DUBAI: Despite the slow pace of economic recovery by many of its key partners, Dubai’s non-oil foreign trade has maintained solid momentum, with direct exports on the rise. While Dubai posted a sharp increase in the volume of traded goods in the first half of 2016, with shipments rising by 19.5 per cent year-on-year to 49 million tonnes, the value of its external trade eased marginally compared to the same period last year, according to latest data issued by Dubai Customs in October. In the first six months of the year, Dubai’s non-oil trade was valued at Dh647 billion, with imports accounting for Dh401 billion of the total. Exports of Dh74 billion and re-exports of Dh172 billion made up the balance.
Despite being slightly down on the total for the same term last year at Dh652 billion, results from the first six months put Dubai on track to at least match trade of Dh1.28 trillion in 2015. 0.25 per cent from the six-month total of Dh402 billion in 2015. Imports accounted for approximately 62 per cent of Dubai’s trade for the term, with re-exports making up the bulk of the balance, despite this component recording a fall. In the same period, re-exports dropped by seven per cent to Dh172 billion, though part of this decline was balanced by the Dh9 billion increase in direct exports. Of Dubai’s imports, the majority came through open trade channels, with Dh267 billion arriving via direct foreign trade, while a further Dh134 billion entered either through free trade zones or the Customs warehouse trade.
Direct foreign trade also accounted for just under half of Dubai’s re-exports, with a value of Dh85.7 billion, compared to Dh85.9 billion shipped via free trade zones, with total exports arriving predominately via direct foreign trade, according to Dubai Customs data.
While Dubai’s 2016 non-oil trade figures are on the way to match those of last year, 2015 represented something of a disappointment for Dubai’s importers and exporters, as it was the first time since 2008 that foreign trade had fallen back in value terms, with shipments easing by 3.6 per cent over the year. With uncertainty over the direction of the economy of Dubai’s largest trading partner China, as well as flat trading figures with the emirate’s next three biggest trading partners – India, the US and Saudi Arabia – Dubai has done well to stem any further falls and to gain ground in some key segments.
