Latvia Eyes UAE for $300M Investment & Trade Boost

Latvia is setting its sights on the United Arab Emirates as a hub for new industrial partnerships, signaling a shift from traditional trade to on-ground investments. This move coincides with the 30th anniversary of diplomatic ties between the two nations, marking a milestone for deepened economic cooperation.

Minister of Economics Viktors Valainis highlighted the “huge untapped potential” in the relationship, emphasizing that Latvia is no longer focused solely on exporting goods but is actively exploring building production facilities in the UAE. “We want to build factories here to produce products directly,” he noted.

The food sector is at the forefront of this initiative, with Latvian companies planning new production lines across the UAE. In total, Latvian investors are reportedly eyeing up to €300 million in projects in Dubai alone, reflecting growing confidence following Expo 2020 Dubai and other recent trade exhibitions.

Current trade volumes between Latvia and the UAE hover around €200 million annually, which officials consider modest given the size and complementarity of both economies. Early 2025 has already seen an 18% year-on-year increase in trade, reaching €110.2 million in the first half of the year, signaling a positive upward trajectory.

Latvia is not only promoting exports but also welcoming UAE investments. A notable example is the €3 billion Eagle Hills development in Riga, spearheaded by UAE businessman Mohamed Alabbar, showcasing a commitment to large-scale, long-term collaboration.

The Latvian delegation, comprising nearly 30 companies from sectors including IT, biomedicine, energy, construction, logistics, and food, is actively engaging in government-to-government and business-to-business discussions during the ongoing visit from 23–26 November.

Latvia also positions itself as a strategic gateway to the European Union, offering investors access to a 450-million-strong market along with favorable tax policies and a business-friendly environment. Advanced digital services, where 97% of public functions are online, further enhance the country’s appeal for tech-driven partnerships.

As Latvia deepens its footprint in the UAE, the focus remains on sustainable urban development, modern construction expertise, and industrial collaborations that could redefine trade dynamics in the region.