19 June 2006
Estimates continued economic diversification will see UAE GDP increase 60% by 2010

A.T. Kearney, the leading international management consultancy firm, today announced it will establish a regional base at the Dubai International Financial Centre (DIFC) to serve its growing number of local clients and support the continued diversification and growth of the UAE economy.

"Our client base in the MENA region has grown exponentially over the past five years and requires not only international experts from our mature operations in Europe, the Americas and Asia, but also the close physical proximity of a local office. The DIFC provides us with a world-class location from which to grow throughout the region," said Dr. Dirk Buchta, Managing Director of A.T. Kearney in the UAE.

A.T. Kearney believes that UAE's GDP can increase by 60 percent by 2010. This phenomenal growth will come through continued economic diversification based on three key drivers: direct investment, internationalization and development of new industries.

Direct investment is necessary to evolve beyond the free zone concept and begin expanding into key industries. TECOM Investments, the investment arm of Dubai Internet City, and Dubai Investments Group, Dubai Holding's private equity arm, recently developed their foreign interests by acquiring a 35 percent stake in Tunisia Telecom for US$2.25 billion and a 60 percent stake in Maltacom for US$280 million.

The UAE has proven its ability to build and promote national champions, such as Emirates Airlines and its tourism industry. Continued development of local companies through acquisition, as with Dubai Ports and its integration of CSX and P&O, will help grow existing domestic companies.

The UAE Government is also investing heavily in new industries to increase participation across the value chain. This will lead to the creation of innovative industry clusters, such as the aerospace conglomerate Dubai Aerospace Enterprise (DAE).

Dr. Omar Bin Sulaiman, Governor of the DIFC, says that A.T. Kearney will be able to take advantage of growing opportunities throughout the region from its base at the DIFC.

"A.T. Kearney recognizes Dubai's potential and has identified a growing need for expert management consulting services. The continued expansion and diversification of Dubai's economy provides a unique opportunity for businesses such as A.T. Kearney to establish operations locally and throughout the region," he said.

A.T. Kearney recently supported the feasibility study and launch of Dubai Aerospace Enterprises. It is working with a number of other undisclosed clients on projects that will further the economic growth in the UAE.

"The world is watching the UAE especially Dubai both with admiration for its successes and anticipation of its next move. We believe the UAE will serve as an example to the whole region, furthering economic development and stability. We aim to participate in this development by helping our clients turn their strategies into reality," said Dr. Buchta.

-Ends-

Notes to Editors:
A.T. Kearney:
A.T. Kearney is one of the world's largest management consulting firms. With a global presence that includes over 50 offices in 35 countries, A.T. Kearney provides consulting services in the areas of business strategy, strategic operations management, transformation and organization, and technology strategy with a team of over 3,500 consultants.  A.T. Kearney covers all major manufacturing and service industries, including Government; Aerospace, Airlines and Transportation, Financial Institutions, Private Equity, Property Development, Building and Construction, IT, Communications & High-Tech, Automotive, Pharmaceutical and Health Care, Process and Manufacturing Industry, Utilities and Energy, Retail & Consumer Goods. Over During its 80 year history it has provided management consulting services to most major corporations and governments around the world.  From its fast growing UAE office in Dubai, A.T. Kearney actively contributes to the growth and the build-up of an industry and service economy in the region.  For more information, visit www.atkearney.com

About the DIFC:
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.

In just over one year, more than a hundred top international institutions have joined the DIFC as members. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards. 

The DIFC is made up of the following core bodies:

1. The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial as well as non-financial institutions to set up in the DIFC. The DIFC Authority is also responsible for developing the financial services industry. (www.difc.ae)

2. The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modeled on that used in London and New York, and its regulatory regime operates to standards that meet or exceed those in major financial centres.   (www.dfsa.ae)

3. The DIFC Courts - An independent court system set up to uphold the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC. The DIFC Courts system is especially designed to deal with all of sophisticated transactions that will be conducted within DIFC. The DIFC Court laws, based on the common law, not only sets out the jurisdiction of the court but also provides for a dispute resolution services, including arbitration and mediation, thus allowing for the independent administration of justice in the DIFC. ( www.difccourts.ae )

4. DIFC Investments- The creation of DIFC Investments will result in the allocation to it of all non public administration activities previously carried out by DIFC Authority. This will include amongst other things all commercial and other activities such as the operation and management of any current and future subsidiaries, the development of the centre's investment strategy and relevant policies and any other strategic investments or alliances which will further the goals and objectives of the Dubai International Financial Centre and contribute to the fulfillment of the Centre's vision. Some of the companies and organizations that DIFC Investments owns include:

1. The Dubai International Financial Exchange (DIFX) The DIFX is the region's first international financial exchange for equities, bonds, Islamic products, funds, index products and (subject to regulatory approval) derivatives. The target areas of the DIFX for seeking issuers include the Middle East and North Africa, as well as South Africa, Turkey and the Indian sub-continent. The regulator of the DIFX is the Dubai Financial Services Authority. The DIFX is located in the Dubai International Financial Centre (DIFC) and its owner is the DIFC Authority. (www.difx.ae)

2. Hawkama- the first Institute for Corporate Governance in the region is being set up by a group of international institutions, including the Dubai International Financial Centre (DIFC), Organisation for Economic Cooperation and Development (OECD), UAE Ministry of Finance and Industry, Centre for International Private Enterprise (CIPE), International Finance Corporation (IFC), the Union of Arab Banks (UAB), Dubai School of Government (DSG), Young Arab Leaders (YAL), and the Institute of Management Development (IMD). (www.hawkamah.org) 

For further information, kindly contact:
Robert A. Ziegler
A.T. Kearney (UAE) Limited
Tel: +97150 276 9 275
robert.ziegler@atkearney.com
 
Amira Abdulla                                                                      
PR Manager, DIFC   
Tel: +971 4 362 2433                                                      
E-mail: Amira.abdulla@difc.ae                                        

Shaima Al Zarouni                                             
Management Associate, DIFC 
Tel: +9714 62 2432                           
E-mail: Shaima.Alzarouni@difc.ae

© Press Release 2006