Mineral-rich Western Australia, which is expected to post an economic growth of 5.75 per cent this year, has been encouraging more direct investments from the United Arab Emirates, says the state’s regional trade representative.
The UAE remains one of the Australian state’s most significant global trade partners, according to data released in April by the
Western Australian Government. Exports to the Emirates reached A$1.07 billion ($1.123bn; Dh4.127bn) in 2010, posting a hefty increase of over 30 per cent compared with the A$821 million profits generated the year before.
Filippo Raggi, regional commercial manager of the Western Australia Trade Office, said the sovereign state– with Perth as its capital – offers an atmosphere conducive to businesses both domestic and international.
“We have a very good legal framework, which is very fair to investors. They [investors] can feel safe. We also promote 100-per-cent foreign ownership of businesses,” he said.
With a total land area of more than 2.5 million square kilometers (about 30 times the size of the UAE) and different climatic zones ranging from tropical to arid, Western Australia is naturally capable of offering various resources that prove to be attractive to many investors.
“We encourage all forms of investments into Western Australia because we’re very investment friendly. We have massive areas of land, opportunities in agriculture and agri-business, in addition to other sectors such as tourism, education, mining and manufacturing,” Raggi mentioned.
Cornucopia down under
The Western Australia trade representative added that their region has been known for its wheat belts and agricultural products, commodities that are undoubtedly significant to the UAE and the rest of the Gulf region, which relies heavily on imported foodstuff.
“Aside from wheat, we also export halal meat to the UAE,” says Raggi.
Asked about the average volumes of their annual grain and food exports to the Gulf country, he said he could not put an exact figure because it really depends on the UAE’s requirements.
“Practically any amount is feasible for us because we have a surplus of these products. We have an array of vegetables that we can produce. The question really is what do [our trade partners] need? We have always made sure to provide and even exceed their expectations,” he said.
According to the Western Australia’s Chamber of Commerce and Industry (WA-CCI), the sovereign state’s economy is projected to expand by nearly six per cent in 2011-2012 due to significant levels of investment activity as well as higher export returns.
Wheat has been one of its prime agricultural products with average output at an estimated 8,148 kilotonnes (8.15 million metric tonnes), according to government estimates between 2007 and 2008.
More significantly, Western Australia boasts of its mining industry with exports growing by a massive 32.6 per cent to A$102bn in 2010.
The Western Australian Government’s April report noted that iron ore had been its top revenue generator last year, accounting for more than 47 per cent of the year’s exports valued at over A$48bn, rising by nearly 65 per cent from 2009.
Other significant exports included gold, crude oil, alumina, liquefied natural gas, wheat, copper ore, precious metal ore, base metal ore and liquefied petroleum gas.
Flight connectivity strong between UAE and WA
Raggi says Western Australia is also actively promoting its tourism industry to the UAE and neighbouring Gulf states. At the moment, flight connectivity between both destinations remains strong with a combined 112 flights every week operated by UAE carriers Emirates (from Dubai) and Etihad (from Abu Dhabi) to and fro Western Australia.
The Australian state likewise encourages partnerships with the UAE with regard to education. Dubai, for instance, hosts the regional campus of the Western Australian institute Wollongong University.
“We’re now moving towards sister-state developments [with the UAE] so we expect more collaboration in the near future,” he said.
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