Dubai: Germany is capitalising on the development of its trade and business relations with the UAE, on the sixth anniversary of their first partnership agreement, and plans to develop them further despite the worldwide economic crisis.
Officials from the German trade mission which is visiting the region told Gulf News that the UAE has become Germany's most important partner in the Middle East.
In spite of the economic downturn that hit the Dubai construction sector in late 2008, signs of recovery prompted three German business delegations to take part in exhibitions and commercial events last month in Dubai.
One of these delegations, comprising representatives of 48 automobile spare parts manufacturers took part in the Automechanika exhibition last week.
Another big German delegation has also arrived to take part in the Beautyworld 2010 exhibition that takes off today.
Opportunities
Jorg Herrera, Acting German Consul General in Dubai, told Gulf News that scores of businessmen and representatives of top German companies are coming to Dubai to explore business opportunities.
He said the Strategic Partnership Agreement signed between the two countries in April 2004 has helped businesses in the two nations to build relations on solid ground.
The UAE is the largest buyer of German goods in the Arab world and Dubai is the Germany's seventh biggest export market outside Europe.
According to the latest figures, Germany exported goods worth 8.2 billion euros (Dh41 billion) in 2008, a 42 per cent growth over the 2007 figures.
Looking beyond Dubai as a trade show location, Herrera said bilateral relations in general have been very good in recent years.
"The partnership agreement has made the UAE the most important and most trustful partner in the region," he said.
German Chancellor Angela Merkel's visit to Abu Dhabi last week was crowned with the signing of eight bilateral agreements worth several billion dirhams.
Data
Herrera said the good economic relationship between Germany and the UAE is reflected in econ-omic data.
"German business and trade relations with Dubai and the UAE are strong despite the fact that Dubai has been hit hard by the worldwide economic recession," he said.
"In my opinion," he said, "Dubai faces a debt problem that has to be addressed openly, since it is essential for the emirate to regain the confidence of international credit markets.
"Reaching an agreement on Dubai World's debt restructuring proposal with its international lenders would be the key to future access to international credit markets."
Herrera said European newspapers have failed to give their readers the whole picture of the economic situation in the Emirates.
"There are positive signs of recovery and I agree with many international observers that Dubai will recover from the global economic slowdown," Herrera said.
Trade: Dubai's standing
Three things that will keep both Dubai and the UAE as major world economic players:
n The emirate has an extraordinary infrastructure in place. It is the main regional hub for transport logistics, finance and tourism among others. We are seeing a new Silk Route emerge through the Gulf region, with Dubai becoming a hub for transport of goods and passengers between Asia and America, Africa and Europe.
n Dubai has created a tight net of free zones where many world leading companies have installed their regional headquarters. Many global players as well as medium-size enterprises have set up offices in order to cover the region from North Africa all the way to India and beyond.
n Dubai is the region's number one trade show location. Germany considers Dubai as not only an important trade show host, but actually number two in the world behind Moscow and ahead of Shanghai.
