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Fri, 22 Nov 2019 06:56 GMT

UAE: Indispensable Strategic Partner for Germany

Politics

7Dnews London

Tue, 11 Jun 2019 15:30 GMT

Germany has been in full diplomatic relations with the United Arab Emirates for 47 years. In that time, the two countries have formed strong economic ties based on distinctive partnership and cooperation built on mutual interests.

In April 2004, German Chancellor Gerhard Schroeder and the Prime Minister of the UAE signed a strategic partnership agreement between the two countries that nurtured these prosperous and strategic bilateral links.

More than 900 German Companies Operate in the UAE


Germany’s strategic economic presence in the UAE is highlighted by at least 100 German companies in Abu Dhabi and about 300 in Dubai. This has resulted in business entrepreneurs establishing advisory councils in both Dubai and Abu Dhabi to regulate economic relations between different parties.

The two countries have taken a number of steps to develop partnership and cooperation in the areas of energy, climate policies and the green economy. Infrastructure has also been a major focus of cooperation, including railway networks, maritime transport and civil aviation, as well as cooperation in the health care, education, agriculture, food security sectors, and more.

For the future, the main cooperation between Germany and the UAE is likely to be in the form of investment and exchange of experience, especially through the Expo Dubai 2020 platform, and work on joint initiatives and projects in the field of smart cities and Artificial Intelligence (AI).

The UAE’s Expo 2020 will be a significant event not only locally in the Gulf but also worldwide. It promises the establishment of new companies and investment ventures, especially in the profitable hotel sector.

With tourism growing rapidly in the UAE, many private sector initiatives have been given the green light ahead of Expo 2020, while various public works projects continue their expansion in anticipation of the event.

Germany has already opened its pavilion in the Expo 2020 site, a structure designed to embrace the concept of the forum and which offers a number of innovative environmental ideas with impact on the ground.

Expo 2020 is also expected to stimulate the volume of infrastructure investments, currently estimated at AED 25-32 billion, a figure which will move the wheels of the economy significantly, in addition to creating 277,000 new jobs in the UAE. The country’s GDP is also likely to benefit greatly from the event.

The economic impact of Expo 2020 Dubai is expected to reach AED 145 billion, while Dubai's non-oil trade should also see a rise to AED 4.5 trillion in 2020, especially in hospitality and aviation investment.

Strategic partnerships between Germany and the UAE have led to several economic agreements to coordinate and protect investment work between the two countries. These include the Convention on Air Traffic, the Prevention of Double Taxation and the Agreement on the Promotion and Protection of Investment.

Many German entities sponsor and encourage foreign trade with the UAE, including the external representation offices of the German Chamber of Commerce and Industry in Abu Dhabi and Dubai, and a representative of the Federal Foreign Trade Agency, as well as the commercial attaché of the German Embassy.


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