UAE, Hungary agree to develop partnership in the new economy

The fourth session of the joint economic committee (JEC) between the UAE and Hungary was held in the Hungarian capital Budapest recently, chaired by Abdullah Bin Touq Al Marri, Minister of Economy, and Peter Szijjarto, Minister of Foreign Affairs of the Republic of Hungary.

The meeting was attended by several officials and government and private sector representatives from both countries.

Bin Touq underscored that the relations between the UAE and Hungary have witnessed continued growth on various fronts, especially the economic ones, thanks to the support of both leaderships and shared development aspirations.

He said that the UAE sees Hungary as an important economic partner in Eastern Europe and looks forward to continuing joint efforts in sectors of mutual interest to contribute to the sustainable development of both economies.

Bin Touq said: “The convening of the 4th session of the UAE-Hungary Joint Economic Committee is a significant step forward, reiterating both sides’ commitment to strengthening economic and investment relations between the two countries. It reflects our shared desire to explore opportunities for cooperation in the sectors of the new economy, clean and renewable energy, logistics, tourism, circular economy, modern technological industries, agriculture, water management, infrastructure projects, and space science, unlocking new growth prospects for the private sector.”

During the meeting, shed light on a number of incentives and advantages offered by the UAE economy to entrepreneurs and startups, both at legislative and regulatory levels. The country has successfully developed a competitive legislative environment that supports the establishment of businesses and the launch of innovative projects, thus fostering entrepreneurship and investments and consolidating the UAE’s position among the best global economic destinations. H.E. pointed out that the UAE is now home to promising startups and creative industries that also benefit from the country’s leading infrastructure and technology ecosystem. The UAE secured number one ranking in the GEM 2023/2024 Global Entrepreneurship Monitor (GEM) report for the third year in a row.

He also called on the Hungarian private sector to take advantage of the promising, competitive policies and opportunities offered by the UAE to establish diverse business and economic activities and launch startups in the country. These include the amendment to the Commercial Companies Law to grant full foreign ownership of companies, which contributed to the establishment of over 275 thousand new companies within a year and a half, taking the total number of companies operating in the UAE to more than 788 thousand by the end of 2023, as well as the country’s strategic position that supports its status as a dynamic global trading hub.

The Minister of Economy invited the Hungarian private sector to capitalise on the opportunities and flexible, competitive advantages offered by the UAE economy to establish businesses, economic activities and innovative startups in the country. One remarkable development is the amendments made to the Commercial Companies Law to allow 100 per cent foreign ownership of companies in the UAE. This amendment has resulted in the establishment of over 275,000 new companies in just a year and a half. As of the end of 2023, the total number of companies operating in the UAE exceeded 788,000. Furthermore, the country’s strategic location strengthens its position as a dynamic global trade hub.

The meeting extensively explored ways to improve cooperation and explore potential opportunities to boost private sector growth in both countries. The objective was to cultivate new partnerships that would reinforce the economic ties between the UAE and Hungary. Additionally, the meeting emphasized the significance of encouraging entrepreneurs to enter and expand their businesses into new markets, in line with the vision of both countries to transition to innovative economic models.

The UAE and Hungary agreed on continuing the exchange of expertise and knowledge, while also seeking insights from best practices adopted in various fields such as agriculture, food security, animal husbandry, food industry, water and environmental management and protection, energy, and renewable energy. In addition, the session explored innovative methods to stimulate tourism flows and foster new avenues for collaboration between tourism companies in both countries. Notably, air traffic between the UAE and Hungary continues to grow, with more than 56 flights currently operating between the two destinations every month.

The two parties highlighted the significance of continued exchange of knowledge between the public and private sectors in both countries. They noted the importance of keeping pace with the latest advancements in modern technology and applications artificial intelligence in the transition towards green growth, energy efficiency, entrepreneurship, and the development of new economy sectors.