Oil Rigs

DOING BUSINESS WITH

GULF COOPERATION COUNCIL

PRESENTED BY:

 BINITI BHUSHAN
- 16
 GAURAV SHARMA
- 26
 SIDDHESH GURAV
- 29
 SARVESH HEGDE
- 31
Prayer Rugs
 About GCC
Official languages Arabic
Arab states of the
Membership
Persian Gulf

Leader of GCC
Secretary-General Abdul Rahman Ibn
Hamad Al-Attiyah

Population wise
Total Area 267,31,000 sqkm
GDP 823 Billion USDollar
Per capita 22.8 USDollar
 GULF COOPERATION COUNCIL

FOUNDATION:
 The Gulf Cooperation Council was established on May 21, 1981.

 GCC promote stability and economic cooperation among Persian Gulf nations.

 GCC removes all barriers within GCC countries for cross country investment

and services trade.

 GCC member nations abolished customs duties.

 GULF COOPERATION COUNCIL

OBJECTIVES:
 Formulating similar regulations in various fields such as economy, finance,

trade, customs, tourism, legislation and administration.

 Fostering scientific and technical progress in industry, mining, agriculture,

water and animal resources.

 Establishing scientific research centers.

 Setting up joint ventures.

 Encouraging cooperation of the private sector.

 Strengthening ties between their peoples.

 Establishing a common currency by 2010.

 GULF COOPERATION COUNCIL

ORGANISATIONAL STRUCTURE:
 The Supreme Council: The highest authority of the GCC, and is comprised of
the heads of all member states. It convenes yearly in one regular session.

 The Ministerial Council: Composed of the Ministers of Foreign Affairs or other

ministers acting on their behalf. It convenes every three months.

 The Secretariat-General: Charged with the function of preparing studies related

to cooperation, coordination, and integrated plans and programs for joint work.
Also preparation of periodic reports on the work of the GCC, follow up on the
implementation of the resolutions, and prepare reports and studies.
 Stages for Setting up an Enterprise

Anticipated risks and

Stages Objective Action Plan End Result
hurdles

Familiarity with Non availability of

Stage:1 Find a right partner One location
GCC complete information
Get to know more
Demand potential and Sure of
Stage:2 Demand analysis about the production
other player’s strengths succeeding
facilities
Understand legal
Appoint specialists Terms are favorable to Get ready to
Stage:3 formalities and
to draft local partners setup
agreements
Right kinds of Possible resistance if
Production at low
Stage:4 Locate and setup people (technical Indian bosses are
costs
and managerial) appointed
Develop interior Local tariff and non-
Markets – local & Reduced cost and
Stage:5 markets and tariff barriers in
outside competitiveness
network out of GCC provinces
 GULF COOPERATION COUNCIL

MEMBERS:
BAHRAIN OFFICIAL NAME: KINGDOM OF BAHRAIN
Capital: Al Manamah
Area: 707 sq km (273 sq mi)
Population: 726,617 (2008 estimate)
Languages: Arabic (official), English, Persian (Farsi), Urdu
Religious Affiliations: Muslim, Christian
Currency: Bahraini Dinar (BD)
Major trade partners:
India, U.S.A., Saudi Arabia, South Korea
For Exports
and Japan
Saudi Arabia, U.S.A., France,
For Imports
U.K., and Germany
Economic Indicators:
GDP growth (annual %) 7.6 %(2008)
 GULF COOPERATION COUNCIL

MEMBERS:
KUWAIT OFFICIAL NAME: STATE OF KUWAIT
Capital: Kuwait City
Area: 17,818 sq km (6,880 sq mi)
Population: 2,535,446 (2008estimate)
Languages: Arabic (official), English widely spoken
Religious Affiliations: Muslim, Roman Catholic, Hindu
Currency: Kuwait Dinar (BD)
Major trade partners:
Japan, U.S.A., South Korea, Singapore and
For Exports
Pakistan.
For Imports U.S.A., Japan, U.K., Germany, and China
Economic Indicators:
GDP growth (annual %) 8% (2008)
 GULF COOPERATION COUNCIL

MEMBERS:
OMAN OFFICIAL NAME: SULTANATE OF OMAN
Capital: Muscat
Area: 309,500 sq km (119,500 sq mi)
Population: 2,566,981 (2008 estimate)
Languages: Arabic (official), English, Baluchi, Urdu, Hindi
Religious Affiliations: lbadi Muslim, Hindu, Christian
Currency: Omani Rial (OR)
Major trade partners:
For Exports China, Japan, South Korea, U.A.E., and Thailand
For Imports U.A.E., Japan, U.K., U.S.A., Saudi Arabia
Economic Indicators:
GDP growth (annual %) 6.6% (2008)
 GULF COOPERATION COUNCIL

