Singapore Boosts Bilateral Ties with UAE for More Trade and Investments: Singapore Incorporation
June 26, 2014 - Singapore
Mr. Cheong, who praised the ease of trade between Singapore and Dubai owing to Dubai’s excellent business processes and practices, also remarked that both countries should collaborate to serve the global economy. His visit was complemented with a workshop on the Free Trade Agreement (FTA) between Singapore and the Gulf Cooperation Council (GCC).
Organised by Dubai Chamber of Commerce, the workshop aimed to promote the awareness of the FTA, and how it reinforces bilateral ties between Singapore and the United Arab Emirates (UAE). The FTA grants zero-tariff treatment on all imports from GCC and on about 95% of Singaporean domestic exports to the GCC. As a result, the UAE is Singapore’s 14th biggest trading partner, with a bilateral trade volume of $27.7 billion in 2013.
Both countries are top choice destinations for traders and businesses, and possess state-of-the-art infrastructure in their seaports and airports. In addition, an integrated spectrum of government services available in the countries have maximised investors’ financial returns and made both nations highly cost-effective. This has allowed for numerous investments between the UAE and Singapore in both countries.
There are more than 250 Singaporean businesses thriving in various sectors of the UAE economy. Similarly, UAE businesses have invested several billions of Singapore dollars in sectors of oil and gas storage, refinery, exploration, trading, retail, and airport services. According to the enterprise agency IE Singapore, Singapore also poses advantages to UAE companies in two other key sectors: water treatment, and export of food products.
Abu Dhabi, the capital of UAE, has one of the world’s greatest per capita water consumption rates at about 0.35 cubic metres per day, which is more than twice as much as Singapore’s water consumption rate of 0.15 cubic metres per day. This is due to the rapid growth of their commercial and industrial sectors of the economy that demands the development of the region’s water supply.
Singapore on the other hand, is touted as a global hydrohub, with approximately 130 water companies representing the entire value chain of the water treatment industry. Singapore’s expertise in reverse osmosis water treatment technologies and alternative utilisation of treated effluents can attract UAE companies to establish their business activities here. The Environment and Water Industry Programme Office (EWI) of Singapore can also help UAE companies and research institute that set up here to develop and commercialise advanced technologies and solutions for their water constraints.
EXPORT OF FOOD PRODUCTS
About 90% UAE’s food supply, including all fresh produce is imported. As food security becomes a pressing issue in the arid region, Dubai’s demand for food supply positions Singapore’s food manufacturers in an beneficial position. The island nation’s reputation for food safety and quality can attract UAE food manufacturing and procurement companies to base their operations here. The Halal Certificate mark of Singapore’s food products have also been recognised and accepted by the GCC, which makes them ideal to be re-exported from the UAE to other countries of the region.
“Bilateral relations between Singapore and UAE have always been warm and sincere, and this has paved the way for treaties like the Avoidance of Double Taxation Agreement (DTA) and the Investment Promotion and Protection Agreement apart from the FTA. All these provides incentives to UAE’s entrepreneurs to consider forming a company in Singapore”, affirmed Ms. Jane Koh, Marketing Manager at Singapore Incorporation.
About Singapore Incorporation (incorporation-singapore.com)
Singapore Incorporation is a one-stop solutions provider to companies and professionals who want to do business or work in Singapore. Other than registering companies, Singapore Incorporation also offers Singapore work pass, accounting and tax, as well as statutory compliance services.
Source: Business Wire India