10 - 11 October, 2016 / Bruxelles, Belgium SME INSTRUMENT INNOVATORS SUMMIT b2B matching tool : https://events.b2match.com/e/innovators-summit-2016 09:00 Workshop Room: River 3 United Arab Emirates: Swimming in foreign water- doing business abroad Moderator: Mrs Isabel Nolle, Mr Ted Erikkson Description: You want to grow and expand abroad Europe? Scaling up businesses implies important changes and challenges for enterprises from decision making, to people management, deploying abroad, finding partners and ensuring cash flow, expending your line production and sales/distributors on international level. How to approach the Chinese and Japanese market? Which legislation is relevant for me and what are the ‘golden (cultural) rules’ to respect? How does it work? We want to access the "collective intelligence" or collective wisdom in the room. By using the so-called “world café” style we intend to facilitate open and intimate discussion, and link ideas within a group of maximum 30 people. Input speakers: Christophe Boeraeve - Law Right TAX & CORPORATE Lawyer - Business Coach - EU EXPERT in the EU HORIZON 2020 PROGRAM Avenue Brugmann, 183 1190 Brussels - Belgium Tel: +32 2 643 11 00 Fax: +32 2 643 11 08 Mobiles: Belgium +32 485 69 50 22 - UAE +971 56 760 0925 Web: law-right.com

1. CHRISTOPHE BOERAEVE - PROFESSOR -
INTERNATIONAL TAX & CORPORATE LAWYER
WWW.LAW-RIGHT.COM
UAESWIMMING IN
FOREIGN WATERS ?
DOING BUSINESS ABROAD
1

2. Q
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3. 0
25
50
75
100
125
April May June July
SME
INSTRUMENT
INNOVATORS
SUMMIT
10 - 11
OCTOBER, 2016
/ BRUXELLES,
BELGIUM
https://events.b2match.com/e/innovators-summit-2016
https://ec.europa.eu/easme/en
European Commission, Executive Agency for
Small and Medium-sized Enterprises (EASME)
SME SUMMIT Event Team
Marco Malacarne
DIRECTOR
3

4. 1.6 billion
World Muslim
population (Pew
Research Center,
2014)
United Arab
Emirates
An entry door to the MENA region -
Islamic states
You want to grow and expand
abroad Europe? Scaling up
businesses implies important
changes and challenges for
enterprises from decision
making, to people
management, deploying
abroad, finding partners and
ensuring cash flow, expending
your line production and
sales/distributors on
international level. Which
legislation is relevant for me
and what are the ‘golden
(cultural) rules’ to respect?
23% OF THE
WORLD
POPULATION
THE STATE OF
SMALL & MEDIUM
ENTERPRISES (SMES) IN
DUBAI
http://dubaisme100.ae/Data/ResourceCe
ntre/SME_Report_English.pdf
4

5. United Arab Emirates:
Swimming in foreign waters -
doing business abroad
Moderator: Mrs Isabel Nolle, Mr Ted Erikkson
14’
PRESENTATION
YOU WILL NOT BE CHARGED IF
YOU ASK QUESTIONS
7’DISCUSS AND PREPARE
QUESTIONS
“Collective intelligence" or collective
wisdom in the room
7’COLLECTIVE /
HORIZONTAL ANSWER TO
QUESTIONS
The “world café” style intends to
facilitate open and intimate
discussion, and link ideas within a
group of maximum 30 people
5

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125
April May June July
USLIMS-CHRISTIANS-JEWS-ATHEISTS-BUDDHISTS
30%
52%
WHAT DO WE HAVE
IN COMMON ?
6

7. EU - UAE RESIDENTS
“You, the people, have the power (...)
The power to create happiness! You, the people, have the power to
make this life free and beautiful, to make this life
a wonderful adventure.
Let us fight to free the world, to do away with national barriers,
to do away with greed, with hate and intolerance. Let us fight for a
world of reason, a world where science and progress will lead to all
men’s happiness.”
Charlie Chaplin, The Great Dictator, 1940.
“Our job is to provide an environment that unlocks
women’s potential – one that protects their dignity and
femininity, helps them create the necessary balance in
their lives, and values their talents and potential. Given
this environment, I am confident that women will perform
nothing short of miracles.”
Mohammed bin Rashid Al Maktoum, Flashes of
Thought
IN WHAT WAYS WILL WE CONNECT ?
“The race for excellence has no finish line.”
― Mohammed bin Rashid Al Maktoum, ‫رؤيتي‬
7

