Japanese companies in Dubai increase by 63 per cent

"There are currently 85 Japanese companies in Dubai, 37 of which are 100% ownership marking an increase of 48% since 1998, and 48 are partnerships, marking an increase of 77.8% since 1998", commented Mr. Al Mutaiwee. "Although they have increased by 63%, I believe that Japan can further strengthen its presence in various sectors in Dubai", added the Director General of DCCI.

This came in a meeting with the newly appointed Managing Director of the Japan External Trade Organisation, Mr. Yoshio Minagi and Mr. Nobuo Sato, the former Managing Director of JETRO. Mr. Al Mutaiwee praised the important role JETRO has played in strengthening the Japanese position in Dubai and in supporting the Japanese companies based in the emirate. Although, The Director General of DCCI emphasized that Japan's economy has suffered due to the currency fluctuation the Japanese Yen has witnessed, which has caused Japan to lose its position as the top trading partner with Dubai.

Mr. Al Mutaiwee highlighted that although Japan's trade with Dubai has not decreased in the last few years, countries like China and Korea have strengthened their position weakening Japan's presence. Although he pointed out that in reality, Japan is still Dubai's number one trading partner as many Japanese companies produce Japanese products from other countries in the subcontinent which somewhat distorts the true statistics.

On that subject, Mr. Minagai explained that many Japanese companies have followed that trend in the search for cheaper production and manufacturing costs, such as those available in Malaysia and Korea.

In that regard, Mr. Al Mutaiwee called on JETRO to encourage more Japanese companies to penetrate Dubai's markets rather then seek manufacturing and exportation grounds else where, as this would help strengthen Japan's position in the whole region. "Japan has taken the lead because it concentrated on high-tech and automobile sectors, although it is now facing fierce competition from countries like Korea which have successfully penetrated the international markets with high quality brands, such as LG and Daewoo" added Mr. Al Mutaiwee.

Mr. Minagai emphasized that Japanese companies recognize Dubai as one of the best markets to enter, and suggested that a more stable currency will improve the Japanese economy, hence strengthening trade relations with Dubai and other countries in the region. He added that JETRO will do whatever possible to develop and strengthen relations between Japanese businessmen and their counterparts in Dubai. Mr. Al Mutaiwee affirmed that JETRO can call on the Dubai Chamber anytime for support in achieving this goal.