A New Business Frontier for EU Investors in Sharjah

By HE Mr Marwan bin Jassim Al Sarkal, Executive Chairman of Sharjah Investment & Development Authority (Shurooq) .

With a forecast of 2% y-o-y economic growth until 2021, and a positive short and long-term economic outlook, Sharjah remains among the top Gulf and MENA destinations for global investors, and among the top destinations for mega-retail, tourism and real-estate projects in the region.

Among the key international investors and partners to the emirate of Sharjah, are EU nations, who have historically taken the initiative of accessing MENA and wider Asian markets through the emirate. One of the key drivers and contributors to this economic growth, the Sharjah Investment and Development Authority (Shurooq), who has spent over the last 10 years redefining a large portion of the emirate’s investment infrastructure.

Shurooq has also been a key player in successfully diversifying assets and strategies that further boosted the emirate’s global economic profile, as well as played a key role in the moderation of the emirate’s economic stability through diversification of investments and tourism projects.

“Today, we are proud for successfully developing and managing over 15 globally leading tourism projects, over 4 unique hospitality projects, and over 7 strategic JVs for mega real-estate and retail projects with a total net-worth of more than EUR 80 million. These achievements have helped secure a portfolio of completed and ongoing projects worth EUR 1.8 billion in Sharjah, extending across a total area of 11.74 million square metres,” said His Excellency Marwan bin Jassim Al Sarkal, Executive Chairman of Shurooq.

He continued: “Sharjah has historically enjoyed one of the leading business models, set out by His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Supreme Council Ruler of Sharjah; through his vision, Sharjah is one of the world’s most significant economies built on the pillars of knowledge, innovation, entrepreneurship and sustainability.”

Al Sarkal explained: “This model, reinforced with a robust economic infrastructure and regulations that attracted millions in FDI over the last decade, allowed us at Shurooq to develop a number of specialised sectors redefining Sharjah’s economic diversification.”

In September 2016, Shurooq unveiled the establishment of the emirate’s first investment promotion agency, the Sharjah FDI Office (Invest in Sharjah), during the second edition of the prestigious international business forum, the Sharjah FDI Forum, under the presence of His Highness the Ruler of Sharjah.

Shurooq Executive Chairman noted: “Since the formation of Invest in Sharjah, the new office worked closely on strengthening relations through specialised business roundtables with investors from Germany, UK, Italy, Netherlands, Portugal and Russia, as well as holding a number of high-level meetings with delegations from different regions such as Finland, Sweden and nations from Eastern Europe.”

“Diversification was always the primal solution to fully understand and grasp Sharjah’s unique and flexible economy. The emirate has been a key aviation link between Europe and the rest of the MENA and Asian regions since 1932, and a rich history in developing the Gulf Region’s economy, long before the official UAE union even took place. For us, Invest in Sharjah was the best way forward in order to service and accommodate the endless possibilities and business prospects with our partners in the EU and across the world, and as part of our achievements we are proud to receive Invest in Sharjah recent award from Sharjah Government Communication; as the Best Government Communication Campaign outside UAE” added Al Sarkal.

Destinations and Mega-projects in Sharjah

The emirate’s investment and development authority has broken down its diversification initiatives to entertainment and leisure tourism destinations, eco-tourism destinations and cultural and authentic tourism destinations.

Destinations such as Al Qasba, Al Majaz Waterfront, Al Montazah Parks and the Flag Island are among the authority’s leading leisure tourism projects. Attracting hundreds of family-friendly events, festivals and celebrations year on year, these destinations have become the emirate’s key landmarks, offering a wide range of entertainment and culinary experiences. 

Shurooq has also played a leading role in developing the cultural and eco-tourism profile of Sharjah and the UAE. With destinations such as the Mleiha Archaeological and Eco-tourism Project, the Kalba Eco-tourism project, these projects have been key enablers in giving Sharjah a lead positioning for creating the most authentic and cultural tourism experiences in the UAE. 

His Excellency Marwan bin Jassim Al Sarkal said: “Our mission and vision has always been to support the development and promotion of Sharjah’s unique cultural state, and each destination has its own set of stories and experiences which reflect on the historic and heritage tales of the emirate’s eastern, central and western regions.”

He added: “Our objective is to look after the careful restoration and preservation of some of these regions, and to adhere to the emirate’s environmental sustainability, as well as UNGA’s Sustainable Development Goals (SDG).”

Moving Forward with EU

Sharjah’s economy continues to witness large-scale demands from a number of local and international investors, paving the way for new investment prospects across the environmental, healthcare, tourism, logistics, real estate, education and light manufacturing sectors.

Leading the realm of strengthening partnerships with specialised investment and trade firms in Europe, Invest in Sharjah has led and taken part in a number of high-profile delegations from the emirate of Sharjah, partnering with a number of the emirate’s state entities, as well as the UAE Ministry of Economy, announcing new JVs and conducting business seminars with a number of European nations.

