Dubai Latvia is looking to establish closer ties with the UAE both in terms of political dialogue and economic relations, its Prime Minister Valdis Dombrovskis told the Dubai Chamber of Commerce and Industry Monday.
Leading a business delegation that includes 40 entrepreneurs on a Gulf tour, Dombrovskis is pursuing closer cooperation with the UAE in sectors such as transport and logistics, education, construction, energy, real estate, metal works, and medicine among others.
He addressed a UAE-Latvia Business Forum organised by the Dubai Chamber of Commerce and Industry in coordination with the Investment Development Agency of Latvia at the Chamber's headquarters.
"The large distance between Latvia and the UAE is obviously still a drawback for much closer economic ties, but I am certain that cooperation between our two countries has much unfulfilled potential," Dombrovskis said.
Main exports
Latvia's main exports to the UAE are machinery and electronics, which represent 66 per cent of turnover.
Food products account for 14 per cent, vehicles 6 per cent, woodwork 5 per cent, while chemical products and pharmaceuticals account for 2 per cent. In 2010, the trade between Latvia and UAE was $30 million (Dh110.16 million), an increase of 80 per cent over 2009.
"I will consider this visit a success if trade turnover between our two countries continues to grow at such a rapid pace," he added.
"We are very interested in attracting investment in different areas of industrial production. As forests cover about 45 per cent of Latvia's territory, we are very rich in timber and wood resources. As an environment-friendly and renewable resource, it is attracting more and more demand."
Dombrovskis also called for mutually beneficial investments. Although current investments between Latvia and UAE are fairly insignificant, they are gradually growing. UAE direct investments in Latvia were below €200,000 and there was much "potential for growth", he said.
Abdul Rahman Saif Al Ghurair, chairman of the Dubai Chamber, urged the Latvian delegation to take advantage of Dubai's investment opportunities and re-export facilities, including world-class logistics and financial services, as well as unconditional government support.
Strategic strengths
"Dubai offers an East meets West location and easy access to regional markets of 2.2 billion consumers while Latvia, with its strategic location has established itself as an important crossroad for international trade and commerce; hence, we see a huge potential for businesses from both sides to work together and turn this opportunity to do better business in the future," Al Ghurair said.
Latvia is located on the coast of the Baltic Sea and boasts three large sea ports — Riga, Ventspils and Liepaja, as well as several smaller ports.
"DP World is one of the world's leading container terminal operators; therefore we are interested in seeking out cooperation opportunities that are mutually beneficial," Dombrovskis said. "I believe that Latvia's geographic advantages as a bridge between EU and Russian markets as well as strong positions of our ports in the region provide interesting business and cooperation opportunities for DP World."
Currently Latvia's economy is stable, Dombrovskis said. "This year we are expecting at least 2.5 per cent growth, which may seem a modest figure, but it is one of the best in the EU. We are interested in attracting reliable long-term investors in strategic sectors like energy and telecommunication. Besides, we are looking for investments in industrial production areas, there are opportunities for investments in agricultural sector and other areas as well."
