A new level of cooperation

the current relationship between the UAE and the Netherlands, in all simplicity, can be compared to a relationship between friends. “It’s alive and well, but like all friendships it needs some working on from both sides,” says Gerard Michels, the Ambassador of the Netherlands to the UAE. A sound foundation was established in the late 1970s, with business picking up as the fledgling economy of the UAE grew.

From there, it branched out into governmental cooperation and private contacts between the two nations, some quite unexpected, such as Arabian horse racing. “I feel a diverse relationship based on economics is a healthy one and befits the stature of both our countries,” adds Michels.

Michels believes that economics is indeed a key driver to a successful and lengthy relationship. The Netherlands can be referred to as a ‘trading nation’ with international business representing some 70 per cent of GDP. Working internationally contributes significantly to the country’s position as the sixth-largest European economy and the 16th-largest economy globally.

Rotterdam, the second-largest city in the Netherlands, remains the main gateway to Europe while its port is Europe’s largest, making it an obvious destination for UAE exports, with DP World building a new container terminal at the port as well. Business, trade and international transport, and tourism are other key thrust areas.

Dutch exports to the GCC represented $6.4 billion (about Dh23.5 billion) in 2010, with the UAE accounting for $3.3 billion for the same year. On the other hand, Dutch imports from the UAE stood at $1 billion in 2010.

“The UAE is the second-largest economy in the GCC, something that is clearly represented in trade data between the UAE and the Netherlands. We can definitely say that the trade relation between the UAE and the Netherlands is stable,” says Michels.

One of the major components of trade partnership between the two nations is land reclamation. Dutch expertise in dredging and land reclamation has been significant to projects such as The Palm in Dubai and Khalifa Port in Abu Dhabi.

Besides construction and land reclamation partnerships, agricultural and horticultural trade, poultry and hydroponics (growing plants in using mineral nutrient solutions in water) also play an important role in solidifying the trade relationship between the countries. The UAE is a major food importeR and the Netherlands is the world’s second-largest agricultural exporter.

Significant sector
Oil and gas equipment and niche expertise and technology are the other main components. This sector makes up a significant share of trade between the two countries. The Netherlands is a major gas producer and is now one of the largest gas-transporting countries in Europe through pipelines and LNG shipments.

In addition, the Port of Rotterdam plays a major role with respect to oil as more than 100 million tonnes of oil pass through Rotterdam en route to refineries in the Netherlands and elsewhere in North-West Europe. It might be interesting to know that one-third of the entire crude oil transhipment in Europe takes place in Rotterdam.

Breaking away from traditional business partnerships, the Commander of the Dutch Air Force will be participating in the Dubai Air Show and the ‘Commanders Conference’, a key event at the show. “The Dubai Air Show has grown into a must-go event in the Gulf for anybody working in the aviation field. So, I am happy but not necessarily surprised at this top-level participation from the Netherlands military,” says Michels.

About 4,000 Dutch nationals currently reside in the UAE, with diverse backgrounds in various industries such as dredging companies, law firms, hotels and banks. “The Dutch entrepreneurial spirit matches well with the opportunities and challenges of rapid economic development in the UAE. Dutch entrepreneurs are also well versed in sustainability issues and corporate social responsibility,” says Michels.

The Dutch are known for their productivity and some of the largest Dutch multinationals, such as Unilever, Philips, Royal Dutch Shell to name but a few, are all established in the UAE.

Strengthening ties
On the tourism front, in 2010, the Netherlands received more than 5,700 visa applications from residents and tourists from the UAE looking to holiday in the country.

Michels says, “Our capital, Amsterdam, is of course well known to many, but the Netherlands is more than [just the] capital. Culture and nature are offered in many other ways in the Netherlands.” More than 60,000 Dutch tourists visited the UAE in 2010.

“We are currently working on a Bilateral Customs Agreement, which will be concluded hopefully in the forthcoming year,” says Michels. In addition, an agreement to avoid double taxation was signed between the two nations, entering into force on January 1, 2011. “These efforts are intended to solidify further our strong trade links with the UAE and to boost our excellent bilateral relations further,” he says.

ON THE LIGHTER SIDE
Gerard Michels arrived in the UAE from Tokyo a year ago and immediately related to its cultural roots. “A major part of any diplomat’s work is to understand and adapt to new cultures. The UAE is an amazing country; you feel a strong sense of national identity rooted in its ancient culture and traditions. It is absolutely fascinating,” he says.

Despite his hectic schedule, the Ambassador is at heart a family man. “My eldest son works in The Hague, while the younger one is studying in Amsterdam to become a teacher; our daughter studies law at King’s College in London. Fortunately, they all come to see us regularly, happily leaving the rain and cold of Northern Europe for a stretch in the UAE sunshine.

“In the end, we’re not as different from one another as we often think we are and perhaps that is also what makes the UAE such a special place to live and work,” he says.