[PPT] - Business Opportunities in MENA Toronto - September 2018 Owais Ahmed, PowerPoint Presentation

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Owais Ahmed, Chief Representative - MEEP

Export Development Canada

Business Opportunities in MENA

Toronto - September 2018

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EDC OVERVIEW

Ø Support and develop Canada’s export trade and

international business efforts

Ø Provide financing and insurance solutions as

well as market intelligence to Canadian exporters and investors

Ø Canada’s Export Credit Agency Ø Crown corporation wholly owned by the Government

f Canada

Ø Financially self-sustaining – Rated AAA/S&P Ø Operates on commercial principles

About EDC EDC’s Role

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› Facilitated $103.7 billion in business carried out by Canadian companies › Served more than 9,398 customers › Supported business in 200 countries › Facilitated $29.9 billion in emerging markets › Our work supported 524,000 jobs

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2017 PERFORMANCE HIGHLIGHTS

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EDC’S CANADIAN PRESENCE

Ø EDC has offices across Canada Ø We do business where business

is done

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Lima, Peru

Location of EDC Representation

Monterrey, Mexico Mexico City, Mexico Santiago, Chile Düsseldorf, Germany São Paulo, Brazil Moscow, Russia Rio de Janeiro, Brazil Dubai, UAE Mumbai, India Jakarta, Indonesia Beijing, People’s Republic of China Shanghai, People’s Republic of China Singapore Istanbul, Turkey Bogotá, Colombia Johannesburg, South Africa

EDC’S FOREIGN REPRESENTATION

London, United Kingdom New Delhi, India Sydney, Australia

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EDC PRODUCTS & SERVICES

Direct Financing & Guarantee Solutions Insurance Products

Ø Canadian Exporters in Canada Ø Foreign Buyers of Canadian Goods and

Services

Ø Canadian Companies Investing Abroad

(CDIA)

Ø Foreign Companies Investing in Canada

(FDI-IN)

Ø Accounts Receivable Insurance Ø Documentary Letters of Credit Insurance Ø Political Risk Insurance Ø Non-Honoring Sovereign Insurance (“NHS”) Ø Bonding (Bid, Advance, Performance &

Warranty)

Canadian Benefits Canadian Procurement CDIA FDI-IN

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EDC PRICING GUIDELINES

Ø EDC typically operates as a competitive commercial based direct lender Ø When market benchmarks are not available or if there is ECA competition, EDC can offer

OECD Consensus based direct financing or traditional ECA guarantees to commercial banks priced based on OECD Consensus (including Consensus Minimum) where required MARKET BASED PRICING

Ø Competitive pricing is consistent with commercial market benchmarks and ensures the

rate is consistent with competitive pricing the Obligor would obtain from the market CONSENSUS BASED PRICING

Ø Pricing is consistent with the interest rate provisions set forth by the OECD Consensus

Arrangement

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EXPORT SUPPORT MANDATE

Ø

Supporting actual contract award to a Canadian company*

§ Project Financing –contract/package award to Canadian companies § Corporate Financing – Aggregate financing to a Local Borrower

12 months look-back
Bi-lateral loan between the Local Borrower and EDC or participation in the

Local Borrower’s Syndications *EDC financing solutions are available to Canadian based subsidiaries of foreign companies

POSSIBLE FINANCING SOLUTIONS – CANADIAN MANDATE

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PULL MANDATE

Ø

Predicated on successful engagement with a buyer’s procurement teams and likelihood of future procurement from Canada

Ø

EDC participates in financing facilities for key buyers to create

pportunities for Canadian suppliers

§ Historical and Forward Looking § Project or Corporate Financing (Same as Export Support Mandate)

POSSIBLE FINANCING SOLUTIONS – CANADIAN MANDATE

No legal or contractual obligations to purchase Canadian goods & services …..expectation of engagement to consider Canadian capabilities

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EDC BORROWER

EDC Commitments

EDC commits to funding on pre-

agreed terms

Funds disbursed are untied to

procurement; no clawbacks or prepayment requirements

EDC introduces qualified

Canadian companies to the Borrower Borrower Commitments

Sign Pull and Disclosure Letter
Share Capex Information and

historical Canadian procurement (if any)

Introduce EDC to procurement

decision makers

Participate in B2B meetings
Provide Canadian procurement

reporting to EDC annually

Loan Repayment $$ Loan $$

Financing Relationship Procurement Relationship

EDC PULL FINANCING PROGRAM

EDC participation in financing today on premise of potential future procurement

No legal or contractual obligations to purchase Canadian goods & services …..expectation of engagement to consider Canadian capabilities

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EDC provides a loan to targeted foreign buyers with procurement needs that match Canadian expertise, and the foreign buyer commits to working with EDC to buy from Canada.

