Hungary opens Dh1.5bn credit to Emirati, Hungarian companies
Dubai: Hungary’s Export-Import lender has opened a $406 million (Dh1.49 billion) line of credit to Emirati and Hungarian companies as a way to grow financial ties between your two countries.
Hungary’s Minister for Foreign Affairs and Trade Péter Szijjártó announced the financing facility within an address in the Dubai Chamber of Commerce and Market on Tuesday.
The $406 million line of credit is to greatly help facilitate export and import transactions and for Emirati and Hungarian companies focusing on joint projects and joint ventures, Szijjártó said.
“We understand the UAE money shouldn’t be considered a problem but regarding Hungarian businesses we really do need to subsidise them to become able to conduct business here,” he said.
Hungary has attracted expense from three main UAE businesses with Emirates starting a call center in the Central European nation in 2014, Al Ghurair Group subsidiary Taghleef Sectors has a procedure there with over 200 personnel and Al Habtoor Group owns two resorts in the administrative centre, Budapest.
Szijjártó said Hungary has offered money incentives and taxes subsidies to Taghleef Sectors to expand its procedures.
The Foreign Affairs Minister is in the UAE this week to be a part of the first joint financial committee meeting between his country and the UAE.
The findings of the committee will be released on Wednesday in Dubai and Szijjártó said both countries should finalize an investment protection agreement in the first half of the entire year.
Dubai Chamber Chairman, and Al Ghurair Group LEADER, Majid Saif Al Ghurair approximated that bilateral trade will probably be worth $700 million annually, although he said both countries disagree on the actual quantity. Regardless, Szijjártó stated, “trade is usually too low.”
Hungary, who depends on Europe for 80 % of its trade, may be the UAE’s 59th largest trading partner, as the UAE is definitely Hungary’s largest in the centre East, relating to Al Ghurair.
The two countries want to improve cooperation with Hungary pitching itself as a significant food source for the UAE, who import 85 % of its food and agriculture needs.
Szijjártó, who announced the line of credit to a target audience that included the UAE Minister of Overall economy Sultan Bin Saeed Al Mansouri, said both countries have decided to increase Hungarian meals exports and negotiate export licenses.
Al Mansouri, who visited Budapest this past year, said the Central European nation is with the capacity of providing “a whole lot” of the UAE’s meals needs.
Hungary can be looking for agreements in the energy and drinking water sectors with the UAE among the world’s largest per capita electric power and water users.
“Our businesses have the skill, have the know-how [and] possess the technology,” Szijjártó said.
Nuclear energy and water administration, including desalination and irrigation, were raised as areas suitable for Hungarian expertise.
Al Mansouri, in his address to the viewers that also included users of Hungary’s personal sector, tried to ease concerns more than the impact the falling essential oil price is having about the UAE economy.
“Within the UAE I could assure of 1 thing, growth shall continue,” Al Mansouri stated, repeating latest comments the overall economy will grow on typically 3 % “based on the price of oil.”
In February lowered its forecast for development in the UAE to 2 The International Monetary Fund. 5 percent this season from 3 %.
The UAE depends on hydrocarbon revenues for 30 % of its gross domestic product (GDP) and has geared to cut this to 20 % by 2021. Al Mansouri said that physique could possibly be cut by 20 % by 2035.
On Tuesday, Dubai’s Chamber of Commerce and Industry signed a cooperation agreement using its Hungarian counterpart and Hungary’s National Trade Home.
Source: Gulf News