Dubai’s Department of Economic Development recorded higher levels of business activities recently, reporting a four percent rise in total commercial licenses registered, reaching 4,582.

Compared to last year’s data, the increase in licensed businesses spread across each of Dubai’s business sectors, from tourism and travel to professional and commercial industries.

CEO of Business Registration & Licensing (or BRL) sector at the DED, Mohammad Shael Al Sa’adi stated his department’s intention to join in the effort to ease the issuance of business licenses in the emirate. This move is included in Dubai’s strategic goals and should facilitate economic growth and activities.

Reports put Q1 2013 total commercial activities at 11,461 licenses and place general trade at the top of the list of ten licensed activities with 619 registered, followed by dyes & paints with 301 registered.

Inbound tourism was on top in the tourism sector, with 39 registered businesses, with travel & tourism agencies following, based on DED data.

Deputy CEO of the DED’s BRL sector, Saeed Matar Al Marri stated that business confidence is on the rise in Dubai, as continued infrastructure investments and competiveness levels are emphasized.

Some existing companies have ventured beyond traditional boundaries and a greater number of investors are recognizing ideal conditions for moving forward.

MENA Reports Improved Business Confidence

Business executives in the MENA region are seeing positive conditions, while other areas around the globe experience gloom.

Non-profit network Young Presidents’ Organization (or YPO) released a confidence index this week indicating a slight rise in optimism for MENA executives. Stronger oil prices and continued diversification in the economy of Saudi Arabia and other locations have helped to improve business sentiment.

YPO’s index rose by 1.9, to reach 60.3 points over the opening three months of 2013. Confidence declined during the first quarter of other major markets around the world, leaving MENA to stand alone with rising confidence.

Sentiment among CEOs fell by 4 points in the European Union, reflecting the continued state of uncertainty and the worry caused by Cyprus’ financial crisis. The index dropped in the US as well, falling 1/10 of a point to reach 60.9, indicating an expectation for moderate growth.

Some nations within the MENA region are showing signs of a growing economy. The UAE’s GDP reported 4.2 percent growth last year, while more businesses have announced staff expansion plans and rent and real estate rates have recorded a comeback.

Optimism seen among CEOs in the UAE, Oman and Saudi Arabia has supported the moderate increases recorded in the region. Levels of optimism dropped in Libya and Egypt.

Key MENA markets like the UAE and Saudi Arabia maintain growth, although levels in Saudi are higher than in the UAE. New regulations regarding expatiate employment in the kingdom should impact growth, and development will be carefully monitored, according to TNS Middle East and North Africa CEO Steve Hamilton-Clark.

Egypt experienced elusive business growth and expectations see the nation heading into negative territory over the medium term.

Executives report positive feelings about employment, fixed investment plans and sales. The confidence index covering sales in MENA moved up by 2.6 to reach 67.8 points, while the fixed investment and employment components moved up by 1.8 and 3.5 points.

YPO states that 51 percent of the service firms in the construction and manufacturing sectors have plans to expand staffing in the next year.

Small firms have the highest levels of aggression in terms of hiring, with 57 percent reporting hiring expansion plans. Only 33 percent of larger companies reported these plans and 45 percent of mid-sized companies.

Forty-four percent of CEO’s included in the index reported higher levels of capital spending plans for the coming year. Across the globe, only 40 percent of companies reported the same intentions.

Dubai Expo 2020 Expected to Create More Than 277,000 Jobs

Dubai Expo 2020 could create more than a quarter of a million jobs, according to a recent Oxford Economics report covering economic impact.

According to the report, just over 77,000 jobs will be opened up from this year through 2021. Expectations state that forty percent of those will be found in the travel & tourism sector.

A majority of the total jobs created will come from 2018 to 2021, as the Expo 2020 event nears. Attendance is forecasted at 25 million people and demand should rise in that time. The travel & tourism sector is expected to create 147,000 jobs, with a significant chance of permanence to serve the post-Expo economic expansion.

The report also outlines the positive impact experienced across the wider region. For each Expo employee, approximately sixty additional positions are sustained around other areas of the regional economy.

Minister of State in the UAE, Reem Al Hasemi, commented on the report, stating that the event will create a legacy within the UAE and beyond. The theme “Connecting Minds, Creating the Future” indicates the intention of collaborating and building partnerships with world players to create sustainable development. Dubai Expo 2020 is set to drive significant trade, investment and employment opportunities across the entire region and create a lasting impact on the MENA economy, according to Al Hasemi.

