sabah

PERCENTAGE DISTRIBUTION OF POPULATIONTCN13%Exp

7%National

45%

Arabs35%

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Oman

Sultanate of Oman is a well-off country with large oil and gas resources, a substantial trade surplus, and low inflation. Oil is the mainstay of the economy, providing around 40% of GDP.

Capital: Muscat

GNI per capita: US$13,609

GDP: US$ 40.5 billion

Oil Reserves: 5.6 billion barrels

Oil Production: 0.97 million barrels per day

Population: 2.6 million

Area: 309,500 sq km

Exchange Rate: 0.39 Riyal per US$

Gas Reserves: 0.95 trillion m3

Gas Production: 1.431 bcf/day

Sultan Qaboos bin Said Al Said

PERCENTAGE DISTRIBUTION OF POPULATION

National81%

Arabs3%

TCN15%Exp

1%

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Qatar

Capital: Doha

Population: 1 million

The State of Qatar has developed from being one of the poorest Gulf States to become one of the richest. Natural Gas reserves 3rd

largest in the world.

Gas Reserves: 25.78 trillion m3

0

10

20

30

4050

60

70

80

90

RASGAS QATARGAS

(Contracted LNG exports million tonnes a year)

Area: 11,437 sq km

GNI per capita:US$ 57,000

GDP: US$ 65.8 billion

Exchange Rate: 1 Q Riyal = 3.64 per US$

Oil Reserves: 15.5 billion barrels

Oil Production : 0.790 million barrels per day

Gas Production: 3.8 bcf/day

Emir: H.H. Sheikh Hamad Bin-Khalifah

Al Thani

PERCENTAGE DISTRIBUTION OF POPULATION

National15%

Arabs32%

TCN41%

Exp12%

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United Arab Emirates (UAE)

A federation of seven emirates formed in 1971: Abu Dhabi, Dubai, Ajman, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain. The UAE is governed by a Supreme Council of Rulers of each of the emirates and presided by Sheikh Khalifa bin Zayed Al Nahyan (Ruler of Abu Dhabi).

PERCENTAGE DISTRIBUTION OF POPULATION

National14%TCN

65%

Arabs16%

Exp5%

Capital: Abu Dhabi

GNI per capita: US$ 36,222

GDP : US$ 189.6 billion

Oil Reserves: 97.8 billion barrels

Gas Reserves: 6.06 trillion m3

Oil Production: 2.4 million barrels per day

Gas Production: 4.4 bcf/d

Population: 4.5 million

Area: 90,599 sq km

Exchange Rate: Dirhams 3.671 per US$ President H.H. Shaikh

Khalifa bin Zayed Al Nahyan

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UAE

UAE: Federation of 7 Emirates

EMIRATE RULER

ABU DHABI H.H.Shaikh Khalifa Bin Zayed Al Nahyan

DUBAI H.H.Shaikh Mohammad Bin Rashid Al Maktoum

SHARJAH H.H.Dr.Shaikh Sultan Bin Mohammed Al Qassimi

AJMAN H.H.Shaikh Humaid Bin Rashid Al Nuaimi

FUJAIRAH H.H.Shaikh Hamad Bin Mohammed Al Sharqi

RAS AL KHAIMAH

H.H.Shaikh Saqr Bin Mohammed Al Qassimi

UMM AL QUWAIN

H.H.Shaikh Rashid Bin Ahmed Al Moalla

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Economic Context Gulf

Continuous high growth on Buildings & Infrastructure

High pressure to produce more Oil & Gas

Shift of Aluminium production to the Gulf (over 4 MT/Y to be built over the coming 12 years)

High Market Potential for Alstom

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Dubai - Sheikh Zayed Road Development 1990-2010

1990 2003

Burj Dubai Project

Sheikh Zayed Road

Completion by March 20102007: Under Construction

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Dubai – Building its Biggest and Prominent Projects

The World Jumeirah Lakes

The Palm-JumeirahDubai Marina

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Economic Context – High Growth on Building & Infrastructure

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Dubai Emirate

Registered Vehicles in Dubai Emirate

1150

780

568

491421389

354321294266

236213199

0

200

400

600

800

1000

1200

1400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

# of

Veh

. (in

100

0s)

# of Veh. (in 1000s)

Source: RTA - Dubai

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Dubai Rail Projects - Phase Construction

Rashidiya

Depot

Union Square

American Univ.

Blue Line

Red Line

Original

Green Line

Purple Line

Blue

Lin

e Ex

tens

ion

Red Line Extension

Green Line Extension

Motor city Tram

BurjDubaiTram

Al SufouhTram

Red Line (From Rashidiya to University) 36 stations112 km

Green Line (From Abu Heil to Al Ras) 19 stations17 km

Purple Line : - From Dubai Airport to Jebel Ali International Airport

- Future Extension to Water Front

15 stations4 Stations

47 km

35 km

Blue Line (From Dubai Airport to Jebel Ali International Airport) 13 stations 90 km

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Rail Projects – Abu Dhabi

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Abu Dhabi - Prominent Projects

SARAYAH IN ABU DHABI

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Growth in GCC Countries

PEARL QATAR

BARR AL JISSAH ISLANDTHE BLUE CITY OMAN

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Growth in GCC Countries

TALA ISLAND

THE RAPID GROWTH & DEVELOPMENT IN THE GULF REGION EQUATES TO A GREATER DEMAND FOR ELECTRICITY IN THE FUTURE.

