Biggest ever MEA Annual Lunch highlights importance of MENA region for British business

The Middle East Association’s Annual Lunch held on 17 March at the Dorchester Hotel, London, highlighted the importance of the MENA region for British business, and the key role played by the Association, in partnership with UK Trade & Investment, in promoting British trade and investment with the region. A record 433 members and guests, including the Arab Ambassadors and many other VIPS, attended the event, which was sponsored by Europe Arab Bank.  Keynote speaker and Guest of Honour was Sir Andrew Cahn, Chief Executive of UK Trade & Investment.

Global Arab Network, comprehensive news and information service about the Arab world in English and Arabic,  participated as a media partner in promoting the MEA Annual Lunch among business community.

“The Government has been clear that it wants to see the UK exporting its way out of recession,” said Sir Andrew in his speech. UKTI has been tasked with leading cross Government efforts to drive an export led recovery, he added.  Global UK exports of goods in 2009 were worth over £100 billion, and with over £3 trillion of foreign investment, the UK is the largest recipient of global investment after the USA.

“Last month’s Global Investment Conference – organised by UKTI- highlighted UK strengths as a business partner to 250 of the world’s business leaders, academics and entrepreneurs, including an impressive participation from across the Middle East,” he said.  ”And, within his context, the growing level of investment in the UK from the Middle East, is of major importance – through high profile developments such as Chelsea Barracks, the Shard of Glass and the London Gateway Project; to stakes in big British brands such as Barclays, Sainsbury’s and Manchester City Football Club.

“This stronger emphasis on relationship management will help us to maximise the potential for future investment in the UK from our partners in the Middle East and North Africa, and to strengthen the bonds that exist between our two countries.”

“It is not just in FDI terms that this relationship is so important to us. Bilateral trade in goods and services with the Middle East and North Africa is around £35 billion annually. Exports of goods alone were worth over £12 billion last year,” he said.

“Interest in the region has never been higher. Over 450 innovative and high growth SMEs attended UKTI’s Partner Middle East roadshows in London, Coventry and Manchester last month.

“Over the last couple of years, Ministers have put great emphasis on building strong and mutually beneficial personal contacts at the highest levels with our partners in the Middle East and North Africa,” he went on.  Over the past year, Lord Mandelson has visited Iraq, Kuwait, Bahrain, Qatar and the UAE.  Lord Davies has made three visits to the UAE, recently leading a delegation of 70 British businesspeople to the market, and has also visited Saudi Arabia, Algeria and the West Bank. Along with the visit programmes of HRH The Duke of York and the Lord Mayor of London, and the hosting of visiting VIPS from the region by the Prime Minister and cabinet colleagues, these have helped to demonstrate a good level of high-level interaction.

Sir Andrew noted some of the highlights of the past year, such as Lord Mandelson’s visit to Iraq in April with 23 major British companies; last April’s Invest Iraq conference, in cooperation with the MEA, which led to the reestablishment of UKTI teams in Baghdad and Basra; agreement of an ambitious target with the UAE to increase bilateral trade to £12 billion by 2015 from £7.5 billion today; the opening of the South Hook LNG terminal in the UK; the signature of Investment Promotion and Protection Agreements in both Qatar and Kuwait, and agreement of a double taxation treaty with Bahrain; and the development of stronger Government to Government arrangements with various countries of the region, backed up by business to business links.

“I am very pleased that UKTI and the MEA are working ever more closely together,” he said. “This year we already have plans for a number of major events -   a Maghreb Conference at the end of this month, a GCC Britain Expo in June and a second Iraq business conference in October,” he said. “UKTI could not offer the comprehensive service to commerce that it does without the cooperation and support of professional groups alike the Middle East Association and its members.”

MEA Chairman Terry Stone commented that, despite the economic advancement of the region, it remains a major challenge to make companies, particular SMEs, aware of the potential.  MEA trade missions as well as UKTI’s OMIS service, offer a good way to assess the market, he said, noting that the MEA is organising 13 trade missions this year. The MEA has broadened its remit to include Azerbaijan. While political difficulties are hampering business with Iran, new opportunities are opening in North Africa.

“We hear a lot today about the emerging markets and in particular Brazil, Russia, India and China – the so-called BRIC countries,” he said.  “The UK’s visible exports to the 6 Gulf Cooperation Countries last year were greater than our exports to China and marginally greater than those to Russia, India and Brazil combined.” He noted that the UK had a positive trade balance of between £3 and £4 billion with the GCC countries compared with the trade deficit of £24 billion with the BRIC countries. “The Middle East is one of the few regions with whom we do have a positive trade balance and for this reason alone it should be on our priority markets list,” he said. The focus on the BRIC countries “should not detract from the need to build on our trade with the GCC and other Arab countries where population growth, increasing energy and other revenues and diversification of economies will lead to greater demand for products and services of all kinds... I hope the incoming Government will fully recognise the importance
of the Middle East region not only in terms of trade and investment but also for political reasons due to the increasing influence of these countries on the world’s economies, with Saudi Arabia’s membership of the G20 as one example. Equally we must not forget the substantial investment here in the UK from the Arab world from both their public and private sectors.

“Although we are clearly not untouched by the world economic downturn we believe our task today is as vital as it was 50 years ago when the MEA was formed,” he concluded.  “I am confident that we can continue to be a leader in increasing awareness of the Middle East and its potential, in partnership with UKTI, and build on the general goodwill for the UK which remains strong.”

The gathering was also addressed by Antoine Sreih, CEO, Europe Arab Bank, who spoke on the role of Europe Arab Bank as a bridge for trade flows between Europe and the MENA region and its support for companies looking to do business with the MENA region, as well as the move towards traditional banking and conservative lending policies in the aftermath of the credit crunch.   A speech by Sir James Craig, President of the Middle East Association, ended the proceedings.

The Annual Lunch is the most important event in the calendar of the Middle East Association, the leading British private sector organisation promoting trade and goodwill with the Middle East and North Africa region. Its members account for around 70% of British business with the region.

Global Arab Network