It's business as usual in the United Arab Emirates

It's Business As Usual in the United Arab Emirates Despite the crisis in the Gulf and the effects it has had on the Middle East region, U.S. exports to the United Arab Emirates (UAE) continue to rise, U.S. export opportunities are increasing, and business has almost completely returned to normal. As Mr. Jack Greenwald, President of the American Business Council of Dubai, puts it, "The rulers and the government institutions have faced the crisis, made the hard decisions and have taken the necessary actions ... life and business continues to move forwar here with a sense of security, both economic and physical."

Through August 1990, U.S. exports to the UAE increased 4 percent to $642 million. This comes after the market explosion of 1989 in which U.S. exports to the UAE increased 74 percent to $1,240 million. In 1987 and 1988, U.S. exports to the UAE were $545 million and $711 million, respectively. Because the UAE dirham has been pegged to the U.S. dollar at Dh. 3.761 =$1 since 1980, U.S. exports to the UAE have become increasingly competitive. The United States has about a 15 percent share of the market.

Export opportunities exist for traditional exports such as cigarettes, oil and gas field services and supplies, passenger vehicles and parts, electrical power generation and transmission equipment, and parts for airplanes and helicopters. Recently, the continued increase in the UAE's re-export market and higher oil revenues have opened the door for exports of all kinds of consumer goods, military equipment, measuring and surveying instruments, computers and word processing equipment, medical equipment and services, telecommunications equipment, food, and live animals.

The future commercial outlook of the UAE is bright for several reasons. The government philosophy towards business is one of strong commitment to a free enterprise environment, and particularly to growth of the private sector and diversification into non-oil areas. The UAE is quickly becoming recognized as a regional entrepot and center for commercial promotion. As part of the regional economy of the Gulf Cooperation Council whose member states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE) are beginning to share a market in which goods and services flow relatively freely across national borders, the UAE's market is muich larger than the population alone would suggest. With an estimated 100 billion barrels of recoverable petroleum reserves, the UAE will be a significant oil producer well into the 21st century.

One way to tap into this market is by participating in a major trade fair. On Jan. 16-26, 1991, the Abu Dhabi International Trade Fair (ADIF '91) will highlight the growing importance of Abu Dhabi and the United Arab Emirates in world trade. ADIF '91 is an international fair organized by the Abu Dhabi Chamber of Commerce and Industry. The Chamber has organized a number of exhibitions in the past, but this will be the first trade fair of this magnitude ever held in the region.

According to the Exhibition Department of the Abu Dhabi Chamber of Commerce and Trade, participation estimates and responses so far have been exceptional. The fair is expected to attract an estimated 50,000 trade visitors not only from the Gulf area but also from the rest of the Middle East. Total exhibitor space will equal 17,000 square meters. For further information and participation details contact: Abu Dhabi Chamber of Commerce and Industry, P.O. Box 662, Abu Dhabi, United Arab Emirates; tel. 971 2 349292, fax 971 2 348512, telex 23896 ADEXPO CM.

Another fair is the Dubai International Aerospace and Defense Exhibition, Jan. 27-31, 1991. This fair is a repeat performance of the 1989 fair, where more than 200 aerospace firms exhibited. According to Dubai authorities, by mid-October 1990 more than 350 exhibitors had confirmed their participation. This show will put much emphasis on the defense aerospace sector because defense equipment spending in the region exceeds $60 billion annually. Attendees will not be only from the entire Middle East region but from Europe, the Soviet Union, and Asia. It is the only fair of its kind scheduled in this region in 1991. Competition in the aerospace sector is getting very tough in the Middle East, and the companies that attend this event may have a sharper edge on the market for years to come. For further information and participation details contact: Hans G. Hollander, American Aerospace Industries Inc., 550 Mamaroneck Ave., Harrison, N.Y. 10528; tel. (914) 698-9385, fax (914) 698-3979.

Commerce and SBA Schedule

Ten 'Matchmaker' Missions

For U.S. Companies in 1991

The U.S. Department of Commerce and the U.S. Small Business Administration (SBA) will be sponsoring 10 "Matchmaker" trade missions for U.S. businesses in 1991, including trips to Europe, Canada, and Asia.

On "Matchmaker" missions, Commerce and SBA pesonnel escort U.S. businesspersons overseas to meet with potential foreign buyers, agents, distributors, and joint-venture partners.

"Matchmakers can take the fear out of exporting. They are designed to show U.S. business owners how to succeed in overseas markets," said Susan Engeleiter, SBA Administrator. "They're an excellent opportunity for the novice exporter who wants to learn how to do business in a foreign country."

Matchmaker participants must be new-to-export or new-to-market in the countries being visited; send a company decision-maker with the delegation; sell products which are at least 51 percent U.S.-made; and pay a participation fee of between $1,200 and $1,600 plus travel expenses. Each Matchmaker focuses on a specific industry or group of industries.

The SBA provides $500 of financial support for the first ten qualified small businesses to sign up for each trip. "Matchmakers are a great overseas marketing tool, particularly for small businesses," Engeleiter said. "They save time and money and give results in a few days that could otherwise take months of planning."

For more information on these or other Matchmaker Trade Delegations, call your nearest SBA office or contact SBA's Office of International Trade at 1441 L St., N.W., Washington, D.C. 20416; tel. (202) 653-7794.

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