Surging Exports and Ambitious Targets
The United Arab Emirates set yet another record in the foreign trade of non-oil during the first half of 2024, amounting to as much as AED 1.4 trillion, or $381.17 billion, which is 11.2% more than in the same period of 2023. Vice President, Prime Minister, and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum announced the figures, noting a strong economic landscape and ambitious goals in trade by the nation.
PC: The News International
“Our foreign trade is nearing AED 1.4 trillion in these six months, with 25% growth in non-oil exports. Our target, however, is to reach AED 3 trillion in non-oil foreign trade by the end of this year,” informed Sheikh Mohammed in emphasising the UAE’s commitment to enlarging its global trade footprint.
The UAE at the same time targeted AED 4 trillion worth of foreign trade in line with the overall strategy to broaden the economic base of the country.
Expanding Global Trade Relations
The UAE has strengthened its economic relationships with other key partners. Trade with India has risen by 10%, trade with Turkey has also increased by 15%. Trade with Iraq, on the other hand, rose by 41% and is now the UAE’s largest export market. Iraq is tailed by India and Turkey as the main consuming markets for UAE exports.
Non-oil exports to the UAE’s major trading partners galloped 28.7%, while to other states, it went up by 12.6%. The export basket for the country also diversified with gold, jewellery, cigars and cigarettes, oils, aluminium products, copper wires, printed materials, silver, iron industries, and perfumes. These categories lead the table of the export sectors and combinedly have registered a growth of 36.8% YoY, while other goods rose by 1%.
Re-Exports Still on Upwards Trajectory
Re-exports from UAE surged to AED 345.1 billion in the first half of 2024, representing a growth of 2.7% YoY and 11.2% in comparison to the corresponding period in 2022. Re-export dynamics in the considered country have grown with major trading partners such as Saudi Arabia, Iraq, India, the United States, Kuwait, and Qatar.
Kazakhstan turned into a re-emerging partner with the highest growth, nearly double, in shipments of telephone devices. Lastly, re-exports to the top 10 trading partners rose 7.6%—telephones and diamonds are at least in strong demand from customers. Moreover Aircraft spare parts, motor cars, and motor vehicle transport were the other sectors that registered the high growth under the discussion.
Non-Oil Imports on the Rise
Non-oil imports of the UAE increased sharply and crossed AED 800 billion in H1 2024, which was 11.3% higher compared to the previous year and much stronger, jumping by 34.6% over H1 2022.
To a large extent, those are just re-exports and not local consumption. It speaks volumes about the UAE’s excellent position as a hub for global trade. Imports from the top 10 markets surged by 7.2%, making a contribution of 48.7% to the total imports. The remaining countries accounted for 51.3% of imports into the UAE, and they surged by 15.4% YoY in the first half of 2024.
Future Outlook
The performance of the country’s non-oil foreign trade over the first six months of 2024 confirms that the country is still making an effort to diversify its economy and expand international trade relations. If the country is poised to hit anything up to AED 3 trillion in non-oil foreign trade by the end of 2024 and AED 4 trillion by 2031, then its strategic partners and expanded networks are going to play one of the most essential roles.
