UAE And Hungary Commit To Expanding Economic Partnership In Diverse Sectors

The fourth session of the joint economic committee (JEC) between the UAE and Hungary took place recently in Budapest. The meeting was chaired by Abdullah bin Touq Al Marri, Minister of Economy, and Peter Szijjártó, Minister of Foreign Affairs of Hungary. Several officials and representatives from both countries attended the event.

Bin Touq highlighted the growing relations between the UAE and Hungary, particularly in economic sectors. He noted that both leaderships support this growth, driven by shared development goals. The UAE views Hungary as a key economic partner in Eastern Europe and aims to continue collaborative efforts in various sectors.

"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," said Bin Touq. He mentioned areas such as clean energy, logistics, tourism, modern technological industries, agriculture, water management, infrastructure projects, and space science as potential sectors for cooperation.

During the meeting, Bin Touq discussed several incentives offered by the UAE to entrepreneurs and startups. The UAE has developed a competitive legislative environment that supports business establishment and innovative projects. This has positioned the UAE among the top global economic destinations.

The UAE ranks first in the GEM 2023/2024 Global Entrepreneurship Monitor report for the third consecutive year. Bin Touq encouraged the Hungarian private sector to leverage the UAE's competitive policies and opportunities to establish diverse business activities and startups in the country.

One notable development is the amendment to the Commercial Companies Law, allowing 100 percent foreign ownership of companies in the UAE. This change has led to over 275,000 new companies being established within a year and a half. By the end of 2023, more than 788,000 companies were operating in the UAE.

The meeting explored ways to enhance cooperation and identify opportunities to boost private sector growth in both countries. The aim was to create new partnerships that would strengthen economic ties between the UAE and Hungary. The session also focused on encouraging entrepreneurs to expand into new markets.

The UAE and Hungary agreed to continue exchanging expertise and knowledge. They will seek insights from best practices in fields such as agriculture, food security, animal husbandry, food industry, water management, energy, and renewable energy. The session also discussed innovative methods to stimulate tourism flows between the two countries.

Air traffic between the UAE and Hungary is increasing, with more than 56 flights operating monthly between the two destinations. Both parties emphasised the importance of keeping up with advancements in technology and artificial intelligence for green growth and energy efficiency.

Memoranda of Understanding

The session saw the signing of a memorandum of understanding (MoU) between the Ministry of Climate Change and Environment of the UAE and the Hungarian Ministry of Agriculture. This agreement aims to strengthen agricultural cooperation through capacity building and exchange of expertise.

Another MoU was signed between the Hungarian Space Research Office and the UAE Space Agency. This agreement focuses on collaboration in space research and peaceful space activities. It aims to promote exchange on space policies and regulations while fostering human capital development in space-related disciplines.

The Hungarian side expressed interest in collaborating with relevant organisations in the UAE to enhance sustainability policies and digital solutions in infrastructure development. Both countries are committed to transitioning towards innovative economic models through these collaborative efforts.

With inputs from WAM