Hamdan bin Mohammed: strong trade performance affirms confidence in our economic approach
Dubai’s exports grow %22 and total trade with GCC records AED 58 billion
Dubai’s foreign trade growth has reached a new peak in the first half of 2013, as the value of non-oil foreign trade of the Emirate has surged to AED 679 billion. This represents a remarkable 16% growth from the same period last year, where the non-oil trade value was AED 584 billion. This growth was powered by the rise in exports by 22%, which represents a climb from AED 69 billion to AED 84 billion. Imports also registered a remarkable increase of 16%, rising to AED 406 billion compared to AED 349 billion. Re-export trade recorded a growth rate of 13%, climbing from AED 166 billion to AED 188 billion.
Dubai's foreign trade growth accelerated from 9% in the first half of 2012 to 13% for the entire year. Astonishingly, Dubai’s foreign trade during the first half of 2013 has exceeded the expected growth rate for the entire year, which was estimated to be at 14%. This accelerated growth reflects the ability of foreign trade to benefit from the growth of other sectors. For example, the significant recovery and growth of the tourism sector has contributed to the growth of trade, as the number of tourists who visited Dubai in the first half of 2013 increased to 11% to reach 5.5 million tourists. This follows the record growth in 2012, with 10 million tourists and a 9.3% annual growth rate compared to 2011.
Dubai Crown Prince and Chairman of Dubai Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum expressed satisfaction for the results of Dubai’s trade over the first half of 2013. He stressed that the strong trade performance reflects soundness of our open economic approach. He asserted that the growth in Dubai’s non-oil trade exchanges is a result of efficient and effective economic policies upheld by Dubai Government. These polices sustain development to serve the emirate’s strategic objectives. Dubai has maintained vibrant economic and commercial ties within the Arab world and around the globe underlining its position as international hub for trade and financial services.
Sheikh Hamdan asserted that the announced results are incentives for further economic performance development. He indicated that the strong outcomes of Dubai’s foreign trade over the first half of 2013 come hand-in hand with other major achievements taking place in the country under the leadership of UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan and on-going guidance and follow up by UAE Vice President Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.
His Highness Sheikh Hamdan said that Dubai’s ambitious economic outlook entails fostering even stronger trade ties both regionally and internationally, stressing that Dubai should keep exploring opportunities in new and emerging markets. He added that world class infrastructure and business friendly regulatory frameworks form a solid platform from which Dubai sets off on its global competition quest.
His Highness praised the sincere national efforts considered as the backbone of Dubai’s success across all fields. He expressed his complete confidence in the UAE caliber and their ability to reach new levels of excellence throughout key sectors, bolstering Dubai’s position on the world’s economic map.
Dubai has upheld its position as a regional and global trade hub, by virtue of the facilitations it offers to traders and investors, in line with the wise vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister, and Ruler of Dubai. This vision is based on the diversity and integrity of income resources to ensure UAE’s continued progress in the competitive global market. In this regard, the UAE global ranking recorded an improvement in the Global Competitiveness Report 2013-2014, issued by World Economic Forum in Davos, jumping in the general ranking by five ranks. UAE moved up from last year’s 24th spot to land the 19th rank amongst the world’s most competitive markets.
H.E. Ahmed Butti Ahmed, Executive Chairman of Ports, Customs and Free Zone Corporation and Director General of Dubai Customs, explained the significance of Dubai’s remarkable surge in trade: "The escalating growth in Dubai's foreign trade marks the ability of the Emirate to attract international trade, in view of the changes witnessed by the global economy, such as the economic and commercial growth of Asia, which is evolving to ultimately be the main center of gravity for the flow of goods between the countries of the world. Dubai has managed to play a central role in this transformation by linking markets of Asia, Europe and Africa through the air and sea shipping lines crossing by the Emirate."
