The shocking result of the UK’s referendum on its 43-year membership of the European Union will have a huge impact on the UK economy and on every business operating in the UK. What can businesses do to protect their interests in the face of the expected downturn?
One serious strategy is to put even more effort into exports. Here are 5 reasons why the UAE is a good target country for exporters.
- The fall in the value of the pound brings benefits to all exporters. The UAE’s dirham is pegged to the US dollar so it’s easy to see the increased value of your exports from the UK
- There is no EU trade deal with the UAE so there will be no period of uncertainty while the UK’s relationship with the EU is re-negotiated
- Existing trading arrangements will therefore continue as now with 5% customs duties on most imported goods and local arrangements required for some types of business to be carried out
- The strong bi-lateral relationship between the UK and the UAE through the UK-UAE Task Force and the UAE-UK Business Council will continue without any change but perhaps with greater emphasis
- Despite the fall in the oil price, the UAE remains an ambitious country striving to grow. Preparations for Expo 2020 are well underway. Dubai Parks and Resorts will open their three theme parks on the same site, at the same time in October. The Warner Bros theme park is under construction in Abu Dhabi. There are many, many more projects under way.
The UK is resilient. Business leaders will get a shock this morning then take a deep breath and say, as President Bartlett says at the end of every crisis in West Wing: “What’s next?” A positive answer could be: “Exports to the UAE”.