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Cambodia is cited as one of the top destinations for Dubai exports according to The Dubai Chamber of Commerce and Industry.
This will be boosted by cost reductions resulting from the creation of more direct flights between the UAE and Southeast Asia. And it will be further driven by a push to expand exports from traditional strongholds in the Middle East and North Africa into the wider Asian marketplace.
A Prime Location in Southeast Asia
Cambodia has identified itself as a prime location for international trade in recent years. It means Dubai’s recent acknowledgment of its potential is no real surprise. Described by some economists as the “Olympian of growth” thanks to double-digit economic expansion in almost every year since 1998 (barring the period around the worldwide economic crash), the southeast Asian country is putting the turmoil of the 20th century behind it in the 21st.
The kingdom already exporting garments and footwear into UAE, an agreement signed in 2017 is expected to widen opportunities attracting business in both directions. Particular emphasis will be on strengthening the export of agricultural products – which now dwarfs oil and gas – into the kingdom from Dubai and other major Emirati economic centers.
New Business Opportunities
It’s likely to see an increase in the number of Cambodians choosing to live and work in Dubai as business opportunities present themselves. Indeed, for businesses in Dubai, like Mubadala Petroleum, the emerging Cambodian oil sector now presents a favorable investment opportunity with new jobs arising as a result.
The kingdom represents one of the highest demographics from southeast Asia in the UAE’s most populous city. More Cambodian businesses will be buoyed by emerging opportunities, driven by attractive factors such as VAT-free zones, full foreign ownership and zero import-export taxes.
Cambodia’s Impressive Economic Growth
Cambodia’s growing trading relationship with UAE is indicative of the kingdom’s impressive economic expansion in the last 20 years, or even in the last 60 – not many countries in the world have grown at greater than 7% per year since 1950. However, the Southeast Asian country can include itself among those nations with the added satisfaction of doing so without being a major oil-producing country.
GDP has increased per capita, inflation has remained low, and the poverty rate has decreased quite dramatically. With entrepreneurs and the private sector expected to drive Cambodia’s economy in the coming years, the UAE’s acknowledgment of its economic growth is indicative of its potential in future.
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