The Agreed Minutes orthe Fifth UAE-Italy Joint Economie Committee (JEC)

19-20 October 2015Milan - Italy

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The Fifth Session of the Joint Economie Committee (JEC) on industriaI, technicaland financial cooperation between the Govemment of the United Arab Emirates(UAE) and the Govemment of the Republic of ltaly was held in Milan, ltaly, onthe 19th and zo" ofOctober 2015.

The meeting took place in an amicable atmosphere, reflecting the strategie natureof the partnership among the two countries and the desire to further develop andstrengthen their economie and cornmercial ties on the basis of equity and mutualbenefit.

The Session was highly significant due to the fact that the UAE Govemmentdecided to organize it inside the UAE Pavilion at Expo Milan 2015 on the occasionof the UAE EXPO National Day, as an ideal bridge between EXPO Milan 2015and Expo Dubai 2020

The UAE delegation was headed by H.E. Eng. Sultan Bin Saeed AIMansoori,Minister ofEconomy ofthe United Arab Emirates.

The ltalian delegation was headed by H.E. Federica Guidi, Minister of EconomieDevelopment ofthe Republic ofltaly.

The lists of the members of the two delegations are hereto annexed (Annex l andAnnex 2).

The Technical Meeting took place before the Preparatory Meeting, on the 19th ofOctober 2015, in Palazzo Giureconsulti, headquarter of the Milan Chamber ofCommerce. The UAE side was led by H.E. Eng. Mohammed Bin Abdulaziz AlShihhi, Undersecretary for Economie Affairs at the Ministry of Economy, and theltalian side was led by. H.E. Benedetto della Vedova, Undersecretary at theMinistry ofForeign Affairs and Intemational Cooperation.

The Preparatory Meeting was followed by a Business Forum and a businessnetworking event co-hosted in Palazzo Giureconsulti by the Chambers ofCommerce of Dubai and Milan. The events were attended by over 200 Emirati andltalian companies and agencies. The significant recommendations agreed uponduring the above events form part of the present document. -The Plenary Session of the Fifth Joint Economie Committee took place on 20October 2015. Both sides reviewed the Agreed Minutes of the Fourth UAE-ltalyJoint Economie Committee meeting, exchanged information about the economie

situation in their respective countries. They also agreed on the strategie naturereached by the bilateral partnership, testified by the continuous growth in theeconomie, industrial and financial ties between the two countries.

H.E. Sultan Saeed AIMansoori, Minister of Economy of the UAE, welcomed H.E.Federica Guidi, Minister of Economie Devemopment of Italy, and the Italiandelegation to the Fifth UAE-Italy Joint Economie Committee held at the UAEPavilion in Milan Expo. Minister AIMansoori asserted the strong and continuedgrowing ties between the UAE and Italy in all economie fileds and looked for newand strategie partnership on innovation, trade, industrial and SME cooperationbetween both countries.

In her reply, H.E. Federica Guidi, warmly welcomed H.E. Minister A1Mansooriand the UAE delegation, stressing the significant importance played, since itsinception in 1984, by the JEC in strengthening the relationships between the twoCountries. H.E. Minister Guidi also expressed her thankfulness to H.E. MinisterA1Mansoori for the cordial reception and hospitality in the UAE Pavilion at EXPOMilan. H.E. Minister Guidi remarked that the UAE's decision to hold the Fifth JECin Milan-Italy, despite their being the host Country, was indeed another tellingexample of the strategie relationship and close friendship amongst the twocountries. H.E. Minister Guidi underlined that, over the last few years, the UAEhave become by far the most important market for Italian exports in the MENAand Gulf Regions.

H.E. Minister Guidi congratulated the UAE for winning the bid to host EXPO2020 in Dubai and expressed Italy's strong commitment to participate in it and thereadiness and desire of Italian companies to work on a constant transfer of legacyfrom EXPO Milan to EXPO Dubai, in terms of contents, expertise, humanresources, technology and innovative solutions, thus creating a mutually beneficialfive-year "continuum" between the two events and the global bilateral partnership.A specific focus on these issues is included in the Annex of the Agreed Minutes.

Both Ministers emphasized the common commitment to work harder to take theeconomie partnership to always higher and diverse levels.

