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China is facing the difficult task of managing a soft economic landing, after decades of spectacular expansion. Naysayers abound, but never mind them. China has an advantage that other countries in today’s troubled global economy lack: a clear path forward. If China carries out a sustained, comprehensive effort to raise productivity, it can address its growth challenges, reduce the risks of financial crisis, and complete its transition to a consumption-driven, high-income economy with a large and affluent middle class. If it does, its annual GDP could be an estimated $5 trillion larger by 2030 than it is likely to be if policymakers continue to pursue investment-led growth.

And, in fact, China may have little choice. The traditional drivers of its economy – a vast pool of surplus labor and massive investments in infrastructure, housing, and industrial capacity – are becoming exhausted. The working-age population has peaked, urbanization is slowing, and the steel and cement industries are suffering from overcapacity. Returns on capital have declined, so China cannot rely on investment spending to generate sufficient growth.
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Fortunately, however, China has substantial room for gains in labor productivity, which is only 10-30% of the level in advanced economies. When the McKinsey Global Institute analyzed more than 2,000 Chinese companies in industries ranging from coal and steel to auto manufacturing and retail, it found opportunities to raise productivity by 20-100% by 2030.

Consider China’s service sector. Though the sector has grown rapidly and now accounts for about 50% of GDP, low-value-added businesses still dominate. On average, service businesses in China are just 15-30% as productive as their counterparts in OECD countries. In addition to streamlining existing operations (for example, by introducing self-checkout systems in retail businesses), China has opportunities to complement its manufacturing sector with high-value-added business services in areas such as design, accounting, marketing, and logistics.

In manufacturing itself, China can do more to automate its factories. China is the world’s largest purchaser of robots, but it still has only 36 robots per 10,000 workers, compared with 164 in the United States and 478 in Korea. Chinese companies have already shown that they can mix automated and manual assembly lines. They also can raise productivity by rationalizing operations and improving energy efficiency, bringing their performance closer to that of their global peers.

Chinese companies are major producers in a broad range of industries, but they have yet to take over the steps that add the most value. When it comes to semiconductors, for example, Chinese companies mostly serve as foundries for companies that design and sell chips (and, in doing so, capture the most value). Similarly, generics account for 90% of Chinese pharmaceutical sales.

China can support innovation in many ways, including by developing research-and-development clusters and helping inventors reap rewards through stronger intellectual property protection and reforms to the process of bringing firms to market. In the pharmaceutical industry, for example, a crop of innovative companies is developing a distinctively Chinese approach to drug discovery: massive scale and low-cost technical talent. These firms may be on their way to cracking the more lucrative business of brand-name drugs.

Some of China’s biggest productivity opportunities are in sectors suffering from overcapacity. Over the past decade, overcapacity has reduced annual returns on capital in the country’s coal and steel industries from 17% to 6%. The Chinese auto industry is capable of building 40 million cars per year for a market that currently consumes 26 million. Restructuring industries like steel, by letting uncompetitive players fail and encouraging consolidation, could raise productivity dramatically without compromising the ability to meet demand.

As companies move into higher-value-added activities, millions of better-paying jobs will be created, which should raise household incomes and move more Chinese into the middle class. In the first two or three years, however, before the income boost from rising productivity kicks in, the massive reallocation of resources could result in considerable pain and dislocation. Millions of low-skill workers will need to be retrained and redeployed, and GDP may grow more slowly than expected, before assuming a moderately rapid, steady pace through 2030.

The alternative is a continuation of the status quo, with poorly performing companies propped up in the name of job preservation and social stability – even as they raise risks for Chinese banks. The country would use its resources unproductively, and its firms would become less globally competitive.
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China’s history provides reason to believe that its leaders will make the right choice. In the 1990s, ailing state industries and the Asian financial crisis risked dragging down the country’s economy. But, rather than attempting to use fiscal and monetary stimulus to provide a short-term economic boost, the government carried out wrenching reforms and put the country on the path to two decades of awe-inspiring, double-digit growth.

Today, China faces a similar decision. It can settle for temporary fixes that will ultimately make the problem worse. Or it can seize the opportunity and press ahead with reforms that will boost productivity and create economic prosperity for years to come.

