(MENAFN- Khaleej Times) Dubai chamber studies show investment opportunities for uae companies
chile and argentina offer tremendous investment opportunities to uae businesses in addition to increase in bilateral trade suggests a latest study released by the dubai chamber of commerce and industry.
as part of its initiative of highlighting and exploring upcoming economies of the world for its members the dubai chamber commissioned studies on chile and argentina.
compiled by the economist intelligence unit and released on the occasion of the high-profile uae official delegation visit to latin america headed by his highness shaikh mohammed bin rashid al maktoum vice-president and prime minister of the uae and ruler of dubai two new studies focus on important areas of investment potential for uae businesses in chile and argentina.
coming under the dubai chamber’s initiative of idubai market intelligence these studies focus on important areas of investment opportunities for uae businesses.
chile
according to the report chile’s bilateral trade is dominated with the uae’s imports from the country which were worth $150 million in 2013 led by milk and cream powder ($33 million) chopped wood ($22 million) and apples and pears ($21 million).
meanwhile uae exports to chile in 2013 increased to $26 million led by fertilisers ($12 million) and vehicles ($4 million).
the study points out that chile’s gdp growth after slowing to an estimated 4.1 per cent in 2013 will average 4.4 per cent per annum from 2014 to 2018 driven by copper outputs and exports.
it further states that the growth in the services sector will outpace that of agriculture and industry owing to a well-established retail scene shipping and transport growing tourism and chile’s status as a regional hub for business and financial services.
the study states that the services sector accounted for 63 per cent of the gdp of chile in 2012 followed by the mining sector (14 per cent) manufacturing (11 per cent) construction (eight per cent).
it also points out at main export markets for chile during the year 2012 with china accounting for 23 per cent of chile’s exports followed by the us (12 per cent) and japan (11 per cent) while the most prominent imports for chile during the year 2012 were intermediate goods (53 per cent) and consumer goods (27 per cent).
the study further adds that minerals and mining account for over 50 per cent of chile’s exports and despite falls in global metal prices investment is strong.
the study reveals that chile was the world’s 11th-largest recipient of fdis in 2012. the principal countries of origin for fdi to chile in 2009-12 were spain the us and canada.
although fdi ties between chile and the uae are limited there are plans to strengthen business relations including a joint investment council.
the major beneficiary of fdis have been the software business and it services minerals food banking services renewable energy and telecommunications as the city of santiago has attracted more than 250 investment projects during the period 2003-13.
in its assessment of chile’s business environment the report ranks the country 38th out of 82 countries in comparison to the uae’s 23rd rank for its attractiveness of doing business as chile finds its macroeconomic environment fdi policy private-enterprise policy and foreign trade and exchange control as very good while its political environment tax regime infrastructure and labour market as good. its market opportunities are rated as moderate in the 10 assessment category.
argentina
another study on argentina commissioned by the dubai chamber and compiled by the eiu states that argentina’s bilateral trade with the uae is dominated by uae imports from the country which totalled $280 million in 2012.
these imports were primarily from argentina’s agriculture sector in particular cereals such as maize ($72 million) barley ($35 million) and wheat ($23 million) while tubes and pipes used by the energy sector accounted for $29 million of imports.
the uae exports to argentina were more limited and totalled $33 million in 2012 primarily made up of organic chemicals ($24 million) such as acyclic hydrocarbons and ethers.
the study adds that the services sector accounted for 60 per cent of the gdp of argentina in 2012 followed by the manufacturing sector (20 per cent) and agriculture (nine per cent) and construction (six per cent).
the study further adds that argentina is a major global exporter of grains and oilseeds. helped by a weaker currency exports will grow six per cent a year in 2014-18 but lower soya and food prices in 2014-16 will reduce earnings.
imports have struggled since a currency devaluation in 2014 but will increase as the economy recovers rising by 10 per cent a year (in us dollars) in 2015-18.
the study points out that the main export markets of argentina during the year 2012 were brazil accounting for 20 per cent of exports followed by china (six per cent) and chile (six per cent) while the most prominent imports of argentina during the year 2012 were intermediate goods (29 per cent) capital goods (18 per cent) and consumer goods (11 per cent). the leading suppliers of argentina are brazil (26 per cent) china (15 per cent) and the us (12 per cent).
the study informs that argentina’s inward fdi will remain at around $10 billion annually in 2015-18 with focus on the sectors of business financial and it services energy minerals food tobacco and telecoms as key destination cities were buenos aires during the period 2003-2013 with 300 fdi projects followed by the city of rosario with less than 50 investment projects.
in its assessment of argentina’s business environment the report ranks the country 63rd out of 82 countries in comparison to the uae’s 29th rank for its attractiveness of doing business as under the 10 sub-categories argentina finds its market opportunities infrastructure and labour market as good macroeconomic environment foreign trade and exchange control and political environment as moderate.
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