Exploring Enhanced Trade Ties: Businesses in Rwanda and Dubai

07 Nov, 2023

Exploring Enhanced Trade Ties: Businesses in Rwanda and Dubai

Trade between Rwanda and Dubai has experienced remarkable growth in recent times, driven by a series of developments that have forged new business connections, as per official reports. Over the past year, Dubai's non-oil exports to Rwanda surged to a total value of $143.8 million, while imports from Rwanda rose significantly, exceeding $514.5 million, reflecting a substantial 33% increase.

This positive development was unveiled during Dubai's East African roadshow hosted in Kigali, which is an integral part of Dubai's ambitious "New Horizons" initiative. The overarching goal of this initiative is to elevate Dubai's foreign trade value to $544.5 million by the year 2026.

As a key component of the roadshow, 20 executives from Dubai-based businesses engaged in a matchmaking activity with their Rwandan counterparts, seeking to explore potential partnerships and mutual success in the future. The initiative is strategically designed to assist companies in their expansion into new markets over the next two years. This expansion might encompass seeking potential investments, forging partnerships, establishing new branches, franchising, outsourcing, or diversifying their trading partners.

Mohammad Ali Rashed Lootah, President and Chief Executive of Dubai Chambers, who spearheaded the delegation, underlined the mission's primary objective to fortify trade relations and investments between the two regions. He firmly believes that there is untapped potential for further growth in bilateral trade and investments.

Jeanne-Françoise Mubiligi, the acting Chairperson of Rwanda’s Private Sector Federation (PSF), expressed her optimism about the business prospects presented by this forum. She emphasized the opportunity for business matchmaking and connecting with potential partners from Dubai across various industries. Furthermore, she expressed her hope that the forum would provide valuable insights into trade and investment prospects in Dubai, the UAE, and the broader region.

Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, stressed the substantial trade partnership between Rwanda and the UAE, amounting to over $1 billion in total trade. During the first quarter of 2023, Rwanda's exports to the UAE reached $211.51 million, constituting roughly 50% of Rwanda's share of exports, while imports from the UAE amounted to $87.26 million. Ngabitsinze sees significant potential for further growth in this partnership, driven by the efforts of the Dubai Chambers International through the Doing Business in Rwanda Forum.

Dubai's major exports and re-exports to Rwanda encompass machinery, electronics, vehicles, man-made filaments, plastics, and iron and steel. In contrast, Rwanda's key imports from Dubai include precious stones and metals, fruits and nuts, coffee, tea, spices, oil seeds, and dairy products.

Rwanda has taken substantial steps to position itself as a regional platform serving neighboring markets. Initiatives like Kigali Innovation City and SMART Africa underscore Rwanda's focus on fostering innovation, nurturing technology-driven sectors, and promoting digital transformation, entrepreneurship, and innovation.

In the spirit of strengthening bilateral ties, both countries have implemented visa waivers for official passports, signed a Double Taxation Agreement, and established a Bilateral Investment Treaty. Furthermore, various agreements have been inked across sectors, including education, tourism and hospitality, aviation, economic and technical cooperation, and more. This growing trade relationship signifies the potential for even closer economic and business ties between Rwanda and Dubai.