1,000 companies or branches of an Italian company in the UAE, and the value of trade exchange in 2023 will rise to $9.4 billion
An Italian official pointed out to Arabian Business the increase in the number of Italian companies active in the Emirates, and confirmed the increase in the volume of trade exchange between Italy and the Emirates, saying: “There are approximately 1,000 companies or branches of an Italian company in the Emirates, and it is worth noting that the value of trade exchange in the year 2023 reached 9.4 One billion US dollars, which is the most interesting headline figure, especially if you take into account that 7 billion US dollars of Italian exports to the UAE, which have been the main driver of the development of our trade exchange. Our exports increased by 10.45% in 2023 year-on-year, confirming the growing interest among our partner companies and customer base in the UAE in our products and services, especially when it comes to technology, consumer goods, food and beverages and fashion, in addition to comprehensive appearance products including clothing, eyewear and shoes. Accessories, etc., and some fast-growing sectors such as cosmetics, healthcare, and more.
Ziadeh also expected, pointing out that “the potential customer base targeted for the “Made in Italy” brand will witness further expansion, driven by the growth of the non-oil economy in the UAE and the rising demographic increase, with estimates that population growth in the country will exceed more than 10% during the next five years, according to to the International Monetary Fund. It is expected that this population increase will consist primarily of expatriates with purchasing power and middle income, enhancing the GDP per capita and the total purchasing power of the current population. “The two countries have a natural mutual attraction, and the mission of the Italian Trade Agency office in Dubai and our team here is to support them further.”
Valerio Soldani, Italian Trade Commissioner to the United Arab Emirates and Director of the Italian Trade Agency office in the country, spoke with Arabian Business about the Italian pavilion’s participation in the Airport Show, which was held at the Dubai World Trade Center on May 14.
He explains his impression of the Airport Show in Dubai, what Italy presented at it, and the plans of the Italian Trade Agency in the country this year, saying: “The Airport Show has always had a positive impact, and this year will certainly not be an exception. I consider it a vibrant gathering of innovation and collaboration in the aviation industry. As for the Italian Trade Agency, this exhibition is another important touch point for the “Made in Italy” brand in airport technologies and services. This year, the Italy Pavilion includes 28 exceptional companies offering advanced services, from air traffic management systems to sustainable engineering solutions. Our focus this year is to highlight our cutting-edge products as well as strengthen partnerships and explore new opportunities in the UAE market, which is one of Italy’s main trading partners.
What contributed to Italy’s success in overcoming recent economic challenges and making it superior to many European countries?
Italy’s resilience is deeply rooted in our values of craftsmanship, sustainability and lasting quality. Our success story is also shaped by companies with long experience and creative innovators, who prioritize quality at every step of the design and production process. For example, Italy has voluntarily adopted a dedicated program to offset and reduce carbon emissions in international aviation (CORSIA), promoting the use of sustainable aviation fuel and exploring alternative sources of sustainable energy.
Taking these steps contributes to enhancing our global competitiveness and positioning Italy as a preferred trading partner within Europe and the world. Italy is also a key destination for several investment projects within the framework of the EU’s Next Generation Plan in our National Recovery and Resilience Plan, which pumps huge resources into infrastructure and contributes to the transition to sustainability, which is another factor in the added value we can create. Our companies cater to the needs of a major segment of the global market.
How will Italian aviation sector companies maintain their competitiveness in the field of civil helicopters, aircraft and other aviation systems and equipment?
Our focus is on continuous innovation, and we are driven by a passion to deliver the best. Cross-sector collaboration and a clear pursuit of excellence enable Italian manufacturers to stay at the forefront. By adopting and developing new technologies and sustainable practices often, we ensure that our aviation solutions are not only cutting-edge, but environmentally friendly as well. In the fields of civil helicopters, aircraft and aviation systems and equipment, these qualities will continue to play a decisive role in capturing market share, as Italian companies regularly set new standards of quality and reliability.
The companies that we selected and displayed in the Italy pavilion at the Airport Show 2024 represent an integrated business system that exports more than 70% of its annual sales, as these companies provide advanced solutions that fit with the UAE’s vision regarding the expansion of airport investments and projects. We have collaborated with the Italian Airport Industry (ATI), the leading association specialized in this field, which includes companies that have already supplied more than 150 airports in the world and have provided advanced technical solutions in 60 of the world’s largest international airports. We have seen companies using AI, deep learning, smart technology integration and interoperability solutions, which offered products and services that were immediately available in the market and ready to implement.
How do you confront the challenges facing Italian companies, from attracting investment to enhancing innovation and raising production efficiency compared to competitors?
Attracting investment and promoting innovation is one of the fundamental pillars of these companies’ strategy. We also engage with investors by showcasing the enormous potential of Italian ingenuity. Collaboration with other major players fosters innovation, allowing Italian manufacturers to develop efficient production processes that set them apart from others. It is also about nurturing talent and creating a business ecosystem that encourages creativity and growth.
The Italian Trade Agency plays a major role in facing the challenges I mentioned by providing an integrated platform with many services, such as corporate training, trade fairs, and export-focused services specifically designed to deal with foreign markets and activities to attract foreign investors, and to be a one-stop shop for dealing with the Italian business system from Foreign market, and lots of it.
Thousands of companies have benefited from this platform in the past year with the Italian Trade Agency’s growing user base in our 86 offices worldwide. Moreover, having such a platform is essential to address challenges common to all exporting companies and global economies such as Italy and our other European partners.
What do you think about the level of entrepreneurship and innovation culture here compared to Italy?
Over the years, the UAE has gained a reputation for its culture of entrepreneurship and innovation. The country’s strategic geographic location, business-friendly environment and government support initiatives have attracted a diverse pool of talent and capital from around the world. It is an environment where bold ideas are encouraged and everyone strives for excellence. Italy, on the other hand, boasts a rich history of innovation, and is known for design, craftsmanship and engineering excellence.
Startups in Italy have seen significant growth in recent years, especially in sectors such as fashion, design and technology. By building bridges between our two countries, we can leverage each other’s strengths to forge new solutions that can enhance knowledge sharing and shape the future of the industry. For example, we are in direct contact with Italian startups that have attended our Global Startup Program over the past few years, a deep global ecosystem accelerator programme.
These companies have succeeded in increasing their business volume and moving from the research and development stages to actual products and service solutions ready for marketing, which are now being sold to major foreign markets such as the UAE. Many of them have already provided these solutions to UAE companies, and are already planning to expand their business in the GCC region, after getting valuable positive feedback about their well-known products.
