Pedro Sánchez is committed to strengthening economic and political ties between Spain and the UAE

Exhibition Centre, Dubai (United Arab Emirates)

The inauguration was also attended by the presidents of the CEOE, Antonio Garamendi, and the Spanish Chamber of Commerce, José Luis Bonet, together with a large delegation of Spanish companies, world leaders in their respective sectors: Indra, Barceló, Constructora San José, TSK, Técnicas Reunidas, Airbus España, Asisa, Acciona, Duro Felguera and Alsa, which the president described as "a source of pride and an example" for many other Spanish companies interested in internationalisation, with "unquestionable international leadership" in sectors such as engineering, renewable energies, water, transport, tourism, banking and information technologies.

With this trip - the first since 2011 by a Spanish President to the UAE - Pedro Sánchez certifies the impetus given by the Government of Spain to build a new strategic relationship between Spain and the Emirates, which will allow - with the signing of several financial and commercial agreements - Spanish companies to attract key investments from the UAE and advance the interests of our country's companies present in the region.

"We are a modern government, with the aim of maximising opportunities for our companies, as well as opening the doors to foreign direct investment", stressed the president, highlighting the fact that, in a context of enormous complexity due to the pandemic, a whole reformist agenda has been developed in the business sphere, approving, for example, a new Bankruptcy Law - giving entrepreneurs a second chance - as well as the Law for the Creation and Growth of Companies, the Law on Startups - the first in Spain and one of the most ambitious in Europe - and the Law on Telecommunications, which will contribute to achieving the goal set by the Government of high-speed connectivity to 100% of the population by 2025.

Strategic partners

For the Government of Spain, raising the already "excellent relations" with the UAE to a strategic level is a natural consequence of the common interests shared by both countries, as well as the extensive cooperation agreements in security, defence, sport, education, health and the economic and business sphere.

The Emirates is a key investor in Spain, reaching 16th place in the ranking of investment stock, with 6.148 billion euros in 2019. "But this can be better. We can go further," said Pedro Sánchez, in an expression of the Government of Spain's willingness to lay the foundations for a strategic investment partnership between Spain and the UAE.

In particular, he highlighted two bilateral agreements that were concluded during this visit: Reciprocal Investment Protection and Promotion Agreement - negotiations on which have remained inconclusive since 2003 - and a Memorandum of Understanding (MoU) between the Mubadala Sovereign Wealth Fund and COFIDES (Compañía Española de Financiación del Desarrollo), for the identification and joint financing of projects.

"These instruments will serve to increase investment ties between the UAE and Spain", the president stressed, encouraging UAE investors to "look to Spain as a great country to invest in and win the future", especially within the framework of the Recovery, Transformation and Resilience Plan, which grants Spain the execution of 140 billion euros over the next six years to accelerate the modernisation and green and digital transition of the Spanish productive fabric.

"We would like to increase collaboration in priority sectors for our countries. Countless investment opportunities are already emerging in public-private projects of the future, such as green hydrogen generation, energy storage, car batteries, the circular economy, cybersecurity and data management.

Growing economy

Pool Moncloa / Borja Puig de BellacasaIn recent years, Spain has proved to be an extremely attractive country for international investors. In 2021, it was the third largest recipient of greenfield projects in the world, with high-value initiatives involving wealth and job creation, according to FDI Markets.

A reflection of this attractiveness is the growing importance of foreign investment in the Spanish entrepreneurial ecosystem. Particularly in innovation projects and disruptive business models, which are experiencing the greatest growth in the history of our country.

In 2020, with an unprecedented and extremely difficult economic outlook due to the pandemic, there were more investment operations in start-ups in Spain than in any other previous year, with well over 3 billion euros.

The foreign sector is also making a significant contribution to the growth and recovery of the Spanish economy. The latest trade figures show that exports of goods grew from January to October 2021 by 21.1%, reaching 258.682 billion euros and with the UAE being the second largest customer for Spanish companies in the Middle East.

"It is a great satisfaction for the Government of Spain to see how Spanish companies are collaborating in emblematic and important projects for the United Arab Emirates, such as the construction of the Louvre Museum in Abu Dhabi, a hospital in Al-Ain or the extension of the metro line to the EXPO".

In this sense, Pedro Sánchez highlighted the fact that all this data is being corroborated by "the forecasts for 2022 of the main multilateral organisations, which point to a Spanish economy that is always growing in the leading group of advanced economies, and also accelerating from the figures for 2021", despite the difficulties caused by elements such as inflation or problems in global supply chains. In 2022, economic growth of 5.5% of GDP is expected for Spain.

Spain is contributing to these achievements by being "by far" the most advanced country in the implementation of the EU-funded Recovery Plan. Together with Portugal, Spain was the first of the EU partners to present the Plan and, uniquely, the first to receive the approval of the European Commission, as well as the Operational Agreement and the first to obtain the disbursement of NextGenerationEU funds.

Joint Declaration

Throughout the day, the president will hold working meetings with the Prime Minister and Emir of Dubai, Mohammed bin Rashid Al-Maktoum, and with H.H. the Crown Prince of Abu Dhabi, Mohammed Bin Zayed bin Sultan Al-Nahyian, with whom he will sign an important Joint Declaration of broad political and economic significance, which deepens and elevates the already excellent relations between Spain and the UAE to a strategic partnership.

The President of the Government of Spain will also visit the Spanish Pavilion, strategically located in the area dedicated to Sustainability within the EXPO, in line with the Government's support for companies and its political commitment to transforming Spain as an example of intelligent creativity, capable of uniting people in sustainable projects in the fields of science, technology, production, education and art.

"Our country is a world benchmark in the development of renewable energies, as well as in the achievement of the SDGs, something we also share with the Emirates, as it is demonstrating its international commitment in this field, hosting the head office of the International Renewable Energy Agency or hosting the next COP 28 in Abu Dhabi, in 2023", stressed the president.

Non official translation