As the UAE is celebrating its 51st Independence Day, this year is also the 51th anniversary of bilateral relations between the UAE and Belgium, the new Belgian envoy to the UAE has highlighted.
“The Kingdom of Belgium and the UAE have an extensive bilateral relationship and share many common points: a federation structure, a similar population number, a society that welcomes very diverse nationalities, a great openness to the world,” Antoine Delcourt, who has been Belgian ambassador to the UAE since September 2022, told TRENDS.
“We have been engaging with the UAE since the very beginning … since the independence (of the UAE). A lot of Belgians live here. Around 3,700 Belgians are registered at the embassy. However, as per our estimation, +/-5000-5500 Belgians live here. This is substantial for a country with a population of 11 million,” said Delcourt.
“On the occasion of the UAE National day I wish all the best and I want to emphasize on the friendship between our countries and people”, he added.
My warmest congratulations to the United Arab Emirates on your #UAENationalDay51
بمناسبة الذكرى 51 للعيد الوطني لدولة الإمارات اتقدم بخالص التهاني لدولة الامارات و للشعب الاماراتي متمنيا لهم المزيد من التقدم ًو الازدهار.
🇧🇪🤝🇦🇪 @OFMUAE @MoAlSahlawi @BelgiumMFA @BelgiuminUAE pic.twitter.com/bLGMNka8gw— Antoine Delcourt (@AntoynDelcourt) December 2, 2022
More than 100 Belgian companies are operating in the UAE. “Some of our companies have contributed to shape the UAE as it is (today). We collaborate in many fields: logistics, health, energy and space R&D. People-to-people contacts are flourishing also in arts, culture and sports”.
Bilateral trade
With a total exchange of €5.6 billion (US$5.9 billion) worth of goods in 2021 (Belgium exports to the UAE increased to €3.7 billion, while imports from the UAE rose to almost €1.9 billion), the UAE is the top trading partner in the Middle East for Belgium, 22nd most important trading partner globally. The UAE is the 31st most important supplier of goods for Belgium.
“We are old and strong partner of the UAE. We want to enhance the relations further. The (latest) figures show that our ties are improving,” said Delcourt.
After several years of decline, the bilateral trade between two countries picked up in 2021. The year 2022 will be a record year with an expected trade volume of more than €6 billion (US$6.32 billion). “Of course with COVID, all bilateral relations were bumped but we are coming back very strongly”, the Belgian ambassador said.
The traded goods mostly include chemicals, machinery and equipment, mineral products, base metals, stones and diamonds. Belgium’s export of diamonds to United Arab Emirates was US$2.58 billion during 2021, according to the United Nations COMTRADE database on international trade.
According to the Dubai Multi Commodities Centre, the UAE has reached the top spot as it surpassed Belgium — and its city of Antwerp — by trading over $22.8 billion worth of rough diamonds in 2021.
Commenting on it, Delcourt said, “Although the UAE has emerged recently as the world’s biggest rough diamond trading hub, Antwerp is a historic hub for diamond trade. We expect that situation to remain as it is.”
“Antwerp is internationally recognized for having acquired very specific expertise and knowledge through the years, especially for rough diamonds and stones of a certain size. However, we also acknowledge that the development of other diamond centers is normal. We think that there is place for complementarity between all these diamond hubs,” he pointed out.
Because of the growth of Dubai as a hub, Belgium now trades a large amount of diamonds with the UAE. “In fact, the UAE is Belgium’s first importer of rough diamonds now and the UAE is Belgium’s second biggest export market of rough diamonds after India.”, added Delcourt.
Business in the UAE
In 2004, the UAE and Belgium signed a bilateral investment treaty, that was ratified in 2007. “It has helped in providing a stable and secure investment climate on both sides and is positively contributing to attract the investments,” said Delcourt.
Companies and funds such as ADIA or DP World have invested in Belgium. “We are in the center of Europe. Bruxelles is a capital of Europe and the siege of European institutions. From Belgium, it’s easy to reach European market,” said Delcourt.
Doing business in the UAE “is easy”, said Delcourt. “All our big companies are here. Also SMEs and a lot of companies are willing to export here or come to the UAE and take part in fairs and conferences. This is also very important as Dubai is one of the major fair organizers in the world.”
These companies are supported by three regions: Flanders, Wallonia and Bruxelles, competent in trade and attracting investments.