Dubai World Trade Centre CEO Helal Saeed Al Marri stated that tourism remains an important support for the Dubai economy, contributing to Dubai’s diversification, growth and success.

Infrastructure, connectivity and geographic location remain points of strength for Dubai, allowing Dubai Expo 2020 to bring in 25 million attendees in the half-year period from October 2020 to April 2021. A majority of these visitors come from outside of the UAE, approximately 70 percent. This is the first time the event has attracted so many foreign visitors and this added demand is expected to create significant employment opportunities, as well as new incentives and attractions within the UAE’s travel & tourism sector and beyond.

Strong oil prices and high public spending boosted Oman’s GDP by nearly 11.5 per cent in current prices in 2012 and both oil and non-oil sectors recorded high growth rates.

Official figures showed the Gulf country’s nominal GDP expanded to around RO30.03 billion (Dh294 billion) last year from RO26.9 billion (Dh263 billion) in 2011.

The figures by the national statistics and information centre showed the oil sector grew by around 10.9 per cent and the non-hydrocarbon GDP by nearly 12 per cent mainly because of a surge in public expenditure.

A breakdown showed there was an increase of 16.4 per cent in the services sector, four per cent in manufacturing, 15.3 per cent in trade, 15.8 per cent in health and education services, 12.3 per cent in transport and storage, 10.5 per cent in financial brokerage services and 14.9 per cent in hotels and restaurants.

High oil prices allied with an increase in output allowed Oman to record its highest fiscal surplus of around RO3,222 million (Dh31 billion) in 2012 compared with an actual deficit of RO113.2 million (Dh1.09 billion) in 2011.

The surplus last year was mainly a result of a 33.8 per cent increase in oil export earnings to nearly RO10.43 billion from RO7.79 billion due to higher prices and growth in Oman’s oil production to 918,000 bpd from 884,000 bpd.

The price of Oman’s crude rose to an average $109.6 a barrel from $102.9 in the same period and this boosted the country’s total actual revenue by about 31.6 per cent to RO13.98 billion from around RO10.62 billion.

Oman, which controls nearly five billions of proven oil reserves, expects to boost spending in its 2011-2015 development plan by a whopping 113 per cent as it forecasts high oil prices and is pursuing plans to boost crude output.

Funds accounted for quarter of total remittances out of GCC in 2012

Asians and other expatriate workers in the UAE siphoned out nearly Dh70.5 billion in 2012 to turn the country into one of the largest foreign currency source for the labour exporting countries, a senior UAE official has said.

The remittances transferred last year accounted for nearly a quarter of the total funds of around $80 billion (Dh294 billion) remitted home by foreign workers in the six-nation Gulf Cooperation Council (GCC) last year, said Sheikh Mansour bin Zayed Al Nahyan, Deputy Premier and Minister of Presidential Affairs.

Addressing a foreign labour conference in Abu Dhabi on Tuesday, he said the UAE and the other GCC members host more than 15 million expatriate workers, adding that they constitute a major source of hard currency for their countries.

“These workers are contributing to the development of our countries and at the same time benefit from job opportunities here to support their families and countries.”

He said the GCC, which controls over a third of the world’s proven oil wealth, emerged as the world’s third largest group in terms of foreign remittances, which accounted for nearly 15 per cent of the total global remittances in 2012.

The UAE, the second largest Arab economy, had more than seven million expatriates at the end of 2012, accounting for over 80 per cent of the total population of 8.2 million.

Bahrain, which last year boosted state spending to quell political unrest, urgently needs to reform its economy to stop its debt burden becoming unsustainable, The International Monetary Fund said.

Bahrain upped its original 2012 expenditure plan by nearly 19 percent in September 2011 after protesters inspired by the Arab Spring revolts took to the streets of the capital Manama to demand political reforms.

As unrest continues to simmer among the country’s majority Shi’ite population, the Fund said more belt-tightening was needed in addition to the almost 6 percent cut in spending planned for 2013.

“Overall fiscal deficits are projected to widen and public debt is estimated to continue on a rising path that could become unsustainable, reaching 61 percent of GDP as early as 2018,” it said in a report published late on Wednesday following regular consultations with the kingdom.

“There is therefore an urgent need for a gradual fiscal consolidation over the next three two-year budget cycles, of about 7.7 percent of GDP.

