Strengthening Ties: Latvia’s Economic Partnership with the UAE
Latvia’s Minister of Economics, Viktors Valainis, recently highlighted the vast opportunities for enhancing economic relations between Latvia and the United Arab Emirates (UAE). Celebrating 30 years of diplomatic ties, Valainis emphasized the need to transition from traditional export relationships to more profound industrial collaborations.
A Shift in Focus
During a recent discussion with the Emirates News Agency, Valainis stated, “We are not only searching for avenues to sell our products; we aim to establish factories and produce goods right here in the UAE.” This shift indicates Latvia’s dedication to fostering long-term partnerships beyond mere trade.
The food industry stands out as a crucial area for this collaboration. Valainis pointed out that Latvian firms are ready to invest in new production lines within the UAE, marking a significant step towards integrated economic cooperation. “The food sector is very open—not just to selling products, but to investing in new capacities,” he noted.
Investment Potential
Latvian businesses are eyeing substantial investments, with potential commitments reaching up to €300 million in Dubai alone, primarily in food-related industries. The recent Expo 2020 and other exhibitions in the UAE have acted as catalysts for enhancing trade volumes. “Since Expo, our participation in various exhibitions has led to a notable increase in trade between our two countries,” Valainis remarked.
Currently, trade volumes sit around €200 million annually, which Valainis considers modest given the existing potential. There is a growth trajectory visible already; for instance, trade turnover in the first half of 2025 saw an 18% increase compared to the same period in 2024, hitting €110.2 million.
An Emerging Investment Landscape
The minister pointed to an emerging bilateral investment landscape with projects burgeoning in both Latvia and the UAE. One noteworthy endeavor is the Eagle Hills investment project led by Mohamed Alabbar, where Latvia commits a robust €3 billion. “This is a clear indication of our intent for sustained cooperation,” he stated.
Latvian companies are not just stopping at the food sector; they are also seeking to establish operations that cater to broader global markets. “These are just the initial steps,” Valainis mentioned, signaling more extensive future collaborations.
Building Connections
Valainis described his current UAE visit as highly successful, emphasizing productive discussions between governments and businesses. “There is a strong intention on both sides to enhance trade and investment,” he observed, noting that around 30 Latvian companies accompanied him, representing diverse sectors including construction, IT, biomedicine, energy, logistics, and food.
The recent third meeting of the Intergovernmental Commission was a highlight, where new opportunities for collaboration were identified. “Business leaders played a significant role, leading to a cooperation agreement between the Latvian Chamber and the Dubai Chamber,” Valainis added. Such agreements are expected to facilitate smoother interactions between business communities in both countries.
Latvia’s Expertise in Construction
Valainis expressed optimism particularly regarding the construction and sustainable urban development sectors. He noted the visible growth and investment activity in Dubai and Abu Dhabi, stating, “Our construction companies and architects are eager to share their expertise, especially in sustainable building practices.”
Moreover, Latvia is positioning itself as a leader in digital governance and IT services. “Currently, 97% of our public services are digital,” he highlighted, showcasing how digital transformation has permeated various administrative functions. Latvian companies are keen to share their experiences and innovations in digitalization with partners in the UAE.
A Gateway to Europe
Inviting UAE investors to view Latvia as a strategic platform for entry into the European Union, Valainis said, “For anyone aiming for global success, Latvia serves as an ideal starting point.” With a single market of over 450 million consumers, he emphasized the ease of access to these markets from Latvia.
Furthermore, he highlighted Latvia’s attractive tax regime and favorable business environment as significant advantages for potential investors. Reflecting on his visit, Valainis expressed gratitude for the warm reception he and the Latvian delegation received in the UAE.
A Bright Future Ahead
As Valainis concluded, he shared his positive sentiments about future cooperation between the UAE and Latvia. “This partnership is poised for a very bright future,” he said, affirming the promise of continued economic growth and collaborative endeavors in the years to come.
Valainis’s visit from November 23 to 26 is part of a larger effort to co-chair the third session of the Joint Economic Committee, underlining the seriousness of Latvia’s commitment to building strong economic ties with the UAE.
