Abu Dhabi: French-UAE trade and economic exchanges are expected to grow five per cent this year, according to Alain Azouaou, French Ambassador to the UAE.

"In 2010, the value of France's exports to the UAE was €3.5 billion (Dh12.85 billion), and this year we expect a 5 per cent increase in comparison with 2010. It is worth underlining that the UAE is France's fourth trade partner in the world and the first in the Middle East region," he told Gulf News in an interview.

Dynamism and diversity are the two key words which describe the economic relations between the UAE and France, he said. The UAE is a key commercial partner, and trade between the two countries is growing on annual basis. France is the 8th largest supplier of the UAE with different commodities.

The UAE is the genuine gateway to GCC market and to Mena as a whole for our products and services, he said.

"Since the UAE is a strategic partner and a strategic market for us, there are 400 French companies represented here, 60 per cent of them being in Dubai. The number of French companies is growing by 10 per cent every year," he said.

"The UAE is an essential outlet for our luxury goods. Every year we export luxury goods worth €400 million to the UAE," he said.

French companies are well represented in public utility sectors such as waste management and wastewater treatment.

France's direct investments in the UAE account for almost 20 per cent of overall France's investments in the GCC countries. Although France mainly invests in oil, gas and financial sectors, it also has investments in hi-tech and service sectors to help the UAE government diversify its economy and rely on non-oil industries.

Aeronautical sector

With regard to education and culture, France wants to enhance ties with the UAE. The opening of the Paris-Sorbonne University of Abu Dhabi proves that the two countries could have fruitful partnerships in such areas, he said.

"Our exports cover a wide range of products from heavy equipment to consumer items. Our sales in the aeronautical sector are quite substantial due to big orders made by UAE airlines such as Emirates, Etihad, and Air Arabia. A significant part of our trade is linked to major contracts won by our companies in the utilities, oil, gas, and service sectors," he said.

"In order to boost our commercial presence in the UAE, the Dubai-based UBIFRANCE office supports French SMEs that are looking for importers and distributors in the UAE. UBIFRANCE also organises French firms' participation in every major trade fair in Dubai. Besides, the ‘Invest in France Agency' has set up a permanent delegation in the UAE to promote and facilitate Emirati investments in France," the envoy said.

The French Business Group of Abu Dhabi and the French Business Council of Dubai are aiming to cement ties with the UAE's business community.