Teamwork fuels growth

The Swiss don't believe in resting on their laurels. The country has an enduring tradition of excellence and a dedication to quality.

It also embodies the concepts of freedom, equality and human dignity. So it's no surprise that the country ranks among the top 10 nations on the UN Human Development Index (2006). It was also voted as the most competitive economy in the world in The Global Competitiveness Report 2006-2007 - Switzerland went from No. 4 in 2005 to No. 1 within a year.

Limited natural resources have prompted Switzerland to look at trade outside its dominion to fuel its economy.

It has developed active and successful trade ties with countries worldwide - a significant development since more than half of Switzerland's GDP comes from foreign trade while more than a third of its domestic demand for products and services is met by imports.

The UAE is among the countries that enjoy strong bilateral ties with Switzerland since formal relations were initiated in 1976.

Aviation agreements

"We have had bilateral aviation agreements with the UAE since the late eighties. More recently, we have concluded an agreement on investment promotion and protection, and a memorandum of understanding (MoU) on cooperation in higher education and scientific research. These agreements have helped the growth in bilateral trade," says Peter Vogler, Ambassador of Switzerland to the UAE.

"Other factors for strong trade ties include the successful positioning of the UAE as an important and interesting market and even more as a regional business hub that has produced a tremendous growth of Swiss exports to the UAE."

Last year Swiss exports grew by an impressive 25 per cent over the previous year to 1.753 billion francs (about Dh5.34 billion). Imports remained at 634 million francs (Dh1.931 million).

Major export products were jewellery and watches, followed by engineering products, pharmaceuticals, food products and textiles.

While Swiss products such as watches, chocolates and cheese are popular, Vogler says that the main Swiss products are usually engineering and pharmaceutical products. "Food items are important as well.

Services, including financial services and tourism, are equally important export products. Unfortunately a dearth of reliable statistics hamper quantifying them," he says.

Quality is one of the major reasons for the popularity of Swiss products. Swiss goods and services are, in most cases, high-end products, says the ambassador. They share qualities such as precision, reliability and durability, and are produced using the most modern technologies.

These comparative advantages are vital in an economy that employs a highly educated and motivated work force, which logically comes at a relatively high cost. In short, the difference in quality usually characterises Swiss products.

Market potential

The demand for high-quality Swiss products has spurred interest in various sectors in Switzerland. "Producers of goods and services in Switzerland have also detected the market potential and many of them have successfully taken up the challenges of moving into this new territory," says Vogler.

The Swiss Business Hub also plays an important role in helping Swiss companies interested in trading with the UAE.

"The Business Hub, our regional trade office in Dubai, has proven to be dynamic. Its business has grown tremendously due to the dynamics of the UAE and regional markets," he says.

"Swiss companies, in most cases small and medium enterprises (SMEs), show an ever-growing interest in these markets. It is difficult to determine the reasons for growth.

The bilateral trade growth momentum has continued in the past two years. We therefore assume that the setting up of the business hub may have played a modest role in the positive development of bilateral trade relations."

The Swiss Business Councils in Dubai and Abu Dhabi have also played major roles in helping companies looking at business opportunities in the region.

Today, there are more than 100 Swiss companies representing a cross section of industries and services, including banking, pharmaceuticals and technology.

Vogler says that most of the significant Swiss health care institutions are also represented in the UAE.

"It is the quality of services, the excellence and education and motivation of our work force that make the difference. Add to that the input and influence of the pharmaceutical industry, one of the most advanced in the world, and you get an environment where the standards of health care are high," he says.

Education sector

The embassy is also actively promoting the Swiss education sector in the UAE.

"The embassy organises the Swiss Education Fair, a regional event, every year with growing success. The participation widens regularly in number and scope. We are particularly happy that Swiss tertiary education institutions have become regular participants. For most of the institutions, private schools, hotel management schools and universities, the Gulf is an important growing market," says Vogler.

This trend is also reflected in the participation in the Global Education and Training Exhibition (Getex), where Switzerland has had a national pavilion for the past two years.
Switzerland is also popular as a tourist destination in the UAE.

"Switzerland is well known in the UAE and we have noticed that tourism from Switzerland to the Emirates is also growing fast," says Vogler.

Cultural exchanges

Mutual knowledge and respect are important factors for privileged relations between both countries, says the ambassador.

This also reflects in the cultural exchanges between Switzerland and the UAE. "The last season opening exhibition of the Abu Dhabi Cultural Foundation, featuring art in building, was a co-production with a gallery in Fribourg, Switzerland.

At the same time, the Swiss-based painter Lukaschewski also exhibited at the cultural foundation. In Dubai, several concerts have also been organised with prominent Swiss participation," says Vogler.

The embassy is also involved in screening Swiss movies at the European Art Movies event held in Abu Dhabi and Al Ain. It has been instrumental in setting up and co-organising the series.