Japanese Exports to UAE on Recovery Path
Aruna UrsDUBAI — The demand for Japanese manufactured goods in the UAE has started to pick after a tumultuous fall in the first half of this year, a top Japanese official said on Tuesday.
“This May, the bottom came and gradually the volume of Japanese exports to the UAE have increased and is now recovering,” said Kuni Funaki, regional chief executive officer of the Japan External Trade Organisation, or Jetro, told Khaleej Times.
Since late last year, the appetite for big ticket items such as automobiles, construction equipment and electronics has shrunk dramatically as businesses and consumers postponed purchases amid economic uncertainties.
“Last year when global financial crisis ensued, Japanese exports decreased because local sales became sluggish,” Funaki said. However, the economy has started showing signs of revival post-Ramadan. There are emergent signs of a recovery in demand. Country’s automobile distributors have been able to reduce their inventories and consumers are back in the market, albeit with reduced enthusiasm for big ticket items.
Funaki did not forecast the value of Japanese exports to the UAE in 2009, but said he hoped it would be more than $7 billion. “I am not quite sure (about this year) but I hope it will be more than $7 billion.”
According to data available on the Jetro website, Japanese exports to the UAE grew by 34 per cent to hit $10.7 billion in 2008 from about $8 billion in 2007. Japan is one of the largest trade partners of the UAE. It imports crude oil from the UAE and exports automobiles, construction equipments, electronics and information technology products, and textiles among others. The bi-lateral trade amounted to $57 billion in 2008.
Funaki was speaking on the sidelines of a Japanese lifestyle products exhibition at the Dubai Mall. He said that by bringing lifestyle products that primarily cater to the domestic market, Jetro is attempting familiarise Japanese culture to foreigners. “Commodity sales are important but to nurture sympathy for Japanese culture is also important for Japanese products to penetrate these markets. There are already good signs of it, for example, there is a boom for Japanese food in Dubai.” He said that there are more than 70 Japanese restaurants in Dubai and a total of about 3,000 Japanese nationals live in the emirate.