Latvia eyes wider relations with UAE, says Latvian Prime Minister

Abu Dhabi, March 15, 2012 (WAM) - Prime Minister of Latvia Valdis Dombrovskis said Latvia sees large potential for wider cooperation and stronger relations with the UAE as the two countries serve as hubs in their regions and have started discussions on signing agreements in several spheres including civil aviation and the protection of investments. "We are in the beginning of some positive development. Certainly we are starting from very low base also as regards our trade turnover," Dombrovskis told WAM in an interview in Dubai. Last year, we saw 87% increase in trade between our two countries. So it is certainly substantial increase, he said. "Latvia is among the fastest growing EU economies. Last year, our economy achieved a 5.5% growth rate. During last year, as we managed to substantially restructure our economy, we had had between 13-14% of industrial production growth for each of the past two years associated by a 30% growth rate for our exports. It seems Latvia is coming out of the global financial and economic crisis with improved competitiveness and good growth rates," the Latvian Prime Minister stated. Dombrovskis who headed a large Latvian business delegation to the UAE as part of the country's Gulf tour expressed hopes that the UAE-Latvia Business Forum which was held on Monday will facilitate trade between the two countries. "Commercial relations are important for our efforts to step up our political cooperation," he said. Commenting on the signing on Monday of an agreement on the Avoidance of Double Taxation on Income by the UAE and Latvia during his current visit, he said there is quite large potential as regards cooperation in transport, logistics and other fields. "Also Latvia has two major ports. It is also the centre of transit and logistics to and from Baltic region, Scandinavia and Russia." He added that Latvia sees a lot of potential in cooperation with the UAE which serves as a hub for the region. During his visit which he said was focused on expanding economic relations with the UAE, political cooperation was also a topic at Dombrovskis' meetings with UAE senior officials and ministers. Protection of mutual investments and visa and consular facilitation are two issues the UAE and Latvia agreed to work on, he noted. The UAE-Latvia Business Forum which was organised in Dubai by Dubai Chamber of Commerce and Industry in cooperation with Investment Development Agency of Latvia served as a step forward to expanding and strengthening trade and commercial relations between the two countries, according to the Latvian Prime Minister. "We discussed investment potentials during our meeting with officials of Abu Dhabi Investment Authority," the Latvian Prime Minister said. "The main sectors of interest at our discussions in the UAE are transit '&' logistics and we have a large energy project for natural gas terminal for which we are seeking investors, but we are also have potential investments in the financial sector as we are about to privatise commercial banks," the Latvian Prime Minister further said. "We are very open to foreign investors. Latvia ranked 21 in the world on World's Bank Doing Business Index Latvia. Last year, we jumped up ten positions last year thanks to a number of reforms. Infrastructure and educated and motivated workforce are among our assets which make Latvia a good place to do business," Dombrovskis added. There will be more Latvian tourists coming to the UAE as we are going to work on visa issues with the UAE, he said. - Emirates News Agency, WAM