That should stabilise government debt at 40 percent of GDP over the medium term but needed to be accompanied by reforms to the subsidy-rich economy.

Authorities should also look to “contain public-sector wage increases, increase non-oil revenues, rationalize capital expenditures, and place the pension fund on a sustainable path,” the IMF said.

The small non-OPEC oil exporter registered a narrower-than-expected budget gap of 2.6 percent of gross domestic product in 2012, but the IMF said the fiscal situation still posed sustainability concerns.

“Halting the fiscal deterioration and putting government debt on a sustainable path will depend critically on the adoption of measures that have high fiscal saving potential,” the Fund said.

Bahrain’s fiscal break-even oil price reached critical levels of $115 per barrel in 2012, making the small island vulnerable to a sustained decline in oil prices, the IMF said, adding it supported the government’s plan to establish a debt management office at the finance ministry.

Bahrain relies on output from the Abu Safa oilfield shared with Saudi Arabia – which supports Bahrain’s Sunni rulers politically – for some 70 percent of its budget revenue. Analysts have Manama’s share could be raised if its budget runs into trouble.

The Fund expects Bahrain’s fiscal shortfall to widen to as high as 8.6 percent of GDP in 2018 from 4.2 percent forecast this year. It sees public debt at 35.7 percent of GDP in 2013.

Saudi nabbed third spot in terms of financial reserves, coming in behind China and Japan with $541 billion in assets at the close of last year. The kingdom’s assets surged due to rising oil output and prices.

SAMA controls Saudi’s gold and cash reserves and reported a surge of almost 21.5 percent from 2010 to 2012. China came in with $3.2 trillion and Japan reported $1.3 trillion, according to statements made by Fadi Al Ajjaji, economist.

Saudi Arabian reserves were more than 170 percent of the reserves under the control of all Euro members. On a global scale, at the end of 2001 Saudi reserves accounted for 0.8 percent of total global reserves. That figure jumped to 5.1 percent by the close of 2011. Preliminary figures report a rise to 6.16 percent by the close of last year and forecasts state the reserves will continue to grow, reaching 6.5 percent by the end of this year.

Oil export earnings peaked around SR 1.24tr, resulting in a substantial SR 374bn budget surplus. Average oil prices for 2012 went above $100 per barrel, almost 50 percent higher than the crude price required to break even.

Crude output in Saudi also rose to a record high 9.8 million barrels per day annual average. That figure is 0.5 million above the previous year’s average.

The asset gain recorded in 2012 is the second largest gain in four years, since a 50 percent spike in crude prices back in 2008 resulted in a surge of SR 513bn. Assets rose by SR 352bn in 2011 and SR 135bn in 2010, both significantly lower than the 2012 growth.

Driven by robust oil prices, the Kingdom announced record high budgetary figures of SR 820bn for this year. Analysts forecast that actual spending will far surpass levels seen in previous years. Saudi’s budget reports revenues of SR 829bn and an SR 9 billion budget surplus.

Private Sector Output Swells in the UAE

The section of the UAE’s private sector that does not produce oil recorded higher levels of output in April, continuing an expansion trend from the previous month.

New orders rose significantly, and employment levels increased at a rapid pace not seen in the last two years. The rate of increase decreased to the slowest levels of the last twelve months.

The HSBC UAE PMI rates the service and manufacturing sectors’ performance and dropped from 54.3 in March to 54 in April. The PMI also indicated that operating conditions will continue to improve across the UAE. This data continues the trend of improvement seen in the last 44 successive reports, although the most recent reading was the lowest recorded in five periods of the survey.

HSBC’s Chief Economist for MENA, Simon Williams, noted that the recent solid results indicates an economy sticking to the same momentum.
Levels of output in the non-oil private sector of the UAE continued to rise in the most recent survey period. Higher numbers of incoming new businesses and enhanced market conditions supported the most recent rises in output, according to the panellists involved.

April figures for order book volumes rose, although the pace is slower than other points in the year. Enhanced efforts from sales teams and positive market conditions have driven the growth of new work, according to the panellists. Reports of sluggish conditions in export markets have resulted in slower growth rates in new business from abroad.

Private sector firms in the UAE reported for the second month that outstanding business levels have dropped, linking the lower levels of work-in-hand with bringing on new staff and improving efficiency levels. Delivery times for suppliers improved, as per recent patterns. Unreliable reports indicated that improved levels in average lead times were a result of quicker payments and long-term supplier relationships.

