NZ companies in 2011 Middle East trade boom

While trade ties are strengthened by New Zealand–based companies expanding into the region, there is also a clear government-level commitment to the region – with the opening of a New Zealand Embassy in the UAE, and joint New Zealand Ministry of Foreign Affairs and Trade and New Zealand Trade and Enterprise (NZTE) visits to Oman and Qatar.

“New Zealand and the UAE has had an excellent economic and trade relationship for so many years now and the establishment of our embassy in Abu Dhabi underscores the fact that we are looking at further growing that relationship with the UAE across all sectors of society,” His Excellency Malcolm Millar, Ambassador of New Zealand to the UAE said. “It is indeed noteworthy that our trade relations with this nation have witnessed tremendous growth and we are confident that those figures will keep an upward trajectory in the coming years.”

NZTE’s Beachheads programme – a global, public-private partnership of independent advisors and NZTE staff working closely with high-growth New Zealand businesses looking to succeed internationally – has helped an increasing number of growing businesses gain a foothold in the Middle East.

“Beachheads is a very successful programme worldwide, and we are planning to expand the service in the Middle East. It is most relevant to New Zealand companies with a permanent presence and senior management based in the region, and those planning for growth,” explains Steve Jones, NZ Consul General and Trade Commissioner for Middle East and Africa.

Trade figures show New Zealand exports to the GCC have grown from USD USD 695 million in 2009 to USD 1.2 billion in 2011 which is a 71% increase over the two year period. Jones says “While New Zealand is well known as a food and beverage exporter, increasingly our exports to the Gulf region are diversifying away from just food and beverages to include ICT, education and consultancy, and specialised manufacturing”.

He lists a number of companies which have made business impact in the region in the last year.  These include weather forecasting and digital media company Metra, health technology company Winscribe, security systems firm Gallagher, and specialist composite construction engineering company Pultron Composites.

Despite the current economic climate, Gallagher’s security division, a global leader in security systems, has averaged 20% growth per annum. This success has continued in the Middle East with the provision of an integrated security solution for the Etihad Towers in Abu Dhabi. This included the supply of over 1300 Smartcard readers in five towers ranging from 59 to 88 storeys, coupled with elevator and CCTV integration.

New Zealand health technology company Winscribe’s dictation system is now being used in two leading Dubai hospitals. City Hospital and Welcare Hospital have implemented the technology to reduce time-consuming paperwork for doctors and leave them more time to care for patients.

Pultron Composites specialises in the development of mass produced, round and small cavity pultrusions with high engineering properties and complex finishing operations. The company has experienced significant growth and is increasing production capacity at its factory in Dubai JAFZ in support of a number of new opportunities.

Another major milestone and a highlight for intra-nation trade was when His Highness Sheikh Abdullah bin Zayed Al Nahyan, United Arab Emirates minister of foreign affairs visited New Zealand for 10 days in October 2011.

His Highness met New Zealand Prime Minister John Key and New Zealand’s Minister of Foreign Affairs Murray McCully. Sheikh Abdullah stressed the importance of bilateral relations between the two countries, and the keenness of the leadership in the UAE and New Zealand to bolster the relations.

For his part, the New Zealand Prime Minister commented on the UAE’s position as a major trade center in the MENA region and a destination for international companies, demonstrated by the significant number of New Zealand companies operating in and from the UAE. Sheikh Abdullah also discussed ways to boost the already strong bilateral relationship between New Zealand and the UAE with New Zealand’s Minister of Foreign Affairs.

“His Highness’ visit was a particular highlight for us. It served to underline the strengthening trade and political relationship. We believe 2012 will see further growth in trade between these two small, but great nations,” says Jones.