Belgian know-how is recognized in a number of sectors: renewables, construction, logistics. The companies participate in major UAE projects. Among them, Besix has been active since 1960s. It has constructed the (first) corniche in Abu Dhabi, and many other flagship buildings like Sheikh Zayed Grand Mosque, Ferrari World or Burj Khalifa (in consortium). It is also building in a joint venture Zayed National Museum, the Guggenheim, and is very much involved in several waste-to-energy plants, one in Dubai and one in Umm Al Quwain .
Engineering company Tractebel –a part of Suez group — is involved in power network development, while DEME dredged several islands in the UAE. Jan de Nul works with the companies like ADNOC or TAQA on submarine electrification projects or lightning project in Abu Dhabi.
“In financial services also. we have Euroclear, with one of their spinoffs called Greenomy. The idea is to lead the transformation towards more sustainable and green finance industry, which is important to the framework of COP28”.
Belgian company John Cockril, is involved in some hydrogen projects in the UAE. “It is the world’s number one in water electrolysis manufacturing systems. The company is very active here”, said the Belgian ambassador.
“Of course, we have to mention our chocolatiers: BanoPuratos- a joint venture between a Belgium company and a Lebanese based company. Few days ago we visited a new plant where they produce raw materials for bakeries and chocolate making. From here they distribute to the whole region”, he added.
The COP28
Delcourt expressed his “best wishes” to the UAE for hosting the COP28”. “We see the leading role that the UAE is playing in the region by decarbonizing its oil and gas sector, by ramping up the renewables and also transitioning its food and transportation system,” he said.
“The UAE wants to achieve net zero emissions by 2050, making it the first in the Middle East and in the northern Africa region to do so. This also matches with the European Union objectives as the EU is committed to a 55 percent reduction in greenhouse gas emissions by 2030 compared to 1990 levels. Also, the EU’s objective is to become the first climate neutral continent by 2050. So I think that European union has a leading role in terms of climate change and definitely the UAE here in the region has the leading role (too). We have to recognize that. I think there is a room for partnerships during COP 28,” the ambassador added.
Energy crises
According to the OECD, Belgium’s recovery from the COVID-19 pandemic has been robust thanks to extensive policy support. However, the new shock from the war in Ukraine is exacerbating inflation and supply.
Speaking about the energy crisis in Europe, the Belgian ambassador said “It is very important from Belgian and European point of view to recall why we are in the crisis. We are in the crisis because there was an aggression on Ukraine that put Europe and the world into a crisis. There are some specific countries responsible for that. Of course, we reiterate once again our full solidarity with Ukrainian people because the winter is going to be particularly difficult for them”.
“We need to diversify our sources of supply. We also have to go quicker into the transition to renewables and new sources of energy. We need to find new energy suppliers and we recognize the important role of the UAE on that front”.
One of the energy sources is hydrogen. “Belgium has a national plan on hydrogen. We see a very important role for Belgium and especially for our ports Antwerp and Bruges in the import and transit for hydrogen to supply European continent,” said Delcourt.
One of the biggest advantages is that this gas arriving in Antwerp could be very quickly and very efficiently distributed to the European continent through a vast network of pipelines already existing, he added.
Over the past couple of months, Belgium has signed various MOUs on hydrogen cooperation with several countries — both in Europe and outside.
Space collaboration
Belgium also collaborates with the UAE in space sector, as the Gulf country is developing its aerospace and space industry. In 2019, an important MoU was signed between BELSPO and the UAE Space Research Agency. Belgium — one of the founding members of the European Space Agency — has recently announced to increase its net contribution to €305 million over the next years. “The space sector is also very important in our country as it employs more than 10.000 people in Belgium,” Delcourt highlighted.
A Belgian astronaut was recently selected by the European Space Agency. “With the appointment of Raphaël Liégeois as the third-ever Belgian Astronaut (after Frimout and De Winne) our country will gather more first-hand expertise and experience in space and potentially the moon as ESA is preparing itself for a new moon mission,” he said.
Next week, there will be the Abu Dhabi SPACE DEBATE. Belgium will also be present. It will include a delegation from BELGIAN VITO research institute.
International forums
Belgium and the UAE have signed a cooperation protocol in Dubai last February to develop further cooperation against organized crimes. Two treaties entered into force on November 1 — an extradition treaty and on collaboration in judicial matters.
On multilateral level, the UAE and Belgium collaborate in number of other fields such as Kimberly process, assuring that traded diamonds come from non-conflict zones. “The Kimberly process is fundamental for us”, Delcourt said.
Finally, Belgium was recently re-elected to the human rights council (2023-2025) and the UAE is also a member of the Human Rights Council (mandate 2022-2024). “We will work at least one year together, which is very important”, he added.