News that the UK has relaxed entry and quarantine rules for company executives travelling from countries on the ‘amber’ travel list is welcome for business and suggests a pragmatic approach to the delicate balance between keeping the economy open and prevailing healthcare concerns.
The impact for the GCC is, as yet, zero. With the UAE and other countries in the region still being on the UK’s infamous ‘red list’, this makes no difference to businesses in this part of the world, as staff and management still have to undertake the mandatory ten-day hotel quarantine upon arrival in the UK.
It does, however, provide a glimmer of hope that when the UAE is moved to amber, that business travel would be feasible again, and this is obviously a positive development given the lengthy hiatus and the resulting decline in interest and traction in bilateral trade that this has caused.
According to these new rules, however, certain criteria such as generating or safeguarding 500 UK jobs in the coming years, would have to be met meaning, in practice, this will only apply to larger multinationals who have workforces of such scale in the UK.
And while this is indeed welcome and no doubt there would be executives from this region for whom this presents a much-needed opportunity to engage with their UK colleagues, clients or supply chain, it excludes the business community most desperate for access and the return of regular UAE-UK travel.
SMEs are not going to be able to take advantage of this rule and it is this part of the economy, who don’t have the requisite scale of business or size of investment in the UK, where there is the greatest need to get back to international business.
Dubai, in particular, is an SME economy: 95 percent of businesses; 42 percent of the workforce; 40 percent of GDP. In the UK, SMEs are also the primary economic powerhouse, so this is a very significant part of both economies that are at risk of being left behind should this become available to multinationals in the UAE in the coming months.
Dubai, in particular, is an SME economy: 95 percent of businesses; 42 percent of the workforce; 40 percent of GDP.
The difference between the ‘haves’ and ‘have nots’ was very noticeable at the Arab Health trade show last month. The pavilions from Germany, Spain, France, Italy, America and South Korea were full with SME exhibitors and everyone I spoke to reported a really good week: lower numbers but real quality in terms of buyer interest and demand. The UK, however, was absent due to the travel restrictions, and despite some excellent digital engagements managed through the Department of International Trade, British businesses were absolutely missing out by not being in the room.
There is obviously some distance to go on this – the UAE firstly needs to graduate to amber status – but it must be hoped that this ruling is further developed and refined in the meantime to include all sections of the economy, recognising how essential it is for SME exporters to be able to resume business, travel and trade, just as it is for the multinational counterparts.
Joe Hepworth, director, OCO Middle East, and founder of the British Centres for Business (BCB)
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