Building a strong foundation

Dutch know-how in land development cements the bond between the two countries.

It's hard to miss the Dutch influence in the UAE, especially when iconic real estate developments such as the World and the Palm Islands stand testament to their expertise and skill. Dutch know-how in areas such as dredging and land reclamation has been a key element in strengthening trade ties between the Netherlands and the UAE.

Gilles Beschoor Plug, Dutch Ambassador to the UAE, says the first visit by a Dutch Prime Minister (Jan Peter Balkenende) in 2005 was significant due to his presence in Dubai at the signing of a huge project involving Van Oord, a globally known Dutch dredging and marine contracting company.

"Before that event, a majority of UAE nationals had no idea that Van Oord, which has put its signature on projects including the Palm Islands and the World, was Dutch. This also triggered a demand for our expertise in the UAE as more Dutch companies got orders for architectural projects in addition to projects in the design industry, an area that had not previously seen the involvement of Dutch companies here," says Plug.

Charles Ooms, Head of the Dutch Embassy's Economic section, says the UAE has approximately 500 Dutch companies. They include recognised names such as Van Oord, Philips, Royal Haskoning, Unilever, Boskalis, Interbeton and KPMG.

"More than 200 companies have set up operations in the UAE since 2006. While these companies are mainly based in Dubai there's also been a gradual increase in the number of Dutch companies in other emirates. We have around 5,000 Dutch nationals in the UAE," says Ooms.

Dutch know-how, says Plug, is being increasingly imported by the UAE not only as a commodity but also as human capital. Two-way trade has also picked up in the last few years. Based on figures from the Economic Section, Embassy of the Kingdom of the Netherlands, Abu Dhabi, exports to the UAE were valued at about 1.9 billion euros in 2007. Exports showed a growth of 4.6 per cent over the previous year's figure, 1.8 billion euros. The UAE has also seen its exports to the Netherlands, which include half fabricates and chemical products, rise. The exports were valued at approximately 864 million euros in 2007. The figure for 2006 was 579 million euros.

Ooms says the importance of the partnership is evident, as a number of UAE entities have invested in the Netherlands not just to carry out their activities there but also as their European headquarters. As of January 2008, in an effort to further this growing relationship, the Netherlands Foreign Investment Agency has set up an office in Dubai to assist UAE companies and sovereign wealth funds to invest in the Netherlands.

Prime Minister Balkenende's second visit to the UAE in September last year was an important chapter in the relationship between the two nations. His meetings with General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Shaikha Lubna Al Qasimi, UAE Minister of Foreign Trade, were aimed at increasing co-operation on the economic and political fronts.

A visit by Frank Heemskerk, Dutch Minister for Foreign Trade to the UAE in January was also an important step. Ooms says the minister's meetings with high-level business and government partners from the UAE cemented bilateral ties. Other examples of the growing co-operation include Ducth support of the Masdar initiative and its participation with a ministerial delegation at the first World Future Energy Summit in Abu Dhabi in January. "In 2009, the Netherlands will also be present at Adnec. Our companies are eager to share their knowledge with UAE entities on green buildings and ways to reduce CO2 emissions," says Plug.

"In recent years, sectors such as the food industry, financial services, architecture and design, and transport and logistics have become more important. The Netherlands would also like to share with the UAE its experience in transport and logistics and its best practices in business," he says.

As part of its efforts to help provide a forum for Dutch companies looking to offer their skills to counterparts in the UAE, the Ministry of Economic Affairs and the Agency for International Business Cooperation also support innovative solutions. For that purpose, says Ooms, schemes are in place to contribute to the participation of Dutch small and medium enterprises in trade fairs, exhibitions and other major events.

These efforts and the support of agencies such as the Netherlands Business Council, Dutch consulate and the Netherlands embassy have also helped Dutch companies achieve important milestones in the region. In fact, Ambassador Plug says the successful introduction of a small company with a potential partner is a highlight for them.

"On another scale, it could also be high-level delegations coming here or visiting the Netherlands. Both are a confirmation of the vitality of our relations. In general, I would say any contact the embassy is able to facilitate — be it on trade issues, tourism, cultural or political affairs — signifies our success."