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Dubai's non-oil trade slips but stays resilient

Dubai - The World Trade Organisation said that world trade has shown signs of bouncing back, but any recovery could be disrupted by the ongoing pandemic effects

Dubai's non-oil trade slipped 18.5 per cent in the first half of 2020 to Dh551 billion compared to Dh676 billion for the same period last year as the emirate maintained uninterrupted trade flow even during the pandemic peak time in the second quarter. 
The emirate's trade sector showed resilience during the pandemic, helped by strong logistics infrastructure and forged partnerships to navigate through the crisis. 
Official data released on Monday showed that imports accounted for Dh320 billion, exports Dh77 billion, and re-exports totalled Dh154 billion. A total volume of 44 million tonnes of goods were traded through Dubai, including 30 million tonnes of imports, eight million tonnes of exports and six million tonnes of re-exports.   
"Dubai's external trade sector has shown a high level of preparedness in dealing with the crisis. It has provided exceptional trading facilities and services to help businesses around the world overcome the challenges of the current period," said Sultan bin Sulayem, group chairman and CEO of DP World, and chairman of Ports, Customs and Free Zone Corporation. 
"The economy has efficiently navigated the turbulence in international markets by forging partnerships with markets less affected by the economic crisis. We are optimistic about the future and we will seek to constantly develop our trade business, especially by using new technologies to ensure optimum performance and provide quality trade services," Bin Sulayem added. 
Last week, the World Trade Organisation said world trade has shown signs of bouncing back from a deep, Covid-19 induced slump, but it cautioned that any recovery could be disrupted by the ongoing pandemic effects. It forecast a 9.2 per cent decline in the volume of world merchandise trade for 2020, followed by a 7.2 per cent rise in 2021.  
Yi Xiaozhun, deputy director-general of WTO, said the incidence of Covid-19 worldwide remains stubbornly high in many areas and trade has played a critical role in responding to the pandemic, allowing countries to secure access to vital food and medical supplies.  
"Trade has also facilitated new ways of working during the crisis through the provision of traded IT products and services. One of the greatest risks for the global economy in the aftermath of the pandemic would be a descent into protectionism. International cooperation is essential as we move forward," said Xiaozhun. 
Ahmed Mahboob Musabih, director-general of Dubai Customs, said despite the crisis, customs transactions processed surged 41 per cent in H1 2020 to reach 7.2 million transactions.  
Dubai's external trade showed considerable growth in May and June compared to April 2020, a period in which widespread lockdowns were enforced across the globe to combat the pandemic. Dubai's external trade grew in May compared to April by 17.2 per cent to reach Dh75 billion, and again grew 20 per cent in June compared to May to reach Dh90 billion. 
Airborne trade accounted for Dh250 billion, accounting for 45 per cent of total trade. Sea trade reached Dh212 billion (39 per cent), while land trade touched Dh89 billion (16 per cent). 
Direct trade totalled Dh320 billion, representing 58 per cent of Dubai's external trade, while trade through free zones reached Dh227 billion (41 per cent), and customs warehouse trade weighed in at Dh4 billion (1 per cent).  
China maintained its position as Dubai's largest trading partner in H1 2020 with Dh66.4 billion worth of trade. India came in second with Dh38.5 billion, followed by the USA in third place with Dh31.7 billion, and Switzerland with Dh24.3 billion. Saudi Arabia continued to be Dubai's largest Gulf and Arab trade partner and its fifth largest global trade partner with Dh24.1 billion worth of trade. 
Gold, diamonds and jewellery topped the list of commodities in Dubai's H1 2020 external trade at Dh140 billion, followed by telecoms at Dh70 billion, and motors in the third place, with Dh25.6 billion. Petroleum oils came fourth in the list with Dh21 billion followed by computers with Dh19 billion.  
waheedabbas@khaleejtimes.com