TheCable

Mohammad Lootah, the president and chief executive officer of Dubai Chambers, says a representative office has been opened in Lagos, Nigeria, to enhance cross-border partnership between both economies.

The Lagos office is Dubai Chambers’ seventh in Africa and 28th worldwide.

Lootah, who spoke on Thursday at the ‘Doing business with Nigeria’ event organised by the Lagos Chamber of Commerce and Industry (LCCI), said the establishment of the representative office was driven by the economic ties between Nigeria and Dubai.

According to Lootah, the representative office will create a channel for communication and economic cooperation between the two countries.

He said: “Dubai and Nigeria already share a strong economic relationship, with non-oil bilateral trade reaching a value of US$ 2.1 billion in 2022. This represents a remarkable annual growth rate of 39.3 percent, underlining the deepening connections between our business communities.”

“This upward trajectory is also reflected in the increasing number of Nigerian companies registered as members of Dubai Chamber of Commerce. At the end of September 2023, more than 550 businesses from Nigeria were registered, including 75 new member companies that joined during the first nine months of this year.”

He said the Dubai Chamber sees tremendous opportunities to strengthen cooperation and boost cross-border trade and investments across a wide range of sectors.

“Today, I am pleased to lead a delegation that is eager to find out more about doing business with your great nation. We also aim to provide ambitious entrepreneurs and business leaders from Nigeria with valuable insights into doing business with Dubai and explain how our new office in Lagos will support businesses in both markets,” Lootah said.

“We are here to learn from each other, and there will be plenty of opportunities for you to share any questions with our expert speakers and the Dubai Chambers team. Please don’t hesitate to approach us during today’s breaks and networking opportunities, it will be our pleasure to assist you.

“Nigeria offers the perfect launchpad for companies seeking to do business in West Africa and I am looking forward to our matchmaking sessions later today, which create an exciting opportunity to connect with potential partners and unlock mutual success.”

‘UAE IS A CENTRAL HUB FOR NIGERIANS’

Also speaking at the event, Babajide Sanwo-Olu, the governor of Lagos state, commended the decision, stating that Nigeria and the United Arab Emirates (UAE) have enjoyed mutually beneficial relationships built on support and strong bilateral trade for more than forty years.

Sanwo-Olu said the bilateral trade is driven by Nigerian exports to UAE which he said include gold, crude oil and petroleum gas while we import equipment, cars and jewellery from the UAE.

“In terms of statistics, the value of Nigerian exports to the UAE as of 2021, stood at 276 million dollars, with a growth rate of 34.7 percent. On the other hand, UAE export to Nigeria stood at 1.36 billion dollars with growth rate of 21.7 percent,” he said.

The governor said the UAE is a central hub, particularly for Nigerians doing business in the Middle East and related markets.

Speaking on the role of Lagos in Nigeria-UAE bilateral relations, Sanwo-Olu said the state plays a strategic role as a major destination for most of the imports from the UAE.

He said: “With its status as the economic heartbeat of Nigeria, Lagos is a land of immense investment opportunities and potentials, having a huge market driven by an active and highly mobile population exceeding 20 million; many of whom are high and middle-income earners.”

Sanwo-Olu said investing in Lagos state is investing in a gateway not only to Nigeria but the entire African continent.

He said a partnership with the UAE presents an opportunity for kicking off a mutual relationship that will be incredibly beneficial to both entities.

NIGERIA IS UAE’S ENTRY POINT TO AFRICA

Michael Olawale, president and chairman of council, LCCI, thanked the UAE for choosing to set up the representative investment office in Nigeria, saying the African nation can serve as UAE’s entry point to Africa’s large market — leveraging the African continental free trade area (AfCFTA).

Olawale said Nigeria and UAE share many commonalities as both oil economies began to emerge in the second half of the 20th century.

“However, while UAA has a population of 9.4 million with advanced infrastructure, Nigeria on the other hand, has a population of about 220 million with huge infrastructural deficit and opportunities,” He said.

“In terms of trade, Nigeria and United Arab Emirates share a unique and deep trade and investment relationship. This significantly grew in the last decade with bi-lateral trade volumes currently in excess of USD1.5 billion in 2022.

“In fact, Nigeria’s trade with Vietnam accounts for almost 15% of its total trade with Africa, a clear reflection of Nigeria’s position as one of the biggest trading partners with UAE and the largest economy in the continent.”

Olawale said Nigeria has undergone some reforms under President Bola Tinubu’s administration that are attracting foreign investors and will restore macroeconomic stability.

According to him, UAE investors and businesses need to explore more opportunities in the country, as some of the reforms were made to improve Nigeria’s competitiveness by resolving trade and investment barriers.

Olawale said the UAE investors should not only explore Nigeria “in terms of trade but also consider the possibility of investment in major economic sectors including agriculture, energy, oil and gas, telecommunications & technologies, solid minerals, manufacturing”.

He advised the investors to take advantage of numerous raw materials, huge market size and preferential tax policies for producing export goods.