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UAE emerges Britain's largest export destination in the GCC

DUBAI — The UAE has emerged as Britain's largest export market in the GCC in the first three quarters of 2006 by recording a trade value of £2.9 billion. UAE is followed by Saudi Arabia with an export value of £1.2 billion — both together accounting for almost 79 per cent of UK's total exports to the Gulf region valued at £5.2 billion.

Dubai, which registered a total two-way trade of £2.94 billion with the UK in the same period, also accounted for 81.3 per cent of British exports to the UAE valued at £2.4 billion, according to statistics released by Dubai Chamber of Commerce and Industry. While Sharjah and Northern Emirates accounted for 12.3 per cent of UK's exports Abu Dhabi was 6.4 per cent.

With exports to GCC in the first three quarters of 2006 rising to £ 5.2 billion and imports at £2.8 billion, the UK registered a trade surplus of £ 2.3 billion with the region even as its trade with the rest of the world showed to a trade deficit of £40 billion.

The largest exporter to the UK from the GCC was Saudi Arabia with oil contributing to almost 38 per cent of the trade value of £1.05 billion. UAE's exports to the UK were valued at £ 826 million. In terms of non-oil products, however, UAE tied with Saudi Arabia for a share of 41 per cent of the total non-oil imports of the UK from GCC. Kuwait's share went down from 23 per cent of total imports to only five per cent of non-oil imports, as oil accounted for a large share of its exports to the UK. Oman's share rose to four per cent of non-oil imports, while Bahrain remained the lowest contributor with a share of one per cent. Bahrain was also the UK's smallest export market with a value of £139 million.

The DCCI study said UK's surplus with UAE reached £2.1 billion. The country also recorded trade surpluses with other GCC countries with the exception of Kuwait, with which it had a deficit of £333 million. However, in terms of total non-oil trade, UK's surplus with the GCC reached £3.5 billion.

UK's two-way trade with the entire Middle East and North Africa region also yielded a surplus of £2.0 billion. In non-oil trade, the surplus increased to £4.6 billion.

Main UK exports to the UAE comprised machinery and electrical and electronic equipment valued at £1.9 billion, accounting for 65 per cent of the total. Dubai accounted to 84.6 per cent of the exports in this product group, Sharjah and Northern Emirates 9.8 per cent and Abu Dhabi 5.6 per cent.

Other major exports to the UAE included vehicles, aircraft and other transport equipment, valued at £190 million; chemical and allied products; £160 million; textiles and garments, £121 million; and base metals and products £119 million.

While 67.9 per cent of UK's total imports from the UAE were sourced from Dubai, Sharjah and the Northern Emirates supplied 18.7 per cent; and Abu Dhabi, 13.4 per cent. Main UK exports to Dubai consisted of electrical and electronic machinery and equipment valued at £ 1.2 billion while major imports from Dubai included turbo-jets, turbo-propellers and other gas turbines, computers and parts and accessories of computers, with combined value of £94 million.