2 © 2016 | World FZO 2nd Annual International Conference & Exhibition Under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates, and Ruler of Dubai © 2016 | World FZO 2nd Annual International Conference & Exhibition 3 +971 4 204 5473 events@worldfzo.org www.aice2016.com 2nd Annual International Conference & Exhibition 9TH – 11TH MAY 2016 - GRAND HYATT DUBAI, UAE Table of Contents • General Event Overview • Topic • Free Zone Outlook: International Conference Agenda • Panel Discussions • Workshops • Registration 4 © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com General Event Overview The World FZO 2nd Annual International Conference & Exhibition will include: • Free Zone Outlook International Conference. This years chosen topic: “Global Value Chain: Opportunities for the Free Zone of the Future” • Exhibition • World FZO General Assembly and Board of Directors Meeting • Regional Free Zone Association Meetings • Training Sessions and Workshops • Site Tours to the most important Free Zones in Dubai Date Morning Session Lunch 8 May Afternoon Session Evening Activity Site Tours World FZO Board of Directos Meeting 9 May Networking Workshops Reception Exhibition Inauguration & Workshops Launch 10 May Free Zone Outlook International Conference Gala Dinner Exhibition 11 May Free Zone Outlook World FZO International Conference General Assembly Exhibition 12 May Site Tours © 2016 | World FZO 2nd Annual International Conference & Exhibition 5 +971 4 204 5473 events@worldfzo.org www.aice2016.com Global Value Chains OPPORTUNITIES & CHALLENGES FOR THE FREE ZONE OF THE FUTURE Nowadays, trade in intermediate goods and services are greater than that of final goods and the importance of intra-industry trade is rapidly growing. From referring almost exclusively to national sectors or local clusters, analysts are increasingly focusing on regional and global value chains. International production trade and investments are organized within so-called global value chains, where the different stages of production processes are located across different countries. The whole process of producing goods from raw materials to finished products is increasingly carried out wherever the necessary skills and materials are available at competitive costs and quality. In this globalized business structure, the different activities within a value chain are developed in multiple locations for efficiency and competitiveness purposes. The increased relevance of global value chains in international trade is altering the way businesses are carried out. It is also changing the way globalization is understood. In this new scenario, imports are more valuable than many countries have perceived them, as they represent inputs for a higher value-added exporting sector and exports no longer represent a 100% value added contribution to the economy. There is, in this sense, a profound interest from companies and also from governments around the world, to participate in global value chain. Achieving this, implies for a company to be part of a business with an international scope and a potentially huge global market. For companies to successfully be a part of a global value chain, they must be highly competitive. In this same sense, governments who wish to promote the participation of firms located within their territory in global value chains must provide an internationalized competitive business environment. This requires not only horizontal strategies such as guaranteeing sound and stable regulation, macroeconomic stability, high quality infrastructure and logistics services, low tariffs, elimination of trade barriers, trade promotion agreements and competitive financial and labor markets, among others, but also vertical strategies aimed specifically at promoting the global outreach of companies. A useful instrument that helps spearhead a country´s participation in global value chains are Free Zone Regimes. Free Zones are areas inside a country where among others, companies benefit from tax and customs incentives. Free Zone regimes have extensively been established in many countries worldwide to develop strategic sectors or clusters, promote business sophistication, increase exports, and develop strategic territories. Companies located in Free Zones are, by definition, international in scope. They are therefore, natural candidates to participate in activities of global value chains. Free Zones were initially perceived as areas with tax and customs benefits where strategic sectors, especially export-based, could thrive. 