The United Mexican States - UAE Relationships

The United Arab Emirates and the United Mexican States established diplomatic relations on September 12, 1975. In 2010, the United Arab Emirates opened an Embassy in Mexico City and in return, Mexico opened an Embassy in Abu Dhabi, United Arab Emirates in 2012. 

Since the establishment of resident diplomatic missions, both nations have increased mutual international cooperation, cultural events, trade, and high-level visits. 

The foreign ministers of both nations have repeatedly visited each other's nation and signed various bilateral agreements including better cooperation in the energy sector.

In 2012 both nations signed an agreement to avoid double taxation on income and in the same year, there were more than 3,000 Mexican citizens living and working in the United Arab Emirates, mainly in the energy sector (gasoline) and more than 50,000 Mexican citizens visited the country annually for tourism.

In April 2014, the Emirati Prime Minister and Vice President, His Highness Sheikh Mohamed bin Rashid Al Maktoum, made an official visit to Mexico. It was the first visit by an Emirati Prime Minister.

In January 2016, the Mexican President, H.E. Enrique Peña Nieto, made an official visit to the United Arab Emirates. During the visit of the Hon. President Peña Nieto.

Visit of His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs to Mexico in 2019.

Both nations signed 13 memorandums and agreements, mainly in the economic field:

• Memorandum of Understanding for Visa Exemption for holders of diplomatic, official / private and ordinary passports between both countries signed on November 29, 2012.
• Agreement to avoid Double Taxation and Prevent Tax Evasion regarding income taxes signed on July 9, 2014. 
• Agreement on Air Services between the Government of the United Mexican States and the Government of the United Arab Emirates signed on June 4, 2015.
• Agreement between the Government of the United Mexican States and the Government of the United Arab Emirates for the Promotion and Reciprocal Protection of Investments signed on January 19, 2016. 
• Memorandum of Understanding on Tourism Cooperation between the National Council of Tourism and Antiquities of the United Arab Emirates and the Ministry of Tourism of the United Mexican States, signed on January 19, 2016. 
• Memorandum of understanding to improve cooperation in the field of clean energy and energy problems related to climate change between the Ministry of Energy of Mexico and the Ministry of Foreign Affairs of the United Arab Emirates, signed on January 19, 2016. 
• Memorandum of understanding on cooperation in the energy sector between the Ministry of Energy of Mexico and the Ministry of Energy of the United Arab Emirates signed on January 19, 2016. 
• Memorandum of understanding and non-binding cooperation between PEMEX and Abu Dhabi National Oil Company signed on January 19, 2016. 
• Memorandum of understanding between the Federation of Chambers of Commerce and Industry of the UAE and the Mexican Business Council for Foreign Trade, Investment and Technology signed on January 19, 2019. 
• Memorandum of Understanding between the Dubai Economic Council and the National Bank for Foreign Trade, the National Credit and Development Institutions of the United Mexican States, signed on January 19, 2019. 
• Memorandum of Understanding between the Federation of Chambers of Commerce and Industry of the UAE and the Mexican Business Council for Foreign Trade, Investment and Technology signed on January 19, 2019. 
• Treaty for the Visa Exemption requirement for ordinary passports between both countries, signed on October 31, 2018. Subsequently, His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs visited Mexico in 2019, within the framework of strengthening bilateral relations between the two countries and joint cooperation in all fields, including trade, economic, political and cultural. Both nations continue to strengthen bilateral relations and trade.

The commercial exchange between the United Arab Emirates and Mexico has been fundamental to carry out economic practices and specific strategies to generate opportunities and attract large investment projects that generate income, jobs and improve both economies due to their high impact on the trade balance.

The UAE has become the fastest growing investment trade center and is known as the world leader in global logistics hubs. It offers high-quality facilities along with a favorable environment for foreign investors. 

