Dubai, a land of opportunity

Dubai is a land of great opportunity for Thai firms, especially those involved in construction and related businesses such as furniture and cement, spas, food, home appliances and auto parts.

Such is the potential that the Department of Export Promotion (DEP) will create a plan to encourage businesses to invest there, says the Thai Trade Centre in Dubai, the commercial arm for the DEP.

Executive director Pilun Bhanich Supapol said exports to the United States were likely to slow in the next few years because of the perceived economic recession. That means the DEP has to seek new export markets, and Dubai and the wider United Arab Emirates (UAE) are interesting targets.

"Dubai can't help but import goods from other countries because the country is not good for agricultural [production]," he said.

"Thailand's current exports to the US account for 25 per cent of total export volume, while exports to Dubai take up only 3 to 4 per cent. We can't neglect Dubai as an important export market and the volume could rise to equal exports to the US in the future. The department will focus on important sectors," he said.

The UAE administration is accelerating development with a lot of new buildings, including offices, hotels and serviced apartments, with the aim of making the city a top tourist destination. That will be its main revenue source instead of oil in the future.

Pilun said Dubai needed construction workers and engineers as well as construction firms from around the world, and very soon it will seeking supplies of furniture and home appliances as well as service staff for spas and the like.

Thai construction firms such as Italian-Thai Development, Nawarat Patanakarn and Power Line Engineering are already working in Dubai.

Last year, Thailand exported products to the UAE worth US$7.7 billion (Bt240 billion), a 29.1-per-cent rise over the previous year. Construction materials topped the list at 22 per cent of total exports while food and beverages were in the top five with 6 per cent. The DEP expects the value of exports to Dubai to hit $9.22 billion this year, a 19.6-per-cent increase.

"The UAE's population has high purchasing power while the government encourages direct investment from international firms. It is a great opportunity for Thai businesses and we recommend they seek local partners for investing because most enterprises require huge money. Meanwhile, the DEP will create a plan to support Thai businesses interested in doing business in Dubai," Pilun said.

According to an article published last month entitled "Positive growth ahead for Dubai despite economic meltdown", Dubai is the world's fastest-growing city despite the global economic slowdown.

Dubai Department of Tourism and Commerce marketing director-general Khalid Bin Sulayem said during the World Travel & Tourism Council's Global Travel and Tourism Summit last month that Dubai last year recorded more than 7 million hotel guests.