When the Chairman and CEO of the Emirates Group, Shaikh Ahmad Bin Saeed Al Maktoum, and Qatar Airways Chief Executive Akbar Al Baker stood shoulder to shoulder at the Boeing press conference at this year’s Dubai Airshow in November, a historic business power play was witnessed in the Gulf.
The two neighbouring desert nations cast off any long-standing rivalry to broker a record-breaking deal that saw the carriers become the joint launch customers of the next generation Boeing 777X with orders of 150 and 50 aircraft respectively for a sum of almost $100 billion (Dh367 billion).
In a first-ever for the industry, the two carriers directly collaborated on the deal to benefit from economies of scale in a pact that has hugely benefited both of their fleet and expansion plans. Working together on the bank-busting order ensures substantial discounts from list prices without compromising the carrier’s profit margins.
Continued collaboration
Back on the ground relations between the two Gulf states are also ticking along nicely. Shaikh Abdullah Bin Zayed Al Nahyan, UAE’s Minister of Foreign Affairs, welcomed the Emir of Qatar to the UAE in October. Shaikh Abdullah said Shaikh Tamim Bin Hamad Al Thani’s visit was symbolic of Qatar’s eagerness to build on the strong fraternal relations.
According to Emirates News Agency WAM, the Foreign Minister told Qatari newspaper Al Sharq that bilateral relations have undergone positive developments and steady growth at all levels, both in terms of consolidating the bonds of fraternal relations or at the level of support for the march of the Cooperation Council for the Arab States of the Gulf, as well as enhancing cooperation, coordination and integration between them within the framework of the GCC joint action.
Abdullah Bin Mohammad Al Othman, Qatar’s Ambassador to the UAE, who helped enhance relations between the two nations during his time in the position has stepped down with a new Qatari ambassador to the UAE to be announced shortly.
Mutual interests
The UAE is ranked fourth among the countries Qatar imports products and raw materials from, as the percentage of imports hits 9 per cent, according to data from the UAE embassy in Qatar.
In March this year, a delegation from Abu Dhabi Chamber of Commerce and Industry visited Qatar and signed contracts worth approximately 30 million Qatari riyals (around Dh30 million) in three days, indicating that traders from both countries rely on each other. Bilateral trade is touching approximately 7.5 billion riyal per year, according to current figures.
Among the ongoing high-profile cross-border projects, the UAE’s helping hand is visible in the future of Qatar’s landscape. For instance, Abu Dhabi-based Al Jaber Group holds a contract for more than Dh1.5 billion to develop transport infrastructure key to the Lusail project, home to a major Fifa World Cup 2022 venue. There are approximately 384 UAE-based small to medium enterprises present in Qatar contributing to the country’s business development.
