Juma Mohammed Al Kait, Assistant Undersecretary for International Trade Affairs of Economy Ministry of United Arab Emirates, answered our questions on the economic and commercial relations between the UAE and Türkiye and potential areas of cooperation.
Juma Al Kait serves as the Chief Trade Negotiator for the UAE and Assistant Undersecretary for International Trade Affairs at the Ministry of Economy. In this capacity, Al Kait supervises trade negotiations, monitors trade disputes, ensures enforcement of trade law, and keeps government, industry and nongovernmental organizations informed on UAE trade policy. He has played a pivotal role in nearly every major trade issue and trade legislation over the last 20 years, including the recently negotiated Comprehensive Economic Partnership Agreements with India, Israel, Indonesia, Georgia, Turkiye and Cambodia. He also leads the UAE’s participation in trade negotiations within the Gulf Cooperation Council (GCC) framework.
After the normalization process last year, we had a significant visit to the UAE by the Turkish side, led by President Erdogan. During that meeting, many promises were made for investments in Türkiye, including some defense industry investments. What is the recent position of the UAE regarding investments and international trade with Türkiye and the promises to increase capacity?
First of all, it is great to be in Türkiye and to take part in 3rd Ministerial Meeting of the TPS-OIC Trade Negotiations Committee. I would like to thank the Turkish government for all the arrangements they have made. It is good to see how Türkiye is also putting forward plans and suggestions to move trade between members forward. There are many good proposals that have been put on the table and discussed, related to trade in goods as well as facilitating investment and services. From the UAE perspective, we are enjoying a very good economic trade relationship between the UAE and Türkiye. I am proud to say that we have signed the Comprehensive Economic Partnership Agreement between the UAE and Türkiye, and we see this agreement entering into force. It is beneficial for both economies. We have noticed an increase in trade flow between the UAE and Türkiye, especially after signing this agreement. As you mentioned, there have been many high-level visits recently between both countries. The recent visits of the leaders resulted in the signing of a number of memorandums of understanding (MoU) and agreements in many different sectors. We think this is how the relationship should be. There are always ways of looking at new areas of collaboration. These MoUs will not only put our private sectors into looking at the usual way of doing business but also explore new opportunities in other areas that we don’t usually engage in.
What are the new areas for you?
When I say new areas, I mean new developments in the economy, such as technology entering into many different sectors, including the industrial sectors, healthcare, and the technology element in it, financial services, construction, agricultural technology, and many other areas where both sides can complement each other. Investing in Türkiye in some companies and trying to attract investment from Türkiye to the UAE, the UAE has provided several incentives to enhance the investment ecosystem. There are many opportunities as the UAE is expanding its development in infrastructure and connectivity. This represents a good opportunity for Turkish companies to benefit from this and operate in the UAE. We have captured this in the Comprehensive Economic Partnership Agreement. Turkish companies and UAE companies will enjoy beneficial treatment through this agreement, and this beneficial arrangement will not be extended to others. We have better treatment regarding trade, investment, and service suppliers between us.
Which specific sectors or companies are coming to the UAE?
As I mentioned, first of all, constructions, food processing, service providers like professional services, and other areas like hospitality, hotels, restaurants, and financial services. We have managed to secure a proper legal framework for our private sector to do business. This should be utilized further. It is our role as a government to make our business community aware of the benefits of this agreement. Exporters from both sides can now export products without customs duties in many sectors.
Both countries can export without customs?
Yes, according to the terms and conditions of the agreement.
Is it limited to specific sectors?
It covers most products. Additionally, there are MOUs signed earlier, which are considered a starting point for further collaboration in areas important to both sides, like renewable energy, sustainable development, and other areas related to the new economy. We can collaborate further in these areas and see trade and investment increase through these MOUs and the Comprehensive Economic Partnership Agreement signed between both sides.
I think it was almost $50 billion last year, the total of these MOUs. Which part of that has been implemented up to now, or is there an initiative?
Both sides are working towards implementing a number of those agreements. There are already a good number of MOUs that have been initiated and implemented. Things are moving on track, and there is a dedicated monitoring process for progress. We want to ensure that everything moves smoothly according to those MOUs and the vision of our leaders.
It’s almost one year, right?
Yes. From those MOUs, there were so many different sectors. In Türkiye, the defense industry was the most popular if the UAE would come and invest in the Turkish private defense sector. As I explained earlier, investment in all areas will be facilitated further. Investors from both sides will be able to communicate better and sign deals more efficiently. There are many things that can be done in the near future between both sides. It is important for me as a government representative to encourage both private sectors to engage further and explore new opportunities. The UAE has also signed agreements with many countries around the world, representing a golden opportunity for Turkish investors. Once they operate in UAE markets, they can expand their business through other markets where we have signed trade agreements. I am sure you are aware of what the UAE has been doing in terms of signing these agreements. We have signed with many countries in Africa, Latin America, and Asia. Turkish companies will benefit from this once they operate in UAE markets. The sophisticated infrastructure in the UAE will help Turkish products move better into other markets. It is a platform that will support the Turkish industry to expand internationally through the UAE.
After the normalization, do you have good trade relations with Qatar? What is your position with Qatar?
Economically speaking, we are doing business as usual with everyone. We enjoy very good trade relations with all Gulf Cooperation Council (GCC) countries, including Qatar. We have witnessed an increase in our bilateral trade. There are also efforts at the GCC level to enhance internal trade between GCC members. As you know, we have a customs union, economic agreements, and recent visits between our leaders have contributed well to our economic agenda. We recently participated in Doha, hosting some of the ministerial GCC trade ministers’ meetings, resulting in very good outcomes. So, things are moving very well.
