How coronavirus may hit trade growth between Ireland and the UAE

Fahy told Arabian Business that exports to the country in 2019 were “really strong” – up 15 percent – a number which was “replicated more or less across the region”.

That compared to a 16 percent increase in North America, eight percent in Asia and 22 percent throughout the Eurozone.

However, Fahy admitted the onset of the global Covid-19 pandemic in March, coupled with the ongoing uncertainty of Britain’s exit from the European Union, has dented export numbers, with a challenging 2021 also forecast.

He said: “It is a challenging year. In one year we have Covid, Brexit, trade protectionism going on around the world, climate change. Our main ambition this year is to sustain the business we have. I would be delighted if we had single digits (growth). We want to hold on to what we have in 2020. I don’t think we’re any different to any other country, I think everyone’s in the same position.

“I think there’s been a lot of renegotiation of contracts, buyers seeking new terms and conditions within existing contracts; there’s been a bit of a freeze on capex.”

Conor Fahy, regional director, Middle East, Africa, India at Enterprise Ireland

According to a 2019 report from the Arab Irish Chamber of Commerce (AICC), the value of Irish exports to the region is expected to more than double within the next 15 years to approximately 12 billion euros ($14bn).

The report added that Irish merchandise exports to the Middle East at that time were valued at 5.18bn euros ($6.1bn), of which 1.91bn euros ($2.2bn) were from merchandise and 3.27bn euros ($3.8bn) from services.

Fahy said there is plenty room to remain optimistic, particularly with the growth of exports around ICT, fintech and medtech – with Ireland the fifth largest exporter for Covid-related goods and services according to a recent OECD report.

“In some of these areas where the initial pandemic created an uplift, I think we were quite well positioned to avail of that,” he said.

“Despite the pandemic, our sales were going pretty fast internationally. While this is a challenging time for all of us, we are seeing a number of successes for Irish companies right across the region.”

He revealed that areas of growth for Irish companies was being witnessed across Egypt, but also in Kuwait, Bahrain and Oman.

And he admitted there is potential for greater cooperation as a result of the fall-out from Brexit. Although the UK remains Ireland’s greatest export country, ten years ago 42 percent of Irish exports were sent across the water, which compares to 31 percent today.

He said: “I think what we’re seeing is companies having a very sharp focus on where they can win sales. Perhaps companies might have had greater comfort a few years back where they might have had time for a lot of strategic planning etc. But I think Brexit has woken up a lot of our companies to the fact that they need to think about new markets.”

Five things we’ve learned from this article

1. Irish exports to the UAE in 2019 saw a 15 percent, compared to a 16 percent increase in North America, eight percent in Asia and 22 percent throughout the Eurozone
2. Enterprise Ireland is looking to consolidate export numbers to the region this year in light of the coronavirus pandemic and Brexit uncertainty
3. The growth of exports from Ireland surrounds ICT, fintech and medtech – with Ireland the fifth largest exporter for Covid-related goods and services according to a recent OECD report.
4. In terms of countries, Irish outfits are eyeing opportunities in Egypt, Kuwait, Bahrain and Oman
5. The continuing Brexit uncertainty is forcing Irish companies to look at new markets