South Africa’s Minister of Trade and Industry, Dr Rob Davies, says South Africa is the 19th largest investor in the United Arab Emirates (UAE), having invested R3.33 billion since 2003. He was speaking at the SA-UAE Business Forum that was held in Dubai yesterday (14 November, Sunday). This business forum is intended to firm up relations between the two countries and continue discussions to establish a roadmap for mutual investment.
Davies says that the largest investments were made in the financial services sector, followed by investments in the communications and pharmaceutical sectors. The largest majority of the investments were made in Dubai and the rest were made in Abu Dhabi.
Last year UAE was ranked as the sixth largest source of imports in the Middle East region (excluding Turkey). However, Davies says that the UAE is the 24th largest investor in South Africa.
‘UAE have invested a total of R1.07 billion since 2003, representing 0.25% of total capital investment in South Africa. Investments have been made in the real estate, business services, transportation and warehousing and storage sectors. All of the investments made were sourced from Dubai,’ said added.
Minister Davies also announced that the South African government (the Department of Agriculture, Forestry and Fisheries) has proposed a protocol agreement to the UAE for the direct export of horses from South Africa to UAE.
‘Due to instances of African horse sickness in South Africa, horses have been exported via Europe to UAE. This is a non-tariff trade barrier and also very costly for SA exporters. Horses have to go via Europe for quarantine, before it is allowed into the UAE. We hope to turn around the situation once our proposed protocol has been accepted by the UAE authorities.’
The South African Ambassador to the UAE, Yacoob Abba Omar, in his welcoming address agreed with Minister Davies that the UAE is SA’s largest investor in the region.
“It has been 19 years since the first South African trade organisation held an exhibition of South African products in Dubai, this laid the foundations for the current strong relationship between the two countries. The UAE remains our largest trade partner in the region, with total bilateral trade equalling almost US$2bn. The UAE is our 21st largest export market, and fast moving consumer goods (FMCGs) to the UAE continue to dominate South Africa’s exports, with machinery and metal related products also growing in exports to this region. Oil is the biggest import from the UAE,’ said Ambassador Omar.
He concluded, 'During today’s event we have seen that there continue to be strong avenues for growth between South Africa and our close trading partner the UAE, with which we hold a special economic, social and political relationship.'
The Senior Director of Dubai Chamber of Commerce, Atiq Juma Nassib, said that there is great potential for new business opportunities between Dubai and South Africa across a variety of industry sectors, as the scope of today’s discussions show.
Trade, which is such a major contributor to Dubai’s economy, is one area where we see potential. At present, South Africa is Dubai’s 35th largest trade partner, with total imports, exports and re-exports last year worth AED 5.47 billion. This is something we would like to see increase and we urge traders in both countries to explore new markets and products with potential partners in the other’, said Nassib.
He said Dubai Chamber seeks to facilitate business growth as part of its remit to represent, support and protect the business community in Dubai and they welcome any efforts to encourage this important partnership.
Today’s Business Forum is part of South African President Jacob Zuma’s official state visit in the Middle East Region.
In addition to being Africa’s largest economy and the only African member of the G20, South Africa offers investors the stability of a strong infrastructure, the opportunities of a vibrant emerging market and a climate that fosters growth. South Africa’s competitive advantage as a business destination includes best financial services and legal sector in Africa.
In the recent World Economic Forum’s Global Competitiveness Index, South Africa fared remarkably well. After slipping nine places last year – from 45 to 54 – it recovered to 50 in 2011-2012, thanks mainly to impressive gains in accountability of private institutions, strength of investor protection and technological readiness. South Africa’s superior ratings in these areas of sustainability were seen as indicative of a highly positive long-term outlook for the South African economy, and of trust in South Africa at a time when it is returning only slowly in many other parts of the world.
Dubai Chamber of Commerce and Industry
Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable and business environment, supporting the development of business, and by promoting Dubai as an international business hub.
Enquiries:
Sidwell Medupe (Departmental Spokesperson)
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
Dubai Chamber of Commerce
Mohamad Mouzehem
Executive, Media & Corporate Communication
Tel: +971 4 202 8537
E-mail: Mohamad.Mouzehem@Dubaichamber.com
