Several factors have helped strengthen diplomatic and trade bonds between the UAE and Switzerland. The Emirati-Swiss Friendship Forum was set up in 2010, and the UAE embassy opened in Bern the following year. The double tax treaty was also signed in 2011, and 40 years of diplomatic relations between the UAE and Switzerland were celebrated in the Swiss capital last year.
The event was attended by high-level delegates from the two countries, including Shaikh Abdullah Bin Zayed Al Nahyan, UAE Minister of Foreign Affairs, and Didier Burkhalter, his Swiss counterpart. Emirates SkyCargo, the freight division of Emirates Airline, further strengthened trade lanes with the introduction of a weekly freighter service from Basel to Dubai.
Common goals
One of the most obvious similarities between the UAE and Switzerland are the numerous tourist attractions: one a glistening desert oasis and the other an alpine haven. Realising the enormous potential that exists, both governments are focused on improving the existing facilities to provide a quality environment in the areas of tourism, culture, sport and arts. Apart from this, key partnerships have also been signed in the areas of clean technology, environment, insulation expertise, water supply and health care.
United in their need to face the challenge of promoting renewable energy and a green economy, the two countries are proactively securing global energy supplies and engaging actively in finding solutions and suitable alternatives in this field.
Since the formation of the UAE, Switzerland has enjoyed fruitful relations across all sectors — political, trade and culture. Today the UAE is one of Switzerland’s most important economic partners in the Middle East. Dubai, in particular, links Asia, Africa and Europe, attracting the regional headquarters of many Swiss companies.
Over the past few years trade between the countries has continued to increase in a stable manner. “Swiss companies have identified the UAE as a preferred destination for export. Strong trade figures with 2013 showing 3.3 billion Swiss francs (Dh12.7 billion) in Swiss export and 600 million francs in import and the increasing number of Swiss companies present in the UAE affirms this,” says Raymund Furrer, Consul General of Switzerland in Dubai and Director, Swiss Business Hub — GCC. “Factors such as geographical location, excellent connectivity, availability of first-class services and a business-friendly environment are well recognised.”
The focus has been on luxury goods, precious raw materials and the watch industry. Precious metals and stones, jewellery and watches together constituted over 65 per cent of exports to the UAE in the course of 2013 and accounted for over Dh9.5 billion in bilateral trade, an increase of more than 21 per cent from the previous year. In the other direction, precious stones, metals and the jewellery sector make up 82 per cent of the UAE exports to Switzerland, according to a statement from the Swiss Embassy in Abu Dhabi. UAE exports to Switzerland amount to just under Dh2 billion.
Switzerland is the UAE’s 13th largest importer. Between January and August this year, the total value of traded goods between these two countries was already Dh9.7 billion. In 2013, Switzerland was the 13th largest exporter to the UAE. The UAE is the 14th largest exporter from Switzerland by value of merchandise, states embassy figures.
Exports of agricultural products are up by 16.6 per cent in 2014, versus the same period last year, while pharmaceutical exports show a hike of 10.3 per cent. Precious stones, metals and jewellery imports this year accounted for 80.8 per cent of the value of Swiss imports to the UAE, up by 15.1 per cent. Imports of watches and timepieces in the first eight months of the year show a 70.4 per cent increase.
Trade relations between the two countries are further strengthened by the services of Swiss companies in the UAE offering their expertise in areas such as banking, insurance and consultancy.
Regional hub
Urs Stirnimann, Managing Partner, Swiss ILC Management Services JLT, says, “The UAE has become a hub for many key Swiss industries and service providers. Since the 1970s Swiss companies have been setting up regional offices in the UAE from where they serve other areas, including India, Pakistan and parts of Africa. In the last century, Swiss companies had to pay their European employees a hardship bonus to attract them to work here. This has completely changed and everybody tries to find work in Dubai or Abu Dhabi,” he adds.
Some key factors for this shift in mindset, says Stirnimann, is the UAE’s excellent infrastructure, tax-free environment and global hub location. Peter Harradine, Co-founder and President of Swiss Business Council, says, “The exceptional infrastructure, access to modern technology, the lack of complicated procedures to register a company, the possible access to more than 1.5 billion consumers and the fact that there are no direct taxes make it very attractive for Swiss companies to establish themselves in the UAE.”
This positive environment has resulted in a strong Swiss expat community. “The UAE displays great tolerance and welcomes all nationalities making it easy to adapt and call this home,” says Stirnimann.
