The UAE is a major business hub in the region for Finland.
The relations between Finland and the UAE have progressed positively at both bilateral and multilateral levels. Diplomatic relations between the countries were established in 1975, and Finland initiated formal relations with the establishment of a consulate in 1980, which was upgraded to an embassy in 1991.
Now covering Qatar and Bahrain too, the Embassy of Finland is focused on strengthening trade and economic relations with the Arab countries.
As the fourth biggest export market outside the European Union, the UAE figures as a major economic partner for Finland, says Esa Hurtig, Chargé d'Affaires of Finland to the UAE.
"Although our countries are situated far from each other, the UAE is an important political partner for Finland. We provide mutual support in major international arenas and have great respect for each other's culture and traditions. Finland admires UAE's pace of development and considers it a major business hub not only in the region but internationally."
Trade promotion
Precedence has been given to promoting trade between Finland and the UAE. The establishment of the Finnish Business Council in 2004 and the opening of a Finland Trade Centre in Dubai in 2006 have greatly boosted the growing business activities between both countries, he says.
Apart from the visits of business delegations to the UAE to promote Finland, the embassy is launching a campaign to market the country's expertise in information and communication technology in the local market.
"As a country with an ICT knowledge driven economy, Finnish companies are top developers of ICT products in the world. The country leads also in the development of diverse industries such as paper and pulp, telecommunication, biotechnology, environment technology and weather measuring. Finland is also among the most advanced countries in the world with regard to education and research," says Hurtig.
Finland's expertise in high technology is supported by an excellent education system, including a number of research institutes and science parks.
"According to the World Economic Forum Report 2004-2005, Finland offers the world's most competitive business environment. We are encouraging our UAE counterparts to send business delegations to Finland to study investment opportunities, develop mutually beneficial economic cooperation and market their products effectively.
"Although several UAE organisations are already active in Finland's capital market, we believe much more can be done in other economic sectors also, including real estate, industries, services and tourism," he says.
To boost economic activities, the embassy encourages Finnish companies to participate in major events. "We are happy to note that several Finnish companies are participating in major trade fairs in the UAE."
The embassy has hosted high-level delegations from Finland in the past two years. The Under Secretary of the Foreign Ministry Markus Lyra visited the UAE recently and a large business delegation led by the Director General of the Ministry of Foreign Affairs visited the country last year. Conversely, a congregation of businesswomen from Abu Dhabi visited Helsinki in 2004.
Finland and the UAE have concluded several agreements that underline the already thriving mutual relations. Major agreements including promotion and reciprocal protection of investments, avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, and economic, industrial and technical cooperation, are in effect.
Top ranking
Several big Finnish companies, including Nokia, Kone and Wärtsilä, have top business rankings in the UAE market. About 50 Finnish companies operate in the UAE, and more than 600 Finns - the largest Finnish community in the Middle East - reside here.
Major Finnish export commodities comprise telecommunication products, machinery, elevators, electronic equipment and engineering products. Exports to the UAE last year amounted to 1.1 billion euros (about Dh5.08 billion), accounting for a 10 per cent growth over 2004. On the other hand, exports from the UAE are not significant, as Finland does not import oil from here.
Mutual relations are even much more extensive than the official commodity trade figures indicate, says the chargé d'affaires. "In addition to our trade, the Finnish service, education and tourism sectors are doing well here. The service sector is now gaining prominence as several ICT, automation and maintenance companies are making headway in the UAE."
Tourism promotion
Hurtig is upbeat about the tourism sector. "Some 12,000 Finnish tourists visited the UAE last year, and this figure is growing. Finns do like this country as a tourist destination more and more. They like the sun and sandy beaches, and also the desert and dunes. Finnair is already flying twice a week and plans to introduce an additional flight due to the heavily increasing traffic.
"Hopefully a UAE airline will also start flights to Helsinki to increase the flight frequency. On the other hand, Finland is not yet very popular as a holiday destination in this part of the world as people are not aware of the country's numerous tourist attractions.
"From crystal-clear lakes to green forests, summer festivals to amazing winter sport activities, Finland has it all. Recently Finnair opened a Finland desk in Dubai in collaboration with a local travel agency. The objective is to increase the awareness of the country as a tourist destination and promote travel from the UAE to Finland."
The embassy has been actively promoting Finnish art and culture locally. It printed the Kalevala Tales, the epic history of Finland in Arabic, and organised a Night of Finnish Folk Music and Stories at the Abu Dhabi Cultural Foundation last December and, most recently, in Sharjah. Several Finnish art exhibitions and musical concerts are being held in Abu Dhabi.
"While it is essential to promote both countries on an economic level, it is equally important to discover ourselves on a personal level. The UAE nationals and Finns have similar traditions as Kalevala Tales also indicates. Both are creative, warm and hospitable in nature.
"Mutual cooperation in various fields, including higher education and scientific research, and sharing of expertise can benefit the future generation greatly. We are working together to develop relations between universities. Such initiatives will go a long way in building lasting ties between both the countries," he says.
