Businesses in Dubai explore opportunities in oil, gas sectors

Business Bureau, Gulf Today

Mozambique is on its way to becoming one of the world’s largest energy producers, and its growing oil and gas (O&G) market is ripe with business opportunities that companies in Dubai can capitalise on, industry experts said during a recent Dubai Chamber webinar.

Sharing their insights, experts identified rising demand for digital solutions and infrastructure, oilfield equipment and logistics services as key areas where Dubai-based companies can cooperate with their Mozambican counterparts and establish joint ventures and long-term partnerships.

The webinar was organised by Dubai Chamber’s representative office in Maputo in partnership with ABSA Bank Mozambique and Deloitte Mozambique, and attended by more than 130 industry experts and business leaders in the UAE, Mozambique and Southern Africa.

The virtual event featured presentations from Omar Khan, Director of International Offices, Dubai Chamber; Abdulla Momade, Chief Representative of Mozambique & Southern Africa, Dubai Chamber; Benson Marlon, Head of Value Chain Banking, Absa Bank Mozambique; Hermano Juvane, Head of Oil & Gas, Absa Bank Mozambique; and Mário Fernandes, Head of Oil & Gas, Deloitte Mozambique.

Addressing participants, Khan described Mozambique as a market of strategic importance to Dubai and Dubai Chamber, which offers plenty of exciting business prospects for Dubai-based companies that are looking to expand their presence into Africa.

“The lack of know-how and expertise to boost local content is one of the major challenges faced by the Mozambican companies at the moment. There is where Dubai-based companies can offer their expertise and investments through joint ventures and partnerships with their Mozambican counterparts that could fill market gaps,” said Khan.

Khan concluded with a call to companies in Dubai to further explore market opportunities in Mozambique, and benefit from the support and guidance that Dubai Chamber’s office in Maputo can offer them.

Fernandes shed light on the key benefits of doing business in Mozambique, which include low taxes, a double taxation agreement with the UAE, low investment requirement to open a business, and growth potential of country’s LNG sector valued at $100 billion.

Juvane explained that Dubai-businessmen can use foreign currencies if they operate in Mozambique’s oil and gas sector and protect themselves from the local currency fluctuation. He shared his outlook for the Mozambican economy and said the country would likely see a V-shaped recovery scenario in a post-Covid-19 world, as the government pushed ahead with measures to support SMEs and ensure business continuity.

For his part, Marlon familiarised participants with the main oil and gas players in Mozambique, which include Total and ENI, South African Sasol and American Exxon Mobil, and highlighted new business prospects emerging in various segments within the country’s energy sector.

Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub.

Earlier this month the Dubai Chamber has processed a total of 152,059 electronic transactions between March and May of this year, at a rate of 50,000 transactions per month, the non-profit public organisation has revealed.

The latest figures reflect the broader trend of businesses in Dubai accessing government services online amid movement restrictions brought forth in response to the coronavirus pandemic.

A 7.5 per cent uptick in e-transactions was recorded in May, compared to the previous month, despite Eid Al-Fitr holidays, signaling increased awareness in the private sector of the importance of e-services and smart transformation in driving business activity. Dubai Chamber currently provides 50 e-services to the business community through its website and smart applications.

The services include certificates of origin, membership, attestation, ATA Carnets, legal inquires, smart mediation, credit rating and CSR Label, among many others.

Hamad Buamim, President and CEO of Dubai Chamber of Commerce and Industry, said the latest figures reflect the efficiency of Dubai Chamber’s wide range of e-services and its strong commitment to supporting business continuity and meeting the changing needs of Dubai’s private sector.