Sharing common concerns

With the opening of the UAE embassy in Sweden recently, relations between both countries are heading in the right direction.

Although relations at the embassy level began only about four years ago, Sweden and the UAE have been sharing exemplary ties for decades, says Bruno S. Beijer, Sweden's ambassador to the UAE.

The Swedish embassy, which covers Bahrain and Qatar besides the UAE, works effectively with the Swedish Trade Council based in Dubai to boost trade activities and promote of Swedish industry and Swedish technology in the region.

"Sweden prides itself in being a country involved in a tradition of innovation. We are leaders in technologies that have impacted the 21st century greatly such as wireless communication and biotechnology. We are very pleased to inform that several major Swedish companies operating in the UAE are extremely successful," says Beijer.

Commercial presence

More than 120 Swedish companies operating in the UAE have created a niche in the local market. The Swedish community in the UAE, comprising more than 2,000, is the largest in the Middle East.

Recent developments, including Ikea's opening of the largest showroom in Dubai as well as Volvo inaugurating its largest regional office in the same emirate, in addition to Ericsson sealing a new Dh200 million contract with Etisalat, have boosted Sweden's commercial presence in the country.

Despite the growing Swedish activities in the country, the Swedish ambassador points out that brands such as Ericsson, Ikea, Saab, Scania and Volvo are not necessarily identified with Sweden. "We would like to see that changed," he adds.

"Apart from our commercial activities here, we hope to introduce several Swedish companies and research institutes to share our expertise in technologies with the Emirati students. With close links between industry and the academic world, Sweden is very strong on research and development. Presently, we are looking at cooperation in areas including health technologies and environment besides IT and other fields," says the Swedish envoy.

As the third largest destination for trade in the Middle East, the UAE is an important trading partner for Sweden. The ambassador, referring to a recent survey of Swedish CEOs in the UAE that indicated positive potential for continued business growth in the coming years, says that the UAE's positioning as the business hub in the region plays an important role in the growing bilateral relations between the two countries.

While Sweden's exports to the UAE have maintained steady growth over the years, the country's imports from the UAE in 2005 showed a dramatic increase. The Swedish ambassador, attributing the steep increase in figures to trans?shipment activities passing through Sweden, says that such developments are encouraging.

Sweden's exports in 2005 stood at $423.4 million (about Dh1,555 million), while the UAE exports to Sweden amounted to $340.56 million (about Dh1,250 million). The main Scandinavian exports to the UAE comprise engineering products, cars and trucks, construction equipment, power generating equipment, IT and telecommunications equipment, paper and furniture, whereas the UAE exports to Sweden include fuel, engineering products, food and other manufactured goods.

Foreign investment

Similar to the UAE's reputation as a hub for trade and investment in the Gulf, Sweden is known as the lucrative vantage point in Europe. Sweden has been one of the world's largest recipients of foreign direct investment in the last decade.

"The UAE is one of the largest investors on the Stockholm stock exchange today, but we believe that a lot of investment potential available in the country can be exploited from this region," says Beijer.

"Sweden welcomes foreign investments. We do not see foreign investment as a threat, rather as a way to strengthen the competitiveness of our economy.

"The UAE and Sweden's economic development is very similar ? our growth is focused on a regional basis and not on the country alone. We are no longer locked into national borders and that is a positive factor to boost investment," he says.

Speaking about ties on the political front, the ambassador says that several high-level visits have escalated co?operation in both political and economic fields. MP Yvonne Andersson and Minister Deputy Head of Mission Goran Wallin visited the UAE in 2004 to consolidate trade relations, especially in education, technology and health. The visit highlighted the development of trade and other new fields of cooperation.

Minister for Environment Lena Sommestad visited the UAE in February to participate in an International Ministerial Conference on chemicals management, while this month Deputy Minister for Trade and Industry Lars?Olof Lindgren inaugurated the Exportträff Dubai ? an event initiated to attract more Swedish companies to the UAE and region. In addition, the Chief of the Navy, Rear Admiral Anders Grenstad, visited the UAE last March and held talks with his counterparts.

With the UAE embassy established recently in Sweden and its first ambassador set to arrive shortly, relations between Sweden and the UAE are heading in the right direction, says Beijer.

Perfect holiday destination

Swedish tourism has not been explored in this part of the world, says the Swedish envoy. Sweden, with its magnificent countryside, lakes, archipelagos, mountains and great winters is a perfect holiday destination. However, with the absence of a direct air link between the UAE and Sweden, there's little scope for tourist traffic from the country. "Tourism development on both the sides would be a welcome development. While we are talking to major airlines to introduce direct air flights to Sweden, we are also encouraging Swedes to visit the UAE," says Beijer.

In its efforts to showcase Scandinavian art and culture, the Swedish embassy has been actively promoting Swedish cultural programmes in the UAE. An art exhibition featuring well?known artist Ragnild Lunden was organised in Dubai last year.

A recent development has been the Memorandum of Understanding signed by Shaikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, and the Head of the Swedish Nobel Museum Professor Svante Lindqvist, in March to bring an exhibition on the life of Alfred Nobel and the Nobel Prizes to the UAE in 2007 and 2008.