Abu Dhabi's H1 2007 foreign trade up to AED36b

ABU DHABI - Foreign Trade in Abu Dhabi during the first half of 2007 rose to approximately AED 36 billion, thereby achieving an increase by almost 46% comparing to the first half of the previous year, which was AED 25 billion, according to official figures.

By (Wam)

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Published: Wed 30 Apr 2008, 8:03 PM

Last updated: Sun 5 Apr 2015, 11:47 AM

''Imports rose in the first half of 2007 by 44.6% of the total foreign trade value aggregating to almost AED 31 billion compared to AED 21 billion in the first half of 2006,' said a statistical report issued by the Abu Dhabi Department of Planning and Economy .

There is a noticeable increase in re-exports that comprised 111.6% of the total trade in Abu Dhabi in 2007, which is close to 3 billion AED, compared to 1 billion AED from the first half of the previous year.

During the first half of 2007, the non-oil exports grew by 18.7% to reach AED 3 billion compared to the AED 2 billion generated in the first half of 2006.

Imports by Commodity Groups Topping the list of imports is the commodity group of machinery imported for the value of AED 10 billion in the first half of 2007, which constitutes almost 32.8% of total imports during the same period, achieving an increase of 81.3% compared to the first half of 2006 which generated a little over AED 5.5 billion.

The commodity group of vehicles of transport was ranked second by 18.7% of total imports during the same period, with real growth of 39.1%. The group of base metals and articles came in third comprising 17.3% of the total import value this year. These three major commodity groups comprise 68.8% of the total value of imports in the first half of 2007 and the rate of 64.6% in the first half of 2006.

The urban development and economic growth witnessed by the Emirate of Abu Dhabi and its distinguished between the Gulf Cooperation Council in proximity to the markets of East Asia, trade facilitation, trade laws and regulations in force in the UAE to increase the activity of trade.

Abu Dhabi is still dependent mainly on commodity imports to meet a large proportion of demand for goods, import of goods, means goods reached to port of Emirate and the intervention of the customs areas and become available to local importers, in addition to goods withdraw from deposit stores and free zones within the State.

Countries contributing to Highest Imports Saudi Arabia continued to control the import market in Abu Dhabi at the value of AED 4.6 billion, comprising almost 15.1% of total imports in the first half of 2007 thereby achieving growth by 16.3% compared with the first half of previous year. Germany ranked second by 11.1% and thus attaining the growth rate of 44.8% compared to the first half of 2006, followed by America at 10.3% of total imports achieving a growth rate of 47.9% compared with the first half of 2006. Japan comprised of 9.8%, Italy with 8.7%, and the rest of the countries has ranged between the rates of 4.5% and 2.6% of the total commodity imports for the first half of 2007.

Top Commodity Imports to the Emirate of Abu Dhabi from Saudi Arabia 2007 (The First Half of the Year) Machinery, sound recorders, reproducers and parts topped the list of major commodities from Saudi Arabia with 20.1% of the total imports, followed by base metals and articles of base metals groups that was just below 20.1%. Plastics, rubber and articles which were third on the list with 17.9% of the total Saudi imports in Abu Dhabi, followed by the groups that included products of chemical industries at 11%, mineral products at 8.8%, and the remaining imports ranging between 5% - 1%.

Top Commodity Imports to the Emirate of Abu Dhabi from the USA For the First Half of 2007 The total value of commodity imports from the USA was AED 3,175 million in the first half of 2007. It can be noticed from the following table, that the groups of machinery, sound recorders, reproducers and parts and vehicles of transport are the dominant commodities being imported into the Emirate hitting almost 78.6% of the total commodity imports from the United States, followed by a base metals and their products by 5.7%, then the group of chemical products industries or industries associated with a proportion of 3.6% The rest of the goods ranged between 3% and 1%. Means of Transport for Imports Transfer of imports through the means of shipping (water transport) comprised of 57.4% of the total imports transported into the Emirate during the first half of 2007 compared to 49.8% in the first half of 2006. Followed by road (land) transport decreased to 26.9% of total transport. The usage of air transport to import goods in 2007 comprised of 15.6% of the total value for the year compared to the 19.1% of usage for the first half of 2006, which is a significant decrease.

Re-exports: The goods that are imported from abroad and enter through customs areas and become available to local importers and then re-exported to outside the country as it is without any amendment.

A number of economists and traders insure that re-export is one of the most important objectives of the UAE economy in general and Abu Dhabi in particular, and it is always at a steady growth contributed by the presence of sea ports and airlines and freight services, transportation and clearance, and all of which create incentive and enhance the role of the UAE as a major trade and re-export centre.

The Most Important Commodities of Re-Export in the Emirate of Abu Dhabi For the First Half of 2007 The following table encases that the ten goods mentioned, together account for 94.6% of the total value of re-exports during the first half of 2007. The first group in the list is machinery, sound recorders, reproducers and parts, that amounts to AED one billion during the first half of this year compared to AED 500 million in the first half of 2006, and has maintained a steady rate of approximately 35.3% of the total value of re-exports during the first halves of both years. Vehicles of transport ranked second with 30.1%, followed by materials and textiles products in the third place at 9.3%. The re-export of photographic, medical and musical instruments rose significantly in the first half of 2007 contributing to 6.3% of the total re-export value for this year, while in the fifth place, the group of articles of base metals with 4.5% of the total actually showed a decrease from the first half of the previous year.

