The 5th Abu Dhabi-Singapore Joint Forum (ADSJF) held in Singapore saw the two governments underscore their commitment to further improve bilateral economic relations. This included exploring potential collaboration in two new sectors: semiconductors, and water and wastewater management.
Water scarcity is a rising global concern and a significant long-term challenge for Abu Dhabi. With its rapidly expanding population and urbanisation, Abu Dhabi faces the possibility of its natural and brackish water reserves being depleted within 50 years.
With Singapore’s global track record in water and wastewater management, this was a particularly significant area of focus for the Forum partners. Singapore environmental engineering companies have already engaged with other GCC countries in several flagship projects.
One such company is Keppel Integrated Engineering, an environmental technology and engineering company contracted to build the largest wastewater treatment, water reuse and sludge treatment project in the Middle East. Keppel Seghers, a provider of waste, water and energy technology solutions in Singapore is building the largest waste water treatment plant in Qatar too.
In the United Arab Emirates (UAE), Sembcorp Industries (Sembcorp), a provider of energy and water solutions in Singapore, inked an MOU with the Abu Dhabi Water and Electricity Authority (ADWEA) in July 2010 to develop and build a new seawater osmosis facility in Fujairah.
The second sector identified for potential partnership is closely aligned with Abu Dhabi’s ambition to be a significant player in the global semiconductor industry. In 2009, Abu Dhabi’s ATIC (Advanced Technology Investment Company) purchased Singapore-based Chartered Semiconductor as well as AMD’s manufacturing operations. Now known as GlobalFoundries, it has become one of the world’s top semiconductor foundries, with operations spanning the globe, in Singapore, Germany, United States and in the future, Abu Dhabi.
These two sectors were explored by representatives from Abu Dhabi and Singapore in newly-established working groups during the Forum. The Semiconductor working group was led by the Singapore Economic Development Board (EDB) and ATIC, while the Water and Waste Water working group was led by Singapore’s Public Utilities Board (PUB) and the Abu Dhabi Sewerage Services Company (ADSSC).
Said Lee Yi Shyan, Minister of State for Trade, Industry and Manpower, and co-Chairman of the ADSJF, “Officials and business leaders of both Abu Dhabi and Singapore have found this forum to be a useful platform to seed new ideas for cooperation and networking. I am therefore encouraged by the fact that the 5th ADSJF enjoyed a record turnout from both sides. It is clear that there will be many meaningful opportunities for Abu Dhabi and Singapore to work together. Our focus on the semi-conductor and water resource sectors in the past two days were just two of the many areas of cooperation being pursued. We welcome Abu Dhabi’s investments in Singapore too, as they did so in their investments in Chartered Semiconductor last year. We have a win-win relationship with Abu Dhabi.”
Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority of Abu Dhabi commented, “This is now the fifth Abu Dhabi Singapore Joint Forum, and it is clear that we have established an effective dialogue that drives growth and collaboration in key areas of economic interest for both partners.”
The ADSJF also saw the signing of a management services agreement between Mubadala Healthcare, a business unit of Mubadala Development Company and Singapore healthcare specialist, Asiamedic Limited. This collaboration follows an earlier arrangement between the two companies to establish a wellness and diagnostic centre in Arzanah. Asiamedic will manage and operate a screening centre related to visa application medical checks.
Another example of Abu Dhabi-Singapore collaboration is the training of technology specialists. Abu Dhabi’s Advanced Technology Investment Company (ATIC) signed an MOU with Singapore Polytechnic on a partnership that will provide a new generation of Emirati employees with the opportunity to learn the technical skills required and qualify them to work within the semiconductor industry through a two and a half-year programme in both Abu Dhabi and Singapore.
The official ADSJF website was also launched today. The website provides updates on developments and events in Singapore and Abu Dhabi, and activities being held under the ADSJF banner. The website address is www.adsjf.com.
Total trade between the UAE and Singapore has grown by more than three times, from AED12.9 billion in 2002 to AED39.7 billion in 2010, peaking at AED42.3 billion in 2008. Top traded items between Singapore and the UAE include refined and crude petroleum, non-monetary gold and jewellery.
Borouge, a JV company formed between the ADNOC and Borealis from Norway, produces high performance polyolefin and polyethylene products in the Middle East, has made Singapore its Global Sales and Marketing HQ. It has partnered with Singapore’s CWT Ltd to provide warehousing and logistics services, with Singapore serving as Borouge’s South-East Asian Logistics Regional HQ.
Some of the existing collaborations between organisations in Abu Dhabi and Singapore are; Abu Dhabi Sewerage Services Company (ADSSC) awarded Singapore’s Boustead Salcon a S$21 million (AED60 million) Enhanced Treated Sewage Effluent Treatment plant contract in July 2010; CWT launched its Commodity Hub/Borouge regional distribution centre in May 2010 ; Capitala (a joint venture between Mubadala and Singapore’s Capitaland) held its topping out ceremony in November 2010 for Rihan Heights, a residential development which is in the first phase of its flagship mixed development at Arzanah, Abu Dhabi.
Both governments also look forward to deepening their economic relations through a bilateral Investment Promotion and Protection Agreement (IPPA). Negotiations for the IPPA were concluded early this year. The IPPA will help to promote bilateral investment flows, as it puts in place a framework where investors from both Singapore and Abu Dhabi can be assured of investment protection. Key features of the agreement include: non-discriminatory, fair and equitable treatment for investors and investments in Abu Dhabi and Singapore; prompt, adequate and effective compensation in the event of expropriation; guarantee of free transfers of capital, proceeds and other funds related to investments; and access to international arbitral tribunals in the event of any investor-to-state disputes.
Visitor arrivals from Abu Dhabi to Singapore have progressively increased over the last five years. In 2009, there were 9,311 visitors from Abu Dhabi, an 11% increase year-on-year. Visitors from Singapore to Abu Dhabi have remained steady over the past two years, with an average of 7,500 arrivals. In terms of bilateral tourism relations, the Singapore Tourism Board has signed an MOU with its counterpart, the Abu Dhabi Tourism Authority (ADTA), in 2009.
The number of bilateral visits between Singapore and Abu Dhabi is also on the rise. In 2010, official delegations to Singapore and Abu Dhabi totaled more than 40 visits. Just last month, Singapore also welcomed the arrival of His Excellency Mohammad Ahmed Hamel Al Qubaisi, who assumed the post as the UAE’s Ambassador to Singapore.