SILK CITY IN KUWAIT

BAHRAIN FINANCIAL HARBOUR

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Economic Context Gulf

Continuous high growth on Buildings & Infrastructure

High pressure to produce more Oil & Gas

Shift of Aluminium production to the Gulf (over 4 MT/Y to be built over the coming 12 years)

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High pressure to produce more Oil

MB/d 2004 2010 2020 2030

World Demand 82,1 92,5 104,9 115,4

World Offer 82,1 92,5 104,9 115,4

OPEC Middle East 22,8 26,6 35,3 44,0

+ > 50%

Arab world holds 60% world oil reserves & 35% of Gas reserves

Source: World Energy Outlook

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Oil Production

* Oil demand in 2008 will average 88 Million bpdSource: EIA / CIA)

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Gas Production

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Economic Context Gulf

Continuous high growth on Buildings & Infrastructure

High pressure to produce more Oil & Gas

Shift of Aluminium production to the Gulf (over 4 MT/Y to be built over the coming 12 years)

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Global Aluminium Production Shift

1980 (16 Mt) 2006 (33.9 Mt) 2020 (57.5 Mt)

Europe, 22%

USA, 30%

China, 2%

Others , 19%

Middle East, 1%

Canada, 7%

Former USSR, 17%

Australia, 2%

Canada, 9%

Australia, 6%

China, 27%

Others , 21%

Former USSR, 12%

Europe, 12%

Middle East, 6%

USA, 7%

China, 25%

Others , 23%

Australia, 4%

Former USSR, 20%

Europe, 8%

USA, 5%

Middle East, 10%

Canada, 7%

Middle EastMainly Gulf Production 1.7 MT/Y

Middle EastMainly Gulf Production ≈ 5.7 MT/Y

Over of 4 MT/Y Production to be installed in the Gulf

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Alstom Presence in the Gulf

SHARJAH – IN / GPS / Transport20 Persons

• 6 persons International Network/GPS • 13 persons Power Systems • 1 person Transport

ALSTOM Power Service140 Persons

• Main office & workshop at Jebel Ali Free Zone (Dubai)• Branch offices at Abu Dhabi, Bahrain & Iran

Total 160 Persons

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Major Recent References

BAHRAIN• MEW – Hidd I & II 1000 MW (5 x GT13E2 + 1 x 300 MW ST + 3 HRSG) – Completed• MEW – Riffa Phase II – Upgrade 6 GT13ED to DM/EV Burners – Under realization• ALBA – PS4 650 MW (3 x GT13E2 + 2 x 150 MW ST + 4 HRSG) – CompletedKUWAIT• MEW – Al-Zour South 800 MW (5 x GT13E2 ) – Under realizationOMAN• Sohal – Alum.Smelter 1000 MW (4 x GT13E2 + 2 x 200 MW ST + 4 HRSG) – CompletedQATAR• QEWC – Ras Abu Fontas B + B1 1025 MW (8 x GT13E2) – CompletedUAE• DUBAL – Condor & Kestrel Add On ( 3 x 125 MW ST+ 6 HRSG behind 6 GT 9E) – Completed• DUBAL – Kestrel II 450 MW (2 x GT13E2 + 1 ST 125 MW + 2 HRSG) Completed• DUBAL – GTX 150 MW (1 x GT13E2 + 1 HRSG) – Under realization• DUBAL – Modernization of Kiln 1 to 5 (Fume Treatment) – Completed• DUBAL – Fume Treatment Plant for Potlines 7B, 9B and 5B & 6B – Under realization• EMAL – Fume Treatment & Flue Gas Desulphurization Plant – Under realization• ADWEA – Fujairah II – 2000 MW ( 5 x GT26 + 3 ST 220 MW + 5 HRSG) - Under realization

Order Intake year 2007/08: Over 1.5 Bn€

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Conclusion

• Surplus cash / Liquidity (High Revenue)• Growing Economy & high demographic growth• High oil and gas reserves• Low cost of Energy • No corporate Tax or Individual Tax• Low custom Duties (4%)• Low cost of manpower (open market)

• Pre-planned ruling family succession / favorable Political Situation by comparison to region (American military base in Bahrain & Qatar)

• Safe place to live / moderate social setting

Attraction for more Investors in Industrial/ Petrochemical/Oil & Gas/

Aluminum Industries and Regional Hub for International Companies

GULF remains WORLD’s fastest growing area in POWER

DEMAND Per Capita

GULF becomes an increasing market for Rail Transport

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