-Following the exchange of opening statements, both Sides discussed bilateralcooperation and agreed to take actions in the following fields:

I. BILATERAL INSTITUTIONAL, ECONOMIC AND TRADERELATIONS

Both parties committed themselves to encourage cooperation between public andprivate sectors. To this end, both sides recognized the value of high level visits totheir respective Countries.

Both sides acknowledged the fruitful and regular meetings between the ItalianPrime Minister, Matteo Renzi, and H.H. the Crown Prince of Abu Dhabi andDeputy Supreme Commander of the UAE Armed Forces, Sheikh Mohammed BinZayed Al Nahyan (the last meeting took pIace in Florence on the 6th of October2015) as well as other important Ministerial Visits which have been carried out inthe last years, including the 2013 Italian economie and industriaI "Missione diSistema" in the UAE, have reflected the top priority that both countries give toree iprocal relations. In November 2015, an Italian delegation chaired by Min.Federica Guidi will participate in the "Big 5" event in Dubai.

Both sides exchanged views on the current economie conditions and prospects ofthe bilateral commerciaI and investment relationship in both countries.

Both sides acknowledged and expressed satisfaction that the bilateral economierelationship continued to grow in depth, including with respect to govemment togovemment partnership initiatives.

Both sides acknowledged the continuous growth of bilateral trade over the last twoyears reaching yearly roughly AED 25 Billion (6 billion euro). The trend seems tobe keeping the same positive pace (+ 19,7% in thefirst semester 2015) and 2015might become the record year of trade relations between the two Countries.

With regard to economie sectors, Italian export is based mainly on jewelry andrelated items (19%) and industriaI machinery and equipment, in particularmachines specialized for industriaI and generaI use (16%). As regards importsfrom the EAU, they are concentrated on about a 30% of refined petroleumproducts, followed by precious and other non-ferrous metals, nuclear fuels (24%)and aircraft and spacecraft with 23%.

-Both sides agre ed on the need of increasing the total trade flows in goods andservices through facilitating market access and diversifying the range of goods andservices, not least through increasing the number of trade exhibitions, fairs,business forums and sectorial entrepreneurial missions in both Countries to further

The Italian side expressed the desire to further discuss with the UAEcompetent authorities on the legalization of business documents, for the sakeof a faster and easier processo The UAE side agreed to convey this request tothe competent authorities.

develop trade cooperation. The Italian Trade Agency (ITA-ICE) confirmed itscommitments to supporting economie and trade collaboration between Italian andUAE business through participation in the main promotional activities (seminars,exhibitions, workshops) to be held in the UAE as well as through the organizationof Business events in the UAE in sectors like biomedical, start-ups' promotion andtechnical training.

The UAE Side asserted its desire to see the exchange of trade will also serve UAEproducts and services in greater levels in the Italian market.

Both parties expressed satisfaction at the growth of interest by the private sectorsin UAE and Italy to explore new investments and joint ventures in both countries.

The Italian side stated that the amount of net Italian FDIs in the UAE during theperiod 2003 - 2013 was 4,6 billion euro, with the expectation that by the end of2015 it will reach the threshold of 6 billion euro. The latest available data, in fact,report the presence, onshore and offshore, of over 800 cornpanies with Italianparticipation in the UAE. Conversely, in the case ofUAE investments in Italy, theytnight have passed the 1,000 billion euro-threshold, particularly following EtihadAirway's investment in Alitalia in 2014.

Both sides expressed their commitment to maintain a constant dialogue atgovemment level to take the commerciaI and economie relations to greater heights.

Both sides committed to continue exploring new means to increase bilateral tradein goods and services, and agreed to enhance engagement on

A) Market Access Priorities

The Italian side pointed out specifically the sector of meat (beef and poultry)- where issues related to the labeling, phytosanitary certificates and tariffsseem to complicate the Italian exports in UAE (specific bilateral programsoftechnical cooperation could be put in place to overrun these difficulties).

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B) Customs Cooperation

Both sides recognized the importance of customs cooperation in the effort tofurther strenghten the ties between the two Countries. The first round ofnegotiations were held between the two Customs Administrations in parallelto the Fifth Joint Economie Committee with great successo Both sidescommitted to finalize the few pending issues and to sign the final agreementas soon as possible.

