UAE & Czech Republic sign collaboration agreement to establish Joint Economic Committee; announces new era of partnership

Two countries aim to develop effective programs & mechanisms to promote collaboration in 10 major sectors

The UAE signed an economic, commercial, and technical collaboration agreement with Czech Republic, which is set to pave the way for a Joint Economic Committee between the two countries. The move aims to strengthen existing economic relations by developing effective programs and mechanisms for collaboration between the UAE and Czech Republic in the fields of trade, investment, knowledge exchange, and facilitate joint economic efforts during the next stage, thereby promoting sustainable economic development in both countries.

H.E. Abdulla bin Touq Al Marri, UAE Minister of Economy, signed the agreement alongside H.E. Jozef Síkela, Czech Minister of Industry and Trade, in the presence of Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy; Mr. Jiří Slavík, Ambassador of the Czech Republic in the UAE, and top officials from both sides.

During the ceremony, H.E. Bin Touq emphasized that the UAE enjoys a wide network of economic, commercial and investment partnerships with international markets in various continents. The country, he elaborated, in line with the directives of its wise leadership, has adopted an ambitious strategy to take these partnerships to advanced levels in line with the goals of the 50 and the UAE Centennial 2071. Such partnerships are built on the principles of flexibility, openness, and international economic collaboration in various vital sectors, specifically those in the new and future economic sectors, H.E. added.

H.E. Bin Touq said: “Czech Republic is a prominent economic destination and an important partner of the UAE in the Central European region. It boasts a powerful economic and industrial infrastructure that is teeming with collaboration opportunities and through which, a fruitful sustainable partnership could be achieved with the UAE business sector. The signing of this new agreement is a milestone in the economic relations between the two countries. It further paves the way for holding the first Joint Economic Committee that entails new prospects of partnership and trade and investment collaboration programs based on transparent visions, specific promising opportunities, and shared goals between the governments and the business communities in both sides. We will continue our collaboration efforts with Czech Republic to achieve the goals of this agreement on the ground, in line with the economic development aspirations of both countries.”

The Minister further noted that the sectors identified as part of the agreement constitute a roadmap for a new phase of fruitful collaboration, especifically in new economy sectors. Both countries have agreed to place manufacturing, industries, renewable energy, future technologies, innovation, modern agriculture, space, digital economy, healthcare, food security, entrepreneurship, tourism, and medical tourism as the top priority sectors capable of leading cooperation efforts in the next stage. These sectors take up significant weight in the UAE’s vision for the next 50 years to build the future economy and therefore, they pave the way for a long sustainable partnership with promising results for both sides.

The Minister of Economy also invited the Czech minister to attend the first session of Investopia summit, set to be held on 28 March, coinciding with Expo 2020 Dubai. The summit will bring together governmental leaders, non-governmental organizations, the private sector, investment banks, family businesses, investment funds, academic and research institutions, and other stakeholders from all over the world, to launch ideas, create opportunities, and empower future investments.

Meanwhile, H.E. Jozef Síkela, Czech Minister of Industry and Trade, confirmed that the agreement will guarantee better circumstances to promote the UAE-Czech relationship and take it to higher levels. It will further strengthen the position of the UAE as a vital destination for Czech exporters and investors to benefit from local opportunities and expand to regional markets in the MENA region. He Added: “The UAE is the 8th largest exporter to Czech Republic outside Europe. Through this new agreement, we shall work on promoting collaboration in sectors with higher investment capacity, such as energy, aviation, technology, agriculture, startups, and solutions of smart and sustainable cities”.

The UAE-Czech agreement will establish a Joint Economic Committee and both parties have explored all details to hold the first JEC during the next stage. The Committee will target 10 major sectors and economic activities that highlight the prospects for collaboration between the two countries. These include bilateral trade of commodities and services, investment promotion, industry including that of transportations, agriculture and agricultural produce, environment, energy and renewable energy, science, technology, innovation, entrepreneurship, SMEs, education, human resources, and healthcare.

The non-oil trade between the two countries reached AED 3.5 billion in 2020, supported by agreements that bind their sustainable economic partnership, such as the Air Service Agreement, avoidance of double taxation, and the protection and encouragement of investment. The UAE markets attracted AED 154 million worth of Czech investments in 2019, spread across real estate activities, wholesale and retail trade, maintenance of cars, vehicles, and motorcycles, information, and communications. Meanwhile, the total UAE investments in Czech Republic stood at nearly AED 87 million during the period 2013 – 2019, mainly focused on air transport sector.