Abu Dhabi: Trade between Venezuela and the UAE has increased, despite the global recession, the Venezuelan Ambassador to the UAE told Gulf News.
Exports from Venezuela to the UAE increased by 13.30 per cent in 2009 compared to a year earlier, Lenin Bandres Herrera said in an interview.
Figures for 2010 have not been compiled yet, he added.
"Although the economic meltdown had a minor effect last year, we did not find any major impact," Herrera said.
Ever since the UAE and Venezuela opened trade links in 2000, exports from Venezuela to the UAE increased by 60.52 per cent until 2009, the ambassador said.
The balance of trade during 2000-2009 was $39 million (Dh143.13 million) and the balance of trade in 2009 was $6 million (Dh22.02 million), he said.
The recent conclusion of an agreement to avoid double taxation was a major step to enhancing economic cooperation, Herrera said.
The relations between both countries have improved since the recent visit of Shaikh Abdullah Bin Zayed Al Nahyan, the UAE foreign minister, to Venezuela .
The UAE is expected to open an embassy in Caracas soon, the ambassador said.
He said the growing relationship between Latin American nations and Arab nations, especially GCC countries, also gave a fillip to UAE-Venezuela relations.
The Summit of South American-Arab Countries (ASPA), a mechanism for bi-regional cooperation comprising 22 Arab and 12 South American nations made a major positive impact in this regard, he said.
During a recent ASPA summit, Mercosul (a regional block of South American nations) and the Gulf Cooperation Council (GCC) signed a Frame Agreement on Economic Cooperation, whose clauses allow for the possibility of both parties signing a Free Trade Agreement (FTA).
Herrera said the negotiations are progressing on an FTA between Mecosul and the GCC.
Cooperation sought in field of renewable energy
The ambassador said Venezuela is looking for further cooperation with the UAE in the oil and gas industry, aviation, services, finance and investments and renewable energy.
Both countries have been cooperating with each other as members of Opec (Organisation of Petroleum Exporting Countries). The public sector oil companies in both countries are planning to enhance cooperation in the exploration of new oil fields.
Both companies may explore the possibilities of joint investment in oil and gas projects in third countries.
Both countries may reach an agreement to enhance the cooperation in aviation which may result in more flight connectivity between the two countries.
Dubai's DP World has already invested a huge amount of money to operate a port in Venezuela. Since the UAE is importing metals from Venezuela, both countries can cooperate in this sector. Venezuela plans to process the metals and minerals, and the UAE can invest in that industry. "We are looking for innovations in that sector," the ambassador said.
Electricity
Venezuela is planning to exploit renewable energy sources such as wind and solar energy for its remote communities in the Amazon forests and islands, he said.
Out of 28 million population, around two per cent are living in the Amazon forests and 10,000 to 20,000 people are living on islands.
At the moment around 63 per cent of the electricity is generated by hydro power projects and about 35 per cent is from thermal power.
"Only the rest of a few per cent of electricity is generated from renewable sources, which we would like to improve," the ambassador said.
He said Venezuela will seek the UAE's support in that sector. "We will request a proposal from the UAE in this regard," he said.
