​Moving Beyond Trade: Latvia Seeks Industrial Partnership with UAE

Viktors Valainis, Minister of Economics of the Republic of Latvia, has underlined the “huge untapped potential” in economic relations between Latvia and the United Arab Emirates, calling for a new phase of trade and investment cooperation built on three decades of diplomatic ties.

“Today we are celebrating 30 years of bilateral diplomatic relations between Latvia and the United Arab Emirates,” he told the Emirates News Agency (WAM). “Almost 13 years ago, we signed our first economic cooperation agreement, and since then we have seen real movement in our relationship.”

The minister stressed that Latvia’s approach to the UAE is evolving from traditional export relationships to deeper industrial partnerships.

“Today we are not only looking for partnerships about where to sell our products,” he said. “We are looking for a new type of partnership. We want to build factories here in the United Arab Emirates, to produce products here.”

He highlighted in particular the food industry and related sectors, where Latvian companies are ready to invest in new production lines within the UAE.

“The food industry is very open – not just to sell products, but to invest in new production capacity,” he said. “This is something new for us, and we see a lot of possible collaboration.”

Valainis added that Latvian companies are collectively looking at up to €300 million in investments in Dubai alone, especially in food and related industries. He noted that Expo 2020 Dubai and subsequent exhibitions in the UAE had marked a turning point for Latvian businesses.

“After Expo, there were many exhibitions where our companies participated, and since then we have seen a significant increase in trade volumes between Latvia and the UAE,” he said.

According to the minister, current trade flows of around €200 million per year are “very small amounts” when viewed against the size and complementarity of both economies. “We could go much, much higher from this stage,” he stressed. “In the first half of 2025, the trade turnover, compared to the first half of 2024, increased by 18 percent, reaching €110.2 million.”

Valainis emphasised that the momentum in trade is being matched by a new wave of two-way investment.

“We are now starting to see the first investment projects coming in both directions,” he said. “From the Latvian side, there is strong interest in the United Arab Emirates, and from the UAE side, there is growing interest in Latvia.”

He highlighted one flagship project in particular: “Of course, there is the Eagle Hills investment project led by Mohamed Alabbar. Latvia is going to invest a total of €3 billion in this single project in our capital. It is a huge development that has already started and shows how serious we are about long-term cooperation.”

Alongside this, Latvian production companies in sectors such as the food industry are already setting up operations to serve global markets from Latvia. “These are just starting points,” Valainis said. “There is much more we can do together.”

The minister described his current visit to the UAE as “extremely positive”, underpinned by intensive government-to-government and business-to-business engagement.

“These meetings show there is a very strong will on both sides to increase trade volumes and investments,” he said. “Almost 30 Latvian companies have accompanied me on this visit, from a wide range of sectors – construction, IT, biomedicine, energy, logistics and of course the food industry.”

On the institutional side, Valainis pointed to the third meeting of the Intergovernmental Commission, which he said had been “very successful”.

“We identified new opportunities for cooperation in many different sectors,” he explained. “Business leaders were closely involved, and today the Latvian Chamber and the Dubai Chamber signed an agreement on business cooperation. These agreements will help to build bridges between our business communities.”

Valainis said Latvia sees strong prospects in construction and sustainable urban development in the UAE, where Latvian firms are keen to bring their expertise.

“From the window, you can see how people are building – new properties, new investments happening in both Dubai and Abu Dhabi,” he observed. “Our construction companies, architects and other experts from Latvia are here to share their experience, especially in sustainable building and modern construction processes.”

At the same time, he underscored Latvia’s credentials as a global leader in digital government and IT services.

“Right now in Latvia, 97 percent of our public services are digital,” he said. “You can buy and sell property, buy or sell a car, and communicate with the government entirely from your mobile phone. You do not have to go anywhere physically; everything can be done digitally.”

“All of this has been built by private companies,” he explained. “These companies are now ready to share their knowledge worldwide. There are not many countries that have succeeded to this level of digitalisation, and we see big opportunities to work with partners in the UAE.”

Positioning Latvia as a strategic entry point into the European Union, Valainis invited UAE investors to consider the Baltic state as their platform for wider regional growth.“Anyone who wants global success can start from Latvia,” he said. “If you want to reach a single market of 450 million customers, you can simply do it from Latvia – and it is easy to access these markets.”

“We are ready to welcome investors and companies that want to produce global products from Europe,” he continued. “Latvia is the best gateway to do that.”

He pointed to Latvia’s tax regime and business environment as a key advantage.

Reflecting on his visit, Valainis spoke warmly of the reception he and the Latvian delegation had received in the UAE and expressed optimism about the future of the relationship.

“I have very positive feelings about the United Arab Emirates,” he said. “They are welcoming us here, and we are welcoming them in Latvia. This cooperation between our businesses has a very, very bright future.”

Valainis is on a visit to the UAE from 23rd to 26th November to co-chair the 3rd session of the Joint Economic Committee between the UAE and the Republic of Latvia.