Trade Relations with the European Union
The total volume of trade between the EU and GCC in 2013 amounted to 152 billion Euros (significant growth from 100.6 billion Euro in 2010.) GCC countries represent 4.2% of total EU trade and are a significant export market for the EU and currently the fifth largest market in the world.
The EU was the biggest trade partner for GCC in 2012, covering 12.8% of total EU trade demand. Contribution to EU trade with Japan amounted to 12.7%, India 11.5% and China 11.3%. Trade between the EU and GCC grew 5.8% from 2008 to 2013 and went declined by 25% in 2009, only to return in 2010 to 2008 levels. Since 2010 trade has grown constantly (+51% in 3 years). In 2013 the EU mostly exported manufactured goods to the Gulf region (78%, of which 44.6% were machines and carrying equipment and 11% chemicals) and agriculture and resources (8.7%). EU imported mostly petrol and mining goods from the Gulf region (78.2%), and chemicals (10.1%).
Source: European Commission.
The United Arab Emirates (the UAE) is a young Arab country in Middle East (in existence since 1971), located by the Gulf and Gulf of Oman. It consists of seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain. It borders on Oman and Saudi Arabia. The biggest cities are Dubai with about 1.9 million citizens, Abu Dhabi (the capital) with 980 000 citizens, Sharjah with 850 000 (CIA, The World Factbook). The biggest ethnic groups are Emirati, Arab and Iranian, South Asian, and 8% Westerners and East Asians. The biggest western ethnic group are British people. Native Emirati make up 18%-20% of the population; Arab people about 40%. The official language is Arabic but in practice the common language is English. Other ethnic languages are also in use (Malayalam, Hindi, Urdu, Farsi, Tagalog and other).
Economic Bilateral Agreements:
Poland and the UAE signed four bilateral agreements:
The Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital;
The Agreement on Mutual Promotion and Protection of Investments;
The Agreement on Civil Air Transport;
The Agreement for Economic Cooperation.
The agreement establishes a basis for cooperation on projects of mutual interest to both countries. A memorandum of understanding between the Polish Financial Supervision Authority (KNF) and the Emirates Securities and Commodities Authority (ESCA) was signed 2013 in Warsaw on 7th February. On 11th December 2013 the Protocol between Poland and the United Arab Emirates was signed in Abu Dhabi. This changed the Agreement between Poland And the UAE on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion regarding to Taxes on Income and Capital, written up in Abu Dhabi on 31st January 1993.
The United Arab Emirates are now the biggest trade partner of Poland in the GCC region (data from 2013). Sales between the two countries have reached 865.7 million USD in 2013. Such numbers are possible thanks to dynamically developing exports from Poland (752.5 million USD) with slight import growth from the the UAE, totalling112.9 million USD. Export to the UAE makes up 51.77% of the total supply to GCC countries; a positive balance with the UAE makes up 54.35% of the total positive balance of Poland’s trade with GCC countries.
Sales between the UAE-Poland in 2013 and 2014 with comparison to other GCC countries
|2014 r. [USD]||2013 r. [USD]||Dynamics [%]||Participation in [%]|
|Name||Export||Import||Sales||Balance||Export||Import||Sales||Balance||2014 year export||2014 year import||2014 year sales||2014 year export||2013 year export||2014 year import||2013 year import||2013 year sales||2014 year sales|
|United Arab Emirates||112
Polish exports have grown steadily over the years: in 2013 it amounted to 66% in comparison to the same period in 2012, in 2014 it grew to 67%. Export at the level of 1.12 billion USD and import estimated at 162.5 million USD contributed to the biggest positive balance in Poland’s trade with GCC countries, making up 965.2 million USD.
Poland imports mostly aluminum and articles of base metals from the Emirates (63.6% of total import). The second biggest group of imported goods are plastic products (14.9%), followed by mechanical, optical and electrical equipment at 13.6%. Other groups of imported goods consist of textile materials and stone, cement and plaster products (7.9%.)
Import from ZEA to PL
The main Polish goods being exported to the UAE are mechanical and electrical devices (41.5%). Next are base metals (razor blades, steel products) (18.8%). Groceries (tobacco, sugar) make up 14.7%, chemical products 6.9%, further positions are taken by miscellaneous items -6.5%; ships, vehicles, yachts 3.4%; bedsteads and mattresses 2.9%. Other important groups of goods are plant and animal products, mineral products, plastic products, timber (including furniture), stone products, cement, asbestos, measurement instruments, optical and medical equipment.Metals, gemstones and artificial jewelry closes the list of more meaningful exported goods at 0.75%.
In contribution to the Gross World Product the petroleum industry dominates at 29.2%. Next there is the trade sector (private and public) at 13.8%), manufacturing industry (15%), trade (9%), gastronomy and hotel industry (1.8%), building industry (10.7%), real estate sector (8.2%), transportation (7.1%), agriculture (1.7%), energy industry (1.6%) and municipal services (1.9%.)
Petroleum export is mainly aimed at Japan, South Korea, People’s Republic of China and other countries in East Asia.
The main export of a non-hydrocarbon goods from the UAE is aluminum (Emirates are the main exporter of this metal.) Second is gold, the main re-export good: 10% of the world’s sales of gold goes through Dubai. The main recipient of Emirate’s exports are Japan (24%), North Korea (9%), Thailand (5%), India (4.8%) and Iran.
Imports come mainly from China (13%), India (10%), USA (8.7%), Japan (6.1%), Germany (about 6%), and Great Britain (5.3%), Italy (4.6%) and Turkey.