GCC, China moving toward establishing free trade zone

Updated 21 February 2014

GCC, China moving toward establishing free trade zone

Chinese Ambassador to Saudi Arabia Li Chengwen said the volume of trade exchange between Saudi Arabia and China had been going up by leaps and bounds in the last few years.
“The two countries have mutually beneficial economic and trade relations, and they still do,” said ambassador Chengwen, adding: “Saudi Arabia is one of the most important trade partners at the economic and trade cooperation level, and the largest among Arab and African countries in the last 12 years.”
He said China will replace the United States as the largest importer of oil from the Middle East countries. “This is the reason for my government being very keen on boosting economic relations with Saudi Arabia since the Chinese economy is in need of a stable and continuous energy supply, and the Saudi economy needs the wide and extended energy markets,” the ambassador added.
China presently is the largest importer of oil. In 2012, crude oil production in the country stood at more than 200 million tons, against 250 million tons of imports, recording an increase of 20 percent over the previous year.
China also maintained continuous economic growth in 2013 with the GDP of the country growing by 7.7 percent, leading to increasing demand for energy.
In the last ten months of 2013, China imported 45.5 million tons of crude oil from Saudi Arabia, about 19 percent of its total imports of the commodity.
Referring to the strategic dialogue between China and the GCC countries that was held in Beijing recently, the ambassador said: “We are moving toward the establishment of a free trade zone between China and the GCC states since such a move will contribute to long-term development of economic relations between the two sides, particularly Saudi Arabia.”
He added: “This will also promote mutual investments between the two sides, and will boost cooperation to new levels in fields such as technology and renewable resources of energy, with Saudi Arabia evincing interest in developing a strategy to diversify resources of energy generation.”
He noted that the policy of Saudi Arabia to diversify such resources of energy established the wisdom of long-term perspective of the country’s leadership to serve its sustainable development.


A homegrown UAE brand bets on date’s heritage appeal

Updated 29 February 2020

A homegrown UAE brand bets on date’s heritage appeal

  • Dates are locally sourced by The Date Room from around 20 farms in the Al Ain oasis area of Abu Dhabi
  • UAE farms grow about 475,000 tons of dates a year, a significant percentage of which is exported

DUBAI: When you can answer the classic business question about a unique selling proposition (USP) in six different ways, you likely have a successful product on your hands.

Thankfully, when you are dealing with dates, unusual product features are not a problem.

There are more than 3,000 date varieties around the world, but Emirati brand The Date Room is approaching the sticky business of breaking into an established market with just half a dozen local cultivars.

From the buttery, caramel notes of the golden Kholas date to the lower-carbohydrate Razaiz type, their flavors offer a change from the more commonly available Medjool and Deglet Noor varieties.

Being locally sourced from about 20 farms in the Al-Ain oasis area of Abu Dhabi, they are also introducing UAE residents to the nation’s heritage.

“Emirati dates are unique because they’re generally much richer in taste and texture than others on the market — although they can be smaller in size,” said Tony N. Al-Saiegh, executive director of The Date Room.

The Date Room launched with two luxury boutiques in the UAE last November after founder Ahmed Mohamed bin Salem spotted a gap for local fruit in a market dominated by produce from Saudi farms.

While official market share by origin data is not available, Saudi dates may control close to 90 percent of the UAE’s retail market.

Yet, with an annual production of 755,000 tons, Saudi Arabia trails Egypt, Iran and Algeria, all of which produce in excess of a million tons each year, according to the UN Food and Agriculture Organization.

By contrast, UAE farms grow about 475,000 tons, a significant percentage of which is exported.

Dates are among the world’s oldest cultivated crops. The palm is native to the Middle East, North Africa and South Asia, with origins that go back more than 5,000 years to what is modern-day Iraq.

The appeal of dates has grown considerably in recent years. Their high fiber and mineral profile have led to their classification as a superfood, they have been used for their high natural sugar content in healthy natural alternatives to processed candy bars.

“The Date Room’s main initial motive was the fact that our own farms produce a superior quality of date in every way,” Al-Saiegh said.

“Our families have been enjoying these dates with every meal and occasion for generations, so why not introduce it to the market in a way that makes them available to everyone but also promotes the unique culture of the UAE?”

The company’s annual production runs to about 160 tons.

For now, distribution is restricted to the UAE, but Al-Saiegh says his team is in talks with distributors in India and Indonesia.

With farmers everywhere agonizing over the impact of climate change, what are the challenges facing date farmers, accustomed as their crops are to heat and aridity?

Scientists expect 2019 to be the second-hottest year on record after 2016, and they forecast that by 2070, today’s major producers will suffer from a markedly unsuitable climate.

Despite palm trees being able to tolerate the heat for hundreds of years, Al-Saiegh says his farms are already feeling the impact.

“As the weather gets hotter and the summers get longer, it’s drying out farms and (arable) land. This means more water is required because a lack of water affects the size and texture of the fruit,” he explains.

While the full impact of those changes is some years away, the Abu Dhabi government has focused on conserving the UNESCO World Heritage oasis where the UAE’s dates are grown.

On the other hand, given the way technology has transformed the local agricultural sector with solutions such as vertical, indoor and soilless farms, Al-Saiegh may soon be able to add another distinguishing feature to The Date Room’s USP.

• This report is being published by Arab News as a partner of the Middle East Exchange, which was launched by the Mohammed bin Rashid Al Maktoum Global Initiatives and the Bill and Melinda Gates Foundation to reflect the vision of the UAE prime minister and ruler of Dubai to explore the possibility of changing the status of the Arab region.