UAE industry growth builds offset proposition, says expert
Posted: 05 March 2007
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The spectacular growth of the United Arab Emirates’ industrial sector is building a strong case for the use of the country’s offset programme in delivering national economic wealth, according to an international offsets expert.
Speaking at the recent Middle East Regional Offset Conference in the UAE capital Abu Dhabi, Neil Rutter, Chairman of the Global Offset & Countertrade Association (GOACA), said cross-border partnerships, the core of offsets, are essential to propelling forward the region’s economic opportunities.
“Industry partnership is key to developing the strength of the region’s geographic and financial position and the remarkable UAE industry growth has built a stronger economic case for regional offset,” said Rutter.
And the GOACA Chairman said industry analysts had to look no further for proof of offset success than Dubai-headquartered Gulf Energy Maritime (GEM), the Middle East’s largest independent commercial tanker operator, in which French defense giant Thales has an equity stake following a successful offset investment.
“GEM has successfully delivered high quality services to customers globally and provided flawless marine transportation,” said Rutter.
Thales involvement in GEM followed an approach by initial shareholder Emirates National Oil Company (ENOC).
“Within a month of being approached, Thales entered the joint venture convinced by its sound business approach,” explained Ahmed Hareb Al Falahi, CEO, GEM. Following Thales’ commitment Abu Dhabi’s International Petroleum Investment Company and Oman Oil Company joined the GEM joint venture.
“By coming together in a professional manner we have, over the last three years, shared experience, skills and international industry knowledge for the benefit of all and for the greater good of the UAE,” added Al Falahi. “GEM has befitted immensely from Thales’ guidance in corporate governance.”
Since its launch in July 2004, GEM has built an asset base which now stands at US $1.1 billion, an 800% growth on start-up, through the ownership of 19 product and chemical tankers.
Thales is now holding GEM up as a sterling offset case study which, it says, others in the region should emulate.
“Offset is an important tool to encourage economic growth and Thales’ participation in GEM’s highly successful venture has created the perfect business model for others in the region to follow,” said J.C. Climeau, CEO, Thales International. |
