What major global trends will the UAE take into consideration in the upcoming years?
We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. The World Economic Forum, which I attended in Davos, Switzerland, discussed these issues at the start of the year and this is something we must keep abreast of as a nation. The speed of current breakthroughs has no historical precedent and the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance. The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. These possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, energy storage, and quantum computing. In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more efficient, and the cost of trade will diminish, all of which will open new markets and drive economic growth. Another major trend is the government's focus on diversifying the economy as a means to embrace a future beyond oil. With oil prices at low levels globally, this strategy is being pursued with vigour by our leadership for the benefit of future generations. In our own sector, DP World recently highlighted five key ICT innovations for ports and logistics firms in a report; robotics and automation, simulation and virtual reality, big data analytics, the Internet of Things, and cybersecurity.
Now that the UAE has become one of the region's leading innovation hubs, what comes next?
Innovation is a continuous process and we must continue to support new practices and technologies to maintain and increase our reputation for excellence. It is not a question of what comes next, it's about aspiring to world-class standards and performance and increasing efficiencies through innovation for this generation and those that come after us. That ingrained culture and mindset is what will differentiate us from the rest of the world in the years to come.
What opportunities does the new PPP law, which came into force in November 2015, offer for both the public and private sectors?
The opportunities to develop economies through partnerships enable private-sector expertise to be added to government programs for the wider benefit, particularly in infrastructure and construction. It gives government entities the freedom to define appropriate tender processes outside the constraints of existing tender laws that are not appropriate for PPPs and is a positive step forward for the development of a PPP market in Dubai. Government entities have more freedom and flexibility to specify tender and contract conditions on a case-by-case basis. The overriding award criteria is the “most financially and technically advantageous bid," with discretion to specify details. This is another example of our leadership amending regulations to suit the future needs of Dubai and providing more freedom for business to operate.
What role can the UAE play in the “One Belt, One Road" initiative?
As an enabler of global trade, DP World is always interested in opportunities that come our way. We are already helping Kazakhstan develop the Khorgos Special Economic Zone (SEZ) and Inland Container Depot (ICD), as well as the Port of Aktau on the Caspian Sea. These infrastructure projects will help develop the “One Belt, One Road" concept, linking China to European markets through Asia. Today, goods from China take an average of 42 days to reach Europe by sea. With the new logistics and transport infrastructure in Kazakhstan, this is reduced to an average of 13 days. Elsewhere, DP World and our partners are investing $1.9 billion in China port terminals until 2020 and we already operate three ports there in Qingdao, Tianjin, and Yantai. We also recently signed an agreement with our partners in Qingdao to exchange information and grow business between our ports. In building a global portfolio of more than 77 marine and inland terminals, we have established long-standing relationships with customers, many of whom are looking to the New Silk Road as new areas of opportunity. The experience gained from our Jebel Ali port with its free zone and our other terminals around the world will fuel the development of the New Silk Road at a remarkable pace.
DP World has already invested $1.2 billion in India and is the only foreign operator with six port concessions in the country and an approximate 30% market share. Following DP World's announcement that it will invest a further $1 billion over the next few years, what will this investment cover?
This will cover expansion in brownfield container terminals, long-term greenfield container concessions, inland container depots (ICDs), and the expansion of existing inter-modal rail services for rolling stock. We already employ 3,000 people at our terminals in India and they are locally recruited and trained. As a market leader in Indian container terminal operations we have the largest portfolio of investments in ports along the Indian coastline, including Gujarat (Mundra, 2003), Maharashtra (Nhava Sheva, 1999 and 2012), Kerala (Cochin, 2005), Tamil Nadu (Chennai, 2001), and Andhra Pradesh (Vishakapatnam, 2002). We have also created rail connections to the hinterlands and have a national rail license from the government to operate seven container trains.