Dubai Economic Outlook 2011

Macro Economic Projections

Item 2010 2011 2012 2013 2014

Real GDP Growth

World 3.8% 3.1% 3.0% 3.1% 3.0%

MENA 4.3% 4.4% 4.6% 4.6% 4.8%

UAE 2.1% 3.5% 4.6% 5.0% 5.7%

Inflation

World Inflation 2.9% 2.7% 3.0% 3.2% 3.3%

UAE 0.9% 2.5% 1.5% 1.6% 2.8%

World Trade

World Trade Growth 12.5% 6.9% 6.4% 6.5% 6.6%

Developed 11.0% 6.0% 4.3% 4.5% 4.6%

Developing Countries 14.5% 8.0% 9.0% 9.0% 9.1%

UAE Trade (USD Billion)

Exports 198.3 222.1 231.8 248.6 269.3

Imports 159.0 171.8 182.1 198.4 216.7

Total Trade 357.3 393.9 413.9 447.0 486.0

2 Source: Economist Intelligence Unit, UAE Country Report March 2011 / Global Outlook September 2010

Macro Economic Projections

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2010 2011 2012 2013 2014

World MENA UAE

3

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2010 2011 2012 2013 2014

World UAE

0

100

200

300

400

500

600

2010 2011 2012 2013 2014

Imports Exports Total Trade

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014

FDI

Source: Economist Intelligence Unit, UAE Country Report March 2011 / Global Outlook September 2010

Macro Economic Overview

UAE real GDP is expected to steadily increase during the next 5 years, surpassing the average world real GDP growth.

Trade volumes are also expected to increase for UAE during the forecast period (2010 – 2014), which is one of the key drivers of demand for industrial space.

The foreign direct investment is expected to increase on a steady pace.

4

Free Zones around the World

Singapore

Shenzen

Tianjing

Panama

South Africa

Incheon

Shannon

Jebel Ali

The best combination of these models suggests the

following are critical factors for their success:

Proximity to markets

Preferential market access (trade agreements)

Access to ports, infrastructure

Availability of human talent for target industries

Tax holidays

Fast track approvals for all administrative

procedures

Flexible labor regime with minimum cost and

delays in the “hiring and firing” process

It’s evident that comprehensive zone has become the preferred

model of free zone/ special economic zone especially in East

Asia

Provide all necessary amenities for supporting normal life

Contain dedicated industrial/ science zones and free trade

zones

Attract human talent due to excellent living conditions

Attract financial capital due to wide range of options for

business

Have a self sustaining government & economy with little

outside influence

Competitiveness of a Location

Push Drivers

Pull Drivers

Develop a new market

• Servicing an existing client

• Winning a new contract

Accessibility

Mobility

Market Size Access to Decision makers

Industry

Cost of doing

business

Regulations (100%

ownership)

Living standards &

life style

Operational Efficiency Institutional Capacity

Starting a business

Dealing with License

Employing Workers

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Enforcing Contracts

Closing a Business

Trading Across Borders

1

2

3

4

5

6

7

8

9

10

85

82

75

75

72

69

67

38

20

21

24

22

16

23

22

32

40

45

50

50

38

48

44

50

26

31

24

27

32

26

30

16

14

2

14

3

5

2

2

4

Dubai Government Excellence Program

Customer Satisfaction Surveys

Doing Business Survey

Governments Excellence Programs emphasis operational efficiencies.

Competitive Centers own program continues to drive operational improvement

through customer satisfaction surveys.

Overall Process: The ability to execute transactions faster is a key driver of

customer experience.

Physical Development: Products choices for investors drive effectiveness of CC

Performance in Context

209.1

490.6

959.3

1,138.4

1,179.6

610.5

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

World GDP UAE GDP Dubai Trade Jafza Trade Jafza Customers JZone Employees

8 World GDP= IMF, World Economic Outlook Database, Mar 2011. UAE GDP = IMF, World Economic Outlook Database, Mar 2011

Dubai Trade & Jafza trade = Statistics Department, Dubai World. Jafza Customers, zone employees = FreeComs, EZW .

