KHALEEJ TIMES, Sunday, Apr 11, 2021 | Shaaban 28, 1442
Dubai's non-oil foreign trade touches Dh1 trillion in 2020
Emirates:
Dubai on Saturday said its non-oil foreign trade hit Dh1.182 trillion
last year despite headwinds from an intensified global economic downturn.
Spurred by its efforts to achieve Dh2 trillion trade target by 2025, the
emirate’s non-oil foreign trade strongly rebounded from the challenges posed by
the global economic repercussions of Covid-19 and the suspension of business
activity by countries across the world in the first half of last year to record
high growth in 2020.
The emirate, which recorded Dh1.37 trillion foreign trade in 2019 before the
pandemic strike, proved its resilience to global headwinds, as well as its rapid
economic recovery and revitalised growth in the second half of the year, by
sustaining steady growth in foreign trade.
“Total trade volume in 2020 reached 100 million tonnes, driven by a six per cent
year-on-year volume growth in the second half of the year. Overall value of
exports in 2020 grew eight per cent to Dh167 billion while imports accounted for
Dh686 billion and re-exports totalled Dh329 billion,” according to official data
released on Saturday.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and
Chairman of Dubai Executive Council, said the exceptional growth performance of
Dubai’s external trade sector reflects the emirate’s impressive resilience and
its ability to recover and grow amidst international crises.
“Dubai has set an example for the world in dealing with both the economic and
health repercussions of the pandemic. We were able to quickly renew our momentum
of growth and reestablish our global leadership in various sectors,” Sheikh
Hamdan said.
“This growth has been made possible by robust governance and the stimulus
packages the Dubai Government launched under the directives of His Highness
Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the
UAE and Ruler of Dubai. The stimulus packages included a number of initiatives
to support the foreign trade sector and enable it to continue playing its
important role in national economic growth. The strong trade performance signals
a positive start to the ‘Year of the 50th’’ and the efforts to achieve the goals
of the UAE Centennial Plan 2071,” noted Sheikh Hamdan.
Sheikh Hamdan said the external trade sector’s distinctive growth in 2020 will
boost the implementation of Dubai’s five-year plan to expand its external trade
to Dh2 trillion, consolidating the emirate’s position as a leading regional and
global trade and investment hub.
“Dubai’s new international trade map will see an expansion in air and sea
navigation routes, with 200 new cities set to be added to the emirate’s existing
network of 400 cities,” the Crown Prince said, adding that Dubai will continue
its efforts to generate new practical and creative solutions to tide over
challenges and turn them into new opportunities.
China remains a top
trading partner
Dubai’s direct trade reached at Dh711 billion last year while trade through free
zones hit Dh464 billion and customs warehouse trade weighed in at Dh7 billion.
Airborne trade accounted for Dh559 billion, sea trade reached Dh421 billion
while land trade touched Dh203 billion.
China maintained its position as Dubai’s largest trading partner in 2020
with Dh142 billion worth of trade. India came in second with Dh89 billion,
followed by the US in third place with Dh61 billion.
Saudi Arabia continued to be Dubai’s largest Gulf and Arab trade partner and its
fourth largest global trade partner with Dh54 billion worth of trade, followed
by Iraq in the fifth place with Dh41 billion.
Defies Covid-19
pandemic
Sultan bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports,
Customs and Free Zone Corporation said Dubai’s external trade sector
impressively overcame the impact of a global trade downturn in 2020.
“With the gradual opening of borders, Dubai’s trade volumes started recovering
and growing quickly in the second half of 2020. In the third quarter, Dubai’s
trade surged 34 per cent compared to second quarter. Trade grew by seven per
cent to Dh326 billion in fourth quarter compared to the third quarter of 2020,”
Bin Sulayem said.
He said trade volumes in the second half of 2020 expanded by six per cent
compared to the corresponding period in 2019. Overall, 100 million tonnes of
goods were traded in 2020, which reflects the rapid recovery of this sector.
This rebound is now spurring greater growth in 2021, he said.
“The resumption of trade with Qatar, the start of trade engagement with Israel,
the positive spin-offs from hosting EXPO 2020 and the launch of the Dubai 2040
Urban Master Plan will all contribute to accelerating the emirate’s growth
momentum,” he said.
To develop the external trade sector and play a greater role in maintaining
Dubai’s leading position in global trade, Bin Sulayem said the Dubai Chamber has
been restructured by creating three new chambers of commerce.
“The new chambers will enhance support for the trade sector by creating new
solutions for the needs of investors and companies as part of a strategy to grow
the emirate’s global trade in line with the vision of Dubai’s leadership for the
next 50 years,” he said.
Gold top traded
commodity
Gold topped the list of commodities in Dubai’s 2020 external trade at Dh213
billion, followed by telecoms at Dh153 billion. Diamonds came third with Dh64
billion, followed by petroleum oils with Dh57 billion and jewellery with Dh47
billion, according to the official data.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said Dubai as a
global transhipment hub was in a strong position to benefit from the shift in
spending towards good as a result of the pandemic, which boosted trade and
manufacturing activity.
“We continued to see strong trade activity through Dubai in 2021 with continued
Covid waves including in Europe, maintaining the strong demand for goods.
Moreover, the rebound in global growth is also a positive driver,” Malik told
Khaleej Times on Saturday.
Shailesh Dash, a Dubai-based financier and entrepreneur, attributed steady
non-oil foreign trade to the government’s stimulus packages and timely relief
measures announced by the government to facilitate businesses and investors
despite challenging environment caused by the Covid-19 pandemic.
“The credit to sustain positive trends in non-oil foreign trade goes to number
of initiatives announced by the government to revive economic activity at the
earliest. We have a bright outlook ahead for economt as the IMF also doubles the
GDP growth forecast for the UAE in 2021,” Dash said.
He said Expo 2020 starting in October this year will be catalyst to drive
tourism and hospitality sectors in coming years while real estate and retail
will continue to strengthen the economy.
Atik Munshi, managing partner at Enterprise House, said the Emirate of Dubai,
since long has a target of lesser reliance on oil based earnings and this aspect
has materialised more and more over the years. The current achievement of
crossing Dh1 trillion non-oil revenues is a result of this government drive.
“The UAE and Dubai are among the very few states in the world who have tackled
the Covid challenge in an amazing way which has ensured that businesses and
social aspects are affected in the least possible manner. The government
incentives in the form of stimulus packages, vision 2040, vaccination drives,
Make in UAE initiative, long term visas, etc, has helped in bringing more FDI
and has built investor confidence. More positive news are expected in the
future,” Munshi said.
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