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EU imports from UAE outpaces its exports

In 2004, on top of the list of Dubai’s trading partners among EU-member countries were the United Kingdom (UK), Germany, Belgium, France, Italy, Netherlands and Finland. Together, imports from these countries reached Dh 54 billion, or 23 per cent of Dubai’s total imports. Exports to these destinations reached Dh 11 billion, or 9 per cent of Dubai’s total exports during the year.

Among the above countries, UK was the largest supplier, with a relative share of 26 per cent to Dubai’s total imports from the group. Germany was the second largest supplier, with 23 per cent; France, 16 per cent; Italy, 13 per cent; Belgium, 10 per cent; Finland, 7 per cent; and Netherlands, 5 per cent.

On the other hand, Belgium was the largest export market, absorbing 38 per cent of Dubai’s exports to the group, while Netherlands was second with 22 per cent. UK had a share of 17 per cent; Germany, 11 per cent; Italy, 5 per cent; France, 5 per cent; and Finland, 3 per cent.

Trade with UK surges while trade with France slows down

Foreign trade statistics for the first seven months of 2005 released by the European Union showed that exports of these countries to the UAE during the period has reached euro 11 billion while imports from the UAE were euro 4.1 billion. Compared to the corresponding figure for the same period in 2004, the export value represented an annual growth of 24 per cent while imports from the UAE grew by 59 per cent.

Greatest contribution to growth in exports of the group of countries to the UAE was made by UK, which posted an increase in exports of 87 per cent, from about euro 2 billion during the first 7 months of 2004 to euro 3.7 billion during the corresponding period in 2005.

The only other country, which exhibited higher than average growth, was Finland with 46 per cent. On the other hand, exports of France declined by 25 per cent while those of the other countries were below the average growth at 21 per cent for Netherlands; 19 per cent, Germany; and 14 per cent each, Belgium and Italy.

Netherlands topped the growth in imports from the UAE, growing by a hefty 534 per cent or to euro 1.4 billion from only euro 24 million during the same period in 2004. Imports of Germany, France and UK likewise increased but below the average at 32 per cent, 24 per cent and 13 per cent, respectively. On the other hand, imports of Finland and Italy declined by 39 per cent and 14 per cent, respectively.

Product composition of trade pointed to greater concentration on machinery, electrical and electronic equipment in 2005. From only 24 per cent of total imports during the first 7 months of 2004, share of imports of the products increased to 49 per cent in 2005.

Thus, despite the increase in the value of imports of live animals, mineral products and semi-precious/precious stones and metals, their relative shares to total imports from the UAE declined. Imports of garments and textiles from the UAE declined both in terms of share and actual values.

From import value of euro135 million in 2004, corresponding value for 2005 reached only euro 77 million, or decline of 43 per cent. Machinery, electrical and electronic equipment likewise dominated exports to the UAE, with the share to total exports of the selected European countries increasing from 42 per cent in 2004 to 55 per cent in 2005. Trade of products under the category included product returns and machineries and equipment exported to the UAE to be returned after use in projects.

France is the UAE’s largest supplier of aircrafts to the UAE. With France’s exports of vehicles, aircraft and other transport equipment declining from euro 826 million in 2004 to only euro 319 million in 2005, export value of the product group registered the largest drop in share, from 18 per cent to only 10 per cent.