Al Sarkal explained: “Over the next few years, we are expecting the complete development of one of the region’s most unique environmental sustainability cities in Sharjah. Furthermore, our joint-venture with Abu Dhabi’s Eagle Hills, resulting with the official launch of Eagle Hills Sharjah and three high-end real-estate projects – Maryam Island, Al Khan Palace and Kalba Waterfront, are redefining living standards and lifestyles in Sharjah, merging cultural constructs and modern designs as a first of its kind the region.”

He highlighted: “Our existing healthcare and education sector are also among the leading sectors in Sharjah, witnessing large-scale developments, expansion phases and new business prospects. We recently inked a new JV with one of the leading investment firms in South Korea, REI Holding, paving the way for UAE’s first of its kind hospital specialising in open-heart surgeries. Most recently, the Sharjah Healthcare Authority and Gruppo San Donato inked a new agreement, allowing more than 16,800 staff members from the Italian based corporation to facilitate firms and set up businesses in the Sharjah Healthcare City, which is the emirate’s first project operating under the “free zone” benefits.”

He concluded: “The current state of the European economy is embarking on a more opportunistic forecast as states and nations bid to develop the region’s economic sustainability and stability, slash unemployment rates, and transform uncertainties and pessimism in the global economy to opportunities that help them diversify assets and funds across a wide range of services and sectors.”

By Guido Lanfranchi.

In an event jointly organized by Karama Europe and Leiden University’s Middle East Committee, four young activists from conflict areas across the Middle East shared their personal stories of activism with an engaged audience of students.  

Over the past years, the international community, notably the United Nations, has devoted more and more attention to the role of youth and women in armed conflicts. When overwhelmed by the violence of a war, young people face hard choices: they can fight, they can stand by and observe, or they can get engaged in activism. While the images and stories of fighters are easily spread and seen all over the world, the experiences of youth activists unfortunately often remain more in the shadows. With the aim of reversing this trend, Karama Europe and Leiden University’s Middle East Committee decided to organize an event in which four young activists from Iraq, Yemen, Libya, and Syria shared their experiences with an audience of students from all over the world.

The event was introduced and moderated by Ms. Elisabeth van der Steenhoven, Director of the European branch of the NGO Karama, active across the Middle East to “end all types of violence against women in the Arab region”. Ms. van der Steenhoven proudly introduced the four young activists, who travelled all the way to The Hague in order to meet a number of Dutch civil society organizations and politicians, with the support of the office of Karama Europe, situated in The Hague since October 2017.

The activists told their personal stories to an attentive audience. All four stories were characterized by a similar pattern: finding themselves in the midst of an armed conflict, these young people would decide to eschew the path of violence, focusing instead on having a positive impact in their communities and their countries. Wijdan al-Matari, for instance, was only 18 years old when the conflict in Yemen erupted. As the conflict shattered her opportunity to study abroad in China, she decided to get involved to help her community, for instance by organising film festivals, as well as by helping people displaced by the conflict.

Tara Ali Ashour, from Iraq, experienced conflicts since her early childhood. Her family moved from her native town, the capital Baghdad, to the northern city of Erbil, in the Kurdish region, looking for more safety. As the Islamic State conquered territory across the border between Syria and Iraq, Tara decided to get engaged in several volunteering organization, which led her to be among the first people to enter Mosul after the city was recaptured from IS. Currently, she works for the Women Empowerment Organization, a position in which she struggles to empower women, as well as to support displaced people and refugees in their daily life. 

Younes Nagem, from Libya, defines himself as an activist since he was 7 years old, on account of his longstanding experience as a boy scout. When the Arab Spring started in 2011, he immediately got involved, but he refused to take up arms. He focused instead on getting engaged through media platforms, until he was forced to leave the country for security reasons. When the security situation in Libya improved, he returned to his hometown, where he combined his social dedication with his background as a telecommunication engineer. He thus founded BYTE, Benghazi Youth Technology Entrepreneurship, a civil society platform that provides support to young Libyans through the help of technology.

Bushra al-Hamdan, 27 years old from Homs, in Syria, made the same decision of her colleagues: finding herself in the midst of the Syrian civil war, she decided to focus on helping those most in need. Working with organizations in coordination with UN agencies and other partners, over the last years she has helping to provide aid to displaced people. She has been working with different organizations, sometimes focusing on children and women, other times focusing on eliminating hunger. During her experience, she faced a lot of difficulties, but her commitment to help others has not decreased, and currently she is still engaged in a number of volunteering initiatives, including learning activities for kids.

Answering a number of different questions posed by an engaged audience, the young activists explained what it means to live in a conflict situation, and how is it possible to refuse using arms, pursuing instead social work. Moreover, they called on Western media to support their work by sharing their action and making them public, in order to show that in countries affected by conflict there is not only death, but also people helping each other.

While all these activists focus on providing help to those most in need, such help should not be mere short-term assistance – they specified. As Bushra put it: “You start by giving them food, you end giving them seeds”. Hopefully, this approach will lead these countries out of the armed conflicts affecting them, towards a future characterized by more peace, prosperity, and happiness. 

In the picture H.E. Ambassador I Gusti Wesaka Puja, Anton Lutter, H.E. Ambassador Mahendra Siregar . Photography by A. Lutter.

By Anton Lutter.

