Dubai has managed to contain the instabilities of global economic environment, marked by a decline in commodity prices and currency rates, to maintain a strong economic performance in 2015. Despite the adverse impact of the recent downturn in oil and precious metals prices – including gold, Dubai’s non-oil foreign trade reached AED 966 billion during the first nine months of 2015.
Of the overall trade, imports had the biggest share with a value of AED 597 billion while exports and re-exports totalled AED 100 billion and AED 269 billion respectively.
From January to September 2015, direct trade contributed AED 603 billion of Dubai’s total foreign trade value; while free zones contributed AED 340 billion and customs warehouses AED 23 billion.
“Dubai has been exemplary in surmounting trade and economic hardships the world is currently facing, thanks to the wisdom of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and His Highness’s vision of diversifying the economic structure of Dubai to withstand and avoid being affected by sharp fluctuations witnessed across many key economic sectors globally,” commented Sultan Ahmed Bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), and Chairman of DP World.
“The foreign trade sector has enhanced Dubai’s capacity to build a sustainable economic growth. Alongside other economic sectors, particularly tourism, it has positioned Dubai as a leading global and regional trading and business hotspot, in spite of the general slowdown in the world economy,” he said. Bin Sulayem further emphasised PCFC’s commitment to playing an active part in speeding up the shift to a digital, knowledge economy as per the vision of the UAE wise leadership. “Our goal is to be a driver of change by being creative, innovative and using modern ICT solutions to deliver great government services that would reinforce the competitive edge of the UAE in general and Dubai specifically, so as to continue striding towards Number 1 position in all spheres and give people happier lives,” he said.
Bin Sulayem hailed the positive synergy with government stakeholders and the trust of customers in Dubai Customs processes and services. Because of such support, he said, Dubai had upheld its status as a favourite destination for trade and investment. This trend will further be boosted through mega government projects announced to develop infrastructure and services, as reflected in Dubai budget for 2016 which increased expenditure by 12 per cent over 2015 to keep on economic growth.
Director of Dubai Customs Ahmed Mahboob Musabih said: “Dubai Customs is keen on constantly improving the efficiency of its customs services to a level that brings traders and investors who choose Dubai as their preferred destination real added value and increasing business returns.”
He added that innovation and creativity are driving the efforts of Dubai Customs to support trade facilitation and economic development, while tightening control on all illegitimate border activities that might put the security of our community at risk. “This comes in line with the core objectives of UAE Vision 2021 and Dubai Plan 2021, particularly with respect to such key pillars as sustainable economic growth and protection of society.”
Ahmed Mahboob further said: “In preparation for Dubai Expo 2020, which will be staged in less than five years from now, Dubai Customs has launched ambitious growth-driving initiatives to sustain the healthy performance of foreign trade sector, such as the AEO program, the Virtual Freight and Logistics Corridor, the e-Inspection facility and many more. We also work closely with other government agencies to deliver an integrated package of superior customs services and trade simplifications to increase Dubai’s appeal as a major trade hub.”
Dubai has kept a high-value foreign trade due to the substantial upsurge in the total volume of goods imported, exported or re-exported via the emirate. The quantity of commodities traded went up 5 per cent from 60.6 million tons in the first nine months in 2014 to 63.7 million tons in the same period this year 2015, that is a growth of 3.1 million tons. Likewise, during the last four years from 2012 to 2015, the volume of goods in Dubai foreign trade grew by 23 per cent with an overall increase of 11.86 million tons.
Such rise in the volume of cargo traded through Dubai proves the emirate’s successful expansion in terms of imports, exports and re-exports, attracting traders from all parts of the world and making inroads into new markets in five continents. This augmentation has helped Dubai minimise the impact of lower commodity prices, especially the global gold price which further dropped off in 2015.
The declining gold prices were contained by a remarkable increase in its traded volume to 1.028 million Kgs in the first nine months of 2015, compared to around 977 thousand Kgs in the same period of 2014.
Gold also had the second share in the total value of Dubai foreign trade during January-September 2015 with a value worth AED 92.54 billion. Phones and telecommunications equipment came first with a 6.3 per cent growth and AED 137.6 billion market share.
Aluminium trade jumped 42.68 per cent up to the Q3 of 2015, totalling a value of AED 12.14 billion, whereas jewelleries amounted to AED 48.44 billion up by 19.2 per cent.
China was once again Dubai’s top trading partner worldwide, with total bilateral trade value of AED 132 billion in the first nine months of 2015, that makes a growth of 5.1 per cent compared to the same period of 2014. India followed as the second trading partner at AED 74 billion, while the USA came third with AED 60 billion worth of trade. KSA was the fourth global and top Arab trading partner of Dubai at AED 45 billion, with an increase of 11.62 per cent from last year.
There was also a strong growth in Dubai’s trade with several other Asian countries, namely Vietnam the 8th trading partner of Dubai with which bilateral trade went 16.83 per cent up to reach AED 30 billion. Trade with Hong Kong climbed by 17.24 per cent to AED 26 billion, which places China’s autonomous province 10th on Dubai’s list of major trading partners.