C) Cooperation on Intellectual Property Rights (IPR)Both Sides agreed to cooperate to the extent of their own capabilities andregulations on matters related to the following:

- Exchange of information with regard to all aspects of IPR with specialemphasis on industrial property;- Exchange of expertise aiming at capacity building and training workshops forUAE officers;- Organization of advanced workshops for UAE specialists on IPR;- fostering of coordination mechanisms on IPR issues with the WorldIntellectual Property Organization (WIPO).

The ltalian side noted the UAE's desire to increase its exports to the ltaly market.Both sides called upon their respective private sectors to explore new joint venturecooperation.

Both sides expressed their commitment to encourage the strengthening and activeparticipation of the private sector in the promotion of trade, investment, servicessectorial activities, as a driver for a strategie public-private partnership betweenour two Countries.

The ltalian Side remarked its strong support for a quick finalization of the FreeTrade Agreement between the European Union and the Gulf Cooperation councilas the GCC is the EU's fifth largest export market (€97 bn of exports in 2014), andthe EU is the GCC's second biggest trading partner, with trade flows totaling €147billion in 2014. Both Sides hope that the future efforts will lead to a successfulconclusion of the negotiations.

n PRIORITARY AREAS OF COOPERATION -n.1 Cooperation in the infrastructure sector:

Both sides took note of the growing interest of Italian companies in thedevelopment of the infrastructure sector in the UAE, building upon the successfulexperiences of Italian companies such as Salini-Impregilo, Maire-Tecnimont andSaipem in the UAE road & railways sector.

The UAE side took note of the Italian interest conceming in particular the ongoingprocess ofEtihad Rail about the awarding ofPhase 2 ofthe UAE railway project aswell as about the Dubai South and Al Maktoum Intemational Airport projects.Regarding the latter, the Italian side underlined the significance of the offer(around 1 billion Euros in export credit financing) submitted by the Italian ExportCredit Agency, SACE, to the Dubai Aviation City Corporation for tenders awardedto Italian companies.

The ltalian side expressed strong interest on behalf of ltalian companies to be takenin due consideration in public tenders for infrastructure projects, both on local andFederal level, given their capacity to offer innovative and value-for-moneysolutions. The UAE side welcomed the participation of ltalian companies in all theUAE proj ects.

Both sides discussed greater cooperation on logistics as a specific focus was alsogiven to the high potential in logistics/ports cooperation, underlining thecomplementarity between the two countries as hubs respectively to the EU andSouth-East Asia markets.

II.2 Cooperation on Small and Medium-Size Enterprises (SMEs) andInnovation

Both sides agreed to take active steps to encourage entrepreneurs on bothCountries to explore cooperation and joint venture opportunities with theirrespective counterparts.

Both sides applauded the on-going cooperation between the UAE Ministry ofEconomy and the Italian National Research Center (CNR), in cooperation with theMinistry of Economie Development (MISE), based on the signed MOU on SMEand innovation cooperation between both parties in 2013 in UAE. The UAEMinistry of Economy and CNR have jointly developed a number of projects oninnovation and SMEs including an exchange program for SME entrepreneurs inboth countries and a training program on innovation for young UAE innovatorsand inventors.

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Both sides discussed, as a follow up of the above mentioned agreement, severalprojects during the Preparatory session and the Fifth Joint Economie Committee.

Both sides expressed their support to and satisfaction about the on-goingpartnership between the UAE Ministry of Economy and the National ResearchCentre ofItaly (CNR) and expressed the auspice of an official selection of 30 SMEinnovative projects coming from both sides to be presented to both Ministers byApriI 2016.

Both sides agreed to initiate exchange programs entrepreneurs and young inventorsand innovators in both Countries.

The Italian side congratulated the UAE side on the establishment of the SMECouncil, which includes representatives of all federal, local and private sectorentities concemed with SMEs.

The UAE side emphasised the importance of the UAE Innovation Strategy 2021,which was launched in 2014 and focuses on seven leading sectors to innovativeeconomy: technology, transportation, renewable energy, healthcare, education,aerospace and water. The UAE side called upon the Italian entities, universities,and the private sector to form strategie partnerships with their UAE counterparts inall these sectors.