8. 8
‫خليفة‬‫بن‬‫زايد‬‫بن‬‫سلطان‬‫آل‬‫نهيان‬
Sheikh Khalifa bin Zayed
bin Sultan Al Nahyan

9. QUAM NUNC PUTAMUS PARUM CLARAM,
ANTEPOSUERIT LITTERARUM
9
‫محمد‬‫بن‬‫راشد‬‫آل‬‫مكتوم‬
Sheikh Mohammed
bin Rashid Al
Maktoum

10. ABDUL BASET AL JANAH
Alexandar Williams
SAMI DHAEN AL QAMZI
CHIEF EXECUTIVE OFFICER, DUBAI SME
DIRECTOR GENERAL, DEPARTMENT OF
ECONOMIC DEVELOPMENT – DUBAI
DIRECTOR, BUSINESS DEVELOPMENT,
DEPARTMENT OF ECONOMIC DEVELOPMENT, DUBAI
10

11. Mohammad Ahmad Al Bowardi
Khaldoun Khalifa Al Mubarak
Enrico M. Villa
HTTPS://WWW.LINKEDIN.COM/COMPANY/GOVERNMENT -OF-
ABU-DHABI-TECHNOLOGY-DEVELOPMENT -COMMITTEE
DIRECTOR ENTERPRISE DEVELOPMENT AND INNOVATION,
ABU DHABI TECHNOLOGY DEVELOPMENT COMMITTEE
CHAIRMAN - EXECUTIVE AFFAIRS AUTHORITY
VICE-CHAIRMAN -
ABU DHABI TECHNOLOGY DEVELOPMENT COMMITTEE
"We aim for Abu Dhabi to be an Emirate
in which the benefits of science and
technology pervade every aspect of life,
empowering the Nation, transforming the
economy, and inspiring the people."
CHAIRMAN - ABU DHABI TECHNOLOGY
DEVELOPMENT COMMITTEE
11

12. 12

13. Aliquam nonummy
Johan BEERLANDT
CHRISTOPHE BOERAEVE
Qaisar Hijazin
QUAM NUNC PUTAMUS PARUM CLARAM,
ANTEPOSUERIT LITTERARUM
CHAIRMAN OF THE ABLCC
SECRETARY GENERAL OF THE ARAB -BELGIAN-
LUXEMBOURG CHAMBER OF COMMERCE
PROFESSOR & INTERNATIONAL TAX -
CORPORATE LAW YER
13

14. 0
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125
April May June July
Christophe Boeraeve
Law Right
TAX & CORPORATE
Lawyer - Business
Coach - EU EXPERT in
the EU HORIZON 2020
PROGRAM
https://prezi.com/-nteypgvqp4z/conducting-business-
effectively-in-the-uae/
https://be.linkedin.com/in/cboeraevetaxlawyer
http://www.law-right.com/international/united-arab-emirates/
Tel: +32 2 643 11 00
Fax: +32 2 643 11 08
Avenue Brugmann, 183 - 1190 Brussels - Belgium
Mobiles: Belgium +32 485 69 50 22 - UAE +971 56 760 0925
Web: law-right.com
I am a Belgian and UAE
resident, friend of the Middle-
East Companies and Private
individuals.
I am specialized in International
Tax Structuring & Planning,
Corporate Taxation for
Enterprises and Individuals,
Cross-border Tax aspects,
Restructurings, Company law,
International mobility, Contract
drafting, Inheritance, Treaties,
Estate transactions & Contract
law.
14

