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Dubai trade crosses Dh1 trillion

Dubai’s non-oil foreign trade crossed Dh1 trillion mark by the end of Q3 2013 compared to Dh918 billion for the same period in 2012.

The emirate’s rising position on the world trade map owing to the increasing growth in its foreign trade volume qualifies it to occupy a prominent position in the economic scene.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, expressed satisfaction over the strong results and the steady increase in the volume of Dubai’s foreign trade exchanges, considering the achievement a solid evidence of the effectiveness of the Emirate’s economic policies.

He underlined the importance of the announced trade results for the first three quarters of 2013 as a new starting point towards further achievements which boost UAE status as a global hub for trade, and reinforce Dubai's position as a focal gateway for international trade exchanges.

Sheikh Hamdan said: "Trade is one of the key pillars in the overall structure of our local economy and a main driver for its growth. We look at the rising curve in trade volumes as an indicator of the success of our developmental strategies.

Sheikh Hamdan added: "With the UAE voted the host nation of the World Expo 2020 in Dubai, the trade sector will undoubtedly witness tremendous growth over the coming few years up to the beginning of the next decade. Appearing for the first time ever in the Middle East North Africa and South Asia, the world’s largest exhibition will pave the way for stronger trade flows, opening unprecedented opportunities in a region inhabited by around two billion people. Dubai’s highly reliable and efficient infrastructure and quality logistic services will be strong assets to facilitate and support the expected trade growth across the region.”

He called on all relevant sectors to cooperate and work on the necessary plans to maximise the benefits of the exhibition to both UAE’s economy and the region’s.

Dubai Customs statistics showed that Dubai’s non-oil foreign trade growth was the result of the increase in imports till Q3 of 2013; reaching Dh610 billion, as compared to Dh546 billion in the same period last year. In addition, exports and re-exports rose to Dh399 billion, compared to Dh372 billion.

“The fast-paced growth of Dubai’s non-oil trade reflects the emirate’s strong economic performance, reinforced by the massive achievements led by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President, Prime Minister and Ruler of Dubai,” said Ahmed Butti Ahmed, Executive Chairman of Ports, Customs and Free Zone Corporation and Director General of Dubai Customs.

“The vision of His Highness Sheikh Mohammed earned the emirate a myriad of great achievements that has recently culminated in the opening of Al Maktoum International Airport and the unprecedented success of the Dubai Airshow that has witnessed historic aircraft orders by the emirate’s airlines. Moreover, a series of future projects that are set to take Dubai further on the route to knowledge economy, most notably the ‘Dubai Smart City’ Project and the Smart Government Initiative, has promising prospects that, as confirmed by His Highness, the next seven years are critical to realizing the UAE vision of becoming a major economic player in the world,” Butti added.

Moreover, direct trade accounted for 64 per cent of Dubai foreign trade as it reached Dh649 billion by the end of Q3 2013, up from Dh595 billion for the same period in 2012. While free zones trade share stood for 35 per cent, that is, Dh348 billion, compared to Dh316 billion; customs warehouse trade hit Dh12 billion, up from Dh6 billion last year.

It is this diversity in foreign trade elements that boosts Dubai’s opportunities to secure higher positions in global trade rankings, enhanced by expansion of new markets, owing to its pivotal role in connecting the world’s different zones, and need of traders and investors to benefit from its trade advantages in improving returns of their business transactions.

Butti said: “The roadmap to the development of Dubai’s foreign trade for the upcoming years is crystal clear now. As the Emirate is getting closer to hosting the EXPO 2020, our main mission is to corroborate Dubai’s leading role in the world’s scenery, to become one of the world’s most important cities in international trade. To achieve this, we need to implement commercial strategies that respond to the nature of on-going transformations in global economy, in the light of the uprising of Asian markets and their taking on a leading position in international trade movement, in order to maximize our utilization of these transformations, by further cementing ties with Asian markets which strive to expand their reach through Dubai and strengthen their existence in a wide region that extends from Asia to Europe and Africa”.

India top trading partner

Further, India ranked first on Dubai’s total non-oil foreign trade partner list; as trade value between them reached Dh111 billion, followed by China with Dh99 billion, then the USA with Dh65 billion.

While as far as imports are concerned, China topped the list of import partners with a share of 16 per cent that is equal to Dh96 billion, followed by the USA with a share of 9 per cent amounting to Dh58 billion and later India with 9 per cent that is equal to Dh55 billion.

Speaking of exports, India came at the forefront of Dubai’s trade partners with a share that accounted for 21 per cent; that is equal to Dh24 billion, followed by Turkey with 13 per cent and Dh15 billion and Switzerland with 7 per cent that is equal to Dh8 billion.

As for re-exports; Saudi Arabia comes first with a share of 12 per cent amounting to Dh33 billion, followed by India with 11 per cent that is equal to Dh32 billion, then Iraq with a share of 7 per cent and Dh20 billion.

“These successive achievements in Dubai’s foreign trade prompted us, at Dubai Customs, to play a vibrant role in the overall transformation process witnessed in the economy of the UAE in general and Dubai in particular. We aspire to keep the foreign trade at the heart of this transformation by enhancing customs services, so we continue to spearhead the region and be among the top providers of high quality and efficient customs services in the world. To that end, we employ top-notch IT applications in our operations, particularly after becoming the first 100 per cent smart government department, as we now deliver smart services to our clients through mobile phones, increasing the capacity of declaration clearances by more than 200 per cent, by means of offering our services nonstop 24/7,” Butti added.

Till the end of Q3 2013, gold represented the larger share of Dubai’s imports, followed by cellular and wired communication devices, then diamond, normal and sports cars, then various jewelry types and pieces.

As for exports; gold came first, followed by raw aluminum, then petroleum oils, jewelry types and pieces, followed by cigars, cigarettes and tobacco alternatives.

When it comes to re-exports; cellular and wired communication devices topped the list followed by unprocessed diamond, then computers and hardware, then petroleum oils followed by normal and sports cars.

Emirates 247 Read More: http://www.emirates247.com/business/economy-finance/dubai-trade-crosses-dh1-trillion-2013-12-08-1.530542