Rapid Growth of UAE's Non-Oil Foreign Trade
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The United Arab Emirates (UAE) has recently shared remarkable statistics from the National Media Office, indicating a vibrant growth in non-oil trade that is transforming the country’s economic landscapeAs of the first half of 2024, the non-oil trade figures reached a staggering 1.395 trillion dirhams (approximately 381 billion USD), marking an impressive 11.2% increase compared to the same period in 2023. This extraordinary growth amplifies the success of the UAE's strategy for diversifying its economy, moving beyond its traditional reliance on oil revenues.
Furthermore, Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister, and ruler of Dubai, highlighted the ambitious economic objectives set out by the UAE several years agoInitially deemed challenging, the updated figures speak volumes about the progress madeHe noted that the exports recorded in the first six months alone equaled the entire export value for the year 2019. There is an ongoing optimism that the UAE will hit its target of achieving 3 trillion dirhams in non-oil foreign trade by the end of this year, reinforcing the country’s status as a burgeoning global trade hub.
In-depth analysis reveals a significant surge in non-oil exports, with a 25% increase to 256.4 billion dirhams during the first half of 2024, compared to the same timeframe in the previous year
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This boost has led to non-oil exports contributing 18.4% to the overall trade volume, a notable rise from 16.4% at the end of last yearThe UAE's non-oil exports to its top ten trade partners saw a remarkable growth rate of 28.7%, while trade with other countries also rose by 12.6%. The exported items, ranging from gold and jewelry to aluminum and fragrances, saw a collective increase of 36.8% year-on-year, with other goods registering a 1% growth.
Re-exportation activities have also seen a positive trend, with the re-export total reaching 345.1 billion dirhams by the mid-year mark, reflecting a 2.7% growth from the previous year and 11.2% from 2022. It is imperative to note that the UAE is bolstering its re-export trade with major partners, particularly Saudi Arabia, Iraq, India, and the United StatesInterestingly, Kazakhstan has emerged as a notable re-export partner due to an increase in re-exports of communication equipment, seeing almost a doubling of figures
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Overall, the re-exports to the top ten trading partners climbed by 7.6%, with communication equipment and diamonds topping the list of exported items, while airplane parts, cars, and cargo transport vehicles have exhibited the most rapid growth.
On the import side, the figures reveal that the UAE's non-oil imports approached 800 billion dirhams in the first half of 2024, a growth of 11.3% over the previous year and a striking 34.6% increase compared to 2022. Imports from the top ten markets rose by 7.2%, composing over 48.7% of total imports, while imports from other nations constituted the remaining 51.3%, showing a 15.4% increase year-on-year.
The UAE's Minister of State for Foreign Trade, Thani Al Zeyoudi, credited the Comprehensive Economic Partnership Agreement (CEPA) for playing a crucial role in driving these record trade outcomesOver recent years, the UAE has signed several CEPAs with various economies across Asia, the Middle East, and Africa, contributing to a substantial boost in non-oil foreign trade
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Following agreements with nations such as India, Turkey, Israel, Indonesia, Cambodia, and Georgia, the UAE is also in negotiations with Serbia, Vietnam, the Philippines, New Zealand, and EcuadorThe ambitious CEPA initiative aims to enhance UAE exports by 33% and add over 153 billion dirhams to the GDP by 2031.
Notably, in the first half of 2024 alone, trade with India and Turkey grew by 10% and 15% respectively, while trade with Iraq surged by an astounding 41%, positioning Iraq as the UAE’s top export destination alongside India and TurkeyAl Zeyoudi emphasized that as the UAE continues to broaden its network of CEPA agreements, a corresponding increase in foreign trade is anticipated, further propelling the achievement of the 4 trillion dirhams non-oil foreign trade target set for 2031. This ambitious trajectory reveals a strategic commitment by the UAE to foster robust trade relations with emerging global economies.
Moreover, the emphasis on international trade reflects its critical role in advancing industrial output, enhancing the global competitiveness of products and services, and promoting innovation
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Al Zeyoudi has placed considerable priority on international trade as a central theme of the UAE's economic agendaDespite a global trade environment facing challenges, the UAE’s international trade continued to display strength, demonstrating resilience and aiming for double-digit growthThis reflects not only the determination of the federal leadership but also the success of forging meaningful partnerships and collaborative growth with burgeoning global economic players.
In conclusion, the UAE's non-oil foreign trade data for the first half of 2024 is not merely a reflection of numbers; it encapsulates the broader narrative of a nation in rapid transformation, overcoming traditional economic dependencies, and evolving into a dynamic global market playerWith eyes set on ambitious targets and underpinned by strategic agreements and resilience, the UAE is crafting a trajectory that not only promises growth but also positions it as a significant player in the global trade arena.
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