France seeks to improve UAE trade

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France seeks to improve UAE trade

Dubai - Business community wants to be a strategic partner in UAE's priority sectors.

By Issac John

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Published: Sun 26 Jul 2015, 12:00 AM

Last updated: Sun 26 Jul 2015, 10:35 AM

French exports to the UAE remain on an upward trend, surging six per cent in the first half of 2015 after crossing ?4 billion for the second year in a row in 2014.
Michel Miraillet, French Ambassador to the UAE, expects the trend to sustain in the second half. He, however, said bilateral trade relations have yet to align with the level of political and military relations between the two nations.
Speaking to Khaleej Times, the French envoy said the expected delivery of the first batch of the Airbus A350 would further boost export figures.
Expressing his willingness to promote new profitable joint ventures in the UAE's small and medium enterprise (SME) industry, Miraillet sought to identify his country as a strategic partner in UAE's priority sectors. Following are excerpts from the interview:
What steps are France considering to further boost trade and investment ties with the UAE?
There is obviously a common will to intensify our trade relations, which have yet to align with the outstanding level of our political and military relations. More than 600 French companies are now established in the UAE.
The vast majority of our industrial groups and SMEs are aware of the tremendous opportunities offered by the UAE. They are more than ever committed to this market. Our aim is to be identified as a strategic partner in UAE's priority sectors (energy, aerospace, defence, environment, innovation and smart cities, transportation, industry, food security, tourism and so on) to foster joint approaches in which French companies would combine their strengths to be more competitive on major projects and to achieve the main objectives agreed in the framework of our Strategic Dialogue.
The UAE cabinet's recent decision to set up a national programme for SMEs matches perfectly with our willingness to promote and reinforce new profitable joint ventures.
 
The UAE has the distinction of being one of France's biggest trade surplus partners. What was the value of bilateral trade in 2014? Was there a growth?
Trade between France and the UAE in 2014 reached ?5.17 billion, slightly more than Dh20 billion at the current rate. It is our second best result after 2013. French exports to the UAE remain on the upward trend and are exceeding ?4 billion for the second year in a row (?4.1 billion, +2.1 per cent).
What is the outlook for bilateral trade in 2015?
Bilateral trade has been steady for the first six months of the year, witnessing an increase in our exports (up six per cent year-on-year) as well as a decrease in our oil imports. We assess that the second half of the year will follow the same path.  
What are the major French exports to the UAE? What are the imports?
Our exports are quite diversified and rely mainly on four sectors that traditionally constitute the core of French foreign trade, namely the food industry, aeronautics, electrical and mechanical equipment, and consumer goods, notably luxury. Regarding our imports, more than 80 per cent is made of crude oil and oil products. Contrary to a lot of European countries, the French buy Emirati oil. We remain bullish on growth prospects as the dynamism and the regional reach of Dubai as a trade hub along with the major infrastructure projects to be tendered and the expected delivery of the first batch of the Airbus A350 will likely sustain and consolidate our trade figures in the short and medium run.
Have you got an estimate of the UAE's foreign direct investment (FDI) in France?
The UAE's FDI in France is substantial. It amounted to ?4.9 billion in 2013 (latest available figures), which equals to more than 50 per cent of aggregated Middle East FDI to France.
Is there a bilateral investment protection treaty between the two countries? If not, is there any such move? What are the major investments France has made in the UAE?
Yes, we do have a bilateral investment protection agreement. French investments to the UAE are growing but it remains difficult to quantify due to the very diverse nature of operations. They are traditionally focused on the oil and gas and the banking sectors, but tend to diversify.
Many regional headquarters of large firms are located in Dubai or Abu Dhabi, thanks to the importance of their Emirati customer base and the efficiency of UAE's logistic facilities. Total, who in 2015 renewed its oil concessions with ADCO for the next 40 years, is by far our main investor. But other famous names are very active such as GDF Suez, Sanofi, Air Liquide, Accor, Carrefour or Géant to name a few.
Dubai-France bilateral trade amounted to Dh10.6 billion in the first half of 2014. What was the total amount for 2014?
The total trade for 2014 is Dh21.2 billion. We will do whatever it takes to have stronger trade relations in the years to come.
How is tourism from France to the UAE? Has there been growth?
The number of French citizens visiting the UAE witnessed an increase from 150,000 in 2012 to around 200,000 in 2014. These figures are set to rise. If you ask me the reasons for such exceptional growth, look around you: stability, security, quality, diversity and gentleness. without forgetting sun and blue waters - all the ingredients for a successful recipe.
But let me tell you that the reverse trend is also rocketing: the number of tourists from the UAE to France (not only our main landmarks) has never been so high. A win-win game definitely.
What is the size of the French business community in the UAE?
Around 600 French companies have settled in the UAE and their number rises by 15 per cent annually. Most of the CAC40 (benchmark French stock market index) companies have their regional offices here.
The development of freezone has favoured the installation of a large number of French companies, such as L'Oreal, Chanel and LVMH (luxury), Legrand and Schneider Electric (electrical appliances), CGG, Technip Air Liquide (industrial gases).
Offset obligations related to contracts signed by French defence companies such Dassault, Safran, Thales, etc., have fuelled the creation of joint ventures in various sectors. The French banks are also represented with Société Générale, Natixis, Crédit Agricole and BNP Paribas.
French companies have engaged in strategic partnerships with Emirati counterparts in sectors such as hydrocarbons (Total, Technip), aerospace and aeronautics (Airbus, Thales, Safran), environment and services (Suez, Veolia, Air Liquide), power (Alstom, Areva, GDF Suez), transportation (Alstom, Thales, Keolis), etc.
I would like also to stress the growing influence of French entrepreneurs as well as French consultants and analysts holding strategic positions in Emirati institutions, like ADIA.
- issacjohn@khaleejtimes.com


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