15. COMPANY NAME, 5647 STREET
ADDRESS, COUNTRY
SOLLEMNES IN
2020
YOUREMAIL@MYEMAIL.COM
PHONE: 1(355)979 68 76
HTTP://OW.LY/DG0R304ZJYU
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HOW MANY UNITED ARAB EMIRATES ?
30%
52%
http://government.ae/en/seven-emirates
‫ة‬‫ل‬‫و‬‫د‬‫ت‬‫ا‬‫ر‬‫ا‬‫م‬‫إل‬‫ا‬‫ة‬‫ي‬‫ب‬‫ر‬‫ع‬‫ل‬‫ا‬‫ة‬‫د‬‫ح‬‫ت‬‫م‬‫ل‬‫ا‬
16

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25
50
75
100
125
April May June July
HOW MANY GCC COUNTRIES ?
30%
52%
http://www.gcc-sg.org/en-
us/Pages/default.aspx
‫س‬‫ل‬‫ج‬‫م‬‫ن‬‫و‬‫ا‬‫ع‬‫ت‬‫ل‬‫ا‬‫ل‬‫و‬‫د‬‫ل‬‫ج‬‫ي‬‫ل‬‫خ‬‫ل‬‫ا‬‫ة‬‫ي‬‫ب‬‫ر‬‫ع‬‫ل‬‫ا‬
17

18. UAE
CHIEF EXECUTIVE OFFICER, DUBAI SME
This first-ever report provides both the macro and micro picture of
SMEs
operating in the overall SME economy as well as in the sub-sectors of
trading, services and manufacturing. It is hoped that the report will
serve
as a reference point for all key stakeholders in economic
development at
the emirate and federal levels.
ABDUL BASET AL JANAHI
18

19. First of all, the overall productivity of SMEs, and by
extension, their competiveness is comparatively
lower than their counterparts in Singapore and
South Korea.
Secondly, adoption of
technologies in improving
efficiencies, processes and services
among Dubai’s SMEs is still
lacking.
Thirdly, our SMEs also need to improve their overall
corporate governance, especially financial governance
and transparency, if it seeks to operate in global markets
and attract investors and seek business collaborations.
19

20. Technology
Evaluation in the
UAE
https://prezi.com/qg0qmkxhgb-4/mr-
boeraeve-presentation-technology-
evaluation-4/
Fourthly, our SMEs need to improve their
HR
capabilities by hiring and rewarding the right
talent, and making their organisations a
great place to work.
Finally, our SMEs also need to invest in
innovation, and create a culture of
innovation in their firms to ensure new
markets, products and services. clari, fiant
sollemnes in
Roundtable on May 13 2013 at DUBAI
SME as a Board member of Micro
Automation Industries
(http://www.microautomation.net).
20

21. 21

22. Dubai to become
the best place to
start, grow,
invest in and
expand SMEs to
be global
enterprises
22

23. SMES IN DUBAI ARE FOUND TO HAVE A HIGH FOCUS
ON DEVELOPING BUSINESS
FROM INTERNATIONAL MARKETS / OPERATIONS
BACKBONE
Small and Medium
Enterprises (SMEs) are
the backbone of Dubai’s
economy, representing
95% of all
establishments in the
Emirate. These SME
businesses account for
42% of the workforce
and contribute around
40% to the total value
added generated in
Dubai’s economy.
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Daniel Dolor
52%
Typi non habent claritatem insitam; est usus legentis in iis qui facit eorum claritatem.
Investigationes demonstraverunt lectores legere me lius quod ii legunt saepius.
Claritas est etiam processus dynamicus, qui sequitur mutationem
24

25. The Trading sector accounts for a majority (57%) of SMEs in Dubai,
followed by the Services sector (35%), and subsequently followed by the
Manufacturing sector (8%)
MICRO FIRMS
<=AED 9mn
SMALL
<=AED 50mn
MEDIUM
<=AED 250mn
72% 18% 5%
The Department of Economic Development (DED) in Dubai issued 22,691 business
licences in 2015, an increase of 17.4 percent
compared the total number of licenses issued in 2014. The latest figures also
represent a 75 percent increase in new licences issued between 2010 and 2015, at
an annual average of 15 percent.
25

