Australian Business in the Gulf

On behalf of the Australian Trade Commission and the Australian Consulate General, it is a pleasure to have this opportunity to contribute a congratulatory message on the inauguration of the Australian Business Awards 2008. It is pleasing indeed to have the capacity to recognise the remarkable achievements that Australian business is posting in the Gulf and the corresponding contribution that Australia is making to development and the quality of life in this dynamic region.

The Gulf Co-operation Council, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, is a $A5.5 billion market for Australia. Our exports to the region show good growth - over 13% in 2006/07. UAE ($A2.4 billion) and Saudi Arabia ($A2.0 billion) are the dominant markets although the remaining members are also significant importers from Australia. Motor vehicles at $A 2.2 billion is by far the largest line item in our exports to the region. Both Toyota and General Motors have substantial export interests in the Gulf. Overall our export profile is dominated by agricultural commodities, manufactures and services - resources only make a modest contribution.

The UAE is the main focus for on ground Australian business presence in the region. It is estimated that there are 20,000 Australians resident in the Emirates and around 600 companies with an Australian connection. Looking out from the Emirates, there is also a significant expatriate Australian business presence in Saudi Arabia (6000), Bahrain (800) Qatar (800) and Oman (600). In each of these locations there are well established Australian business chambers. These are complemented by larger chambers in both Dubai and Abu Dhabi. These chambers provide a range of services to Australians looking to develop business connections in the Gulf.

Within the region, the Australian Trade Commission has representatives in Dubai, Abu Dhabi, Doha, Muscat, Riyadh and Jeddah. Our Business Development Managers combine local business and cultural knowledge and familiarity with Australian capabilities suited to their respective markets. They are available to provide confidential and expert advice to Australian interests on the pursuit of business opportunities in literally all sectors across the GCC.

The defining characteristic of GCC is the remarkably high level of disposable income, based on a rich endowment of oil & gas reserves. The combined GDP of the region is $US 735 billion. It accounts for almost a quarter of global oil production. To one degree or another, all of the Governments of GCC members are looking to the windfall of the record oil price to reduce their dependence on this sector and to develop infrastructure and platforms that will provide for sustainable growth into the future. The resulting combination of immediate consumer spending power plus a transformational vision for the future produces a rich array of opportunities for Australians with an interest in the region.

The commercial relationship between Australia and the GCC looks set to continue to expand. This is driven in large part by the growth in people to people linkages. This year some 15,000 Australians will visit the GCC region taking advantage of the rapid expansion of airline connections. Australia is an increasingly popular holiday destination for Gulf residents. Some 8000 students from the region are studying in Australia. All of this builds awareness of one and other, overcomes stereotypes and draws attention to the conspicuous complementarities between our economies.

The Australian Business Awards are a welcome introduction to the infrastructure supporting Australian business endeavour in the Gulf. They will afford the opportunity to celebrate the great achievements and contributions that Australians are making in this part of the world. My congratulations once again to the sponsors of the concept. I look forward with anticipation to involvement in the judging process for the inaugural set of awards.






Kym Hewett
Consul General & Senior Trade Commissioner
Australian Consulate General, Dubai