Dubai: British companies in the UAE are optimistic that commercial ties between the country and the UK can only become stronger following a two-day state visit by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.
The commercial relationship between the UAE and the UK has gone from strength to strength over several decades. In 2009, the two nations set a target to increase mutual trade to £12 billion by 2015.
Today, bilateral trade stands at around Dh61.50 billion.
The state visit should help create a warmer business climate betweeen the two countries which in turn could spur on more investments.
The enduring business ties boosted by the state visit can “create opportunities for investments” and “lead to more business opportunities” in both countries, according to Niall O’Toole, managing partner at Clyde and Co in Abu Dhabi, an international commercial law firm based in London, UK.
Gary Arnold, director of the London Business Group in Dubai said, “The state visit highlights that Dubai is back in business… it’s spending into the UK economy.”
Companies in the UAE have made major investments in the UK, contributing more than £5 billion to the country.
These investments include Dubai Ports International, which is constructing and managing the London Gateway in Essex, among Europe’s largest ports, with 35,000 jobs; Dubai Ports International Containers Station in Southampton, which is a joint venture between Dubai Ports International and Associated British Ports; and Abu Dhabi National Energy Company, which has large holdings in the North Sea.
Recently, Abu Dhabi-based Masdar and the UK Green Investment Bank (GIB) signed a Memorandum of Understanding to explore investment opportunities in the UK’s green energy projects. British media reported that the investment is worth up to £1 billion.
Meanwhile, there are more than 5,000 British companies in the UAE operating in different sectors.
“The state visit will help small businesses in the UK expand to Middle East markets,” Arnold said.
Tourism, meanwhile, is an important aspect of the two nations’ commercial ties. There are 170 weekly flights between the two countries. Some million British tourists visit the UAE yearly, while over 30,000 Emiratis visit the UK yearly.
In addition, the UAE is the UK’s largest import market in the Middle East and North Africa (Mena) region.