Both sides agreed to joint1y consider putting in pIace initiatives such as businessforums and networking events for UAE and Italian entrepreneurs that could beheld on regular basis in both Countries. In such a perspective, both sides welcomedthe initiative "Emirates Camp", which will be organized in the UAE by theorganization "Italia Camp" to foster innovations and entrepreneurship with regardsto EXPO Dubai 2020.

Both sides also agreed on exchanging expertise with regard to all issue ofimportance to SMEs, including capacity building, regulations, innovations,businesses set-up, financing and marketing, as well as on exchanging informationon policies, programs and incentives offered by govemments and private sectors.

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The UAE side expressed its interest, upon the presentation by Invitalia, to explorecooperation and to sign an MOU between the UAE ministry of economy andInvitalia regarding SMEs and the Smart & Start program. The ltalian sidewelcomed the mentioned interest and will deploy all its efforts to achieve the goal.

Il.3.Industrial Cooperation

Both sides emphasized the importance of increasing industrial cooperation in bothCountries and encouraged the private sectors to explore new and promisinginvestment opportunities especially in the sector of renewable resources.

In the run up to the forthcoming Paris Climate Conference 2015, the Partiesreaffirmed the crucial role of the protection of the environment and the policies todeal with climate change. Therefore, they committed to strengthen theircooperation on climate change, energy efficiency, integrated management ofnatural resources and sustainable development also in a joint effort to create theoverall conditions for long term investments in the field.

Both sides recognized the participation of the Sharjah Investment andDevelopment Authority - Shurooq and its role in fostering cooperation with theltalian entities and the private sector in the Emirate of Sharjah, UAE.

Both sides welcomed the signing the MoU between Ingenium and ISTITUTOITALIANO DELLA SALDATURA to set up Authorized Training Centres andrelated Laboratory for Certification Tests (Welders and Welding ProcedureSpecification) in the UAE.

Both sides welcomed the signing of the MoU between SACE and Dubai AviationCity Corporation (DACC) aimed at improving cooperation and exchange ofinformation.

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Both sides welcomed the signing ofthe MoU between SACE and Abu Dhabi PortsCompany aimed at improving cooperation and exchange of information.

Both sides welcomed the forthcoming signature of an MoU of cooperation betweenthe UAE and the ltalian Space Agencies.

II.4 Cooperation in the Fields of Agriculture and Agro-business

Both sides acknowledged the close coordination between the two countries onhalal products, and other market access priorities and agreed to take action toencourage greater cooperation between govemmental entities and the private sectorin the fields of agriculture and food stuff.

Both sides welcomed the signing of the Memorandum of Cooperation between theEmirates Authority for Standardization & Metrology (ESMA) and ACCREDIA onhalal Accreditation.

The UAE side acknowledged the growing number of ltalian companies attendingthe GulfFood exhibition in Dubai annually.

II.5 Cooperation in the Tourism Sector

Both sides agreed to strengthen cooperation in the tourism sector and to encouragegreater cooperation between govemmental entities and the private sector in bothCountries.

The UAE side emphasized the high importance of the tourism sector in UAE andinvited Ieaders of the tourism sector in ltaly representing the govemmental andprivate sector to visit UAE to explore areas of cooperation and investment in bothCountries.

The ltalian side acknowledged the UAE success in developing outstandinginfrastructure and services that have positioned the Country as a top tourismdestination in the Middie East.

The two sides expressed their mutuaI satisfaction on the state of their cooperationin the civil aviation sector, praising the results achieved last ApriI by the respectiveCivil Aviation Authorities in the negotiation for a new Air Services Agreement.

II.6 Cooperation in Financial Services and Investments

-The UAE side expressed the request to consider amending the "Convention toAvoid Double Taxation on Income and Tax Fraud" which was signed on 22January 1995 to meet various economie changes that have been taking place sincethe signature and to incorporate the remaining articles in the exchange ofinformation.The ltalian side took note of the request and committed to convey the contents tothe competent entities.

Both sides, while agreeing on the opportunity to provide a stronger framework forreciprocal investments, agreed to consider an improvement and updating of theexisting Agreement on the Promotion and Protection of Investment with addedProtocol between ltaly and the UAE signed on 22 January 1995.

