Amanda Andrades / Biel Huguet Albons

Oct. 21, 2014 9:46 p.m.

The Algerian ambassador wished to draw attention to the presence of a large number of small and medium-sized Spanish companies in the Arab world, in addition to the large companies. “Spain’s business fabric is projected abroad from the countries of the Maghreb and those of the Persian Gulf in all sectors, from the military industry to those which are dedicated to treating water, as well as those which allow for the sharing of technology,” he stated.

Haneche explained that ten of the twelve tenders for desalinization plants held in Algeria in the last eight years were won by Spanish companies, for a value of two billion euros. “Now Spain is living up to the standards of countries traditionally considered to be top-level, such as Germany and the United States,” he pointed out.

The Dean of the Arab League remarked that the states which he represents make investments in Spain, but that they need more Spanish investments in the region “to be able to balance the relations amongst all.” And he added that the framework created jointly “will soon be receiving inputs on its own, thanks to the help of ambassadors and businessmen and businesswomen."

Commercial growth

The State Secretary of Trade, Jaime García-Legaz, underlined the importance which the commercial relations between Spain and the Arab countries have gradually acquired in recent years. “There has been an unprecedented turnaround in terms of trade, with an increase in trade exchanges of 80% to 90% per year. In certain countries, it has even reached 150%,” he reminded.

At this forum, we could not leave out a nod to the sector in which Spanish companies abroad have been skyrocketing for years: construction and infrastructure maintenance. “Airports, railroad facilities and ports which have been developed in Spain in recent decades are a mirror in which other countries look at themselves. Our country has become an international point of reference, thanks to consulting, engineering and construction firms,” the recently named State Secretary of Infrastructures, Julio Gómez-Pomar, affirmed during his speech.

This former president of Renfe, up to just a few weeks ago, also wished to provide a reminder that six of the 15 most important companies with an international presence in this sector are Spanish. “Their work throughout these years has created the potential for them to achieve contracts in other parts of the world. For instance, a significant number of them now earn 50% of their revenue abroad.”

As an example of this effort made towards internationalization, Gómez Pomar mentioned the high-speed railway between the cities of Medina and Mecca in Saudi Arabia. This feat of construction, which will cross the desert on the Arabian Peninsula, will make it possible for 160,000 pilgrims to travel between two places of enormous religious importance in the Muslim world each day. The construction, operation and maintenance of this giant engineering project will last 12 years and will be carried out by a Spanish-Saudi consortium in which 12 Spanish companies hold a stake.

Diversification of investments

The State Secretary of Foreign Affairs, Gonzalo de Benito, in the presence of another three Secretaries of State, underlined that initiatives like this make clear the importance that the countries in the Arab world hold for Spain. De Benito reminded those attending that the relations between Spain and the Arab countries have many years of history behind them and that they encompass a broad range of topics and interests. Moreover, he expressed his thanks for these countries’ support for Spain’s entry into the United Nations Security Council.

Benito declared that “We have a great opportunity to work towards improving the development of all countries in fields such as renewable energies and water desalinization.” The representative of the Ministry of Foreign Affairs supported this idea on the basis of the nine billion euros in trade exchanges with Morocco in 2013 or the 15.5 billion produced by Algerian gas in Spain during the same year. He also reminded us that the investments have been diversified and also include renewable energies and the real estate sector.

Similarly, Benito remarked that the government will soon be presenting its foreign policy strategy, agreed upon with representatives of the opposition in the Spanish Parliament. “This is a reflection of the importance held by the Arab world for Spain,” he declared.

Most of those attending attended this lunch, which was held in a relaxed atmosphere, with the objective of creating closer economic ties between Spain and the Arab countries represented at the event.

Attending the event, in addition to the Algerian representative, were the ambassadors in Spain of Palestine, the United Arab Emirates, Saudi Arabia, Tunisia, Lebanon, Jordan, Qatar, Egypt, Sudan and Mauritania. Completing the list of attending diplomats were representatives from Kuwait, Iraq, Oman, Morocco, Libya and the Arab League.

As for the Spanish companies, banks and consulting firms, a large group of representatives met at the event, including FCC Aqualia, Técnicas Reunidas, Ferrovial, Gamesa, Gas Natural, OHL, Iberdrola, Repsol, Amadeus and Acciona. Moreover, executives attended from Caixabank, Spain’s “Forum of Renowned Brands,” Indra and Nexus. Also notable was the attendance by representatives from Extrexport Foods, which has a presence in countries around the Persian Gulf, as well as the governments of Extremadura and the Basque Country. The General Director of Casa Árabe, Eduardo López Busquets, also attended this event.

DHL committed to “clearing the way” for small and medium-sized companies abroad.

It is clear to the Managing Director of DHL Express Iberia, Miguel Borrás, that one of the missions of this mail and logistics service company must be to support Spanish companies in their quest for working abroad. He expressed this statement during his speech at the forum. “It is especially important for us to continue opening up the path for Spanish companies abroad,” he stated. To do so, DHL provides its services thanks to its long-standing work and experience in the region, as a result of its presence for over 38 years, with a portfolio of more than 19,000 customers, according to this executive. In his speech, Borrás, who went so far as to describe DHL as a facilitator of internationalization processes, reminded that companies have not been alone in their efforts to expand into other markets. “In their earliest steps to export, DHL accompanied them in their efforts, facilitating processes and advising them on matters related with customs and shipping merchandise.” Amongst the examples of success for small and medium-sized companies doing business in the Arab countries, Borrás highlighted three: the food company Dulcesol in Algeria, the textile firm Tejidos Royos in Morocco and the cooperative Ulma Forja in Saudi Arabia.

The diplomat added that we can foresee a future of hope in terms of the economic relations between Spain and the Arab countries, and that all of them will continue to support further editions of this forum.