2. History of Dubai
• Established in 1833 by Sheikh Maktoum bin Buti al Maktoum
• Evolution of Industry:
– Fishing → One of earliest known industries
– Pearl → 1892 is height of industry
– Trade → 1950’s, develops as major trading hub
– Oil → 1966, discovers it’s own oil
– Tourism → 1985, Emirates airline established
– Real Estate →2003, IMF & World Bank recognize Dubai as a
financial hub, introduction of freehold properties follows
• Abu Dhabi remains oil rich emirate while Dubai leads the way
with diverse industry
5. Present Demographics
% of Population
Emirati
8% 19%
Other Arab & Iranian
23% South Asian
50%
Other expatriates (incl
Westerners & East Asians)
Other Interesting Statistics:
• Highest net migration rate
• Highest average life expectancy compared to other Arab countries
• Highest gender imbalance with male/female ratio of 2.2
CIA Fact Book
10. Strategic Focus:
• Achieving critical mass within the
semiconductor market
• Upstream investments into design
services and technology solutions
• Horizontal investments into other
foundries to achieve to achieve
consolidation or acquire specialty
foundries
• Downstream investments into
assembly, packaging and testing
• Broad investments into adjacent and
complementary capital and technology-
intensive sectors, such as life sciences
and advanced chemicals and materials
(Advanced Technology in Abu Dhabi – Etching a Brighter Path, ATIC)
11. Why Invest in Semiconductors?
• Deliver diversification of economy while delivering financial returns
• Huge growth potential: Market size of $300B in 2010
• Processors for most tech including PC, mobile, automobile, energy mgmt
• 50x growth in data expected over the next 5 years
• Requires less human capital
• Attract the talent to innovate and strengthen overall workforce
• Remain consistent with the overarching goals set forth by Mubadala
13. Current Innovation Rankings:
• Create relevant degrees and leading 1 USA
universities
2 Japan
• Attract leading businesses
3 Germany
• Attract world class talent 4 Taiwan
5 Singapore
• Prove strategic location is a huge
benefit
How do they get there?
• Foster competition
52 UAE
(Advanced Technology in Dubai – Etching a Brighter Path)
14. Achievements
GF is currently #3 in market share & capacity in foundry business:
1) Taiwan Semiconductor Manufacturing Company Limited
2) United Microelectronics Corporation
3) Global Foundries
Al Nokhba Internship Program
Financial Returns:
1) GlobalFoundries posted US$3.6B in 2011 revenue
2) ATIC is wholly owned by Mubadala
15. What’s Next?
• SANTA CLARA, Calif., Feb. 8, 2012 /PRNewswire/ -- IBM, Samsung
Electronics, Co., Ltd., and GLOBALFOUNDRIES--forming the world's
largest chip-making consortium--will preview the future of silicon
technology at the 2012 Common Platform Technology Forum to
be held at the Santa Clara Convention Center on March 14.
• Calexda → Likely exit is strategic sale
• Masdar → Build world-class, cutting-edge program
• Acquisitions → Gain economies of scale
“Transforming from an oil based economy to a
knowledge based economy”
16. • Consulting practice dedicated to Sharia compliant finance and banking
• Originally served the Dubai Islamic Bank as an internal service and in 2008 was
re-launched as a full independent advisory service
• Services Offered:
Product Development
Sharia Documentation
Research and Innovation
Training
Sharia Audit
Accounting and IT Support
Asset Management Department
Administration and Finance
17. Sharia Compliant Finance
“All things are owned by Allah, man being a trustee and is held
accountable to the by-laws of that trust”
Khurram Abdallah, Dar Al Sharia
• Money is a medium of exchange and not created to be sought for
its own sake
• Specific rules defined through jurisprudence in Islamic law
• Promotes equity over debt, symmetric risk sharing
• “Same, Same, Different” – outcome same, procedure is different
22. Sukuk: Securitized lease instrument with
described asset given as gift at maturity
By Currency Sukuk Issued
$USD Billions $69
USD
18%
SAR
7%
QAR
5%
MYR
61% $32 $30
$29
$17
$10
$2 $4
2004 2005 2006 2007 2008 2009 2010 2011
23. Sale Transactions:
Bai Mutlaq Bai Muajjal Murabaha
(Cash Sale) (Deferred Sale) (Cost plus)
Istisna Ijara Salam
(Sale of a ‘Described’ (Sale of a ‘Described’
Asset)
(Sale of Usufruct) Commodity)
23
24. Crisis
• Only 40% of transactions done in UAE are
done with Islamic Financial principles
• $20 Billion Dollar bailout from Abu Dhabi for
restructuring debt in 2009
• Massive Foreign Worker Exodus
“Ailing Dubai World forced to sell assets in quest for cash”
– USA Today, December 2009
25. Future Growth Plans
Trade Free Trade Promoted
Finance Fills gap between Singapore and London
Tourism 5 billion people within an 8 hour plane ride
Real Estate Oversupply, Debt Issues
S W O T
Leadership & Confusing Legal Trade w/ Asia &
Sustainability
Vision System Oceania
Entitlement
Infrastructure Financial Reform Geopolitics
Interests
26. Promoting Trade: Free Zones
• Free Zones: Tax Free & Foreign Ownership Allowed
• Sector Clusters: Technology, Communications, Finance
• 18 in total, each with own governance and regulation
– 90% online forms & document registration
– One-Stop Shops with government reps
JAFZA
27. Dubai International Financial Center
• Internationally accepted legal environment based under common law
• Separate regulatory commission: only 40% of firms are regulated
• Over 1000 companies registered since 2004 start
• Strong Western & Chinese Presence
• Only 1 registered 100% Sharia Compliant Institution
28. DIFC: Global Financial Centre in Dubai
•Shanghai
DIFC Region
8 hour time zone
Dubai is 4 hours ahead of Greenwich Mean time (GMT)
5pm Dubai = 9am New York 1pm Dubai = 9am London 9am Dubai = 1pm Hong Kong
29. Today
• Gulf Tensions: Primary Trade Partners Iran & Saudi
Arabia
• Perpetual Debt Issues
– Emirates and DIFC restructuring $3.5 billion of debt in 2012
– Improving credit rating since near default
• Sustainability
– Highest per capita water utilization through Irrigation &
desalinization
– Energy intensive, was a net gas exporter until 2008
