The UAE and Luxembourg have a long and rich history of bilateral relations grounded in robust trade and investments. The UAE-Luxembourg relations are driven by the strong interest of the leaderships to strengthen partnership at governmental and private levels, on top of enhancing economic coordination for activities at all levels. The last few months have witnessed an intensified set of deliberations between the two economic powers to promote investment, trade, and more extensive economic relations. The UAE and Luxembourg authorities are keen to develop deeper frameworks for economic cooperations and further the relations to promote common interests. Many experts and investment companies see this as a transformative event that will enhance both countries’ economic credibility and cooperative potential in the global arena.
Joint Economic Commission
A recent ministerial statement of the UAE has declared the intent to establish a joint economic commission to study and improve the potential areas of economic cooperation between the nations. The commission comes as a culmination of many agreements signed over the last few years, the most important of which is the agreement on economic, commercial, and technical cooperation. The commission will hold its first session on the sidelines of Expo 2020, which is expected to take place next year. The stated objective of the commission is to create newer and wide-ranging prospects and opportunities for the startup and business communities in both the UAE and Luxembourg, facilitate the enhancement of capabilities available to enable and support non-oil trade exchange, and diversify mutual investments as part of the post-pandemic economic recovery. The commission will also look at incentivizing businesses to study and exploit available opportunities and invest in sunrise sectors in both countries. An economic cooperation agreement to establish a formal, regular and quasi-institutional economic dialogue, which covers sectors including agriculture, industry, and tourism, was also signed between the countries. The intention to strengthen cooperation has caught the eyes of investment planners who are constantly looking for better investment opportunities.
Expo 2020
The upcoming Expo 2020 is expectedly anticipated to boost the inflow of investments into the UAE. The environment-conscious, sustainable, and innovative pathways that Luxembourg has been pursuing will be a great addition to the UAE’s search for renewable portfolios that are carbon-free and climate-aware. Luxembourg has decided to keep its Expo 2020 as a permanent building that will act as a lasting reminder of the cooperation between the nations. The Expo will be a unique platform for both countries to interact with each other and further common interests in favor of a more resilient and innovative Middle Eastern region.
Financial Cooperation
The UAE and Luxembourg have a range of complementary and mutually beneficial financial interests. The UAE’s diversified and internationally well-connected financial hubs are an essential gateway to the Middle East for European investors. Luxembourg will be able to gain access to an extensive and diverse financial market. UAE’s push for a knowledge-based, sustainable economy will benefit from Luxembourg’s knowledge base and expertise. To derive the best out of the developments, firms must carry out investment planning so that the common interests are mapped out and potential areas of enhanced cooperation are factored in before making investment decisions.
The deepening of trade and investment relations between the two countries will pave the way for better opportunities in various sectors, including renewables, digital economies, artificial intelligence, and the 4th Industrial Revolution. Both countries have been working towards better ease of doing business, and better cooperation between the UAE and Luxembourg will revitalize the investment scenario in the region.
