Pursuing common goals

From culture, education and trade to investment and political dialogue, Canada and the UAE have a flourishing relationship in many areas.

There are a number of similarities between Canada and the UAE: both are relatively young countries with large areas of fairly uninhabitable terrain; natural resources are important for both the economies; both countries boast open markets and are trade-dependent as well as have a large immigrant population demographic.

"Canada and the UAE have seasons that are notable for their extreme weather, although at opposite ends of the thermometer. I am enjoying this opportunity to learn about the Arab culture and traditions, and the cosmopolitan, multicultural aspects of the UAE society that are similar to Canada's globalised culture," says Sara Hradecky, Canada's ambassador to the UAE.

Hradecky's tenure in the UAE began last year, a stint she describes as a positive one. "Canada and the UAE have a flourishing relationship in many domains, from culture and education to trade, investment, political consultations and dialogue, and I have found that Canadians have been welcomed in this country in many areas of the economy and society. I admire the strides that the UAE is making with its excellent and committed leadership towards building a positive and dynamic federation and thriving economy," she says.

The UAE is Canada's largest merchandise export market in the Middle East and North Africa region. Canadian hard goods sales approached C$800 million (about Dh2.819 billion) in 2006 for the first time, 30 per cent higher than the previous year. "Our service exports, while harder to track, add another significant component to our export package. Key areas for service exports include architecture, engineering, project management, education and health. Canada and the UAE have a large and diversified trade relationship that continues to grow and prosper," says Hradecky.

Canada's exports to the UAE include specialised machinery and equipment such as aircraft and aircraft simulators, telecommunications equipment and medical instruments, agri-food products, precious stones, metals and minerals. "A highlight in the aerospace sector is the very successful joint venture between Emirates Airline and CAE, the Montreal-based world leader in commercial aircraft simulators," says Hradecky.

Trade agreements

A number of trade-related agreements exist between Canada and the UAE including a double taxation agreement (signed in 2004) and a bilateral air services agreement (signed in 1999). "Under the air services agreement, Etihad Airways is now flying non-stop to Toronto from Abu Dhabi, and Emirates airline's non-stop service from Dubai to Toronto will begin in October this year. These flights add to the opportunities to develop business, expand educational linkages and visit each other's countries as investors and tourists," says Hradecky.

Commerce between Canada and the UAE continues to flourish. In 2006, it grew to more than C$1 billion (about Dh3.5 billion), and 2007 promises to improve. "The UAE's exports to Canada approached C$100 million (about Dh351 million) in 2006, a 40 per cent increase over the previous year. Oil accounts for a significant share, followed by chemicals, iron and steel products, minerals and precious stones, and textiles. Another growing dimension to our economic relationship is the UAE investor interest in Canada. Our stable and transparent business environment, huge natural resource base and access to the 400-million North American market through North American Free Trade Agreement make Canada an increasingly appealing investment destination. Over the past year UAE enterprises have made significant commitments to our energy, maritime transportation and information technology sectors," says Hradecky.

The UAE has a liberal and open economy and its customers purchase from around the globe from the most competitive, best-quality manufacturers and service providers. Canada's large-scale infrastructure development in a challenging physical environment during the '60s and '70s created an expertise and experience sought by many countries such as the UAE, where customers and partners in aerospace, architecture and design, consulting engineering, environment, education and health have looked to a Canadian approach or solution.

"Our countries are like-minded on many issues, both seeking to build peaceful, secure and prosperous societies. We strive to bring humanitarian assistance and economic prosperity through business, development projects, or by participating in multilateral political forums such as the United Nations and its specialised agencies," she says.

In consulting and professional services, Canadian firms are active in many of the major infrastructure projects under way in the UAE, including transportation, aluminium, commercial and residential property development, and health and educational facilities development and management.

Food and agriculture

"The agri-food sector is a rising star in our trade relationship. In 2006, our agriculture, food and beverage exports to this market exceeded C$200 million (about Dh700.17 million). The collection of Canadian products available here extends across a very broad spectrum, ranging from canola oil to fresh lobster served in many of the UAE's fine-dining establishments. Baskin-Robbins ice cream, McCain and Cavendish Farms' products are from Atlantic Canada, and much of the peas, beans and lentils found on retail grocery shelves are from Canada's West. Franchises such as Second Cup, Cafe Supreme, Cafe Ceramique, Java U or Blenz are also Canadian," says Hradecky.

Canadian merchandise giants such as Aldo and Bata, La Senza and La Vie en Rose, Mac Cosmetics, and Fruits and Passions figure prominently on the UAE retail scene.

Earlier this year, Canada's innovative show by Cirque du Soleil played to an enthusiastic audience in Dubai. Recently an announcement was made for the establishment of a permanent Cirque du Soleil show in Dubai.

"Cirque du Soleil currently has permanent shows only in the major entertainment cities of Las Vegas and Orlando — and it's an honour and cultural highlight for Canada that they feel Dubai has the potential to run the show on a permanent basis," she says.

There are two active Canadian business organisations in the UAE.

"Between the Canadian Business Council of Dubai and the Northern Emirates (www.cbcdubai.com) and the Canadian Business Council of Abu Dhabi (www.cbc abudhabi.com), there are more than 500 members representing almost every commercial, industrial and professional area, with concentrations in engineering and project management, oil and gas, telecommunications and information technology, retail franchising, and environmental equipment and services . In Canada, the Canada-Arab Business Council (www.canadaarabbusiness.org) is an active player and partner in developing closer business ties," says Hradecky.

Currently, there are 115 Canadian companies with an on-the-ground presence in the UAE, a 20 per cent increase over the previous year.

Over the past few years, the relationship between Canada and the UAE has been strengthened. "The governor general — head of the state, president of the senate, minister of international trade, secretary of state for international trade, delegations from the Canadian Senate Committee for National Defence and Security and the House of Commons Standing Committee on International Trade, and provincial trade and education ministers have all visited the UAE in the recent past. In addition, we are working with our Emirati colleagues to prepare a significant UAE ministerial-led business delegation to Canada, which might take place later this year. These visits play an important role in stimulating greater knowledge of each other and closer cooperation across all aspects of our relationship," says Hradecky.