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Dubai expanding trade link with S Africa
Businessmen in Dubai are-developing new trading links with their counterparts 1n South Africa In anticipation of the lifting of remaining antl-apartheid sanctions by the international community. Foreign Minister Plk Botha has praised Dubai a 'foresight/
The dectslpn by President FW de Klerk and Nelson Mandela, of the African National Congress, to resume the democracy dialogue could not have come at a better moment. For South African companies exhibiting at the trade show tn Dubai early In October the news was particularly welcome.
Political uncertainty stemming from the interruption of the power-sharing talks threatened to cast a shadow on South Africa's first trade exhibition In the Middle East. Sceptics of the De Klerk reforms called for new pressure on Pretoria, possibly through tightening sanctions again.
The exhibition, called "A New Link: South Africa and the Gulf was held at the ultramodern Dubai World Trade Centre and organised on behalf of the South African Foreign Trade Organisation (SAFTO). The organisers reported a scramble for a chance to break into the lucrative market of
this oil-rich region.
IMttally SAFTO chose a cross-section of 64 companies drawn from consumer and Industrial goods sectors. Overwhelming demand forced the number of firms to more than 100 and the exhibitors agreed to share space. They included makers of foodstuffs, household appliances, furniture. Industrial products and luxury leatherware, as well as several mining and engineering companies
In due course. South African businessmen also expect to compete with other exporters in textiles, jewellery. machinery and construction equipment. Dubai merchants and other Arab traders see this as an opportunity to develop their own markets. They intend to target the whole southern Africa region for their export and reexport business.
Dubai is the second largest among the seven emirates that constitute the United Arab Emirates (UAE). The federation was formed In December 1971 when the British pulled out from East of Suez. With a population of nearly 500,000, Dubai Is a thriving business centre and produces oil and
Thc UAE population is 1.85
million, mostly foreign workers. Dubai has long been a business entrepot. Importing good. from around the world and re-supplying them to the Middle East. Africa. Asia and even Europe. There Is a tax-free zone at Jebel AH village, with cheap energy and storage Incentive.. New market, are being explored In the Central Aslan republic, and now South Africa.
The Gulf and other Arab states have not formally lifted the UN-ordered economic boycott of South Africa, but business contacts have been established by the private sec tor with official approval. Representatives of Dubai bust nesses have visited Johannesburg and a South African trade mission came to the Gulf earlier this year.
A team from the Dubai Chamber of Commerce and Industry went to South Africa in June to explore business avenues and explain the investment opportunities in the Gulf. At a time when new markets are needed after the drive for reconstruction in Kuwait and Iran, the Chamber is said to be playing a leading, albeit still discreet, role in assessing what potential South Africa offers in bilateral terms.
The overriding Yes vote in
the March referendum on South African reforms gave an impetus to these efforts on both sides. Virginia Kern. Director of Dubai Fairs and Exhibitions, said: "Some Gulf states, the UAE and Bahrain in particular, have been actively courting South African business tn anticipation of sanctions being lifted. Several ■ Saudi organteations are already investing quite substantially in the republic.
"All the exhibitors are new to the region and are looking for trading and joint-venture partners. As a newcomer to the region. South Africa holds out unrivalled opportunities for businessmen from the Middle East." The UAE and its five partners In the Gulf Cooperation Council — Saudi Arabia, Kuwait, Bahrain. Qatar and Oman — Import most of their food and manufactured goods. They represent a vast consumer market, with imports exceeding 640 billion a year
Dubai also Imports large quantities of goods for re-export to other countries. Last year the total non-otl trade between Dubai and Africa (excluding Arab countries) rose by 18.1 per cent, from 407.4 million dirhams In 1990 to 481.3 dirhams.
Arab countries traded with South Africa in the late-1960a and early 197Os. after which the 21-state Arab League joined the international sanctions against the apartheid regime. The resumption of trade after a lapse of two decades will open a new outlet for Gulf OH.
Some South African companies have already decided to open their branches or appoint agents In Dubai to cover the Gulf and Middle East markets.
Prospc Cutlery, supplier to South Africa's hotel and catering Industry. Is looking for Arab partners to start a production plant in Duab! Another exhibitor. Lebnor Foods, plans to build a dehydrated food processing plant in the region
South African jeweller Mlltos Voylatzls proposes to market his latest range In the Middle East — a collection fashioned from 23.78 carat gold. A SAFTO representative said In Dubai: "While South Africa Is well-known for its gold production, this exhibition will underline the coun-try's Inventiveness and state-of-the-art technology. The Gulf offers South African businessmen an excellent launching pad for their products not only in the Middle East but for re-export to Europe and the Far East" — Gemini news