Source :project-syndicat

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Dubai attracted Dh28.6 billion in greenfield foreign investments in 2015, according to the emirate's newly launched FDI Monitor.
The Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development - Dubai, revealed new achievements for Dubai's global FDI rankings in its first 'Dubai FDI Monitor' reports series.
According to Financial Times Markets data quoted in the report, Dubai attracted Dh28.6 billion in greenfield FDI in 2015. The emirate witnessed 16 per cent growth in the number of greenfield FDI projects to 279, compared with 240 in 2014, and nearly Dh20 billion ($5.3 billion) of FDI inflows.
"Dubai continued to enhance its position as a preferred global FDI destination in 2015 by climbing global FDI rankings to fourth position in number of greenfield projects and sixth in foreign capital attracted, according to FT Markets," said Sami Al Qamzi, director-general of the DED.
The Dubai FDI Monitor report shows that Saudi Arabia, US, UK, India and Kuwait were the top five source countries for FDI to Dubai in 2015, generating Dh14.9 billion or ($4 billion) and representing 76 per cent of total FDI for the whole year.
As for the largest number of projects in 2015, the top five source countries were US, UK, India, Germany and Switzerland, generating a total of 168, or 60 per cent, of total FDI projects.
Pointing to a strong technology component in capital inflows to the emirate, the Dubai FDI Monitor reveals that 71 per cent of FDI projects in 2015 qualified as high and medium tech, generating 59 per cent of total FDI.
Fahad Al Gergawi, CEO of Dubai FDI, said: "Dubai has been successful in attracting investments in smart city technologies, renewable energy and green buildings among other high-tech sectors that improve productivity and efficiency while accelerating the transition to a green and sustainable economy."
The Dubai FDI Monitor also reaffirms Dubai's ability to facilitate business and serve an expanding consumer market across the Middle East, Africa and South Asia through business services, trade and tourism.
Top industries by number of projects in 2015 were professional services, IT services, transportation and warehousing, finance and retail. The top five industries generated 164 projects, representing 59 per cent of total projects in 2015.
The Dubai FDI initiative to establish an FDI Monitor at a city level sets a precedent among investment promotion agencies globally. The FDI monitor was developed in partnership with Wavteq, an FDI technology and consulting company, and aims to map out the investment landscape in Dubai through analysing FDI flows.

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Untapped market + Population + Political Stability among Middle East Countries = Profitability

If you are looking for a dynamic and prosperous country in which to invest, innovate, grow or expand your business on the world stage, Think Iran !

Iran welcomes foreign business investments and offers many competitive advantages:

A welcoming business environment

Iran is the best country among Middle East countries to  do business.

 

A strong growth record

 

Unparalleled market access

 

A highly educated workforce

Iran ’s workforce is the most highly educated among Middle East countries

 

Low business tax costs

Total business tax costs in Iran are by far the lowest in the Middle East countries

 

Political  Stability

 

A great place to invest, work, and live

Iran  is one of the most multicultural countries in the world, with world-class universities, a universal health care system and clean and friendly cities.

If you do not persuade, Please consider attached file In-depth Analysis to Iran.

 

 

Official name

 Islamic Republic of Iran 

 Head of State

 President H.E. Dr. Hassan Rouhani

 National Day

 11th of February (Islamic Revolution of Iran-1979)

 Capital

  Tehran

 Area

 1,648,196 sq km

 Land boundaries  4,137 km
 Sea boundaries  2,700 km (Including the Caspian Sea)
 River boundaries  1,918 km
 Border countries  Afghanistan, Azerbaijan (Nakhichevan), Armenia, Iraq, Pakistan, Turkey, Turkmenistan
 Climate

 Mostly arid or semi-arid, temperate along Caspian coast and mountainous temperate along west and north-west.

 Natural resources  Petroleum,  natural  gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur 
 Land use (1998):  
 Arable land  300,000 sq. Km                  18.2%
 Meadows and pastures  900,000 sq. Km                   54.6%
 Forest and woodland  120,000 sq. Km                     7.3%
 Other  258,000 sq. Km                   15.7%
 Irrigated land  70,000 sq. Km                       4.2%     
Agricultural products  Wheat, rice, barley, potato, grains, sugar-beet, cotton, fresh & dried fruits, dates, pistachio, fruits, nuts,  poultry, meat, dairy products, wool; caviar, flowers and medicinal plants.
 Population  76.03 million (2012)
 Population growth rate  1.34% (2012)
 Religions

 

Muslim                                              99.56%

Zoroastrian, Christian & Jewish              0.44%

Languages   Persian and Persian dialects, Azeri, Kurdish, Lori, Baloochi, Arabic
Literacy (2011)  Total      84.2%
 Currency Rial (IRR)
GDP   448.2 billion US$ (2010)
GDP per capita  6030 US$ (2010)
 GDP growth rate  6.4 % (2010)
 Total Imports 53451  million US $ (2012) 
 Total Exports 98033 million US $ (2012)
Foreign Direct Investment   4870 million US $ (2012)
 Industries Oil and gas, steel, aluminum, copper, electric and electronic equipment, cement & other building materials, metallurgy, home appliances, iron, textile, rugs and carpets, tapestry, miniature, ceramic, food processing (particularly sugar refining & vegetable oil production), petrochemicals, and car manufacturing & assemblies 
Electricity  Production: 232,955 GWH (2010) 
 Transportation:  
 Railways networks  12000 km (2013)
 Road networks  220000 km (2013)
 Ports  11 commercial ports
 Airports  54

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