The goal of Dubai Chambers’ representative office in Lagos, Nigeria, is to strengthen cross-border cooperation between the two economies. Dubai Chambers’ Lagos office ranks seventh in Africa and 28th globally.
This was revealed on Thursday at the “Doing Business with Nigeria” event hosted by the Lagos Chamber of Commerce and Industry (LCCI) by Mohammed Lootah, President and CEO of Dubai Chambers.
According to Lootah, the business connections between Dubai and Nigeria were the impetus behind the construction of the representative office. As per his statement, the establishment of the representative office will facilitate communication and foster economic collaboration between the two nations.
Lootah said, “Dubai and Nigeria already share a strong economic relationship, with non-oil bilateral trade reaching a value of US$ 2.1 billion in 2022. This represents a remarkable annual growth rate of 39.3 percent, underlining the deepening connections between our business communities.
“This upward trajectory is also reflected in the increasing number of Nigerian companies registered as members of the Dubai Chamber of Commerce. At the end of September 2023, more than 550 businesses from Nigeria were registered, including 75 new member companies that joined during the first nine months of this year.”
He mentioned the enormous potential the Dubai Chamber sees to further collaboration and promote cross-border investment and trade in a variety of industries.
Lootah said, “Today, I am pleased to lead a delegation that is eager to find out more about doing business with your great nation. We also aim to provide ambitious entrepreneurs and business leaders from Nigeria with valuable insights into doing business with Dubai and explain how our new office in Lagos will support businesses in both markets.
“We are here to learn from each other, and there will be plenty of opportunities for you to share any questions with our expert speakers and the Dubai Chambers team. Please don’t hesitate to approach us during today’s breaks and networking opportunities, it will be our pleasure to assist you.
“Nigeria offers the perfect launchpad for companies seeking to do business in West Africa and I am looking forward to our matchmaking sessions later today, which create an exciting opportunity to connect with potential partners and unlock mutual success.”
Speaking at the ceremony, Lagos state governor Babajide Sanwo-Olu of Southwest Nigeria praised the move, pointing out that for more than 40 years, Nigeria and the United Arab Emirates (UAE) have had mutually beneficial relationships based on support and robust bilateral trade.
According to the Lagos Governor, Nigerian exports to the United Arab Emirates comprise gold, crude oil, and petroleum gas, while we import vehicles, jewellery, and equipment from the UAE. These exports power our bilateral trade.
Sanwo-Olu said, “In terms of statistics, the value of Nigerian exports to the UAE as of 2021, stood at 276 million dollars, with a growth rate of 34.7 percent. On the other hand, UAE export to Nigeria stood at 1.36 billion dollars with a growth rate of 21.7 percent.”
According to him, the United Arab Emirates serves as a crucial hub for Nigerians conducting business in the Middle East and other associated regions. Regarding Lagos’s place in the bilateral ties between Nigeria and the United Arab Emirates, Governor Sanwo-Olu stated that the state is strategically important as a major hub for the majority of UAE imports.
He said, “With its status as the economic heartbeat of Nigeria, Lagos is a land of immense investment opportunities and potentials, having a huge market driven by an active and highly mobile population exceeding 20 million; many of whom are high and middle-income earners.”
The governor of Lagos stated that making an investment in Lagos State entails making an investment in a gateway to both Nigeria and the African continent. According to him, cooperation with the UAE offers a chance to begin a mutually beneficial relationship that will be extremely beneficial to both parties.
The African country can function as the UAE’s entry point to Africa’s sizable market by leveraging the African Continental Free Trade Area (AfCFTA), according to Michael Olawale, President and Chairman of Council, LCCI, who expressed gratitude to the UAE for deciding to establish the representative investment office in Nigeria.
Olawale claimed that because both the UAE and Nigeria developed their oil economies in the second half of the 20th century, they have a lot in common.
He said, “However, while UAA has a population of 9.4 million with advanced infrastructure, Nigeria on the other hand, has a population of about 220 million with huge infrastructural deficit and opportunities.
“In terms of trade, Nigeria and the United Arab Emirates share a unique and deep trade and investment relationship. This significantly grew in the last decade with bi-lateral trade volumes currently in excess of USD1.5 billion in 2022.
“In fact, Nigeria’s trade with Vietnam accounts for almost 15% of its total trade with Africa, a clear reflection of Nigeria’s position as one of the biggest trading partners with UAE and the largest economy in the continent.”
He claims that under President Bola Tinubu’s leadership, Nigeria has implemented certain changes that are drawing in international investment and will bring macroeconomic stability back.
Since some of the reforms were made to increase Nigeria’s competitiveness by removing trade and investment barriers, Olawale stated that entrepreneurs and investors from the UAE could investigate more opportunities in the nation.
He stated that the UAE investors should not only explore Nigeria “in terms of trade but also consider the possibility of investment in major economic sectors including agriculture, energy, oil and gas, telecommunications & technologies, solid minerals, manufacturing.”
He counselled the investors to capitalize on the abundance of raw materials, the sizeable market, and the favourable tax laws for manufacturing export goods.
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