$ 3.3 B in loans

Pulls in the MENA region

9 foreign buyers 9 pull facilities

160 +

Canadian exporters

millions in exports

EDC PULL FINANCING PROGRAM

EDC participation in financing today on premise of potential future procurement

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PROTOCOL MANDATE

Ø

Supporting International Companies with well established Canadian footprint (i.e. GE)

Ø

Protocol Customer requests EDC participation in foreign buyer financings on their behalf as value added to Protocol Customer’s foreign buyers

Ø

Forms of Financing Participation:

§ Project Financing § Corporate Financing

POSSIBLE FINANCING SOLUTIONS – CANADIAN MANDATE

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FOREIGN DIRECT INVESTMENT (FDI) MANDATE

Ø

Supporting the financing of acquisitions of Canadian companies by non- Canadian companies (FDI-IN). § Benefits accrue to Canadian companies in becoming an exporter post-acquisition § Benefits accrue to Canadian companies becoming more efficient as a result of the

acquisition

§ Benefits accrue to Canadian companies in accessing new distribution channels as a

result of the acquisition

Ø

Forms of Financing Participation:

§ Project Financing § Corporate Financing

POSSIBLE FINANCING SOLUTIONS – CANADIAN MANDATE

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MIDDLE EAST – Highlights

Aggregate Population: ~200mn
Aggregate GDP: ~$2 tn
Aggregate SWF: ~$2.9 tn – Attractive FDI pool
Upcoming Project Pipeline: ~$2 tn
Bahrain, Egypt, Iraq, Kuwait, Oman, Qatar, KSA, UAE

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MIDDLE EAST – POPULATION

1,5 99,3 39,3 4,2 4,8 2,7 33,5 9,5 48% 70% 45% 88% 37% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 40 60 80 100 120 Bahrain Egypt Iraq Kuwait Oman Qatar KSA UAE Pop (m) Expat (%)

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MIDDLE EAST – GDP

34,9 237,1 197,7 120,4 74,3 166,3 683,8 377,4 100 200 300 400 500 600 700 800 Bahrain Egypt Iraq Kuwait Oman Qatar KSA UAE

Aggregate GDP: ~$2 tn

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MIDDLE EAST – Trade

14,3 23,5 56,7 54,1 31,9 56,2 231,3 314,7 13,9 53,1 36,4 29,3 22,7 26,7 136,8 241,3 50 100 150 200 250 300 350 Bahrain Egypt Iraq Kuwait Oman Qatar KSA UAE Export (bn) Import (bn)

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MIDDLE EAST – Total “Upcoming” Project Pipeline

2 008,00 100,40 847,70 73,00 40,30 84,40 289,60 509,70 62,90 Value (bn) Chemicals Construction Gas Industrial Oil Power Transportation Water

500,00

1 000,00 1 500,00 2 000,00 2 500,00

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MIDDLE EAST – Total “Upcoming” Project Pipeline

[VALUE] Bahrain [VALUE] Egypt [VALUE] Iraq [VALUE] Kuwait [VALUE] Oman [VALUE] Qatar [VALUE] KSA [VALUE] UAE

Value of ~$2 tn

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MIDDLE EAST – Total “Upcoming” Project Pipeline

46,9 1,5 11,6 0,6 0,2 6,2 4,7 21,0 1,1 5 10 15 20 25 30 35 40 45 50

Bahrain

Transportation: Airport & Sea Terminal, Light Rail
Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Oil: Upstream, Downstream & Midstream
Power: Generation (conventional & renewable - Solar), Transmission
Water: Treatment, Transmission & Desalination
Chemicals: Petchem
Gas: Transmission
Industrial: Alu Casting

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MIDDLE EAST – Total “Upcoming” Project Pipeline

241,8 10,9 67,9 15,7 17,1 0,8 86,8 41,0 1,6 50 100 150 200 250 300

Egypt

Power: Generation (conventional, renewable - solar/wind, nuclear), Transmission
Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Transportation: Airport & Sea Terminal, Rail
Industrial: Pharmaceutical, Makeup, Aluminium, Sugar
Gas: Upstream, Downstream, Transmission
Chemicals: Petchem
Oil: Downstream
Water: Treatment, Transmission & Desalination

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MIDDLE EAST – Total “Upcoming” Project Pipeline

