Dubai traders face challenges in emerging markets

Dubai: Traders are facing financial and logistic obstacles in some emerging markets despite attempts to promote cooperation, officials at a round table said.

The issues were raised at a meeting of leading traders at the Dubai Chamber of Commerce and Industry to examine new opportunities in key emerging markets such as Africa and Eastern Europe.

During the meeting, some claimed the main barrier they faced involved transfers of funds and sending and receiving payments from Africa.

They said difficulties with foreign banking systems made the process long and difficult and required excessive paperwork. Many said because of this they sought payment in cash, but limits to the amount they were able to bring into the country caused other issues.

Looking at other markets, traders said problems with shipping goods to some parts of North Africa due to the current political situation were also hampering trade. They said getting clearance to export goods was often difficult and took time, which considerably slowed the process.

Meanwhile, they urged the establishment of a one-stop-shop for UAE imports and exports in which they could arrange everything in one go and in the same place.

Hesham Al Shirawi, second vice-chairman of the Dubai Chamber, said: "Africa offers major opportunities for Dubai businesses as a gateway into and out of the region and while many traders in the emirate already trade with Africa we would like to see this number increase.

"Tackling any issues they face today will put us in a solid position going forward now and in the future," he added.

Rich resources

Irfan Al Hassani, a UAE-based economic expert, stressed the importance of improving trade links with key emerging markets. "Africa and Eastern Europe are fast becoming emerging markets that provide diverse products and resources," he said.

Al Hassani said Africa has good potential for UAE companies, with more than 725 million consumers. "The rich resources and high population of the continent create a potential market for UAE exporters and importers," he said.

Al Hassani also said the UAE business community, especially small and medium-sized enterprises (SMEs) in Dubai, could help extend cooperation between the UAE and these markets beyond trade to other vital areas such as industry, training, knowledge and education and innovation.

He said healthy import growth highlighted the importance of these markets as key suppliers of various commodities.

But he reiterated the government would like to see more investments from these markets in the UAE.