26. Composition of Key
Sectors
Manufacturing Sector
Manufacturers of wearing apparel constitute a
majority (33%) of the Manufacturing establishments
in Dubai, followed by manufacturers of fabricated
metal products (except machinery and
equipment) accounting for another 16% of the total
manufacturing enterprises. In terms of the
employee count, 54% of the Manufacturing firms in
Dubai have between 1 and 10 employees,
while another 20% have between 11 and 25
employees.
Segments with the highest contribution to the
Manufacturing sector’s gross value-add include
Manufacturing of Fabricated Metal products, except
machinery and equipment (17%), Manufacturing
of Basic Metals (15%), and Manufacturing of other
Non-metallic Mineral products (9%).7
26

27. 0
25
50
75
100
125
April May June July
NET MARGINS
8-22%
2-8%
Net margins are the highest in the case of Business
Services (net margin ratio ranges between 10-22%),
closely followed by Professional Services (net margin
ratio ranges between 8-20%)
Tour operators and travel agents have the lowest
margins amongst all the segments (net margin ranges
between 2-8%)
Restaurants & Catering businesses have high gross
margins (gross margin ratio ranges between 50-60%)
BUT their margins erode significantly at an operating level
due to a high proportion of indirect costs within their total
cost structures (operating margin ratio ranges between
12-18% and net margin ratio ranges between 10-15%)
10-15%
27

28. 0
25
50
75
100
125
April May June July
ABDUL BASET
AL JANAH
Gross margin ratio is a profitability ratio that compares the
gross margin of a business to the net sales. This ratio
measures how profitable a company sells its inventory or
merchandise. In other words, the gross profit ratio is essentially
the percentage markup on merchandise from its cost.
Operating margin — also known as operating income margin,
operating profit margin and return on sales (ROS) — is the ratio
of operating income ("operating profit" in the UK) divided by net
sales, usually presented in percent. Net profit measures the
profitability of ventures after accounting for all costs.
Net margin ratio is the ratio of net profits to revenues for a
company or business segment. Typically expressed as a
percentage, net profit margins show how much of each dollar
collected by a company as revenue translates into profit. The
equation to calculate net profit margin is: net margin = net profit
/ revenue.
28

29. The survey reflects that SMEs in Dubai are highly export-
oriented with 51% of the SMEs
indicating that they have some part of their revenues coming
from regional and international
markets (as compared to 44% in EU-27 and 18% in New
Zealand).
GCC, Asia-Pacific and Africa are the key international
markets / export destinations for
SMEs in Dubai.
TATE AND CHARACTERISTICS OF SMES IN DUBA
29

30. INNOVATION
13% of the survey respondents indicated that they have implemented some
level of
innovation either in terms of product innovation or process enhancement.
This prevalence is much lower as compared to other international economies
(such as New Zealand, Malaysia, the UK and the overall EU-27).
The major prevalence of innovation amongst Dubai SMEs is at the
product/service level
(42% of the total prevalence of innovation), as compared to innovation within
internal
processes (30%) and distribution & delivery formats (28%).
The key objective / motive towards investing / implementing innovation in
business, as elicited by the majority of the respondents, is to create a
competitive advantage through product / service differentiation (38% of the
SMEs indicated product/ service differentiation as their key objective for
implementing innovation in business).
30

31. INNOVATION
Micro firms are intrinsically less innovative as compared to Small
and Medium firms (only 6% of the Micro firms reported having implemented
some form of innovation within their business operations, as compared to 19%
and 16% of the Small and Medium firms, respectively).
Innovative SMEs are more internationally oriented as compared to non-
innovative SMEs; higher prevalence of innovation is observed amongst exporting
businesses (75%), vis-à-vis nonexporting SMEs (48%).
Approximately 21% of the total survey respondents indicated use of
advanced IT systems (enterprise level systems, such as ERP, CRM systems,
etc.) within their business operations. Service firms deploy IT more intensively
than Manufacturing and Trading firms, as reflected by the fact that the proportion
of firms with advanced IT systems is the highest in the case of the Services
sector (at 26%), followed by the Manufacturing sector (at 18%) and subsequently
followed by the Trading sector (at 16%).
31

