United Arab Emirates strengthens its presence in Mozambique

Login

Register

http://www.clubofmozambique.com/

United Arab Emirates strengthens its presence in Mozambique

4:09 CAT | 11 Oct 2019

Photo: O País

In recent years, the United Arab Emirates (UAE) has been strengthening its presence in Mozambique – the seven-nation Middle Eastern country becoming in 2018 the third-largest exporter of diverse products to Maputo, O País reports.

The UAE investment level approved by the Agency for Investment and Export Promotion (APIEX) reached over one billion US dollars between 2014 and 2018, with 20 companies from the Arabic federation investing in the Mozambican market.

“Our investment has focused on energy, logistics and real estate. Also of note is our significant presence in the management of the Port of Maputo through DP World,” Abdulla Momade, representative of the Dubai Chamber of Commerce in Maputo, told O Pais.

In terms of commercial transactions, the volume of trade between Mozambique and the United Arab Emirates is reported to be around US$700 million. In 2018 alone, trade between the two countries stood at US$500 million.

Traditionally, the Persian Gulf country exports to Mozambique such products as lubricants, various machinery and motor vehicles, and buys from Mozambique in return ores, tobacco, aluminium, precious stones and agricultural products.

Interest in oil and gas

The start of production of liquefied natural gas and allied projects in the Rovuma Basin in Cabo Delgado, northern Mozambique, is slated for 2023. Operators of the Area 1 and Area 4 blocks expect to invest close to US$60 billion.

With Mozambique entering the list of the world’s largest hydrocarbon producers, there is a growing interest in being part of the business. “We want to partner with Mozambican companies, in particular small and medium enterprises (SMEs). We understand that our experience in oil and gas could be an asset to Mozambique,” Momade says.

In addition, the United Arab Emirates is willing to assist Mozambican SMEs in the certification process with a view to providing various services to oil companies.

“We want to import our know-how and build strategic alliances in business and other fields of bilateral cooperation,” the representative of the Dubai Chamber of Commerce in Maputo adds.

The UAE’s first step into the Mozambican gas business came in March this year through a business mission from Dubai (one of the seven UAE capitals) to Maputo.

At the end of the visit, the businesspeople of Dubai promised to develop logistics appropriate to development of Mozambique’s hydrocarbon industry.

“We are looking at opportunities in the hydrocarbon industry. We want to help with our extensive experience in this sector by providing logistics for gas and oil projects,” Director of Dubai Chamber of Commerce international offices Omar Khan says.

Dubai’s Global Business Forum on Africa

On November 18 and 19, Dubai will host the fifth edition of the ‘Global Business Forum on Africa 2019’, an event which President of the Republic Filipe Nyusi and senior government figures may attend.

A total of 20 African heads of state, over 90 ministers and 6,000 businesspeople have already confirmed their presence at the entrepreneurship event.

By Edson Arante

Source: O País