From strength to strength: UAE-Italy ties in focus

Italian businesses view the UAE as a strong platform to expand their footprint in other GCC countries

Italian companies are increasingly looking to explore the UAE market, and use its base in the emirates to further expand into other markets in the MENA region. Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry, in an interview with Khaleej Times talks about the efforts made by the chamber, scope for further engagement with Italy, and more. Excerpts:


How would you describe the current trade relationship between the UAE and Italy?
 
The UAE and Italy have forged strong bilateral relations over the years. Last year, Italy was the UAE's 17th largest trade partner, as non-oil trade between the two sides amounted to Dh28.7 billion.
Non-oil trade between Dubai and Italy accounted for most of this volume (Dh21.9 billion) in 2015, marking a 23 per cent increase from Dh17.8 billion in 2011.This dynamic relationship has flourished in recent years with the expansion of direct flights between the UAE and major Italian cities. Sales of Italian food products have been growing steadily in the UAE over the last three years in line with its population.
The outlook for bilateral trade looks bright, given the ambitious trade and foreign direct investment targets outlined in the Dubai Plan 2021, and  the emirate's strategy to diversify its economy.
In addition, a weaker euro has made supplies affordable, while it has also led to export growth from the region. I think recent economic trends will encourage more Italian companies to look abroad for new trade and investment opportunities that would benefit them.

What synergies do Dubai and Italy share and what sectors offer the most potential for growing bilateral trade?
Dubai and Italy share synergies in tourism, retail and manufacturing. Both are major business and logistics hubs within their respective regions that have diversified their economies in recent years. Governments on both sides have launched strategies to advance industrial sectors and improve their ease of doing business.
There is also ample scope to work together in the areas of aviation, biotechnology, banking and renewable energy. Italy's well-established and competitive automotive, agriculture and food industries present many opportunities for suppliers to trade with Dubai, which currently imports 85 per cent of its food requirements.

What are the top products that are imported to Dubai from Italy?
In terms of value, machinery and electrical equipment dominate the list of products imported to Dubai from Italy, accounting for Dh4.8 billion last year. This was followed by chemical and allied products (Dh2.3 billion); and pearls and precious/semi-precious stones at Dh2.2 billion. Base metals, textiles, footwear, and transport equipment are also among the top products imported to the emirate.
Re-exports are now accounting for a larger percentage of Dubai-Italy trade than in the past, reaching Dh1.4 billion in 2015. This is a testament to Dubai's strong position as a re-export hub for European companies.
The booming construction market in Dubai will likely introduce plenty of trade and investment opportunities for Italian companies in the future. Dubai South, set to become a new hub for aviation and logistics, will require new technologies, expertise and solutions. Dubai South, which includes Al Maktoum International Airport and the Expo 2020 site, has already secured a financial deal with an Italian export credit company.

To what extent does Dubai serve as a business hub for Italian companies?
Italy is one of Dubai's top European trade partners, and we have seen this relationship evolve as the emirate expanded. We are seeing more Italian companies setting up here and participating in trade shows and exhibitions.
Dubai's strategic geographic position offers Italian businesses a gateway to expand their footprint in the GCC and other key emerging markets in Asia and Africa. The emirate's free zones provide an environment that's business and investor-friendly, while companies also benefit from a world-class logistics infrastructure.
Dubai Chamber has 179 Italian companies among its members and we hope to see  this number grow with the help of our partners. We support the Italian Business Council, which is one of the 43 country-specific business councils that falls under our umbrella.
Dubai's diverse population and strong appetite for retail and luxury also make it a very important target market for Italian businesses and products. The emirate is home to around 10,000 Italian nationals, which presents an opportunity for Italian companies to cater to this growing group  of consumers.

What is Dubai Chamber doing to strengthen trade ties between Dubai and Italy?
The chamber regularly organises trade missions around the world. Last year, we had the pleasure of leading the largest delegation in our history to Expo Milan 2015. The trade mission enabled us to build on our strong trade relationship with Italy, facilitate business-to-business meetings and explore new trade and investment opportunities.
We work closely with the Italian Industry and Commerce Office in the UAE and host seminars and Italian trade delegations that are looking to expand their footprint in Dubai and the wider GCC region. We recently coordinated a record 285 bilateral meetings between business leaders from EU countries and Dubai. This delegation included a number of Italian companies that were very keen to explore trade and investment opportunities in the emirate.  
Earlier this month, we hosted Chiara Appendino, the Mayor of Turin, in Dubai at the third Global Islamic Economy Summit. She shared valuable insights on how the public and private sectors can collaborate to engage and empower the youth.
Recently, we organised the Lombardy and Dubai Economic Cooperation: Investment and Business Opportunities Forum to promote investment and trade opportunities in Dubai. In the past, we've hosted the former Italian Prime Minister Mario Monti at the UAE-Italy Business Forum in Dubai in association with the Italian Embassy in the UAE, where he urged Italian businesses to establish a strong base in the emirate to expand in the wider MENA region.
There have been other efforts in the UAE to increase local business exports to the Italian  market. Several joint trade  agreements and Memoranda of Understanding  (MoUs) were  signed  between  the UAE and Italy, covering business partnerships and investment protection, as well as economic, industrial, technical and financial deals.

What has Dubai gained by participating in Expo Milan 2015?
Expo Milan was a great opportunity for UAE business leaders to network with their counterparts from around the world. Through this event, delegates were able to explore business opportunities, and showcase what Dubai has to offer foreign companies and investors.
The business-matching meetings during the event were critical in promoting Dubai as a leading destination for doing business in the Middle East and North Africa. We were able to raise awareness of the key themes of Expo 2020 in Dubai and encourage international participation in the mega event.
The trade mission was also an incredible learning experience on what it takes to host such a large-scale event. The Italian government has generously offered its support to Dubai with expertise and guidelines, ensuring a successful expo.
-supplements@khaleejtimes.com