The Most Important Trading Partners in Re-Exports Qatar recorded the largest percentage of re-exports going through the ports of Abu Dhabi in the first half of this year in the monetary value of almost AED 421 million, representing 14% of total re-exports. India, which was next on the list is not far behind constituting almost 12% of the total re-export value, followed by Saudi Arabia at 8.7%, Bahrain at 8.5%, Oman at 8.3%, Yemen at 7.9% and France at 5.6%. Kuwait, Italy and the United Kingdom, all stood around 3% of the total re-export value for 2007.

Re-exports by Type of Use Statistics for the first half of 2006, depict that the value of consumer goods accounted for 57.7% of the total value of re-exports, followed by capital goods 32.7%, followed by intermediate goods 7.2% and finally food commodities 2.5%. According to these results, total re-exports from the first half of 2006 grew by an astounding AED 1.5 billion by the end of the first half of 2007, from AED 1.38 billion to AED 2.94 billion.

In these four classifications of goods, the ranking of each one was remained the same in the first half of 2007 as it was during the first half of the previous year. Consumer goods comprised 55.9% of the total goods re-exported from the Emirate of Abu Dhabi, followed by capital goods at 36.3%, intermediate goods at 5.5% and finally food commodities contributing 2.2% to the total value of re-exports.

Means of Transport for Re-exports Air transportation jumped this year to rank first representing 37.9% of the value of re-exports being transported in the first half of 2007, compared to merely 17.4% of re-exports transported by air during the previous year. Thereby, the growth rate of air transport of re-export products compared to the first half of 2006 is 361.3%, which is over a three-fold increase.

Shipping which reflects the transport through waterways contributed almost 34.2% of the total value of re-exports being transported this year. Compared to the 17.4% in 2006, the increased usage of shipping in re-export transport shows a growth rate of almost 94.9%, therefore achieving a comparable increase from the first half of 2006.

Road transportation has occupied the last rank this year by 27.8% of the total re-exports for 2007, compared to the 45.3% of participation in the transportation of re-exports in 2006, but yet achieving a minimal growth rate of 30%.

The Most Important Commodity in Non-Oil Exports The total value of non-oil exports is at AED 2.7 billion during the first half of this year compared to the same period in the previous year which amounted to AED 2.29 billion , with a noticeable 18.7% increase. The plastics, rubber and related articles attained stands at the first place on the list of non-oil exports value this year contributing to 45.4% of the total, which is a decrease from its proportion of 47.1% of the total for the same period in the previous year. Followed by base metals and products thereof that came in second place with a 13.7% contribution to the total export value of the first half of 2007, and 7.9% for the first half of the year 2006. Machines and recording devices are ranked third by 12.4% in the first half of 2007, an increase from 8.2% in the first half of the previous year. In non-oil exports, the commodity of vehicles of transport experienced the largest drop in the first half 2007 with 6.7% of the total exports in comparison to the same period in the previous year when it was the second highest export contributing 19.7% to the total. The fifth highest commodity in this group were articles of stone, mica, ceramics and glass with 4.1% of the total non-oil exports from the Emirate of Abu Dhabi.

The Most Important Trading Partners - Non-Oil Exports By distributing the exports of the Emirate of Abu Dhabi noticed that there are three states of the Gulf Cooperation Council, Qatar, Saudi Arabia, and Kuwait, which are the three biggest partners in non-oil exports that account for the most trade in this trade sector with rates of 15.9%, 14.5%, 12% of the total for the first half of 2007. In comparison to the first half of 2006, these three states held contribution rates of 6.3%, 8.6% and 2.7%, respectively. This higher share of value contributed by these three GCC states (in comparison to the previous year) reflects the trend of higher trade within the GCC and neighbouring Arab countries.

The massive decrease of non-oil exports to China and India from the previous year of 2006, from 12% to 10.5% and from 13.5% to 8.1%, respectively, can be shown in the table. These two countries were responsible for receiving the most non-oil exports in regard to the value during the same period in 2006. Further down on the list is Iran with a contribution of 6.7% for the first half of 2007 and 6.2% for 2006 and Oman 5.3% for the first half of 2007 and 2.7% for 2006. Both Syria and Australia have maintained a steady rate around 2% for the first halves of 2007 and 2006.

Non-Oil Exports by Type of Use The total non-oil exports of goods for the first half of 2007 totaled nearly AED 2.7 billion compared to the previous year which reached AED 2.29 billion. The intermediate goods occupied the first rank with the percentage of 50.8% of total export value with the monetary amount of AED 1.38 billion, compared to last year where it still ranked in the first place with AED 1.18 billion , which is 51.6% of the total exports. Consumer goods worth AED 950 million and constituting 35% of the total export value, when compared to the first half of 2006, where it amounted to 22.5% of the total with AED 516 million. These values place this commodity group as the second highest during the periods in both years. Food commodities valued at 200 million (7.4%) this year when compared with 2006 valued at AED 139 million (6.1%) and finally capital goods amounting to AED 186 million at 6.8% of the total value in 2007 with a value of AED 453 million comprising of 19.8% of the total value during the previous year.

Means of Transport for Non-Oil Exports The data showed that shipping contributes to the transfer is 68.6% of the total non-oil exports through the ports of Abu Dhabi for the first half of 2007 and around 77.7% of the total for the same period in 2006.

Road transport products reaches 22% and 30.4% of the value of non-oil exports for the first halves of 2006 and 2007, correspondingly.

While air transport accounted for a low percentage in the value of non-oil exports during the first halves of 2006 and 2007 with 0.3% and 1 %, respectively, of the total amount of exports of the Abu Dhabi Emirate.



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