MEMBERS:
QATAR OFFICIAL NAME: STATE OF QATAR
Capital: Doha
Area: 11,427 sq km (4,412 sq mi)
Population: 812,842 (2008 estimate)
Languages: Arabic (official), English
Religious Affiliations: Muslim, Roman Catholic, Hindu, Buddhist
Currency: Qatari riyal (QR)
Major trade partners:
For Exports Japan, South Korea, Singapore, U.A.E., U.S.A.
For Imports Japan, Germany, U.K., and U.A.E., U.S.A.
Economic Indicators:
GDP growth (annual %) 7.1% (2008)
 GULF COOPERATION COUNCIL

MEMBERS:
SAUDI OFFICIAL NAME: KINGDOM OF SAUDI ARABIA
ARABIA Capital: Riyadh
Area: 2,240,000 sq km (864,900 sq mi)
Population: 24,573,100 (2008estimate)
Languages: Arabic (official), English (for business)
Religious Affiliations: Muslim, Christian, Hindu
Currency: Saudi Riyal (SR)
Major trade partners:
U.S.A., Japan, South Korea, Singapore and
For Exports
France.
For Imports U.S.A., Japan, Germany, U.K., and France
Economic Indicators:
GDP growth (annual %) 5.9% (2008)
 GULF COOPERATION COUNCIL

MEMBERS:
UAE OFFICIAL NAME: UNITED ARAB EMIRATES
Capital: Abu Dhabi
Area: 83,600 sq km (32,300 sq mi)
Population: 4,533,145 (2008 estimate).
Arabic (official), Persian (Farsi), English, Hindi
Languages:
and Urdu.
Religious Affiliations: Islam, Christian, Hindu
Currency: U.A.E. Dirham (Dh)
Major trade partners:
For Exports Japan, South Korea, India, Thailand and Oman.
For Imports Japan, United Kingdom, Germany, and U.S.A.
Economic Indicators:
GDP growth (annual %) 10.2% (2008)
 GULF COOPERATION COUNCIL

ECONOMIC ENVIRONMENT:
BAHRAIN:
 Limited oil resources will be maximized by next 10-15 years.
 Diverse economic base – service sector emerged as leading sector.
 Bahrain's port and airport facilities has turned the country into a regional
transport hub.
 Developed a regional banking sector whose assets stand around US$100bn.
 Manufacturing sector -ALBA’s (Aluminum Bahrain) US $ 1.7 billion expansion
project will increase the annual production to 827,000 tones from 307,000
tones.
 Construction sector is heavily reliant on government infrastructural contracts.
 Large private sector tourism and housing projects have been planned.
 GULF COOPERATION COUNCIL

ECONOMIC ENVIRONMENT:
KUWAIT:
 Dominated by petroleum, which accounts for 90-95% of the merchandise
export earnings.
 Trade/GDP ratio, a typical measure of the openness of the economy, is around
70%.
 Kuwait Petroleum Corporation (KPC) has the overall responsibility for
investment in the country's domestic and foreign oil industry.
 Construction sector is dominated by public sector contracts.
 Substantial expansion of infrastructure to allow hub for the rebuilding and
reconstruction of Iraq.
 GULF COOPERATION COUNCIL

ECONOMIC ENVIRONMENT:
OMAN:
 Hydrocarbons form the most important sector.
 Diversification program to promote gas-based industries and tourism and to
increase the role of the private sector in the development of industries and
infrastructure.

QATAR:
 Oil and gas are the main drivers of the economy.
 Manufacturing, building, and construction sectors, as well as other sectors,
such as finance, insurance, real estate, and trade have also shown impressive
growth.
 To invest in Qatar, all sectors are opened except banking, insurance, real estate
and commercial agencies.
 GULF COOPERATION COUNCIL

ECONOMIC ENVIRONMENT:
SAUDI ARABIA:
 Dominated by the oil sector.
 Oil revenues used to develop the agriculture industry, as well as other
industries.
 Government encourages the development of the manufacturing sector in a bid
to increase economic diversification and to create employment opportunities.
 Construction sector has accounted for 5.4% of GDP in 2004 and employed
approximately 15% of the workforce.
 GULF COOPERATION COUNCIL

ECONOMIC ENVIRONMENT:
UNITED ARAB EMIRATES:
 Heavily dependent on oil and gas.
 Construction sector has been a primary beneficiary of the boom in non-oil
development.
 Dubai - the tourism industry .
 GCC ANNOUNCED PROJECTS 2008-10

GCC PROJECTS ALL SECTORS

($ MILLIONS)
GCC PROJECTS BY COUNTRY
($ MILLIONS)
 GULF COOPERATION COUNCIL

FDI FLOWS AND INVESTMENT POLICIES :

BAHRAIN:
 Government has focused its efforts on the entry of new and private firms.
 Government seeks domestic and foreign private investments for large
infrastructure projects.
 Foreign-owned companies are eligible for partial financing.

