Latvia Targets $300M Investment and Trade Efforts with the UAE

Latvia is focusing on forging new industrial partnerships with the United Arab Emirates, marking a transition from traditional trade to direct investments. This strategic pivot comes as the two countries celebrate 30 years of diplomatic relations, a significant milestone for enhanced economic collaboration.

Viktors Valainis, Minister of Economics, emphasized the “vast untapped potential” in this partnership, stating that Latvia's emphasis is shifting from merely exporting goods to establishing production facilities in the UAE. “We aim to set up factories here to manufacture products locally,” he remarked.

Leading this initiative is the food sector, with Latvian businesses planning to set up new production lines throughout the UAE. Notably, investors from Latvia are considering investments up to €300 million in Dubai alone, demonstrating increased confidence following events like Expo 2020 Dubai.

Currently, trade volumes between Latvia and the UAE approximate €200 million each year, a figure officials suggest is modest when considering the economic capabilities of both nations. In early 2025, trade has surged by 18% year-on-year, hitting €110.2 million in the first half of the year, indicating a healthy upward trend.

Beyond exports, Latvia is embracing investments from the UAE, exemplified by the notable €3 billion Eagle Hills project in Riga, led by UAE entrepreneur Mohamed Alabbar, showcasing commitment to extensive, long-term collaboration.

The Latvian delegation, featuring nearly 30 companies from diverse sectors like IT, biomedicine, energy, and food, is participating in government-to-government and business-to-business meetings during their visit from November 23–26.

Positioning itself as a strategic entry point to the European Union, Latvia provides investors access to a market of 450 million, complemented by favorable tax structures and a conducive business environment. Its advanced digital services, with 97% of public services available online, further position Latvia as an attractive hub for tech-driven enterprises.

As Latvia strengthens its presence in the UAE, the emphasis is on sustainable urban development, cutting-edge construction expertise, and industrial partnerships that may reshape trade relations in the region.