x Abu Dhabi, UAEMonday 24 July 2017

Peru hoping to forge Dubai tie-ups

Peru is seeking to harness investment and expertise from Dubai as it plans to build a major logistics zone between its main port and airport.

Luis Miguel Castilla, Peru's minister of economy and finance, is working to bolster inward investment and trade. Antonie Robertson / The National
Luis Miguel Castilla, Peru's minister of economy and finance, is working to bolster inward investment and trade. Antonie Robertson / The National

Peru is seeking to harness investment and expertise from Dubai as it plans to build a major logistics zone between its main port and airport.

Luis Miguel Castilla, Peru's minister of economy and finance, was speaking on a trip to the UAE as it looks to bolster inward investment and trade.

Mr Castilla held talks with DP World about extending the port company's investment beyond its operation of Peru's leading port, Callao.

"We are thinking about ways in which to deepen our ties," he said yesterday. "They have a concession of one of the terminals in our port. But we are thinking about a broader idea, which is joining our airport and port and creating a large logistics zone. Given the UAE and Dubai's particular experience in developing hubs logistically, there may be room for new investments to come along."

Peru has been one of South America's brightest economic stars in recent years, recording average annual growth of 6.4 per cent in the decade from 2002 to 2012. But after growth slowed to expand to 4.8 per cent in the first half of the year, the president, Ollanta Humala, has prioritised investments and sped up infrastructure projects.

In an effort to drum up funding for such projects, Mr Castilla is on an investment roadshow to the UAE, London and Frankfurt. The UAE is the largest Arab world investor in Peru, ploughing in US$1.3 billion to $1.5bn since 2010.

Mr Castilla also met representatives from Abu Dhabi Investment Authority and Mubadala Development.

"We showed them the $50bn public-private partnership projects we have over the next year and a half in transportation, subway, roads, airports. We also have projects in energy, gas and oil," he said.

"These are areas, I'm sure, Emirati investors may be interested."

Mr Castilla was accompanied by a delegation of Peruvian business people looking for investment to expand their business overseas.

He said he was hoping to sign deals on a double-taxation agreement and investment protection with the UAE, as forerunners for a possible free-trade agreement.

Last year, Peru exported goods worth $25m to $30m to the UAE after little growth in the previous two years.

Mr Castilla hopes to persuade Emirates Airline to start flights to Lima soon. The lack of direct flights mean the flying time between the two countries is more than 20 hours.

GDP growth in Peru would be about 6 per cent this year after a "disappointing" start to the year, supported by growth in the United States, China and elsewhere, and domestic reforms, he said.

 

tarnold@thenational.ae