KUWAIT:
 Companies can be established with 100% foreign capital.
 Foreign investors can transfer ownership of their investment to another foreign
or national investor.
 Foreign investors have the right to transfer their profits and capital abroad.
 GULF COOPERATION COUNCIL

FDI FLOWS AND INVESTMENT POLICIES :

OMAN:
 Foreign investors, especially in the industrial, information technology, tourism,
and higher education fields are particularly welcomed.

QATAR:
 Solid base of attractive investment packages - politically and socially stable.
 Successful in reaching joint venture agreements with foreign partners to
develop its massive gas reserves.
 Law allows real estate to be leased to foreign investors for them to establish
their investments projects.
 Foreign investors are free to make transfers related to their investments.
 GULF COOPERATION COUNCIL

FDI FLOWS AND INVESTMENT POLICIES:

SAUDI ARABIA :
 Government encourages FDI in infrastructure, including power, water,
telecommunications, and transportation.

 The FDI law allows foreign investment in all sectors except for specific activities
contained in a "negative list".

 Foreign investors are no longer required to join with local partners.

 GULF COOPERATION COUNCIL

FDI FLOWS AND INVESTMENT POLICIES:

UNITED ARAB EMIRATES:
 Leading sector of FDI inflows are oil and gas field machinery and service;
power and water; computers/peripherals; medical equipment and supplies;
airport development and ground equipment; telecommunications; and
franchising.

 Foreign investor may share of up to 49% in a company.

 Foreign investors can establish a branch or use commercial agency agreements,

and can also set up businesses in free trade zones.
 GULF COOPERATION COUNCIL

INCENTIVES:
 Planned and serviced plots are provided for industries in the industrial estates.

 Ready built factories 25 years (renewable).

 Annual rent for land plots US$ 0.65/sq m for first 5 years and there after US$
1.30/m2.

 Rent for built-up factory building US$ 5.2 to 10.4 /sq m.

 GULF COOPERATION COUNCIL

INCENTIVES:
 Electricity US$ 0.06/ KW/H.

 Water US$ 0.007/gallon

 Exemption from Customs duty is allowed on Raw materials, Plant &

machinery and spares imported for industrial production.

 Local Products are given 10% advantage over imported goods on Government
purchases
 GULF COOPERATION COUNCIL

INCENTIVES:
 Oman is the only country in the whole of GCC which has its own National credit
guarantee agency.

 KOM (Knowledge Oasis Muscat) provide state of the art infrastructure facilities
with high bandwidth up to 155 Mbps to ICT firms with 100% foreign ownership,
and tax free income for 5 years subsidized Incubator facilities to IT startups
and first generation entrepreneurs.

 Foreigners can own properties in designated areas for a lease period of 99

years.
 GULF COOPERATION COUNCIL

BUSINESS CULTURE:
 Business appointments in the Gulf region are necessary.

 Businesspeople prefer face-to-face meetings, and business is mostly done

against an intensely personal background.

 You should abide by the local standards of modesty, and dress appropriately.

 Business cards are common but not essential to Gulf business culture. If you do
intend to use business cards while in the Gulf region, ensure that you have the
information printed in both English and Arabic.

 Gift-giving in the region is appreciated, but not necessary. If you are offered a
gift, however, it is considered impolite and offensive if you do not accept it.
 FOREIGN TRADE OF THE
GCC COUNTRIES

MAJOR EXPORTS AND IMPORTS:

BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.
Mineral products,
Oil exports, Crude oil, LNG Chemical
Oil and Gas,
Ethylene exports, Re- Oil and Gas, products, Plastic
EXPORT Oil, Non-oil Re-exports,
products, exports, Non- Non-oil products, Re-
ITEMS exports Free Zone
Manufactured oil exports, exports exports, Base
Exports
Machinery,
fertilizers Refined oil metals and
Machinery,
articles. Transport
Machinery, Appliances,
equipment,
Fuels, Transport Machinery, Electrical Pearls,
Machinery, equipments, Transport equipment, precious and
Transport Manufactured equipment, Transport semi-precious
equipment, Consumer goods, Agricultural equipment, stones,
Agricultural goods, Food products, Iron Foodstuffs, Base Jewelry, Base
IMPORT metal and
products, Intermediate and live and steel, metal and
ITEMS
Chemical and goods, Capital animals, Chemical and articles, Chemical articles,
Agricultural
allied goods Chemicals and related and allied products,
Products, related products, products, Textile Textiles and
Textiles and products, Textiles and and textile articles,
clothing Crude clothing articles, Artificial Chemical and
materials resins and plastic allied
materials
products
 FOREIGN TRADE OF THE
GCC COUNTRIES
PROHIBITED AND RESTRICTIVE IMPORT PRODUCTS:
Certificate SASO
Prohibition Special licenses (SAUDI ARABIAN STANDARDS License
Product ORGANISATION)

Pig X
Representational objects of art X
Agricultural semen X
Books, magazines, films, tapes X
Pharmaceutical products X
Living animals, fresh and deep-
X
frozen food
Farm products X
Alcoholic drinks X
Toys X
Electronics and electricity X
Motorcar X
Chemicals X
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC TRADE RELATIONS:
 India's total trade with GCC countries grew from USD 5.5 billion in 2000-2001
to USD 16.35 billion in 2004-2005.
 Rise in both exports to and imports from the GCC countries have underlined
the increase in India's overall trade with the region.

(In USD Million)

Country India's Exports India's Exports India's Imports India's Imports
2004-2005 2005-2006 2004-2005 2005-2006
Bahrain 156.46 192.25 121.87 189.56
Kuwait 421.44 513.73 305.94 461.85
Oman 267.67 408.43 20.61 265.59
Qatar 209.42 259.34 672.85 901.62
Saudi Arabia 1412.06 1809.77 1301.15 1632.34
U.A.E. 7347.88 8591.79 4641.10 4354.08
Total 9814.93 11,775.31 7063.52 7805.04
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC TRADE RELATIONS:

BAHRAIN:
 Accounted for 1.5% of India's exports to the GCC region and 1.6% of India's total imports
from the GCC region in 2004-2005.

KUWAIT:
 Exports share of 4.3% of India's total exports to the GCC region.

OMAN:
 Increase in exports of machinery and instruments, manufactures of metals, and non-
ferrous metals.

QATAR:
 Smallest share of India's exports to the GCC region.
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC TRADE RELATIONS:

SAUDI ARABIA:
 Second largest trading partner after the U.A.E. in the GCC region.
 Accounting for 14.6% of total exports and 18.3% of total imports during 2004-2005.

UNITED ARAB EMIRATES:

 Second largest market for India's exports, after the U.S.
 Accounted for 9% of India's total exports, and imports from the U.A.E. accounted for
4.3% of India's total imports during the year 2004-2005.
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC TRADE RELATIONS:
BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

Organic And
Inorganic
Metaliferrous Ores Metaliferrous Ores Chemicals;
And Metal Scrap; Organic Chemicals; And Metal Scrap, Fertilizer
Non-ferrous Metals; Metaliferrous Ores Non-metallic Manufactures;
Inorganic And Metal Scrap; Mineral Artificial Resins Organic Chemicals;
Chemicals; Pulp Sulfur And Manufactures, Non And Plastic Inorganic Chemicals,
And Waste Paper; Unroasted Iron Ferrous Metals, Iron Materials; Sulfur Artificial Resins And
Sulfur And Pirates; Artificial And Steel, Artificial And Unroasted Iron Plastic Materials; Pearls, Precious And
EXPORT
Unroasted Iron Resins And Plastic - Resins, Plastic Pirates; Metaliferrous Ores And Semi-precious
ITEMS OF
Pirates; Crude Materials; Materials, Dyeing Metaliferrous Ores Metal Scraps; Leather; Stones, Gold, And
GCC
Fertilizer; Inorganic And Coloring And Metal Scrap; Gold And Silver; Silver
Manufactures Of Chemicals; Materials, Fruits Pulp And Waste Fertilizer Manufactures;
Metals; Transport Electronic Goods; And Nuts, Trans- Paper; Non- And Pulp And Waste
Equipment; Cotton Pulp And Waste port Equipment, electrical Paper
Yarn And Fabrics; Paper; Wool Raw; Pulp And Waste Machinery;
And Non-electrical And Iron And Steel Paper, Electrical Electrical
Machinery Machinery Machinery; And
Dyeing And
Coloring Materials
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC TRADE RELATIONS:
BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

