The commercial exchange between the United Arab Emirates and Mexico has been fundamental to carry out economic practices and specific strategies to generate opportunities and attract large investment projects that generate income, jobs and improve both economies due to their high impact on the trade balance.
The UAE has become the fastest growing investment trade center and is known as the world leader in global logistics hubs. It offers high-quality facilities along with a favorable environment for foreign investors.
Dubai is a gateway for companies and for the export of products to untapped markets such as the Middle East and Africa markets. The government has carried out a series of economic and administrative policy reforms to attract capital and business enterprises from around the world, such as:
- Promotion by reducing the overall cost of setting up a business. Efforts have been made to reduce the business incorporation rate.
- Facilitate the processing of building permits by implementing a risk-based approach to reduce the number of inspections.
- It is considered the best place to expand business internationally due to the strategic development of the country considered between the economies of the East and the West. Dubai's strategic advantages for companies are: a. It has a great coastline and is a hub for world aviation.
- The strategic location of the country provides the best trade opportunities and people can also easily travel between countries.
- It attracts a large population of skilled labor due to its global reputation and higher income. In addition, the government makes constant efforts to improve the efficiency and competence of the existing workforce.
This helps companies save a large chunk of money on employee training.
Goals for the UAE economy:
- Artificial intelligence.
- Food security.
- Renewable energy.
- Aerospace.
The UAE industrial sectors to attract Foreign Direct Investment (FDI) are for example:
- Artificial intelligence.
- Food security.
- Renewable energy.
- Health and medical assistance.
- Aerospace.
- Information technology and communication.
- Mining resources.
- Energy.
- Tourism.
- Shops and services among others.
Trade volume between Mexico and the United Arab Emirates (2019-2020).
- According to the Foreign Trade Operational Data of Mexico, Ministry of the Economy, total trade between the two countries (in dollars) has maintained a growing trend in the last 10 years.
- The commercial exchange until September 2020, appreciates fluctuations derived from the Covid-19 pandemic.
- Total trade between the UAE and Mexico in 2019 was $ 858,933,063 million and in 2020 (Only until the third quarter), it was $ 493,722,440 million. Foreign Direct Investment (FDI) between both countries. Based on information from the Ministry of Economy of Mexico, through the General Directorate of Direct Foreign Investment, the United Arab Emirates have invested in Mexico more than 15 million dollars, which are the result of the Emirati participation in 36 companies of different sections. Cumulative amount of Foreign Direct Investment from the United Arab Emirates to Mexico until 2018 was $ 15,290,507 million.
- There are great signs of the expansion of relations between the two countries, especially after canceling the visa between the two countries and strengthening the legal framework.
- In this context, Emirates Airlines began its direct passenger flights between Dubai and Mexico via Barcelona, Spain, in accordance with the Fifth Freedom principle from December 9, 2019. Currently, Emirates Airlines has a cargo service that operates from Guadalajara International Airport to the United Arab Emirates, which will increase and boost bilateral business on a large scale by optimizing time despite geographical distance. Expo Dubai 2020, “Connecting minds, creating the Future”, it will take place from October 1, 2021 to March 31, 2022 in Dubai, UAE.
- It is a world exhibition that will have the participation of 192 countries, a great opportunity for bilateral business and trade missions for Mexican companies.
