Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, announced last Sunday that under the leadership of the President, Sheikh Mohamed bin Zayed Al Nahyan, the UAE has achieved significant milestones in its non-oil foreign trade. Growth in this sector has exceeded all expectations, setting historic milestones in the country’s economy. In his statements, he highlighted that, having set ambitious goals, now the figures reflect that their exports during the first half of 2024 have equaled what was previously shipped in a full year, before the pandemic impacted the market in 2019.
“Statistics show that foreign trade is approaching 1.4 trillion dirhams in the first six months of the year, thanks to a 25% increase in non-oil exports. Our goal is to culminate the year with foreign trade reaching three trillion dirhams,” the ruler added. The low context of global growth, which stands at around 1.5%, contrasts with the remarkable annual increase of 11.2% that the UAE is experiencing in this area.
STRENGTHENING TRADE RELATIONS
The United Arab Emirates’ commercial relations with different nations have seen significant growth. Exports to India, Turkey and Iraq grew by 10%, 15% and 41% respectively, making Iraq the main recipient of goods from the UAE. This notable growth highlights the diversification and expansion of the country’s foreign trade, adapting to the changes in the global market. “As we move towards our goals, non-oil exports to key trading partners have increased by 28.7%,” revealed the Sheikh.
In addition to these increases in trade, a 12.6% increase in exports to other countries has been observed, with a notable interest in products such as gold, jewelry and oils. These sectors have reported a growth of 36.8% compared to the same period last year. This focus on diversifying the export offer reflects a robust economic strategy to ensure the continued growth of the nation.
RE-EXPORT GROWTH
In terms of re-exports, figures reached 345.100 million dirhams in the first half of 2024, representing a 2.7% increase compared to 2023. Additionally, there has been an 11.2% rise compared to 2022, highlighting the recovery and expansion of this sector. Re-exports to key trading partners such as Saudi Arabia, Iraq and India have seen notable progress, thus benefiting the country’s economy.
Particularly, Kazakhstan has emerged in the re-export sector, almost doubling its growth due to the export of telephone devices. Generally, phones and diamonds lead the list of re-exported products, and there has been notable growth in the re-exports of aircraft parts and goods transport vehicles, suggesting a dynamic market.
INCREASE IN NON-OIL IMPORTS
In the first half of 2024, the United Arab Emirates’ non-oil imports reached figures close to 800 billion dirhams, representing an 11.3% growth compared to the previous year and an impressive 34.6% increase compared to 2022. A considerable portion of these imports is destined for re-exports, demonstrating effective commercial integration in the region.
Imports from the top ten markets also grew by 7.2%, becoming over 48.7% of total imports. Additionally, other countries representing 51.3% of total UAE imports have registered a 15.4% increase in the first half of 2024 compared to the same period in 2023. This robust growth in imports not only underscores the UAE’s economic resilience but also its growing relevance in global trade.