He continued: "Out of our commitment to enhance the growth of Dubai's foreign trade, we have given top priority to three major tasks in the next phase; as we recognize that trade is essential to the competitiveness of the state. In Dubai Customs, we are committed to utilize all our capabilities to carry out our role in this domain, in collaboration with the local and federal institutions concerned with foreign trade. We do this by offering the best standards of customs service to customers in order to maintain the position of Dubai as the primary business destination. Therefore, we are keen to move forward quickly to achieve the second task that we have set within our priorities: to execute the initiative of the Smart Government launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. We have accomplished a significant phase to convert all our services to smart services after all the electronic services are now available via our website."
He clarified that: "Another prioritized task for the upcoming period is to support UAE’s opportunity to host the 2020 Expo. Dubai’s excellent prospects to be designated the host of the exhibition are the result of two factors: The Emirate’s remarkable foreign trade growth and its rapid progress in regards to the global competitiveness. Through our relations with all customs administrations throughout the world, as well as with the international organizations for trade and customs, on top of which are the World Trade Organization and the World Customs Organization, we act to demonstrate Dubai's ability to achieve the highest levels of success in this global event."
Dubai's foreign trade statistics show that India comes in first place among the Dubai's trade partners in the first half of 2013, as the value of exchanged goods is AED 81 billion compared to AED 77 billion for the same period last year; followed by China in the second place with a trade value of AED 63 billion against AED 54 billion. The United States came in the third place with the value of foreign trade at AED 45 billion compared to AED 37 billion. The United Kingdom came in the fourth place with AED 30 billion compared to AED 12 billion.
Trade with GCC countries witnessed a continuous increase, as it recorded a growth percentage of 17% in the first half of 2013 to reach AED 58 billion compared to AED 50 billion achieved in the first half of last year. In full coordination with the Federal Customs Authority, Dubai Customs is keen to fulfill the requirements of the GCC Customs Union, and is scheduled to start the execution of its final phase by the beginning of 2015. Dubai Customs effectively contributes in moving forward towards achieving this goal, especially in terms of reaching unified procedures to distribute the customs' revenues in order to finish all the arrangements prior to the set date.
The UAE total foreign trade with the Arab countries has achieved a growth of 8% to reach AED 105 billion in the first half of this year against AED 98 billion for the same period last year. This increase reflects Dubai's ability to attract Arab businesses, despite the political and security tensions in many Arab countries that are major players in the trade movement. The growth of trade with the European Union has also increased in spite of the financial crises that some of the European countries witnessed, as the amount of Dubai's foreign trade with the European Union in the first half of 2013 reached AED 103 billion, compared to AED 79 billion for the same period last year, representing a 31% growth percentage.
In terms of commodities distribution of Dubai's non-oil foreign trade in the first half of 2013, gold was on top of imports, recording a value of AED 81 billion; followed by mobile and land phone devices that were equal to AED 40 billon. Next came the loose diamonds, which amounted to AED 27 billion; then ordinary cars and racing cars, which amounted to AED 18 billion, and finally different types of jewelry and parts of jewelry, which amounted to AED 17 billion.
As for the exports, gold was on top of the exported commodities from Dubai at a value of AED 50 billion; followed by raw aluminum amounting to AED 3 billion; then petroleum oils amounting to AED 2 billion; various types of jewelry and parts of jewelry amounting to AED 2 billion, and cigars and tobacco substitute cigarettes amounting to AED 2 billion.
In re-export, mobile and land phones were on top of the list, as they reached AED 36 billion, followed by loose diamonds at AED 30 billion, computers and parts of computers at AED 10 billion; then jewelry and parts of jewelry at AED 7 billion; followed by gold at AED 7 billion.
Dubai Customs contributed to enhancing the flow of consumer goods to the local markets during the high seasons, such as feasts and the holy month of Ramadan, through the rapid pace of customs clearance procedures and the guarantee that the consignments reach the traders on due time. This enabled traders to meet the increased demand typical of the holiday season. Dubai Customs continually follows-up on changes in local markets to address their business needs in a timely manner, and in line with the UAE government’s efforts to reduce the unjustified increase in prices.