Cotton Yam Fabrics Glass, Glassware,

And Made Ups; Basmati Rice; Glass, And Ceramics;
Aluminum Other Glassware, And Machinery And Gems And Jewelry;
Than Products; Ceramics; RMG Instruments; Plastic And Linoleum
Machinery And Cotton And Manmade Yarn And Manufactures Of Products; Petroleum
Instruments; Accessories; Fabrics, Meat And Metals; Transport Basmati Rice; RMG Products; Manmade
Manufactures Of Primary And Semi- Preparations, Equipment; Cotton And Accessories; Yarn And Fabrics;
Metals, Paper Or finished Iron And Electronic Goods, Primary And Semi- Manmade Yarn And RMG Cotton And
IMPORT
Wood Products; Steel; Petroleum Poultry Products, finished Iron And Fabrics; Non-basmati Accessories;
ITEMS OF
Transport And Crude Plastic And Steel; Electronic Rice; Manufacture Of Manufactures Of
GCC
Equipment; Fresh Products; Manmade Linoleum Products, Goods; Metals; RMG Manmade Metal, Machinery,
Vegetables; RMG Yarn And Fabrics; Transport Manufactured Fibers; And Metal And And Instru-ments;
Cotton And Acces- Machinery And Equipment, And Rubber Products; Preparations Primary And Semi-
sories; Manmade Instruments; Meat Wheat Pro-cessed finished Iron And
Yarn And Fabrics; And Preparations; Minerals; Meat And Steel; And Cotton
And Primary And Manufactures Of Preparations; Yarn And Fabrics
Semi-finished Iron Metal; And Oil Mills Plastic And
And Steel Linoleum Products
 FOREIGN TRADE OF THE
GCC COUNTRIES
INDIA-GCC INVESTMENT RELATIONS:

 A number of Indian joint ventures and wholly owned subsidiaries have been approved in
the GCC region.

 Major areas of operations include software development services, engineering services,

tourism, readymade garments, chemical products, and agriculture and related activities.
 FOREIGN TRADE OF THE
GCC COUNTRIES
TRADE POTENTIAL:

Points are considered when identifying potential export items to the GCC regions:
 India's export capabilities, and the commodities being imported by the GCC countries

 Commodities for which India has a comparative advantage in global exports

 Commodities whose exports to other countries have registered high growth

 Commodities for which India has been doing well in other markets
 FOREIGN TRADE OF THE
GCC COUNTRIES
INVESTMENT POTENTIAL IN SECTORS:
BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.
Construction;
Operation And
Management Of
Infrastructure
Water And
Enterprises; Bank Foodstuffs, Information And
Drainage;
And Investment Chemicals, Communication
IT And Telecommunication
Corporations; Petrochemicals, Technology;
Telecommunicat s; Air
Insurance Com- Agriculture Plastics And Media And
ions, Education Transportation And
panies; IT And And Fisheries, Rubber, Metal Entertainment;
POTENTIAL And Training, Services; Railways,
SECTORS
Software Manufacturing Indus-tries, Financial
Tourism, Health Roads, And Sea Port
Development; , Tourism And Engineering, Services;
Care, And Services;
Hospital And Trading Education, Construction And
Financial Educational
Medicines Tourism, And Real Estate; And
Services Services; Agricul-
Manufacturing; Health Care Travel And
tural Services; And
Land, Sea And Air Sectors Tourism
Health Services
Transport;
Tourism; And
Real Estate
Investment
 FOREIGN TRADE OF THE
GCC COUNTRIES
STRATEGIES TO ENHANCE COMMERCIAL RELATIONS:

 Enhancing exports through local partnerships

 Focus on trading activities in the GCC region

 Cooperation in the banking and financial sectors

 Focus on privatization programs

 Entrepreneurship development
 FOREIGN TRADE OF THE
GCC COUNTRIES
STRATEGIES TO ENHANCE COMMERCIAL RELATIONS:

OTHER MEASURES:
 Cooperate closely with development funds to set up projects in the GCC region.

 Indian companies can enter into joint ventures and tie-ups with local companies for

contracts in Iraq.
 Indian companies/institutions could also explore the possibilities of setting up technical

and vocational colleges and coaching institutes for higher education in the GCC region.
 Indian companies can explore the possibilities of setting up IT parks, hospitals, hotels,

and tourist facilities.

 Indian companies could also share their expertise in providing software programs and

services for banks and financial institutions in the region.

Kaaba
THANK
YOU