Dubai’s foreign trade jumps 22%

DUBAI — Dubai’s direct foreign trade recorded a strong resilience in the second quarter with a 22.17 per cent jump to Dh142.7 billion compared to the same 2009 period, trade figures released by the Dubai Statistics Centre showed.

By Issac John

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Published: Tue 21 Sep 2010, 10:52 PM

Last updated: Mon 6 Apr 2015, 11:53 AM

The emirate, which accounts for around 80 per cent of the total UAE non-oil trade, showed a vibrant second quarter growth in all three sectors — exports, re-exports and imports — of the foreign trade to record a total trade valued at Dh259.5 billion in the first half of 2010.

The strong second quarter growth was mostly driven by a resurgent export sector that registered a 45.5 per cent growth to reach Dh17.9 billion compared to Dh12.3 billion in the same 2009 period.

Re-exports rose by 26 per cent to Dh34.9 billion from Dh27.7 billion in 2009 while imports recorded a 17.1 per cent jump to reach Dh89.9 billion from Dh76.8 billion in the second quarter of 2009. In 2009, Dubai’s total second quarter trade was valued at Dh116.6 billion.

Following the strict implementation of UN trade sanctions against Iran, re-exports, which constitute a major share of Dubai’s foreign trade, is likely to face a setback in the third quarter. Traditionally, Iran has been Dubai’s major re-export destination, traders said.

In the first quarter, Dubai’s total foreign trade was valued at Dh136.5 billion. The second quarter surge in trading activities vis a vis the first quarter signalled the beginning of a long expected turnaround for the emirate — the trading and transshipment hub of the region.

According to data released in April by the Dubai Statistics Centre, Dubai’s direct foreign trade amounted to Dh488.5 billion in 2009, a decline of 20.3 per cent, compared to 2008’s total of Dh612.7 billion. Imports contributed 65.2 per cent of total direct foreign trade, while 10.7 per cent were exports and 24.1 per cent were re-exports. Dubai’s imports were valued at Dh318.5 billion in 2009, a 27.9 per cent drop compared to 2008.

In 2009, India was Dubai’s top import partner, having overtaken China. In the first quarter this year, the UAE’s trade surplus with India rose to Dh2.2 billion from a deficit of Dh7.3 billion in the corresponding period last year, the foreign trade ministry said.

The UAE’s total non-oil trade rose nine per cent to Dh351.9 billion in the first half of this year thanks to a 32 per cent surge in exports during the same period, according to the Federal Customs Authority.

The rate of growth was “a positive indicator of the success of the policy of economic diversification pursued by the leadership of the UAE,” said Khalid Ali Al Bustani, Acting Director General of the Federal Customs Authority.

issacjohn@khaleejtimes.com



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