6 © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com Global Value Chains Within this framework, efficiency, economies of scale, benefits from cluster agglomeration and logistics rather than just differences in tax regimes, have become key drivers of productive diversification. Free zones, especially those of emerging economies, should evolve from participating in global value chains exclusively through assembly and simple processing activities to also offering more sophisticated technological, financial and logistic services. Nowadays, in an ever-changing international environment, the role of Free Zones becomes more complex. Governments should not only maintain tax and customs incentives for companies in free zones, but also promote complementary actions to increase their firm´s efficiency and international competitiveness. Moreover, since global value chains are altering the way international trade is perceived and represent a great opportunity for growth, business development and sophistication, there must also be a supervised strategy to promote participation of companies in free zones in activities of global value chains. This requires a joint effort between national and local governments, free zone operators and companies, to: (i) identify opportunities in global value chains, (ii) seek and contact key players, (iii) establish information systems for companies to have access to specialized clients and suppliers around the world, (iv) inform and insure the compliance of international quality standards by companies in Free Zones, and (v) lead marketing campaigns to position local suppliers in global value chain markets. Globalization is evolving to a state in which all goods and services will involve a complex international process of multi-country company interactions, and in which global value chains and intra-industry trade will increasingly transform international trade patterns. In this scenario, Free Zones have the potential and opportunity to become key catalysts for businesses in this changing environment. © 2016 | World FZO 2nd Annual International Conference & Exhibition 7 +971 4 204 5473 events@worldfzo.org www.aice2016.com Program SUNDAY, MAY 8 Site Tours 08:00 – 15:00 Registration Open 12:00 – 17:00 MONDAY, MAY 9 Registration Open 08:00 – 17:30 Exhibition Open 09:00 – 17:30 World FZO Board of Directors Meeting 09:00 – 10:30 Workshops 09:00 – 10:30 Exhibition Official Opening 10:30 – 11:00 Coffee Break 11:00 – 11:30 Workshops 11:30 – 13:00 Lunch 13:00 – 14:00 Workshops 14:00 – 15:30 Coffee Break 15:30 – 16:00 Workshops 16:00 – 17:30 Networking Reception 18:30 – 20:30 Registration and Exhibition Open 08:00 – 17:30 Welcome and Opening Remarks 09:00 – 10:00 Panel 1 - GVC: Governance 10:00 – 11:00 Coffee Break and Networking 11:00 – 12:00 Inauguration and Launch 12:00 – 13:00 Lunch 13:00 – 14:00 Panel 2 - GVC: Policies’ Implications 14:00 – 15:00 Coffee Break 15:00 – 15:30 Panel 3 - GVC: The Multi National Corporations 15:30 – 16:30 TUESDAY, MAY 10 Perspective of GVCs WEDNESDAY, MAY 11 Coffee Break 16:30 – 17:00 Regional Meetings and Workshops 17:00 – 18:30 Gala Dinner 19:30 – 22:00 Exhibition Open Panel 4 - GVC: Opportunities for Free Zones of 09:00 09:30 – 10:30 the Future Coffee Break 10:30 – 11:00 Panel 5 - Next Practices: Beyond Best in Class 11:00 – 12:00 Practices THURSDAY, MAY 12 8 Launch of EMBA and Closing Ceremony 12:00 – 12:30 Lunch 12:30 – 14:00 World FZO General Assembly 14:00 – 16:30 World FZO Board of Directors Meeting 16:30 – 17:00 Site Tours 08:30 – 15:00 © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com Panel Discussions 1. GVC GOVERNANCE In international trade the concept and meaning of Global Value Chains is increasingly gaining attention amongst scholars, international organizations, policy makers and entrepreneurs. However, in order to understand the implications of such trend in international trade, Speaker/Moderator • Patrick Low in investment policy and entrepreneurial decisions it is important Panelists to comprehend why it arises, analyse some of its key features, the • Karina Stark concepts that arise from it, the challenges it poses for the sustainable insertion in the GVCs and describe one of the most relevant initiatives • Robert Koopman that explain why a new counting system in international trade is • Henry Yeung required (TiVA). • Ahmed Al Ansari 2. GVC POLICIES’ IMPLICATION GVCs are clearly modelling countries trade and investment policies differently than years ago. In particular, MNCs decisions on where to invest are correlated with the investment policies and incentives found in each country, resulting that FDI helps to profile the country´s Speaker/Moderator • Bernard Hoekman industry. Panelists In this order, it is important to analyse the Investment Policy, Human • Roberto Suarez Resource Skills Building, Trade Facilitation, Lean Bureaucratic Processes • Slavomir Majman and Quality of Life Offered and other incentives being used by the governments to attract FDI and retain local investment. • Daniel Griswold • Chirag Shah 3. GVC: MULTI NATIONAL CORPORATIONS PERSPECTIVE In the last few years, Global Value Chains (GVCs) have increasingly become the center around which production and world trade are structured. A value chain classifies the full range of activities including product conception, design, sourcing for intermediate input and raw Speaker/Moderator • Julie Brown materials, production, marketing, distribution and support. A global Panelists value chain of a final product is the value added of all activities that are • Habib Fekih directly and indirectly needed to produce it. Multinational Corporations (MNC’s) play a significant role in the rise of such global production • Tom Barnes networks by seeking locational advantages that match their needs. • Gary Gereffi © 2016 | World FZO 2nd Annual International Conference & Exhibition 9 +971 4 204 5473 events@worldfzo.org www.aice2016.com Panel Discussions 4. GVC: OPPORTUNITIES FOR FREE ZONE OF THE FUTURE Global Value Chains are shaping new trends in international trade, by which the