Exporting to the Middle East

An exchange program, designed to build trade connections between Australia and the Arab world, has been given the thumbs up by visiting delegates.

Trying to get a visa to travel to Australia is difficult if you live in Mauritania, a rich oil and gas country nestled into west Africa. 

For Mauritanian Boubacar Diop it was a dream come true—to be selected as one of 17 Arab business leaders who travelled to Australia in February and March as part of the Council for Australian-Arab Relations (CAAR) Young Professionals Exchange Program.

Australia hosted the group, which included managing directors, chief financial officers, human resource managers, engineers and telecommunication specialists representing Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Mauritania, Morocco, Oman, Saudi Arabia, Syria, UAE, and Yemen.

The program is an initiative to build further connections between Australian and Arab businesses. More importantly, it’s a relationship, says chairman of CAAR, Dr Glen Simpson, that offers great strategic value for Australia.

“Our relationship with the Arab world will be one of the most important for Australia to manage over the coming decades, and has already been a key focus in the first decade of this century.

“The CAAR Young Professionals Exchange Program has been, since 2004, a long-term investment in developing a positive and lasting relationship between Australia and the Arab world. That goal continues to be achieved through the links that will be forged from the sharing of ideas and culture during this latest exchange program.”

For Algerian Hakim Zeboudji, a telecommunications specialist for Orascom Telecom Algeria, it is a chance to tell his fellow participants and his Australian hosts that Algeria, while a relatively new economy on the world stage, has much to offer.

“My country’s human capital and natural resources make it an attractive proposition for Australian businesses. Our young people are well educated and keen to create and develop projects with the assistance of outside companies.”

His belief that the CAAR program will see new relationships forged with Australia and closer ties between all his colleagues in the program and their respective countries, is a sentiment expressed by all participants.

“I would like to build a bridge between our countries to help boost our cultural, environmental, educational and business exchanges so that we can have a mutual understanding of each other and how we think and operate,” he says.

Growing Trade

Trade between Australia and countries of the Arab League accounts for $10 billion a year. As many of the Arab nations begin liberalising their economies, trade with Australia is expected to grow significantly in the future.

According to the general manager of Australian Business International Trade Services, Christine Gibbs-Stewart, many Arab countries are initiating reforms to encourage privatisation, liberalise their foreign trade, and reform investment regimes. “Privatisation and economic diversity are becoming more evident. Many of the Arab countries, such as Saudi Arabia and Kuwait, are rich in oil and gas reserves. However, their dependency is limited.

“As a result, new industries are emerging especially in the tourism and finance sectors, particularly with the relaxation in foreign investment restrictions, a review of taxes on foreign companies, and the ability for foreigners to buy real estate in many of these countries,” she adds.

“Some of the smaller countries in the Arab world also have immature markets and with the huge upheaval towards social market economies in the world, these countries need to attract both foreign investment and partnerships.” Australia’s trade with the Arab world has grown exponentially in the construction, education, and tourism sectors with Australians building hospitals, redeveloping airports, building projects and supplying building products.

“The CAAR program is aiming to encourage the exchange of knowledge, technology and innovation so that trade opportunities between Australia and the Arabic world continue to grow,” says Gibbs-Stewart. “The program will increase the participants’ understanding of business practices and culture in Australia as well as help our understanding of business practices and cultures in the Arab nations.”