Spanish exports to UAE grew steadily in Q1

After a weaker performance in December 2007, when Spanish exports to the UAE barely reached $85m, figures have been consistently recovering throughout the first months of the year, with March figures hitting $162.1m, well above the outcomes reached in the same period a year before. April´s figures, the latest available, confirm the positive trend, standing at $159m.

Semi-manufacture and equipment industry accounts for the largest share of Spanish exports to the UAE, with iron and steel, chemical products, mechanical and electric machinery being the most demanded Spanish products in the UAE, followed by mineral combustibles and clothing. UAE´s construction boom has contributed to increase the exports of Spanish building materials and construction-related machinery. Despite efforts made by the UAE to drive up its industrial output, the acceleration of the Emirati real estate sector still offers plenty of scope for Spanish building materials exporters.

The Spanish aircraft industry has also been boosted in the first quarter, with sales to the UAE standing at more than $38m in March. Aeronautic commercial relationships between both countries have been boosted in 2008, following the sale of several Spanish multi-mission military airplanes to the UAE at the beginning of the year. The signing of an Air Services Agreement (ASA) and MoU between the UAE and Spain in October 2007 has also contributed to strengthen commercial relations in that field.

Regarding Spanish imports from the UAE, January 2008 witnessed a remarkable increase, reaching $67 m. February and March stand at $9.6m and $8.2m respectively, while April experienced a slight growth hitting $13.8m.

UAE exports to Spain are overwhelmingly dominated by mineral combustibles, accounting for almost a 64% of the total. Combustibles are followed, by a landslide margin, by aluminium products and derivatives. Recent investments made in the aluminium industry reflect the high demand of this product in the UAE and abroad.

Investments up

Spanish investments to the UAE have also experienced a remarkable progress in the first months of 2008, exceeding $11m between January and March. Considering the modest investment flows that are currently prevalent between both countries, the first quarter of 2008 represents a remarkable performance. In only three months, Spanish investments in the UAE were half the total amount registered in 2006 and 2007 together.

Spanish investments in the area are mainly focused on the energy, water and electricity sectors, basing on engineering activities that are highly developed in Spain, such as sewage treatment, water desalination and renewable energies.

UAE investments to Spain remained stable in the same period, standing at $4.87m, a value that is in line with recent years´ figures.

Commercial, economic and investment links between both countries are yet to reach a step further, as major agreements have been signed throughout the first months of the year by key Spanish companies and their UAE counterparts. These include the MoU signed by Mubadala and Indra, a Spanish leading information technology and Defence systems company; an agreement signed by Taqa and Spain´s leading renewable energies company Iberdrola; and an institutional agreement between the Abu Dhabi Chamber of Commerce and the Spanish Confederation of Enterprises (CEOE).

The three deals are aimed at exploring business and investment opportunities, and were struck on the sidelines of the official Spanish delegation to the UAE, headed by H.M. the King Juan Carlos in May.