Dubai trades most with Saudi Arabia in GCC

dubai - Dubai’s total trade value with GCC countries hits Dh126.6 billion in 2015

Dubai’s trade among GCC countries is witnessing a higher pace of growth, according to a report by the Dubai Chamber of Commerce and Industry. Saudi Arabia accounted for 45 per cent of Dubai’s total trade within the region.

In 2011, Dubai’s trade with GCC countries recorded 20 per cent growth to Dh74 billion. It rose to 28 per cent in 2012 to Dh94.8 billion. Although growth slowed in 2013, it remained high at 20 per cent to Dh113.8 billion. The slowdown in growth became more defined in the following year, growing by only three per cent to Dh117.5 billion. However, it recorded eight per cent growth in 2015, with the total trade value reaching Dh126.6 billion.

Oman and Kuwait accounted for 19 per cent and 16 per cent respectively of Dubai’s trade in the region. While Qatar’s gross domestic product (GDP) at $210.1 billion is larger than that of Oman and Kuwait, at respective values of $81.8 billion and $163.6 billion, its share of trade with Dubai was lower at 12 per cent. Being the smallest economy, with GDP of $33.9 billion and population of 1.36 million, Bahrain accounted for the lowest share of eight per cent of Dubai’s trade in the region.

Hamad Buamim, president and CEO, Dubai Chamber, said: “The report highlights Dubai’s leading status as the regional commercial hub with state-of-the art infrastructure and a world-class business environment. Dubai’s robust trade ties with GCC countries highlight its key role in enhancing business and trade activities in the region and beyond.”

Dubai’s non-oil trade achieved growth of 18 per cent in 2011 to Dh1.06 trillion, 16 per cent in 2012 to Dh1.23 trillion and a decreased growth of eight per cent in 2013 to Dh1.33 trillion. The following year’s performance was the same at Dh1.33 trillion, while in 2015, it was Dh1.28 trillion.

Trade with all GCC countries in 2015 was favourable to Dubai, leading to a total net trade of Dh87 billion during the year. Highest net trade resulted from Saudi Arabia, for a share of 51 per cent of the total, while net trade with Oman contributed 18 per cent. Trade with Kuwait and Qatar both led to shares of 13 per cent to total net trade, while trade with Bahrain accounted for five per cent.

Mineral products dominated Dubai’s imports from GCC countries. The product group’s total import value in 2015 of Dh10.5 billion accounted for 53 per cent of total imports from the region.

Meanwhile, Dubai’s exports of pearls, precious and semi-precious stones, metals and jewellery to the region reached Dh13.8 billion, or 51 per cent of the total export value. Machinery and electrical and electronic equipment and parts dominated re-exports, with the Dh46.7 billion re-export value accounting for 59 per cent of total re-exports to the region, the report said.

— abdulbasit@khaleejtimes.com