(MENAFN- Khaleej Times) Hungary plans to explore new emerging economies in the Middle East and Africa in order to find new markets for Hungarian products and attract foreign direct investment from these regions, its top official said.
The government has initiated a new policy aims at enhancing and imprving its foreign economic relations outside of the European Union to double its exports volume by 2025.
"Hungary has huge potential to attract investment in renewable energy, nuclear energy, food sector, information technology, ICT, defence and tourism industry, among others," State Secretary for Foreign Affairs and External Economic Relations in Hungary Prime Minister's Office Peter Szijjarto told Khaleej Times on the sidelines of Annual Investment Meeting.
He said UAE is Hungary's largest trading partner in the Arab world with an outstanding $1.2 billion volume of trade in 2012.
"We are determined to further improve this volume in coming years," he said.
Szijjarto said two nations on Tuesday signed an agreement to avoid double taxation. The agreement, signed by Minister of State for Financial Affairs Obaid Humaid Al Tayer and Peter Szijjarto, will contribute in strengthening economic relations between the UAE and the Republic of Hungary along with achieving an economic balance between the two countries.
The agreement will provide full protection for concerned parties from double taxation, whether direct or indirect. It will also help in avoiding the obstruction of free flow of trade and investments between the two countries
"I hope this agreement paves way for bilateral investment treaty that will facilitate bilateral trade and investment," he said.
"The signing of the agreement to avoid double taxation with the UAE is one of the very reasons of my nature of visit."
He said foreign companies in Hungary are of key importance for national economy and the government is keen to strengthen the relationship with international investors and their subsidiaries in the country.
"We plan to attract €3-3.5 billion foreign direct investment," he said, and adding that the government has created an investment-friendly environment for the investors.
Referring to Hungary's competitive tax system, he said the present government has created the most business-friendly environment in central and eastern Europe.
"The government has reduced corporate tax rate to 10 per cent on investment below €1.67 million while above this range tax rate will be 19 per cent. It also introduced 16 per cent flat tax rate on personal income," he said.
To a question about Annual Investment Meeting, he said: "We expect to attract the attention of the investors to the current Hungarian opportunities and also to mark this event as a milestone in our bilateral relationship."
He said the Hungarian Investment and Trade Agency is also present to offer investment projects to investors, who are interested in investing in a secured and profitable business environment offered by Hungary.
"Due to its location Hungary is a perfect place to establish a bridgehead for a foreign companies, since through our country a company can access to the EU market of 440 million people," he said.
About Annual Investment Meeting, he said the event provides an opportunity to exchange information and discuss investment opportunities.
"We believe that this event can provide a firm ground for information exchange and also an excellent opportunity to high level meetings to improve the bilateral relationships not to mention the fact that meeting with investors always gives chance to make business," he concluded.
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