Dubai is a gateway for companies and for the export of products to untapped markets such as the Middle East and Africa markets. The government has carried out a series of economic and administrative policy reforms to attract capital and business enterprises from around the world, such as: 

• Promotion by reducing the overall cost of setting up a business. Efforts have been made to reduce the business incorporation rate. 
• Facilitate the processing of building permits by implementing a risk-based approach to reduce the number of inspections. 
• It is considered the best place to expand business internationally due to the strategic development of the country considered between the economies of the East and the West. Dubai's strategic advantages for companies are: a. It has a great coastline and is a hub for world aviation. 
• The strategic location of the country provides the best trade opportunities and people can also easily travel between countries. 
• It attracts a large population of skilled labor due to its global reputation and higher income. In addition, the government makes constant efforts to improve the efficiency and competence of the existing workforce.

This helps companies save a large chunk of money on employee training.

Goals for the UAE economy:

• Artificial intelligence. 
• Food security. 
• Renewable energy. 
• Aerospace. 

The UAE industrial sectors to attract Foreign Direct Investment (FDI) are for example: 

• Artificial intelligence.
• Food security. 
• Renewable energy.
• Health and medical assistance. 
• Aerospace. 
• Information technology and communication. 
• Mining resources. 
• Energy. 
• Tourism. 
• Shops and services among others.

Trade volume between Mexico and the United Arab Emirates (2019-2020).

• According to the Foreign Trade Operational Data of Mexico, Ministry of the Economy, total trade between the two countries (in dollars) has maintained a growing trend in the last 10 years. 
• The commercial exchange until September 2020, appreciates fluctuations derived from the Covid-19 pandemic.
• Total trade between the UAE and Mexico in 2019 was $ 858,933,063 million and in 2020 (Only until the third quarter), it was $ 493,722,440 million. Foreign Direct Investment (FDI) between both countries. Based on information from the Ministry of Economy of Mexico, through the General Directorate of Direct Foreign Investment, the United Arab Emirates have invested in Mexico more than 15 million dollars, which are the result of the Emirati participation in 36 companies of different sections. Cumulative amount of Foreign Direct Investment from the United Arab Emirates to Mexico until 2018 was $ 15,290,507 million.
• There are great signs of the expansion of relations between the two countries, especially after canceling the visa between the two countries and strengthening the legal framework.
• In this context, Emirates Airlines began its direct passenger flights between Dubai and Mexico via Barcelona, Spain, in accordance with the Fifth Freedom principle from December 9, 2019. Currently, Emirates Airlines has a cargo service that operates from Guadalajara International Airport to the United Arab Emirates, which will increase and boost bilateral business on a large scale by optimizing time despite geographical distance. Expo Dubai 2020, “Connecting minds, creating the Future”, it will take place from October 1, 2021 to March 31, 2022 in Dubai, UAE. 
• It is a world exhibition that will have the participation of 192 countries, a great opportunity for bilateral business and trade missions for Mexican companies.

• The United Arab Emirates and Mexico have strengthened their cultural relations by promoting friendly relations by increasing economic, cultural and scientific exchanges. 
• Thanks to the vision and focus of the Emirati leaders, there is a firm conviction that both nations and peoples will collaborate closely to carry out effective bilateral cooperation also in the cultural area.
• In this sense, a Memorandum of Understanding in the field of culture and the arts was signed between the Ministry of Culture, Youth and Community Development and the Ministry of Culture of the United Mexican States. 
• This Memorandum comes primarily from the understanding of the parties that bilateral relations are not direct and will only last if the understanding is mutual. 
• Artistic and cultural expression are necessary and form an indispensable component for complete harmony, which requires a continuous search for the objectives stipulated in the memorandum and includes the following areas: music, dance, theater, fine arts, cinema and other fields. agreed by both parties. It is also essential to create book fairs, publication and translation mechanisms in the language of each country, the organization of seminars and private meetings, cooperation between public libraries and the exchange of information and experiences in the cultural field.
• For a child, bilateral cooperation is of utmost importance, this cooperation between artists and specialists, the exchange of experiences, information and training in the field of culture and the arts, establish an academic program for teachers and students in the field of preserving, protecting and disseminate cultural heritage, and other activities are essential to achieve this purpose in terms of bilateral cooperation.