Employment levels also rose in April, and job creation rates sped up to a high not seen in two years. April’s overall input price levels came in higher and rose sharper than the previous month’s rate. Purchase prices rose as a result of general inflation, and staff cost inflation rates sped up. The output prices recorded in the non-oil private sector of the UAE dropped for the second month in a row.

Results from the new export orders index indicated that new exports are set to increase. This increase was a result of enhanced marketing efforts and expansions in some firms, based on subjective evidence.

Williams noted his concern for the softer export reading, but stated that strong results in new orders, employment and output pointed to overall growth of about 4 percent for 2013, with Dubai leading in performance.

First Quarter Profits Double for Dubai Investments

Dubai Financial Market’s largest listed investment firm, Dubai Investments, reported first quarter profits surged 97 percent this year, reaching Dh 211 million.
The investment firm posted a profit of Dh 107 million in the first quarter of 2011.

Consolidated total income for Q1 came in at Dh 649 million, higher than Q1 2011 figures of Dh 566 million. At the end of March, total assets came in at Dh 12.5 billion, and net worth rose to Dh 8.7 billion.

Restatements of assets and liabilities came after deconsolidation of joint ventures, yet had little impact on net worth or profitability of Dubai Investments. The annual rate for return on share capital reached 23.6 percent in the first quarter, significantly higher than the full year rate of 9.0 percent for 2012.

Dubai Investment’s CEO and Managing Director Khalid Kalban stated that every sector of the firm’s business contributed to the growth reported, although real estate performed “exceptionally well.” A positive market sentiment and overall economic growth presented good opportunities for the company’s diversified business base. Dubai Investments continue to monitor marketplace developments, aiming to capitalize on the opportunities available.

Kalban noted that outlook for the balance of 2013 excites management, who continue to work on divestments forecasted to result in healthy returns in the future. A Sukuk valued at $300 million is in the finalization stages before issuance, planned by a Dubai Investments subsidiary.

Dubai World Central handled a total of 53,974 tonnes of freight in the first three months this year, a year on year increase of 7.8 per cent compared to 50,062 tonnes that passed through the facility during the corresponding period in 2012.

The moderate growth is the result of the high base of traffic developed following two years of rapid expansion as well as the periodic fluctuations of freight volumes carried by charter-driven operations during the period under review. Air traffic movements at the airport rose 16.8 per cent to 4,104 in the first three months of 2013 compared to 3,513 movements during the first quarter of 2012. Dubai Airports’ total cargo volumes are expected to top 3 million tonnes by 2015 and an increasing portion of that growth is expected to spill over to DWC.

Dubai: UAE trade with GCC countries through Dubai is estimated at Dh95 billion in 2012 up 28 per cent compared to the previous year. Saudi Arabia accounted for 41 per cent of overall trade, Dubai Exports , An Agency of the Department of Economic Development (DED) said yesterday.

While the UAE-GCC non-oil trade has remarkably increased in the last ten years to Dh469.1 billion.

Saed Al Awadi, CEO of Dubai Exports , said that Qatar is a major trade partner to the UAE as it represents 16 per cent of the overall trade with GCC.

He said: “Qatar’s trade with UAE grew by 50 per cent to Dh9 billion in 2012 from Dh6 billion in 2011 while export between the two countries alone has reported 31 per cent increase in 2012 compared to 2011.”

During the Intra GCC Trade Partnership Summit, which was organised by Dubai Exports on the side line of Project Qatar Exhibition this week, Al Awadi talked about Qatar’s market contribution to the GCC construction sector as well as a potential for cooperation in areas of expertise and manpower.

Currently Qatar has projects worth $150 billion (Dh550.5 billion) in the construction and commercial sectors.

New research reveals the top cities for millionaires and billionaires, and Dubai features among the Top 20 cities in the world for billionaires.

The London based wealth consultancy WealthInsight has released a comprehensive list of the top 20 cities for millionaires and billionaires worldwide.

With 11 billionaires living among us here in Dubai, the emirate ranks at No. 16 in WealthInsight’s ranking of the global cities with most billionaires, along with San Francisco and Dallas, which too have 11 billionaires each, according to the report.

A Forbes ranking of billionaires in March said the UAE had 7 billionaires in all, but this new WealthInsight report suggests that there are 11 billionaires in Dubai alone, which is ranked ahead of Houston and Sao Paolo (10 billionaires each).