The newly appointed ambassador of Indonesia at Washington DC H.E. Mahendra Siregar made an impressive speech during a meeting organized by the Indonesia Nederland Society at the senatebuilding in The Hague on the 4^th of April.

Former minister of Defense and senator Dr. Willem van Eekelen chaired the meeting which – among many others – was attended by the president of the senate Mrs. Ankie Broekers-Knol and the Indonesian ambassador to The Netherlands H.E. I Gusti Anak Wesaka Puja.

Ambassador Siregar, previously executive director of the Council of Palm Oil Producing Countries (CPOPC), intended to speak frankly and so he did: 

“the EU Commission with the full support of member states and various vested interests have decided to adopt a Delegated Act (DA) under Renewable Energy Directive (RED) II that will phase out and ban the use of palm oil in the EU biofuel sector no later than 2030. Calls are growing within Europe for an immediate ban on palm oil classified as high-risk of Indirect Land Use Change (ILUC). Certain EU member states such as France have revealed the mercantile approach of Europe by demanding that their private sector, especially the Hydrogenated Vegetable Oil/HVO Industries (also known as the advanced or next-generation biofuel), stop sourcing palm oil in favour of rapeseeds”. 

The prohibition of crude palm oil will hit at least 16 million people many of them labourers, probably losing their jobs and creating social tensions. Indonesia is the largest palm oil producing country and these EU policies will have a significantly effect on the almost 4 million Indonesians working on oil palm plantations. At the same time it’s obvious the ban on palm oil will protect the EU market of its oils like sunflower and rapeseed oil, which the Indonesian government qualifies as discriminatory.

Siregar argumented that:

“The grounds being used against palm oil do not bear close scrutiny. The DA of the European Union establishes criteria that deliberately discriminates against palm oil. Amongst others: 

a. Loss of biodiversity is assessed on the period 1989-2003 projected for 2008 and 2015 conveniently ignoring the dramatic decline in forest clearance witnessed in Indonesia in 2017 as result of the moratorium applied by the Government;

b. Palm oil from low carbon lands which has less carbon emission than soy and rapeseed is still classified as high ILUC;

c. Ignores the fact that palm oil contributes less to bio diversity than other vegetable oils on a per unit/area basis as 6% of global land devoted to palm oil produces 38% of vegetable oil output;

d. The ILUC scheme adopted by the EU is unilateral in nature and is widely accepted to be scientifically flawed; and it is not a genuine response to environmental challenges in the biofuel sector as less than 4% of the global land mass used for the cultivation of vegetable oils is destined for the biofuel sector;

e. The acknowledgment by the European Commission that the DA is not supported by an impact assessment further undermines the credibility of the approach adopted.

We consider that a ban on palm oil would significantly accelerate the loss of biodiversity associated with the cultivation of soy and rape seed. This discriminatory approach does not contribute to addressing the global challenges of meeting vegetable oil demand which is expected to rise from 165 million tons in 2013 up to 310 million tons by 2040. In fact, a reduction in palm oil would simply displace and significantly accelerate the loss of biodiversity elsewhere”.

Earlier the coordinating minister overseeing maritime and natural resources Luhut Pandjaitan, warned that under these circumstances Indonesia could leave the Paris climate accord. Indonesia has at the same time committed to significantly reduce its greenhouse as emissions while adopting sustainable policies which would boost its economy. 

A variety of responses will be contemplated by the government of Indonesia. the ambassador put them clearly on the table at the fully packed meeting in the senate building. Amongst the many possible options:

“Along side our commitment to address environmental concerns, the discrimination exercised against palm oil, which is politically motivated, should receive an adequate and commensurate response. Indonesia, along with other palm oil producing countries, should consider imposing limitations on the imports of rapeseed and other products from Europe that contribute to high levels of CO2 emissions to include dairy, meat products and wines. 

Those EU member states that have been the most vociferous against palm oil should be targeted for appropriate retaliation; and this should be coordinated with the major palm producing countries and within the ASEAN. Recourse to the WTO will be undertaken against the EU to address the blatant discrimination exercised”.

Concerning The Netherlands ambassador Mahendra Siregar had a strong and clear message:

“We believe that the Dutch Government should support the case of Indonesia and other palm oil producing countries by fully rejecting the Delegated Act. Being low key and passive on this matter, is not only a wrong option but also very risky for the Netherlands”.

He noted with regret “that the Government of Netherlands is considering not to oppose the implementation of the Delegated Act. Although the Netherlands recognizes the discriminatory nature of the DA in terms of soy, palm oil producing countries also consider that DA is intended to promote EU rapeseed consumption in the biofuel sector by freezing the imports of palm oil at a time that the capacity of HVO production in Europe is entering on stream”. 

The important question for the EU and The Netherlands – the latter being a large refiner and distributor of palm oil and as one of the largest traders of agricultural products worldwide – 

“Should Indonesia and other palm oil producing countries follow Europe and apply an ILUC system on canola oil, dairy and meat products? Should our Ministers also instruct our Industry to stop importing from Europe using the example of the French Government, which demanded that Total SA biofuel facility in La Mede, France cease sourcing pam oil and instead use rapeseed?”.

The answer could have a significant impact on the global economy and multilateral trading!