In March, 2006, Maltese Foreign Minister Michael Frendo and H.E. Dr. Mohammed Khirbash, Minister of State for Finance and Industry of United Arab Emirates signed an Agreement for the Avoidance of Double Taxation.

The signing ceremony took place at the Ministry of Finance and Industry in Abu Dhabi after bilateral talks between Minister Michael Frendo and Minister Khirbash.

“We are very happy to sign this Avoidance of Double Taxation Agreement with the Emirates” commented Minister Frendo after the signing ceremony, “because this strengthens the framework for increased trade, investment and business opportunities between the two countries.”

Malta and the UAE also agreed for Malta to establish a consulate in Dubai. According to a statement from the Dubai Chamber of Commerce and Industry (DCCI), these measures come as part of Malta's efforts to consolidate its economic relations with the region after it established a trade centre in Dubai last April.

This statement came after a seminar on business with Malta hosted by DCCI attended by the Maltese Ambassador, businessmen from the UAE and a Maltese delegation to the emirates to establish commercial relations. DCCI Director General Abdul Rahman Ghanim Al Mutaiwee hailed the Maltese moves in fostering economic ties with the emirates invited Maltese businessmen to consider Dubai as a distribution centre for their products to the Arabian Gulf Region.

Mutaiwee said that trade with Malta has witnessed an evident growth, as it rose from US$10 million in 1997 to US$22 million in 2001. The Maltese Ambassador Saviour Gauci said the trade centre in Dubai will pave the way for strong business relations between Malta and the Arabian Gulf. Malta has further plans to consolidate its relations with the Arabian Gulf Region through Dubai, which will include participation of 14 companies in the Big 5 exhibition in Dubai next November.

Malta External Trade Corporation (METCO) opened a representative office in the Gulf, widely considered as the next major destination for Maltese exporters and traders, after the North African Maghreb region. Like in the North African region, many Maltese businesses are eyeing the potential of Malta serving as a stepping stone for European companies to the lucrative region – particularly in light of Malta’s approaching full EU membership.

Malta and the UAE maintain strong business relations, with total trade between the two countries through Dubai ports increasing from USD10 million in 1997 to USD21.5 million in 2001 - a 109 per cent increase in just five years.

Abdul Rahman Al Mutaiwee, director general of the Dubai Chamber of Commerce and Industry, commented at a recent Dubai-based conference on ‘Doing Business with Malta’, "Trade between Dubai and Malta is expected to reach new heights in the coming years after the opening of Malta Trade Centre in Dubai.

"It will also be a catalyst for activating the flow of direct and indirect joint investment in the UAE and Malta. Dubai and Malta can play similar roles in boosting trade utilising their comprehensive infrastructure, services and facilities services to penetrate the traditional regions in Europe, Asia and Africa," Al Mutaiwee said.

He added, "We extend an open invitation to Maltese companies, specialised institutions and agencies to take advantage of the facilities available in Dubai and to establish distribution centres in Dubai and in Dubai Free Zones."

Al Mutaiwee expressed the Dubai Chamber’s commitment to co-operate with the Malta External Trade Corporation, the Malta Trade Centre in Dubai and with potential investors and businessmen with a view to accelerating the pace of UAE investment in and trade with Malta.

Malta and the UAE are also expected to be signing a civil defence agreement that would help the two countries boost co-operation in fighting sea pollution and containing disasters.