Dubai: Poland views the UAE as being among its top 10 trade partners in the world. The UAE is currently its top business partner in the region stretching between India in the East and Morocco in the West, but this position will improve even further in the coming years, according to a Polish diplomat.
"The reason for such an optimistic forecast is the fact that with a little investment, trade between the two countries has risen from a mere $200 million (Dh734 million) in 2005 to nearly $1 billion this year," the diplomat said.
Roman Chalaczkiewicz, Ambassador of Poland in the UAE, who has overseen the steep growth in business activities in the past four years, said the future is quite bright for the development of business between Poland and the UAE.
"If officials in both countries invest in promoting business ties and encourage more business interaction between parties in the two states, the exchange of business will shoot up dramatically in the coming years," he said.
Chalaczkiewicz, who has been acting on behalf of his government to develop business links between Poland and the UAE since 2005, told Gulf News a number of obstacles have been hindering the growth of business relations between the UAE and Poland, such as business counterparts not knowing enough about each other.
He called on the UAE business community to play a positive role in exploring business opportunities in Poland and to organise exhibitions of industrial products in Poland.
GULF NEWS: Economic ties between the UAE and Poland date back to the early days of the nation's transformation towards democracy in 1989. Marking 20 years of direct business relations between the two countries, how do you assess the growth in bilateral ties in different fields being achieved in two decades?
AMBASSADOR ROMAN CHALACZKIEWICZ: Polish people discovered the UAE, and Dubai in particular, in the early stages of independence from the eastern bloc. LOT Airlines, the national carrier of Poland, earlier operated direct flights between Dubai and Warsaw. Now, the UAE is a famous business destination for many Polish people, but unfortunately, we don't see too many travellers between the two countries.
Is this because there are no more direct flights between the two countries?
Direct flights between the two cities were cancelled, later to be replaced with flights via other European cities. This made travelling more difficult. Both sides were a bit lazy in exploring the development of the tourism sector between the two destinations and as a result of this we lost out on the tourism front quite heavily, which has also affected other sectors.
What do you suggest to overcome the decline of tourism between Poland and the UAE?
I think the tourism authorities in both countries should try to rectify the imbalance. National carriers in the UAE should invest more to promote travel in both directions. I understand that LOT has serious shortages in its number of aircraft but either Emirates or Etihad Airways should grab the opportunity to open a way to one of the most vibrant countries in Eastern Europe. Other UAE national carriers, which operate low cost flights, could also take part in the operation.
Has the drop in tourism activities affected business between the two countries?
In a way, the answer to this question is yes, it must have had an impact on the growth of business activities, but trade figures have shot up in the past four years and the UAE has become Poland's top trade partner in the region stretching between India in the East and Morocco in the West. The UAE has imported nearly 300 items from Poland including food, building materials, machinery and most recently advanced public transportation vehicles. The volume of trade between the two countries has reached little under $1 billion in 2009. There is great potential for growth in both markets and business communities in both countries should exploit them.
What is, in your opinion, the role the two governments have to play to achieve growth in business?
The government of Poland has undertaken a number of actions to enhance trade activities in the past few years. There have been a number of visits by government officials from Poland to the UAE and a number of agreements were signed such as a double taxation treaty and free movement of capital in addition to protection of investments against nationalisation policies. Now, it is the turn of UAE officials to do their bit — and Sultan Bin Saeed Al Mansouri, Minister of Economy has just completed a visit to Poland. I'm quite optimistic the delegation accompanying the minister will have found a number of investment opportunities.
Like what?
Poland will offer a number of industries and businesses for privatisation. Investors from all over the world will be able to buy or take part in the privatisation process. Poland will give a licence for an additional telecommunications operator. The UAE, which has an advanced petrochemical and aluminium industry, can also buy or establish businesses in Poland that can be distributed in the Polish market and all over Europe.
Why should a UAE investor invest in Poland to penetrate the EU market, when they can invest directly in other EU countries?
Poland is friendly for foreign investment especially after the credit crunch that affected most European countries, because it is the only country in the EU that retained its economic growth even after the slowdown. The banking system in Poland is quite strong and was not affected by the credit crunch the way banks in other EU countries were. Poland's young population and competitive labour manpower — compared to other European countries, are two attractive characteristics for investors from all over the world. In addition, the privatisation plan of Poland in its third and last scheme, will offer a number of successful industries direct foreign investments.
What can Poland offer foreign investors?
Foreign investors enjoy the same rights as national investors. Taking into account the competitiveness of skilled manpower in Poland, power and the cost of establishing a business in the country, foreign investors are quite lucky and the return on foreign investments in Poland is among the best in the world.
Would you consider expanding Poland's presence in the UAE to handle expansion of business activities in the country?
The Polish government has already sanctioned the inauguration of the Polish Business Centre in Dubai. The centre will be opened this year with the aim of enhancing trade activities between the two countries. The UAE is quite an important partner for Poland. It acts as a platform for business with a number of African and Asian countries. Business infrastructure is quite advanced in the UAE, and I am quite optimistic that the importance of the UAE as a major trade partner will develop even further in the coming years. All I would like to say is that UAE businessmen must be more active and brave in exploring business opportunities in Poland in the coming years. They will be rewarded by the market in Poland.
