Energy World
December 2009

Importing talent; exporting excellence

Dubai should reposition itself as a centre of excellence in sustainability rather than relying on its depleting oil reserves and struggling real estate market

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The Middle East should establish itself as the centre of sustainable development, according to Morris Reid, Managing Director of the BGR Group, a premier bipartisan government relations, strategic communications, and investment banking firm.

One of the most important things for Dubai to diversify into is the renewable energy field – “it doesn’t have oil and needs a new play which can’t be real estate,” suggests Reid.

He adds: “This is such an energy rich region of the world but it has put all of its eggs in one basket, in terms of oil production. Solar, for instance, is the obvious industry that should have been home grown here, and it should now be world dominating.”

Reid believes that there are two reasons why the Middle East has not diversified, first is a lack of know-how and second is a belief that oil supplies would never deplete. He adds: “The Japanese didn’t know how to make cars but they imported US-technology and now they make the best cars in the world. You can always import know-how to develop yourself, so a lack of skills should not be an excuse.

“There was also the thought that oil would never go away, but this was the model followed by Texas, and when its oil dried up the economy was devastated.

“Today, this area should try to attract the best and the brightest in renewable energy. They should incubate ideas here, beta test them and use them as a launch pad to exploit the world.”

According to Reid, there is no reason for the solar industry to be further ahead in Germany, Madrid and the US than it is in the Middle East, as nobody gets more sun.

Reid says: “I am looking to attract the best and the brightest from throughout the world and to bring them to the Middle East.

“I am looking to bring ideas here to incubate and grow them. I am not just interested in coming here to make money and leave - we see ourselves as facilitating business opportunities.

“Our former boss coined the phrase ‘commercial diplomacy’, and I am picking up that mantel,” adds Reid.

With offices in Washington DC and London — and extensive business relationships around the world — the BGR Group represents a diverse, blue-chip clientele which includes Fortune 500 companies, international governments, trade associations, academic institutions, hospitals, coalitions, and state and local governments.

Reid says: “I see myself as navigating the world of business, politics and the media.

This region is the most misunderstand in the world and if people took the time they would realise that the people are warm and welcoming and that their traditions and values are more similar than dissimilar to their own.

“The Middle East is also wealthy with a young population and so much innovation should come out of the region.

“You have to be bullish on the UAE, as it has the second largest proven energy reserves; you have to be bullish on Qatar with its wealth of gas supplies; and you have to be bullish on India in this region, as it is going to become much more active in terms of trading with the Middle East.”

Reid believes that the UAE is like Japan, in that by arriving late to the oil industry Japan was able to begin with the very best technology and knowhow, as the UAE can with nuclear power – making it more ‘innovative’ and ‘safe’, which is the key word.

“Literally all of my clients are interested in working in this region – in fields such as renewable energy, nuclear (in the entire vertical chain from building to providing reactors), and all of my crude guys. Typically I have 30 major multi-national clients actively looking for opportunities.”

Reid says that he is having conversations, up and down the spectrum, depending on where you see crude, from oil to nuclear and back.

Reid adds that, since the global recession, his clients have been forced to look beyond their borders as there is no longer enough work to focus purely on the American market. “As many as 95% of all consumers in the world are outside our borders,” he argues.

“Now that we have President Barack Obama in the White House, who has a greater world view, it encourages businesses to have a world view and to look beyond their borders.

“In terms of business, the only reason people are now talking with America is Barack Obama. Nobody wanted to come to America or deal with America before. He is focused on pioneering and doing things differently and it is encouraging other business leaders to think of the Middle East market differently.

“Investors now feel there is someone in the White House who truly understands and appreciates the situation.

“The best thing the President could do for this region [Middle East] now is to get the US market together and the US economy moving again. What is good for America is good for the rest of the world,” he concludes.

Morris Reid, Managing Director of the BGR Group