JSC “QazTrade” together with the Ministry of Trade and Integration of the Republic of Kazakhstan held an exhibition of Kazakhstani goods and a trade and economic mission in the United Arab Emirates.
Products and their export opportunities within the framework of the national exhibition of Kazakhstani manufacturers and TEM, timed to coincide with the National Day of Kazakhstan at EXPO 2020, were presented by about 30 companies in mechanical engineering, food industry, light, medical and IT industries. All companies are presented in the Small and Medium Business category. A significant part of them are participants in the QazTrade Export Acceleration program.
The trade opportunities of Kazakhstan were also presented to the business circles of the UAE by the Vice Minister of Trade and Integration of the Republic of Kazakhstan Kairat Torebayev. He noted that the United Arab Emirates is in first place among the Arab countries of the Persian Gulf in terms of trade with Kazakhstan, and in the coming years both states intend to significantly expand their trade partnership. “Through also a tax-free system and a strong economy and the demand for Kazakh goods in the UAE, the Emirates is one of the most popular destinations for Kazakhstani businessmen is justified” Torebayev emphasized.
On the main day of the trade and economic mission of the Republic of Kazakhstan, Vice President for International Relations of the Dubai Chamber of Commerce Hasan Al-Hashemi spoke about the market potential of the United Arab Emirates. He noted that Dubai is interested in expanding cooperation with the Republic of Kazakhstan.
– Our residents already know that if they say Kazakh meat and Kazakh flour, it means a quality product. We are waiting for quality goods in the Emirates, we have very demanding customers, – said Mr. Al-Hashemi.
Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to the UAE Madiyar Menilbekov noted the intensification of trade cooperation between the two countries in recent years.
– Every year we note an increase in the number of long-term contracts for the supply of products from Kazakhstan to the UAE market. In addition, more and more Kazakhstani companies are opening representative offices and offices in Dubai and Abu Dhabi, – stated Ambassador Menilbekov. So, during the days of the exhibition of Kazakhstani commodity producers and the trade and economic mission, the Kazakhstani company “Optograd” opened a food hub – Food Vault, for storage, distribution and promotion of Kazakhstani goods.
For reference:
Over the past 5 years, the trade turnover of the manufacturing industry between the Republic of Kazakhstan and the UAE has increased by 21%, while exports by 16.3%, imports by 41.3%.
For 9 months of 2021, trade grew by 46.2% compared to the same period last year. In the structure of non-primary goods turnover, exports account for 88.2%. The main export goods from Kazakhstan to the UAE are: copper and cathodes made of copper, lamb or goat meat, beef, tobacco and its substitutes, tobacco extracts and essences, fittings for pipelines, oil products, insulated wires, cables, ferroalloys, parts for internal combustion engines, road and construction machinery, piston internal combustion engines.
Currently, the register of companies that are allowed to supply red meat and poultry meat to the UAE includes 9 Kazakhstani companies. Work continues to increase the list of enterprises eligible for export. Today, Kazakhstani meat products are presented in restaurants Cipriani, Laduree, Isola, Maison Mathis, STK, BB Social Dining. It is also available for UAE buyers on the shelves of large retail chains “Lulu” and “Carrefour”.
As part of the trade and economic mission, Kazakhstani producers were introduced to the peculiarities of the technical regulation system, licensing and certification of products in the UAE market (certification agency “GULFTIC”). They also presented the capabilities of the Dubai Global Connect infrastructure, including an electronic platform for wholesale B2B trade.
About 90 resident companies of the United Arab Emirates took part in the events of the two days of the Trade and Economic Mission: traders, logisticians, representatives of retail chains, ferret (hotels, restaurants), representatives of the textile industry, food industry, etc. During bilateral meetings of Kazakhstani and Arab business, it was repeatedly noted that the UAE for Kazakhstani exports is considered as a hub for expanding its presence in other countries of the region: Oman, Qatar, Yemen, etc. Therefore, when assessing the trade potential of Kazakhstani companies, the counterparties assessed the possibility of supplying products from Kazakhstan not only to the UAE market, but also to the markets of neighboring states.
For reference:
The export potential of Kazakhstan to the UAE for only 100 types of goods is estimated at $ 336.5 million.
As a result of the events, 7 trade agreements were signed for a total of $ 20 million. In addition, a long-term contract was signed for the supply by a Kazakh company to a buyer from the UAE of microspheres (products obtained as a result of processing ash and slag waste generated during coal combustion).
At the same time, the costs of organizing TEM in the UAE within the framework of service support for exporters amounted to about 64 million tenge, the volume of concluded contracts exceeded over 20 million dollars, that is, more than 8.7 billion tenge.
Thus, one tenge spent on service support of exporters accounts for over 136 tenge of exports.
In general, at the end of 2021, within the framework of service support for exporters and export development, 10 Trade and Economic Missions were organized (Tajikistan, Russia (Yekaterinburg, Kazan, Moscow), Uzbekistan, Turkmenistan, Azerbaijan, Iran, UAE), and online business forums with Armenian and Tajik business communities. In total, over 160 Kazakhstani exporting companies and over 900 foreign counterpart companies took part in these meetings. The volume of contracts signed since the beginning of the year amounted to more than $ 170 million. A number of contracts are also being prepared for signing by the end of the year.