32. 0
25
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125
April May June July
Bank
finance
for SMEs
There is limited availability of externally
sourced start-up financing in Dubai. This is
reflected in
the fact that a majority (80%) of the survey
respondents indicated personal money or
savings as the primary source of finance
for commencing their business operations in
Dubai.
The availability of bank finance for growth and
operations is also limited, with only 23% of the
survey respondents indicating that they have
accessed bank finance in the last five years.
Another 37% businesses indicated that they have
accessed term loans for capital expansion /
investment in their business, and about 4%
mentioned that they have accessed a combination of
long-term and short-term financing. This reflects that
at an overall level, only 10% of the SMEs (i.e. 41%
of the 23% of the SMEs that had access to finance)
have accessed long-term financing for capital
investment in their business.
32

33. 1. PATIENCE IS A VIRTUE 2. PRICE SENSITIVITY 3. RELATIONSHIPS & NETWORKS
How often are you in the
region ?
What about a discount ? Religion - Family - Business
THREE GOLDEN
RULES
https://prezi.com/-
nteypgvqp4z/conducting-business-
effectively-in-the-uae/#
The Gulf market is not about over-night successes. A two
to three-year investment in time and effort. It will take about
five meetings with a new business prospect to actually sign
on a deal. You will often be asked at a first meeting how
often you are in the region.
You should be as commercial as possible in your pricing
structures, trying to offer some form of discount where you
can. You may wish to consider market entry price
penetration, while being as competitive as possible.
I’s all about relationships and networks and you need to
bear in mind that the upper echelons of society all know
each other, often cross-border. They have built up networks
over the years. So upset one and you risk upsetting them
all. Diplomacy is key here.
It is important to follow up. During negotiations, there may
be a tendency for your Gulf contacts to speak in vague
terms, generalities, stories and metaphors, so it’s best to be
absolutely clear about what you’ve agreed.
33

34. JUST ONE EXAMPLE…
MAI
Company Case-study made
by JAFZA:
http://ow.ly/Jydv304ZRGw
MAI
34
THEY MADE IT!

35. THEY MADE IT!
JUST ONE EXAMPLE…
MAI
35

36. 36

37. 37

38. 38
http://ow.ly/cxpp3052Pc8

39. 39

40. 0
25
50
75
100
125
April May June July
USLIMS-CHRISTIANS-JEWS-ATHEISTS-BUDDHISTS
30%
52%
WHAT DO WE HAVE
IN COMMON ?
40

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25
50
75
100
125
April May June July
30%
52%
TRADE41

42. YOU’VE BE WARNED!“With each new day in Africa, a gazelle wakes up
knowing he must outrun the fastest lion or perish.
At the same time, a lion stirs and stretches,
knowing he must outrun the fastest gazelle or
starve. It is no different for the human race.
Whether you consider yourself a gazelle or a lion,
you simply have to run faster than others to
survive.”
― Mohammed bin Rashid Al Maktoum, My
Vision: Challenges in the Race for Excellence
EXPO 2020
http://expo2020dubai.ae
25,000,000
UAE VISION 2021
9,297,524
ABU DHABI VISION 2030
2,784,000
DUBAI SME 5 YEAR
STRATEGIC PLAN +
DUBAI PLAN 2021
2,503,000
http://ow.ly/Yc63304ZsPf
https://www.vision2021.ae/en
http://ow.ly/tBsr304Ztnt
42

43. SOLLEMNES IN
2020
43
SWIMMING IN FOREIGN
WATER - DOING
BUSINESS ABROAD

44. 60, RUE MIGNOT DELSTANCHE -
1050 BRUSSELS BELGIUM
UAEARAB-BELGIAN-
LUXEMBOURG
CHAMBER OF COMMERCE
SONIA.DEVERGNIES@ABLCC.ORG
+32(0)2 344 82 04
WWW.ABLCC.ORG
44

45. UAE
QUESTIONS
45