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The Middle East homeland security market is expected to grow three times the global average on the back of large-scale infrastructure projects, according to a report by the consultancy Frost & Sullivan.

Homeland security, which includes border security for land, sea and air, critical infrastructure protection, transportation security and cyber security, will grow at a compound annual growth rate of 18.7 per cent and reach US$34 billion by 2020, the report said.

There are a number of large- scale projects that are expected to fuel this growth. Some of these include the Expo 2020 in Dubai and the 2022 Fifa World Cup in Qatar, and the Midfield Terminal Complex in Abu Dhabi, which is forecast to handle 30 million passengers a year.

To cater to this growth, Abu Dhabi is hosting the International Exhibition for Security and National Resilience (ISNR) next March.

“Regional mega-events alone are driving infrastructure investment of up to US$700 billion between now and 2020 – residential and commercial construction, transportation infrastructure, and public utilities – and those investments must be protected with advanced security systems and solutions,” said Major General Ahmed Nasser Al Raisi, deputy chairman of ISNR’s organising committee.

The exhibition expects to attract more than 500 companies from 45 countries and about 20,000 visitors from more than 90 countries.

More than Dh1 billion in deals were announced during last year’s edition, which attracted 427 exhibitors and 16,000 visitors.

“With ever-changing threats on the horizon – natural as well as man-made – and fresh challenges facing the Middle East, new solutions are constantly being developed to enhance homeland security, minimise the possibility of disasters, and improve emergency response rates,” said Nicky Dawson, group exhibition director of ISNR.

Abu Dhabi’s state-owned investment firm Mubadala is one of the companies that exhibited last year, with seven of its units showcasing their products at the event.

These materials are not intended and should not be used as legal advice or other recommendation. If you need a legal opinion on a specific issue or factual situation, please contact a lawyer. Anyone using these materials should not rely on them as a substitute for legal advice.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all security matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable security advice can be disastrous and thus should be avoided.

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China’s interest in Africa is often said to come on the back of colonial aspirations. Newspaper headlines scream that Chinese firms, backed by the powerful and deep-pocketed Chinese state, will mop-up Africa’s business opportunities to the detriment of Western and indigenous firms. Given these developments, is it possible for Africa to benefit from increasing Chinese investments in Africa?

While it is easy to conclude that China is taking over and ‘colonizing’ Africa when one sees ‘Made in China’ goods in every African marketplace and Chinese construction crews on seemingly every construction site, it is easy to forget that Chinese goods and labour are able to entering the African marketplace amicably, rather than the historical model by which Beijing would be sailing a warship up to the coast and forcing African governments to accept trade. In fact, Chinese goods and companies are possible in Africa because WTO efforts over the past two decades have decreased trade tariffs and opened up the African marketplace. Ironically, therefore, it is not a ‘colonialist’ China, but the WTO that set the playing field for Africa as an attractive opportunity for China.

During his visit to the African Union in 2014, Chinese Premier Li Keqiang announced that China expects to achieve $400 billion in trade volumes with Africa and raise its direct investment in the continent to $100 billion by 2020. China’s investments will be mainly in infrastructure development and be channeled through various Chinese lending agencies, including the newly established BRICS Development Bank. Such a sustained injection of investment capital from China is bound to create opportunities in all sectors.

In Africa’s price-sensitive marketplace, telecommunications infrastructure, for example, has become very reliant upon Chinese technology, which is competitively priced, durable and enjoys strong back-up service compared to its Western competitors. Similarly, Chinese construction companies are able to overcome difficulties and deliver roads and bridges on budgets that cannot be matched by Western or even local companies. Chinese companies, however, do not always get it right. The Chinese commerce ministry estimates that 65% of Chinese foreign direct investments make a loss; compared with a 50% international norm. Chinese companies have only begun to venture overseas. Beijing declared “go-out” state-policy in 2000, and most Chinese companies are still in the steep learning curve of learning to operating in a foreign, international environment.

What is often ignored when the media portrays the Chinese as a new colonial power in Africa is how much China needs Africa. As a growing economy, China needs African energy, resources and access to African markets. As a rising power, China needs the political support of African leaders as bulwark against the West.

From Africa’s perspective, Chinese investment – especially in basic infrastructure – is more than welcomed. It is estimated that Africa suffers from a $900 billion infrastructure deficit: without potable water, all-weather roads, adequate power and reliable communication, African economies cannot thrive. China’s focus on basic infrastructure investment will lay the groundwork for children to be able to go to school and businesses to trade. But China’s arrival will bring challenges. ‘Made in China’ products over the past two decades have had a devastating effect on local manufacturing. For example, textiles from China have decimated the once thriving textile industry in South Africa. However, African countries such as Ethiopia have recently seen the benefits of rising investments by Chinese manufacturers. Huajian, a Chinese shoe producer, has increased its employment from the initial 600 to 3,500 in a few years. Despite shortcomings of Chinese firms that engage in poor labor and environmental practices and the competition they bring to indigenous companies, growing Chinese investments, so long as Africa grasps the opportunity, will provide a net positive gain for African economies and people in the coming decades.

These materials are not intended and should not be used as legal / investment advice or other recommendation. If you need a legal / investment opinion on a specific issue or factual situation, please contact a lawyer / investment advisor. Anyone using these materials should not rely on them as a substitute for legal / investment advice.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Mr. Francis Thomas Matthews,
Deputy Global Director, No. 8
Marketing Research & Development Division,
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For Queries Specific to Africa :
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