Positive trend rides on robust growth and excellent relations between the two countries.
Relations between the UAE and Germany have continued to prosper during the last year, with trade figures between the two nations increasing at a steady and promising rate. "2006 has been another record year in German/UAE trade relations," says Klaus-Peter Brandes, German Ambassador to the UAE.
In 2006, trade added up to 5.87 billion euros (about Dh30.5 billion), which is an increase of 25 per cent when compared to the previous year; over the last four years trade between Germany and the UAE has doubled. These figures include 5.4 billion euros worth of German exports, equivalent to approximately $7 billion (about Dh25.7 billion).
"Given the robust growth in both our countries, and excellent bilateral relations, I am confident that this positive trend will continue to grow in the future," continues Brandes.
Flourishing exports
Formal discussions between the two sides have continued, and help contribute to this growth. German Chancellor Dr. Angela Markel visited the UAE at the beginning of the year, while from the UAE side, General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Shaikh Abdullah Bin Zayed Al Nahyan, Foreign Minister, visited Berlin in December 2006. There have also been numerous other visits on a ministerial level, as well as the working level, in both directions in the last few months.
The Federal Minister of Defence Dr. Franz Josef Jung will be visiting the UAE this month. This will coincide with a visit of high ranking members of the German parliament, the Bundestag, led by former minister Dr. Edelgard Bulmahn, and the President of the regional Parliament of Bavaria, Alois Glueck, who will be accompanied by a delegation.
Trade between the two countries is flourishing and the major export to the UAE from Germany continues to be automobiles.
"One of the top German export goods you can spot on any street in the UAE are cars. Mercedes, BMW, Porsche, Volkswagen and Audi, together with utility vehicles, add up to 20 per cent of German exports into the country. Of similar importance is German machinery, which can be found in many UAE production facilities. Energy and electrical devices, as well as communication technology contribute to 10 per cent of German exports to the UAE respectively. I am particularly happy to see a growing portion of renewable energy technology being part of UAE imports from Germany. Thus, my country can contribute to one of the most promising areas in the UAE," says Brandes.
The number of UAE goods exported to Germany is on the increase, with major items including aluminium, organic oils, minerals, textiles and electronic devices. This two-way growth in trade has led to the UAE becoming Germany's most important trading partner in the Arab world.
"Our exports in the UAE are higher than towards Saudi Arabia, Singapore, Iran or Hong Kong. They are three times higher than towards Egypt. This reflects the leading role of the UAE in international trade. I would like to underline that the mutual appreciation goes beyond trade.
German companies are increasingly investing in production, and in particular in human resources in their operations in the UAE. This is a significant contribution to the increasingly knowledge-based economy in the Gulf. UAE investors on their side are realising the technological based strength of German companies, which opens excellent opportunities for future joint ventures," explains Brandes.
Joint ventures
The recent trade figures show how German businesses are doing well in the UAE, while the confidence of the German business community is high. This, according to the Ambassador, is set to grow further. "I do see scope for further growth, in particular related to German direct investment. An important element in realising this potential will be the reform of the company law, which should allow foreign companies major participation in joint ventures in the
country.
Likewise, the efforts of the UAE authorities to reduce administrative requirements for setting up new businesses will help to further strengthen the German business presence in the country."
The number of Germans living in the UAE stands at approximately 7,000-8,000, with about 5,000 of these living in Dubai.
"Initially, Germans coming to the UAE would have been asked by their companies to do so, thus ensuring the quality of products and services exported to the Emirates. With the amazing economic growth and high standard of living, we can observe more and more Germans coming on their own initiative, providing their knowledge and their experience in different sectors such as energy, industry, hospitality and services," says Brandes.
Tourists
A large number of Germans chooses to visit the UAE. In 2006 the number of German tourists reached nearly 300,000. German media coverage of the UAE has led to more Germans viewing it as a desirable holiday destination. "Germans are known not only as world champions in exports, but also as world champions of travel.
The last few years have seen a steady increase of tourists and the UAE establishing itself as a prime overseas destination for Germans. The hospitality of the UAE citizens, the high standards of the hotels, the safety, as well as the beauty of the UAE landscapes, motivate Germans in increasing numbers to come to the UAE on holiday. The pavilion of the UAE at the Berlin Tourist Fair in February was very impressive and will certainly have its positive effects," says Brandes.
In addition to an increase in exchange of tourists between the two countries, the Ambassador would like to see more young Emiratis visiting and studying in Germany. "With an open-minded society, a huge variety of cultural activities and, in particular, excellent universities, Germany has a lot to offer. Last year we invited a group of students from different UAE universities who are now considering a longer scholarship because they liked it so much."