Jafza Companies & Zone Employees

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

5,000

5,200

5,400

5,600

5,800

6,000

6,200

6,400

6,600

Ja

n-0

8

Feb

-08

Ma

r-08

Ap

r-0

8

Ma

y-0

8

Ju

n-0

8

Ju

l-0

8

Au

g-0

8

Sep

-08

Oct-

08

No

v-0

8

De

c-0

8

Ja

n-0

9

Feb

-09

Ma

r-09

Ap

r-0

9

Ma

y-0

9

Ju

n-0

9

Ju

l-0

9

Au

g-0

9

Sep

-09

Oct-

09

No

v-0

9

De

c-0

9

Ja

n-1

0

Feb

-10

Ma

r-10

Ap

r-1

0

Ma

y-1

0

Ju

n-1

0

Ju

l-1

0

Au

g-1

0

Sep

-10

Oct-

10

No

v-1

0

De

c-1

0

Customers Employees

9 Jafza Customers, zone employees FreeComs, EZW .

Steady growth of number of companies within Jafza.

Companies within the zone have reacted to economic crisis by reducing

resources. No of employees is leveling.

Industrial Market

10

Tier 1:

Demand for high quality

developments.

BTS warehouses.

Tier 2:

Regular speculative

development.

Source: CBRE

Largest container port outside of Asia. Hub connecting East – West & North – South Trades. Common feeder network hub for GCC/Iran/Iraq/ISC/RSEA/EAF

Quad/Tandem Lift - the world's largest gantry cranes

enabling the port to cater to the new generation of mega-

ships

2009 Best Middle East Seaport for the 15th consecutive year (AFSCA)

Jebel Ali Port

Capacity

14.5 million TEU

Container Traffic

Over 11 million

TEU

Shipping Lines

Over 150

Services/Calls

Over 90 Weekly

Annual Vessel Calls

Over 12,000

Quayside Draft

14-17 m

USA (East) 21 days / 4 services

South America 25 days / 2 services

Northern Europe 18 days / 9 services

Mediterranean 13 days / 6 services

South Africa 12days / 4 services

East Africa 8 days / 2 services

West Africa 16days / 2 services

India 4 days / 31 services

South East Asia 7days / 11 services

Far East 20 days / 23 services

Dubai Sea Port Connectivity Jebel Ali Port – Connecting the World (Transit Times and Weekly Services)

12

Oceania 27days (Transshipment)

Intra Gulf 1 day / 25 services

Red Sea 12 days / 5 services

Dubai International Airport &

Cargo Village

8th busiest cargo airport and 13th busiest passenger airport

in the world in 2010

17% yoy growth in cargo volumes in 2010 – 15% yoy growth

in passengers in 2010

Cargo Village – Handles twenty freighters a day with a 90

minute turn-around for a fully laden 747

Cargo Capacity

2.5 million tons

pa

Passenger Traffic

+40 million in

2010

Airlines

130

Cargo Handled

2.2 million tons in

2010

Passenger Capacity

60 million pa

Destinations

Over 200 cities

Source : Emirates 24|7 March 2011

14

London (7.5 hrs) 26 weekly flights

New York (14 hrs) 14 weekly flights

Tokyo (10 hrs) 5 weekly flights

Seoul (8 hrs) 12weekly flights

Shanghai (8.5 hrs) 14 weekly flights

Mumbai (3 hrs) 35 weekly flights

Doha (1 hr) 35 weekly flights

Sao Paulo (15 hrs) 7 weekly flights

Sydney (14 hrs) 14 weekly flights

Moscow (5 hrs) 14 weekly flights

Cape Town (9.5 hrs) 7 weekly flights

Cairo (4 hrs) 10 weekly flights

Los Angeles (16.5 hrs) 7 weekly flights

Singapore (7.5 hrs) 14 weekly flights

Rome (6.5 hrs) 14 weekly flights

Addis Ababa (4 hrs) 7 weekly flights

Casablanca (9.5 hrs) 7 weekly flights

Dubai Air Port Connectivity Dubai International Airport – Emirates Network

15

DUBAI

500 Km

1,000 Km

1,500 Km

2,000 Km

Dubai Land Connectivity Dubai –GCC Road Network

Challenges

Challenges

Competition

• Copying Dubai model

Access to key markets

• Exclusion of Free zones from trade agreement

Cost of Doing business

• OPEX related.

16

Our Strength

17

Physical

Infrastructure

Institutional

Capacity

Industry

Momentum

18