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Historical Background

Relations between the UAE and South Africa are as old as the latter’s hard earned democracy. Formal diplomatic relations were established following the Minister of Foreign Affairs of the UAE, Shaikh Hamdan bin Zayed al Nahyan visit to South Africa in 1994. Shaikh Hamdan travelled to South Africa to attend the inauguration of Mr Nelson Mandela as South Africa’s first ever democratically-elected President.

Bilateral relations started developing a few years before when the South African Department of Trade and Industry and the South African Foreign Trade Organisation organised a very successful exhibition of SA products in Dubai. This exhibition took place in October 1992 and has laid a good foundation for what is today a very prosperous business relationship. South African defense companies started to participate in the bi-annual IDEX show. UAE is today an important market for South African military equipment.

The SA Embassy in the Abu Dhabi was opened on 17 January 1995. During the same year the UAE Embassy was opened in Pretoria.

SA and the UAE have exchanged several high-level and ministrerial visits. Former SA President Nelson Mandela attended the summit meeting of the Gulf Co-operation Council in Abu Dhabi in November 1998 and addressed the Emirates International Forum in Dubai in February 2000. The current President of SA Mr Thabo Mbeki, visited the UAE in March 2000. This signifies two very high-level visits to the UAE by current and former SA heads of state and governement in a space of a month. Indeed, this is testamony of very special and constantly growing relations between SA and UAE.


TRADE PERFORMANCE
TRENDS FROM STATISTICS
(In Million Rand)
YEAR EXPORT TO UAE IMPORT TO UAE
2003 (Jan – March) 692 61
2002 1763 710
2001 1331 857
2000 1111 903
1999 878 602

Trade relations between South Africa and the UAE

The bilateral relations between SA and the UAE have grown phenomenally in the past seven years since the resumption of diplomatic relations between our two countries. The need to nurture economic relations has been a central feature and thrust of our relations, derived from a shared conviction and determination to eradicate poverty and contribute to a just, equitable and peaceful world for all.

UAE imports into SA increased from R1million in 1990, to R900million in 2000, which constitutes a 100% annual average increase in nominal terms over the ten year period, compared to a 17% annual average increase in total imports into SA over the same ten year period. The share of UAE's imports into SA has increased from 0% in 1990 to 0.5% in 2000.

Exports from SA into the UAE increased from R56million in 1991, to R1,1billion in 2000, which constitutes an annual average incraese of 35% over the period compared to SA's annual average increase of 16% for total exports. SA's share of total UAE imports has risen from 0.1% to 0.5% in 2000.

SA's total trade with the world has been increasing at an annual average of 17% and the country's trade with the UAE has been increasing at an annual average of 47% (total trade being defined as the sum of exports and imports.)

Exports from SA have increased by 33% between 2001 and 2002. The largest trade figures for the year 2003 (for the month of March) stand at a staggering R362million, this is an increase of an astonishing 226% from the March 2002 figures. Top exported products for 2002 were: household effects; transmission apparatus; foodstuff (includes fresh produce and processed foodstuff); chemicals (Ketones and Quinones); aluminium plates, sheet and strip; flat-rolled products of stainless steel; radar apparatus; other engines and motors; cigars, cheroots and cigarillos; chocolates.

Negotiations between SA and UAE counterparts are on-going with regard to institutionalising sectoral agreements in the field of reciprocal promotion and protection of investments, promotion of trade, avoidance of double taxation and police co-operation. The South African Mission remains hopeful that an almost decade of cordial diplomatic relations between the UAE and SA has ample room to develop to its true potential, which would further benefit both countries economically. Under the excellent leadership and vision of HH Sheikh Zayed, the UAE will for decades to come, remain a very important partner to South Africa and its people.

TRADE COMPARISON EXPORT FROM SOUTH AFRICA
(Rand '000)
* Figures for 2003 are until February.
Country 1999 2000 2001 2002 2003*
UAE 878 420 1 693 822 1 329 875 1 763 628 330 178
SAUDI 931 071 1 021 657 1 039 951 1 368 773 179 683
KUWAIT 136 253 127 501 127 633 107 936 25 707
BAHRAIN 33 540 37 177 55 331 100 829 9 427
OMAN 13 786 54 787 50 628 192 801 15 698
QATAR 29 213 31 632 70 066 52 745 7 064

South African nationals in the UAE

There is a growing community of South African nationals in the UAE. According to the UAE immigration authorities, a total of 7 000 South African nationals had UAE residence permits at the end of July 2003.

The demand for South African labour force is on the rise in the UAE. The major sectors where the requirement is increasing are: construction, hospitality, medical, retail management and education. There are a number of South Africans holding several key positions in organisations of repute in the UAE, and employers have come to know and appreciate the quality and professionalism of SA expatriates.


Platform being implemented by the mission to provide fast and effective introduction of products and services across six targeted sectors.

Agri-processing
Chemicals
Metal, capital equipment, mining
Clothing and textiles
Information and communications technology
Tourism and financial services


UAE development drawing interest in the following sectors from major SA companies

Constuction / infrastructure
ICT
Security products and services
Financial services
Hospitality management services
Franchises
Health and education


Imaging

The mission is determined not to let the phenomenal growth in bilateral trade between UAE and SA go unnoticed. For this reason, plans are underway towards creating increased and constant public awareness through partnerships with the media.