New York tops the list of cities with most billionaires, with 70 of its residents claiming to sport that coveted status, followed by Moscow with 64 billionaires and London with 54 billionaires. Rounding up the top five global cities with most billionaires are Hong Kong (40 billionaires) and Beijing (29).

India’s commercial capital Mumbai features at No. 6 in the global billionaires rankings, boasting of no less than 26 billionaires among its residents. Mumbai followed by Istanbul (24), Shanghai (23), Paris (22), and Los Angeles and Shenzhen (19 billionaires each) in the Top 10 billionaires list.

WealthInsight provides detailed data and insightful analysis on the world’s High Net Worth Individuals (HNWI) and wealth sector.

According to the other rankings published by WealthInsight as part of the report, Tokyo tops the list of the top 20 cities for the world’s millionaires, with 461,000 millionaires at the end of 2012, followed by New York City with 389,000 millionaires. London, Paris and Frankfurt round out the top five.

Additionally, WealthInsight has also released a list of the top 20 cities for multi-millionaires (individuals with over $30 million each). London tops this list followed by Tokyo and then Singapore. New York City is surprisingly low on the list. According to WealthInsight analyst Andrew Amolis: “Tokyo tops our millionaire list and is surprisingly above New York. This is partly due to the fact that many wealthy New Yorkers live off the island in cities such as Greenwich”.

The energy sectors of Saudi Arabia and the UAE should receive major investments over the next five years. Almost $107 billion is marked for investments into oil, power and gas in the UAE, while Saudi Arabia plans to invest almost $165 billion into those sectors over the next five-year period, according to Apicorp data.

Apicorp estimated about $740 billion in energy-sector investments across the MENA region between 2013 and 2017. Although some nations experiencing political instability may affect that figure, oil producing nations in the region are spending more.

Ali Aissaoui, chief economist at Apicorp, noted that seven nations make up 75 percent of the total capital investment into MENA’s energy sector. Libya was excluded from that group, although Iraq was included.

The UAE retained second spot in terms of total investment, behind Saudi Arabia. Algeria came next, with Iraq, Qatar, Kuwait and Iran following.

Iraq’s planned investments of $6 billion remain far lower than the nation’s potential, according to Aissaoui. The Iraqi federal government recently passed legislation covering hydrocarbons and are moving toward more coherence in actions and policies. Oil issues between the federal government and the Kurdistan Regional Government must be resolved and bottlenecks within infrastructure dealt with before Iraq reaches higher levels of investment.

Apicorp’s study also stated that under-investments exist in both Kuwait and Qatar.

Prince Outlines Plans to Increase Exports and Capacity in Saudi Arabia

Production capacity and export levels are expected to increase in Saudi Arabia, according to comments made by Prince Turki al-Faisal. Production should surge from current levels of 12.5mn bpd to 15 mn bpd by 2020, and export levels should reach 10 mn bpd.

The kingdom has spent more than $100 bn on infrastructure within the petroleum industry, according to the Prince. This expansion has already boosted capacity.

Statements made by Saudi Aramco’s chief executive Khalid Al Falih contradicted the Prince’s comments. Al Falih spoke to The Wall Street Journal back in 2011, and noted that due to expansion plans in other oil-producing nations, Saudi would not increase capacity.

Prince Faisal pointed out that expansion in Saudi would allow the Kingdom sufficient capacity to replace the exports of Iraq, the second-largest producer in OPEC. Crude exports in Iraq dropped by 5 percent for March, reaching 2.417 mn bpd. Iraqi Oil Minister, Abdul Kareem Luaiby, noted that the nation’s oil exports are expected to increase to 3.4 mn bpd next year.

Back in 2008, as oil prices shot to record levels of $147 per barrel, plans for expansion in Saudi were examined, in order to reassure markets regarding supply levels and long-term security.

Oil markets closely watch the unused output in Saudi Arabia, especially when most of the remaining OPEC members are at full capacity.

Saudi Arabia remains the only OPEC member capable of significantly increasing output should market demand require that action. The kingdom currently produces around 9 mn bpd. When oil prices rose from 2003 to 2005, and again in 2007/2008, spare capacities in OPEC fell to historic lows.

Surplus of KWD 12 Billion for Kuwait as Demand for Oil Increases This Year

Crude oil prices remained fairly flat throughout March, but fell significantly last month. Kuwait exported crude (or KEC) prices dropped from a high level of $107 per barrel at the beginning of April to just below $100 by April 12. This low level has not been seen since last July.

