Dubai: Italy remains optimistic about opportunities for growth in the Middle East and North Africa (Mena) region despite the country's economic problems, the Italian ambassador to the UAE said yesterday.
Giorgio Starace said Italy's debt would be solved through the markets and that the country had the capacity to pass through the current difficulties.
Italy is the Eurozone's third largest economy and the fourth largest debtor nation in the world. However, in recent weeks it has found itself at the epicentre of the sovereign debt crisis sweeping the 17-nation bloc.
"The role of Italian companies will continue to grow in this region; there is a very optimistic attitude about this market. We realise there are problems at home but they will be solved. Italy is an export-oriented economy and we have strong industries to come out of the crisis," said Starace.
There are almost 300 Italian companies present at this year's Big 5 exhibition in Dubai, which is currently taking place at the convention and exhibition centre, and they are showcasing a wide range of products, including ceramics, marble, air conditioning units and glass and metal work.
Pivotal for Italy
"Italy invests a lot of political and economic attention to the Mena region; it is absolutely pivotal for Italian firms," said Starace.
"Dubai had a negative moment in 2009, which impacted Italian companies in terms of exports and investments. However, there are signals of recovery in the real estate and construction sectors and we are also growing as a community; there are around 7,000 Italian residents in the UAE.
"Saudi Arabia is also a very important market for us; there are Italian companies that have established a base in Dubai but have 80 per cent of their portfolio in Saudi Arabia," he said.
Italy has become the central focus of the Eurozone's sovereign debt crisis in recent weeks after the Italian government's cost of borrowing hit record levels and Silvio Berlusconi resigned as prime minister, ending a 17-year political career marked by various scandals.
Berlusconi had been under pressure to make way after Italian ten-year bond yields passed the seven per cent level widely deemed unsustainable.
Italy's new technocrat prime minister Mario Monti is gearing up for a critical first full week in office as he is scheduled to meet with key European officials to map out a strategy to deal with the country's debt crisis.
"Italy is the third largest economy in Europe and the world's fifth largest; the country has the capacity to pass through these difficult times," said Starace.