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The Italian Side outlined the interest expressed by the three most important ltalianBanks in the UAE regarding the financial market and its eagemess to support theUAE - Italian companies in the Gulf area:

- Banca Intesa San Paolo is set to open an operational wholesale branch in AbuDhabi, while keeping its Representative Office in Dubai Intemational FinancialDistrict;

- Unicredit Bank has begun the licensing process with the UAE Central Bank forthe opening of an operational wholesale branch in Abu Dhabi;

- UBI Banca inaugurated in May 2015 its Representantive Office In DubaiIntemational Financial District.

The representative of the CentraI Bank of the UAE took note of the Italianwillingness to strenghten its position in the UAE banking and financial sector andexpressed interest on signing an MOU with Banca d'Italia regarding bankingsupervision as soon as possible.

The ltalian side informed the UAE side of the forthcoming opening of a Regionaloffice of Italy's export credit agency, SACE, in Dubai, stressing the strategieimportance of such a presence for all ltalian companies doing business in the UAE.

Both sides, noting the existing potential and complementarity of their respectiveeconomie s, stressed the hope of having further reciproque FDIs in their respectivecountries. In such a perspective, both sides expressed their postivie assesment onthe ongoing realtions aimed at supporting joint investments inter alia in real estate,manifacturing, infrastructures and equity.

The UAE side expressed its interest in exploring cooperation in the insurancesector with the aim signing an MOU between the UAE insurance authority and theitalian competent authority (Iatituto per la vigilanza sulle assicurazioni IVASS)

II. 7 FROM EXPO MILAN 2015 TO EXPO DUBAI 2020

• Memorandum of Cooperation between the Emirates Authority forStandardization & Metrology (ESMA) and ACCREDIA on halalAccreditation

• MoU between SACE and Abu Dhabi Ports Company aimed at improvingcooperation and exchange of information

• MoU between SACE and Dubai Aviation City Corporation aimed atimproving cooperation and exchange of information

• MoU between Ingenium and Istituto Italiano della Saldatura to set upAuthorized Training Centres and related Laboratory for Certification Tests(Welders and Welding Procedure Specification) in the UAE

Both sides welcomed the structured coooperation between EXPO Milan 2015 andEXPO Dubai 2020 built upon the "Letter of Intent" and the Cooperation agreementsigned by the two, respectively in February 2014 and March 2015.

Both sides agreed on the importance of fostering a consistent and multi-leve l"transfer of legacy" between Expo Milan 2015 and Expo Dubai 2020 in terms ofcontents, expertise, human resources, technology and innovative solutions, thuscreating a mutually beneficial five-year "continuum" between the two events andthe global bilateral partnership.

Both sides also stressed the importance of fostering the contacts between the UAEparties involved in the making of EXPO Dubai 2020 and those ltalian companiesdirectly involved in EXPO Milan 2015: i.e. in the development of infrastructures,in the supply of equipment and innovative solution, in the provision of services.

In such a perspective, the two Sides agreed on the importance of organizing regularthematic high-leve l workshops and joint programs where fine-tuning the process oflegacy transfer.

III. SIGNATURE OF SECTORIAL AGREEMENTSIMOU

.At the end of the plenary session, H.E. Minister Al Mansouri and H.E. MinisterGuidi witnessed the signature of the following Agreements and Memoranda ofUnderstanding:

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00 behalf the Goveroment ofItaly

00 behalf the Goveroment ofthe United Arab Emirates

IV. NEXT SESSION OF THE JOINT COMMITTEE

Both Sides agreed to follow up on the agreed actions, starting from the announcedvisit of H.E. Minister Guidi to the UAE in November 2015 on the occasion of theBIG5 exhibition in Dubai.

Both Sides also agreed to hold the 6th Session of the UAE-ltaly Joint EconomieCommittee, in ltaly in 2017, on a date and in a venue to be agreed throughdiplomatic channels.

Signed in Milan-ltaly on the zo» of October 2015 m two copies m Englishlanguage, both being equally authentic.

H.E. Federica Guidi,Minis er of

Economi velopment

r

H.E. Eng. Sultan Saeed AlMansoori

Mi:ster~~:y.

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