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Dubai Chamber study is released on the occasion of the high profile UAE official delegation visit to Azerbaijan
Buamim: Dubai Chamber Representative Office in Azerbaijan is a gateway for investment between the two countries
49% growth seen in the number of Azerbaijani companies operating in Dubai during 2012-2014
13% growth in Dubai's non-oil trade with Azerbaijan from 2011 to 2014, as the country ranked 75th on the list of Dubai's trading partners
Dubai, UAE: On the occasion of the high profile UAE official delegation visit to Azerbaijan, headed by H.H. Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, and as part of its strategy to explore emerging markets for the emirate's business community, the Dubai Chamber of Commerce and Industry issued a study reviewing the bilateral relations and investment opportunities between Dubai and Azerbaijan in light of the presence of the Chamber's representative office in the Azeri capital Baku.
The study revealed the growth of the Azerbaijani companies, operating in Dubai and registered with Dubai Chamber, by 49%, up from 176 in 2012 to 262 companies in 2014, reflecting the development of economic relations and the desire to enhance bilateral relationship between the business communities in Dubai and Azerbaijan.
The study also pointed out at Dubai's non-oil trade with Azerbaijan during the period 2011-2014 registering a growth rate of 13%, an increase from AED 1.6 billion in 2011 to AED 1.8 billion in 2014, while Azerbaijan ranked 75th on the list of Dubai's trading partners during 2014.
H.E. Hamad Buamim, President and CEO, Dubai Chamber, stated that as part of its strategy to enhance the competitiveness of Dubai's business environment in the global market and to stimulate the emirate's economic growth, the Chamber initiated exploring upcoming economies of the world for its members, while releasing studies focusing on important areas of investment potential for UAE businesses as well as providing a clear guideline for the country's investors to make the best of these opportunities.
"Under Dubai Chamber's global expansion strategy, our choice for the opening of our first overseas representative office fell on Azerbaijan which is a growing country with economic potential at the crossroads of Europe, Asia, the Caucasus region and shows ample promise in various lucrative areas of investment in the country as well as a gateway for investments in CIS, Central Asia and Europe.
Since its opening in 2012, the Azerbaijan office has supported Dubai businesses to reach out to the Azerbaijan market and beyond in the Caucasus region while also attracting the country's investors to the potential areas of investments in Dubai besides exchanging visits and enhancing cooperation in the areas of retail and Islamic banking sectors.
H.E. Buamim further stressed that these studies with their facts and figures help investors to make sound investment decisions in these promising markets while they also contribute to enhancing the competitiveness of Dubai and the UAE businesses to plan a successful strategy to explore and enter new markets.
The study showed that machinery and mechanical appliances and electrical and electronic equipment were the most prominent exports and re-exports of Dubai to Azerbaijan during the year 2013 followed by vehicles, aircraft, vessels and associated transport equipment, prepared food and beverages, plastic, rubber and their products, while the most prominent items imported from Azerbaijan are metal products.
The study highlighted six key sectors offering opportunities for joint investments between the business communities of Dubai and Azerbaijan, including transport and logistics, building and construction, infrastructure, tourism and hospitality, agriculture and food industries, financial services and information and communications technology.
Highlighting Dubai's status of a hub facilitating the movement of exports from Central Asia to the world, the study showed the emirate's sophisticated logistical and infrastructural facilities as well as the Dubai companies' extensive experience in the development of sustainable public transport and rail network projects, and the possibility of exchanging expertise in the areas of green logistics network and environmentally-friendly projects with their CIS counterparts.
The construction and infrastructure sectors offer additional opportunities for multiple cooperation in the area of constructing environmentally-friendly buildings for Dubai companies to export building materials such as marble, aluminium and cement as well as to establish factories for supplying of these raw materials to construction companies in Azerbaijan.
The study also highlighted the various opportunities available for UAE companies in the tourism sector of Azerbaijan, which offers a number of opportunities, according to the expectations of the World Travel and Tourism Council Azerbaijan's tourism will grow by about 7.5% annually from 2012 to 2022, as the country is recognised for its natural surroundings and cultural attractions for tourists from the world over.
Also, Azerbaijan's agriculture sector is a major source of investment for meeting the food security needs of the UAE due to the favourable climate of the country to cultivate various types of fruits and vegetables, as Dubai companies can contribute to the development of this important sector in Azerbaijan by investing in agricultural equipment, machinery, fertilizers and high-yield cultivation techniques, said the study.
In the area of financial services, especially for the financing of small and medium enterprises, insurance and capital markets, Islamic banking and stock exchange, which are open to a wide range of joint cooperation, Dubai companies can offer their experience in these areas as well as expertise in the area of information technology, especially in e-Government services and computer programming, accounting and e-commerce, pointed out the study.
It also informed that the Dubai Chamber Representative Office in Baku is a gateway for UAE investments to Azerbaijan market as well as offering assistance for Azerbaijani companies to enter the Dubai market by highlighting the benefits of the emirate's competitive environment for Azeri businesses seeking to expand their business activities in the region.
Azerbaijan is an economic leader in the South Caucasus region. It accounts for nearly 73% of the whole economy of this region and one of the leading economies in the CIS in terms of FDI per capita.
-Ends-
Established in 1965, Dubai Chamber of Commerce & Industry is celebrating its milestone anniversary of 50 years empowering vision in Dubai's business community. A non-profit public entity, Dubai Chamber supports Dubai's vision as a global player by empowering businesses, providing innovative value added services and access to influential networks. Its mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub. For more information visit: www.dubaichamber.com
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For more information, please contact:
Ruba Abdel Halim
Dubai Chamber of Commerce & Industry
PR &Corporate Communications Department
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Email: ruba.halim@hotmail.com
© Press Release 2015