Other benchmark oil blends fell, including Brent crude and West Texas Intermediate.

Factors related to demand caused these price declines. Demand softened during the refinery maintenance season, and the trend of reduced demand during the second quarter continued, with predictable results.

International organizations, such as the IEA (or International Energy Agency) and OPEC, have revised oil demand downward, partially due to softer economic news like job data in the US, China’s economic slowdown and renewed anxiety regarding European debt. But these falling figures also reflect rising concern for crude’s long-term outlook. Stronger environmental regulations, an end to the investment boom in China and structural issues in developed markets favor sources of alternative energy.

Downward revisions to growth rates for worldwide oil demand have not been sharp. The IEA expects growth just below 0.8 mn bpd, or 0.9 percent. Weakness in the European economy is expected to lead to lower consumption. OPEC also forecasts low levels of growth, and provisional data in the opening quarter of this year supports these expectations.

Although prices rose in Q1 of 2013, fundamentals in the oil market are forecasted to loosen up in the remaining quarters as a result of weaker economic outlooks and greater supplies from non-OPEC nations. Assuming global oil demand increases by 0.9 mn bpd, declining levels of OPEC production and aggressive augmentation of non-OPEC supplies, oil inventories around the globe are expected to increase by just 0.4 mn bpd this year.

On the other side, if oil demand comes in slightly higher than expectations, OPEC may maintain existing production levels.

Average prices for KEC stayed at $107 per barrel for the past fiscal year, although closing budget figures have yet to be released. According to data covering the initial eleven months of the past fiscal year, Kuwait’s surplus reached a new high of 18.8 bn, resulting partially from significant under-spending in miscellaneous expenditures & transfers. Spending may be revised higher when accounts close. Spending is still expected to come in around 10 to 20 percent lower than government expectations. Before RFFG allocations, the budget surplus from last year will be recorded between KD 12.9bn and KD 15.2bn.

Dubai: Over the past decade, Dubai’s non-oil trade with Africa increased by 700 per cent from Dh10.6 billion in 2002 to Dh84.8 billion by 2011, Hamad Buamim, Director General, Dubai Chamber of Commerce & Industry, said during Africa Global Business Forum 2013

“Over the next few years Dubai Chamber will target Africa to encourage more trade and investment flows with Dubai by opening a series of overseas offices in key locations across the continent. Our first, which is in the final stages of preparation, will open in Addis Ababa, Ethiopia, and will be followed by more over the next three to five years

“During the forum, five key sectors will be identified which present significant opportunities for investment. These are trade, logistics, tourism, agribusiness and finance. Taking each sector in turn, trade offers potential for Dubai businesses as the emirate is already the region’s main trade and transhipment hub, a position which can be expanded.

“Opportunities for investment in logistics come in line with potential trade growth as long distances and storage difficulties mean that great opportunities exist for warehousing and distribution services across Africa. Meanwhile, tourism is a pillar of Dubai’s economy and is continuing to grow as the emirate becomes a hub for international passenger flows from Asia (mainly China and India) and Europe into Africa. Emirates airline flies to 23 different Africa destinations and is a key element in increasing this connectivity.

“Agriculture is a major employer and GDP earner for most African countries and it has the potential to drive the continent’s development. The UAE imports more than 80 per cent of food, spending Dh25.5 billion on food imports in 2010, plus it is the re-export hub for GCC food imports. As such there is tremendous scope to invest in this sector.

Moreover, he remarked that finance is an under resourced sector in Africa generally. “Obviously, some countries fare better than others, but on the whole opportunities exist for Dubai to export its expertise in this sector and in Islamic finance in particular.”
Dubai gateway

“Dubai’s location is a gateway into and out of the African continent. Historically, Dubai has always been a major transit point for goods and trade flows from Africa, and this is a role that we are seeking to build on over the coming years,” Buamim said.

Global firms looking to do business in Africa can use Dubai as a stable and secure base and likewise, African firms can use the emirate to reach other global destinations, he added.

The city’s extensive infrastructure and modern banking, financial and legal systems, offer good protection to investors and facilitate the ease of doing business. There are a number of successful companies already doing this including Nestle, Louis Dreyfus, one of the world’s largest commodity traders, and MiDCOM Group, the largest Nokia distributor in Africa and Middle East (MEA) region, who all base their Africa office in Dubai.