King Juan Carlos of Spain yesterday made his first visit to the UAE in almost six years, seeking to open doors for Spanish companies specialising in infrastructure development.
The king was accompanied in Abu Dhabi by the ministers of foreign affairs, defence, public affairs and industry, as well as 15 business leaders from Spain.
“What the king is trying to do is three different things: strategic, as this is a strategic part of the world; political relations; and especially economic relations,” said Javier Canals, a spokesman for the king. “Most Spanish companies within infrastructure are interested in getting contracts within this area.”
Juan Carlos’s visit is his first outside the Iberian Peninsula since recovering from surgery on November 23. The choice for the trip reflects the growing links between Spain and the UAE since the euro zone crisis. Spanish exports to the Emirates swelled by 33 per cent between 2012 and last year to €2 billion (Dh10.15bn), according to Spanish government estimates. More companies and people from Spain have also arrived since 2008 in a bid to find work during Spain’s recession.
Navantia, Madrid-based ship building company, is among the companies represented on the trip. It is looking to secure contracts to build naval frigates, said Mr Canals.
To date, Spain’s biggest market in the GCC is Saudi Arabia, buoyed by the awarding in 2011 of a €6.7bn tender to several Spanish firms to build the high-speed railway connecting the holy cities of Medina and Mecca. Talgo, Renfe, Adif and Copasa were among the contractors selected for the project.
Another aim of the trip was to tempt UAE investors to Spain. The economy emerged from recession in the third quarter of last year, with improving exports offsetting weak consumer and public spending. Bond yields have reached eight-year lows, too, and employment is slowly picking up.
“Most of the European countries are out of crisis – Spain is out of crisis and now there are a lot of opportunities in Spain as prices are low,” said Mr Canals.
In 2011, International Petroleum Investment Company, an Abu Dhabi government-controlled investment vehicle, took over the Spanish oil company Compañía Española de Petróleos (Cepsa). The king plans to follow his UAE visit with trips to Kuwait, Bahrain, Oman, Saudi Arabia and Bahrain over the next three months.
tarnold@thenational.ae
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