fragmentation of production processes and division of tasks and activities developed at a multi-country level result in reforms of traditional trade and investment policies. It is therefore crucial that policy makers and entrepreneurs involved in the development of trade and FDI policies understand that countries do not compete on products anymore but on activities along the value chain. The correct understanding of such trend from the FZs will create the ideal scenario for them to be integrated into the GVCs. In that regard, in addition to special tax and customs regimes, other features of FZs Speaker/Moderator • Gary Gereffi Panelists • Martin Ibarra • Przemyslaw Kowalski • Hernando José Gómez • Gokhan Akinci as industrial parks, logistic centers, fostering cluster consolidation, development of research, development and innovation (RDI) services and as labour skills providers become key factors of comparative advantage vis a vis the national customs territory. 5. NEXT PRACTICES: BEYOND BEST IN CLASS PRACTICES A Workshop / Thematic Working sessions titled ‘Next Practices – Beyond Best in Class practices’ will discuss four broad themes with respect to Next Practices covering (1) Public-Private Partnership; (2) Specialized Supply Chains: (3) Technology and Innovation; and (4) Speaker/Moderator • Dr. Mohan Guruswamy Drivers of Sustained Competitive Edge, with active participation of Panelists domain experts. • Mehdi Tazi-Riffi Each of the four panelists will chair / moderate these thematic • Hubert Escaith sessions, on the previous day during the workshop, with a view to witness emergence of ideas and recommendations. Further the • Douglas Van Den Berghe panel will seek to dovetail or integrate the broad conclusion and • Lewis Leibowitz recommendations of the four thematic groups and present to the • William Dobson delegates of the conference during the panel discussion. The attempt is to draw a roadmap for what could be called ‘Next practices – for Free Zones of the Future. 10 © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com Workshops TAPPING INTO GLOBAL VALUE CHAINS: ATTRACTING INVESTMENT TO YOUR FREE ZONE Session Overview Target Audience (1) Introduction (2) latest global trends in FDI and other • Free zone executives and staff forms of corporate expansion (3) hard and soft incentives to attract more investment to your free zone (4) the role of aftercare to facilitate re-investments and expansion investments by existing investors in your free zone Session Outcomes Facilitators • Dr. Douglas van den Berghe • Laurens van der Schoor - ICA Participants will have an up to date overview of the most Pre-Workshop Material recent trends in investment, the role of incentives in Participants to receive electronic attracting more investment to their free zones and aftercare copies of presentations. strategies to facilitate expansion investments by existing investors. APPLYING INNOVATION DESIGN THINKING IN YOUR ORGANIZATION Session Overview Target Audience The business landscape is changing quickly and government • Free Zone Managers officials, free zones managers and corporates need to adapt to ensure that they stay relevant. Innovation is an essential tool to help ensure that your organisation isn’t left behind in • Government Officials • Corporates the midst of these changes. However, where do you start with your innovations? How Facilitators can you ensure that the innovation is done efficiently? How • Shadi Banna can you engage your team into the innovation process? How can you tap to your community to help in your innovation? In this session we will walk you through the innovation • Ned Jaroudi - Potential design thinking process to help you answer these questions Pre-Workshop Material and practice coming up with an team innovation at the All registered participants would session. get access to an 30 minute online Session Outcomes innovation tutorial that will prepare Participants would walk out with an innovation process held in the workshop them for the activities that will be template that can then be applied to innovations within their organization © 2016 | World FZO 2nd Annual International Conference & Exhibition 11 +971 4 204 5473 events@worldfzo.org www.aice2016.com Workshops NEXT PRACTICES – BEYOND BEST IN CLASS PRACTICES Session Overview Session Outcomes As a concept, Free Zone has come a long way since it was Each of the thematic working session initiated decades ago. The objectives behind setting up moderators will consolidate and free zones – liberalized commercial zones – were primarily integrate all the ideas generated during to enhance trade by attracting investments to create the working sessions and disseminate world-class facilities and become enclaves of excellence. the same on a panel discussion on the An additional objective was to deliver to developing last day of the conference. regions gains from transfer of knowledge and technology. Over time, from a free zone perspective, the emphasis shifted from merely allocating/leasing space to providing value added services and then on to becoming business partners. Time has now come to look ahead and further shift the emphasis towards what can be called Free Zone Participants • By Invitation Only Facilitator • Dr Mohan Guruswamy - World FZO of Future. The workshop will focus on