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84 per cent of all UK exports to UAE destined for Dubai

DUBAI — Dubai's booming construction sector is helping fuel demand for machinery, electrical and electronic equipment and parts, an analysis of the UK-UAE trade figures that were published in the August report produced by the Dubai Chamber of Commerce and Industry (DCCI) shows.

The report states that about 73 per cent of UK's total exports to the UAE are in this category, with electrical and electronic equipment accounting for 80 per cent of the total group and machinery, 20 per cent.

By emirate, more than 87 per cent of imports in this category were destined to Dubai, with another 10 per cent destined to Sharjah. Only 2.4 per cent of these exports went to Abu Dhabi. The UK's total exports in this category to the UAE saw year-on-year growth of 129 per cent in the first quarter of the year.

This pattern reflects the overall trend in trade flow between the two countries. Most of the goods flowing between the UK and the UAE either originate from or are destined to Dubai. During the first quarter of 2006 84 per cent of the total exports of UK to the UAE, valued at Dh1.3 billion, were destined for Dubai, with only 4 per cent destined to Abu Dhabi and 12 per cent to Sharjah and other emirates.

Total imports from the UAE over the same period were valued at Dh283 million, with 65 per cent originating from Dubai, 17 per cent from Abu Dhabi and 18 per cent from Sharjah and the other emirates.

In terms of other exports, vehicles, aircraft and transport equipment and parts were a distant second to machinery, with 81 per cent going to Dubai, 14 per cent to Abu Dhabi and 5 per cent to Sharjah and other emirates. Eighty nine per cent of textiles and textile articles exports went to Dubai and 10 per cent to Sharjah and other emirates. Very little is shipped directly to Abu Dhabi. The volume of UK's total exports of these products still increased 253 per cent year-on-year.

At 56 per cent, Dubai's share of plastic and rubber product imports was the lowest of all the import categories, vis-a-vis the other emirates. Its share of imports of base metals, and products derived from them was 53 per cent, and its share of optical, medical, measuring and musical instruments was 61 per cent. Significant portions of UK's exports went to Sharjah whose shares were 34 per cent, 42 per cent and 23 per cent, respectively. Respective shares of Abu Dhabi were 9 per cent, 5 per cent and 16 per cent.

In contrast to the growth in exports from the UK to the UAE, UK's imports of UAE goods declined by 7.1 per cent in the first quarter of 2006. This was primarily due to a 30 per cent decline in the value of imports of mineral products, which fell from Dh849 million in the first quarter of 2005. There has also been a 59 per cent decline in imports of precious and semi-precious stones and metals as well as jewellery, which had an import value of Dh235 million in the first quarter of 2005.

UK imports of live animals and animal products increased significantly, however, from an import value of only Dh50 million in the first quarter of 2005 to Dh151 million in the same period of 2006.

Imports of machinery and electrical and electronic equipment and of vehicles, aircraft and transport equipment both rose by Dh406 million and Dh249 million to Dh416 million and Dh303 million respectively. Imports of textiles and textile products likewise posted an impressive growth of 48 per cent, from Dh75 million to Dh111 million. These increases however were not enough to offset the declines cited above.

The report also confirms that the position of Dubai as the gateway for goods destined to the region is becoming stronger. It states: "With a continuing programme for increasing the efficiency of its port services and infrastructure and a strong financial system, Dubai is expected to sustain this leading role."

The report also states that the pattern of trade between the UK and Dubai and with other emirates points to the need for integration of trading facilities all over the country. Specialisation and port linkages and interdependencies are relevant issues that need to be studied.