87,9 11,0 25,5 5,3 0,5 15,9 0,9 24,7 4,1 10 20 30 40 50 60 70 80 90 100

Iraq

Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Transportation: Airport & Sea Terminal, Rail
Oil: Upstream, Downstream & Midstream
Chemicals: Petchem
Gas: Upstream, Downstream, Transmission
Water: Treatment, Transmission & Desalination
Power: Generation (conventional, renewable - solar/wind)
Industrial: Glass, Cement

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MIDDLE EAST – Total “Upcoming” Project Pipeline

167,2 10,0 55,0 3,5 1,6 12,9 24,5 54,5 5,2 20 40 60 80 100 120 140 160 180

Kuwait

Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Transportation: Rail, Airport & Sea Terminal
Power: Generation (conventional, renewable - solar), Transmission
Oil: Upstream, Downstream & Midstream
Chemicals: Petchem
Water: Treatment, Transmission & Desalination
Gas: Upstream, Downstream, Transmission
Industrial: Iron, Steel, Aluminium

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MIDDLE EAST – Total “Upcoming” Project Pipeline

101,9 15,9 21,1 5,4 6,9 15,6 9,7 9,8 17,5 20 40 60 80 100 120

Oman

Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Water: Treatment, Transmission & Desalination
Chemicals: Petchem
Oil: Upstream, Downstream & Midstream
Transportation: Rail, Airport & Sea Terminal, Bridges
Power: Generation (conventional, renewable – solar/wind, coal), Transmission
Industrial: Steel, Sugar, Cement, Auto Assembly
Gas: Upstream, Downstream, Transmission

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MIDDLE EAST – Total “Upcoming” Project Pipeline

Transportation: Rail, Airport & Sea Terminal, Bridges, Tunnels
Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Chemicals: Petchem
Power: Generation (conventional, renewable – solar, wate-to-energy), Transmission
Water: Treatment & Transmission
Gas: Upstream, Downstream
Oil: Downstream & Midstream
Industrial: Glass

90,9 5,1 23,1 4,0 0,5 1,6 4,5 47,7 4,4 10 20 30 40 50 60 70 80 90 100

Qatar

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MIDDLE EAST – Total “Upcoming” Project Pipeline

987,8 37,7 542,1 6,9 9,2 11,2 132,1 234,3 14,3 200 400 600 800 1000 1200

KSA

Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Transportation: Rail, Airport Terminal, Bridges, Tunnels
Power: Generation (conventional, renewable – solar/wind, nuclear, waste-to-energy, hydro), Transmission
Chemicals: Petchem
Water: Treatment, Transmission, Desalination
Oil: Upstream, Downstream & Midstream
Industrial: Aluminium, Steel, Auto
Gas (North field): Upstream, Downstream

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MIDDLE EAST – Total “Upcoming” Project Pipeline

283,6 8,3 101,4 31,6 4,3 20,2 26,4 76,7 14,7 50 100 150 200 250 300

UAE

Construction: Residential, Commercial, Retail, Mixed-Use, Healthcare, Hospitality, Schools
Transportation: Rail, Airport Terminal, Seaport,
Gas: Upstream, Downstream
Power: Generation (conventional, renewable – solar, nuclear, waste-to-energy, hydro), Transmission
Oil: Upstream, Downstream & Midstream
Water: Transmission, Desalination, Cooling
Chemicals: Petchem
Industrial: Aluminium, Steel, Auto

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Sources: World Bank, Haver Analytics

THE UAE’S STRONG BUSINESS ENVIRONMENT IS A KEY REGIONAL ADVANTAGE

10 20 30 40 50 60 70 80 90 100 Control of Corruption Rule of Law Regulatory Quality Government Effectiveness

Percentile Rank

United Arab Emirates Gulf Cooperation Council Average Middle East and North Africa Average

Percentile Rank ranges from 0 (worst) to 100 (best) GCC Countries include: Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, UAE

When it comes to Ease of Doing Business, according to the World Bank, the UAE ranks 21st

ut of 190 countries.

Far better than regional peers like Qatar (83rd ) and Saudi Arabia (92nd),

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§ ME is offering exceptional opportunities in sectors which

align well with Canadian sectors of strength

§ ME should be an important part of overall EM strategy of

Canadian exporters EDC offers financial solutions as well as knowledge-based support to Canadian exporters facilitating them to … ……………………..GO, Grow & Succeed

CONCLUSION

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CANADIAN COMPANIES IN MENA (Includes foreign companies with Canadian footprint)

Information obtained from public sources, these companies are not necessarily customers of EDC nor endorsed by EDC