brainstorming the next practices through independent but integrated thematic working sessions emphasizing on Next Practices with regard to Public-Private Partnership, Specialized Pre-Workshop Material • None Supply Chains, Thechnology and Innovation, Drivers of Competitive Edge, and Intellectual Property Rights Security. UNDERSTANDING AND MEASURING THE ECONOMIC IMPACT OF FREE ZONES Session Outcomes Session Overview This session will present an overview of the many economic benefits free zones provide to the regions in which they are established and a high-level discussion of how these benefits can be measured. Attendees will gain a better understanding of the importance of impact measurement for free zones. Facilitator Participants • Lucien Randazzese – SRI International Free zone managers, executives, and boards of Pre-Workshop Material directors; government officials; economic development professionals. 12 • None © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com Workshops THE “SMART” WORLD FREE ZONE READINESS ROADMAP Session Overview Target Audience The workshop will provide an overview of the SmartWorld Free Zone leadership, especially Free Zone Readiness Roadmap will help current and new those interested in strategy, world free zones assess their readiness to innovate—to planning, and in innovation to leverage state-of-the-art technology, to create a model of strengthen operating efficiency, stakeholder engagement and to establish best-in-class leverage stakeholder engagement standards for free zones. We will provide guidelines for and implement new “smart city" evaluating technology infrastructure and determining next technologies. steps for implementation. In addition, a representative from the Dubai Silicon Oasis Authority will showcase the background and current success Facilitators • Sandra Baer - President Personal Cities of DSO. This example will offer recommendations for as to “how” to get started and critical lessons learned on the journey. Pre-Workshop Material • None Session Outcomes Ideally the audience will understand the value of assessing readiness and implementing a strategic plan to move forward. They will: • Understand the value of collaboration and the power of partnerships to get things done • View technology as the enabler to create a better quality of life—for livable, workable, sustainable communities • See the value of resilience and regeneration; using natural resources, technology innovation and human talent in optimal ways • Ensure that their zones are secure and economically vibrant; fostering a sense of place—prepared as a safe and healthy environment • Foster social inclusion; investing in human and social capital to fuel citizen engagement and workforce development © 2016 | World FZO 2nd Annual International Conference & Exhibition 13 +971 4 204 5473 events@worldfzo.org www.aice2016.com Workshops KEY CONSIDERATIONS IN SETTING UP A FREE ZONE Session Overview Target Audience Global Trends in developing SEZs • Free Zones How has the concept of SEZs evolved? What are the Facilitators current trends and future outlook? This session will provide a general background on special economic zones, the rationale behind them, current trends, lessons learned, and • Gokhan Akinci Global Product Leader, World Bank Group demand for the various types of SEZs worldwide. Get it Right from the Start: The Importance of Strategic Pre-Workshop Material Planning • None This session will provide insight on how to design an SEZ strategy that is right for the particular growth challenges of a country. This includes how to identify the type of SEZ based on context and investor demand, what are the associated policies applicable to an SEZ, and how to determine the financial and economic feasibility of a potential SEZ site. This session will also discuss key actions that the Governments can take in its SEZ framework to ensure that environmental and social issues are address properly and zones are used to become areas of excellence in this arena. Establishing a Legal and Regulatory Framework for SEZ Development This session is a continuation of the previous session on strategic planning and addresses how to design and implement the legal, regulatory and institutional frameworks necessary for the development and operation of SEZs. It will explore different models to consider. Making Sustainable SEZs a Reality This session introduces the new concept of low carbon and Green SEZs and will serve as an introduction to how SEZs can promote environmental and social sensitive SEZ programs through energy efficiency, effective waste management systems, building codes, carbon markets, and the recent experience. It will also explore social and gender issues of an SEZ program. 14 © 2016 | World FZO 2nd Annual International Conference & Exhibition +971 4 204 5473 events@worldfzo.org www.aice2016.com Registration MEMBER FEES Early Bird After March 25th $650 $750 NON-MEMBER FEES Early Bird After March 25th $900 $1,000 1st Registration Free for World FZO Members Full details about the AICE 2016 including registration, hotel booking and travel are available at : www.AICE2016.com For any enquiries please email events@worldfzo.org © 2016 | World FZO 2nd Annual International Conference & Exhibition 15 +971 4 204 5473 events@worldfzo.org www.aice2016.com