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United Arab Emirates: Spanish Companies Look Towards The UAE For Expansion Opportunities
Working breakfast with BSA Law Firm and the Dubai Chamber of
Commerce and Industry
Madrid, January 25, 2019, The United Arab
Emirates, an eminently oil country, has been implementing a policy
of economic diversification for two decades, thus allowing other
sectors to thrive. In this sense, Spanish companies have
established themselves as reference investors in the country in
sectors such as infrastructure, engineering, transport, renewable
energy, tourism and finance. Likewise, the region has manifested a
particular interest in attracting foreign investment from Spanish
into the health sector.
This is one of the conclusions of the working breakfast
"Spanish business in the United Arab Emirates: an opportunity
to grow", which took place yesterday at the headquarters of
Cofides, hosted by pioneering International Law Firm, Lupicinio, in
partnership with renowned Middle East Law firm, BSA Ahmad Bin
Hezeem & Associates LLP.
During the event, the speakers stressed that Spanish companies
enjoy great prestige and an experience that is recognized
throughout the Emirates region. Likewise, emphasis has been placed
on the competitive advantage of Spain's roots in Latin America.
"The Latin American countries have become a priority target
for the Emirates. This is a great opportunity for Spanish
companies, since they enjoy a privileged position and have the
opportunity to establish themselves as the bridge between Latin
America and the UAE ", explained José María
Viñals, Partner and Director of International Operations of
Lupicinio International Law Firm.
The Vice President of International Relations of the Dubai
Chamber of Commerce and Industry, Hassan Al Hasshemi, underlined
Dubai's economic prospects and synergies with Spain:
"Dubai shares many synergies with Madrid, as both cities are
still chosen as main business hubs in their respective
regions". The vice president has highlighted several recent
measures adopted by Dubai, such as the inclusion of long-term
residence visas, which have increased the city's appeal as a
global business center.
Advantages and risks
Regarding the advantages that Emirates offer, Senior Partner, of
BSA law firm, Dr. Ahmad Bin Hezeem, highlighted the UAE,
which offers an unrivalled opportunity for growth for international
businesses seeking to establish a presence in the Middle East. With
Dubai at the forefront of economies offering secure business
opportunities not only in the Middle East but globally. The UAE
offers a diverse selection of business models and establishment
options for businesses with, its numerous types of free zones,
which are tax free and designed to simplify the process of business
set up. Additionally the UAE has also taken steps to promote
foreign direct investment onshore by allowing 100% foreign
ownership of companies in certain sectors. All in all the time has
never been more ripe for Spanish business to expand their operation
to the UAE.
However, one of the disadvantages mentioned comes when
establishing a company outside of these free zones. They require a
local partner that contributes half of the capital of the firm.
Among the main risks, the coordinator in the Middle East for
Lupicinio International Law Firm, Eduardo Delage, has emphasized the
socio-cultural differences: "The cultural gap that exists is
greater than we expected. When it comes to doing business with
local partners, you have to consider how to deal with the
negotiations appropriately". Finally, both the Director of the
Commercial and Development Area of Cofides, Ana Cebrián, as
well as the Director of Country Risk and Debt Management of Cesce,
Inés Menéndez, emphasized the stability of the market
as one of the most attractive features.
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