Historic high: UAE’s non-oil foreign trade tops Dhs1.4tn

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The UAE’s non-oil foreign trade reached a record high of Dhs1.39tn ($379.85bn) in the first half of 2024, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai said on X on Sunday, reflecting the country’s initiatives to reduce its reliance on oil.

“A few years ago, we set ambitious national economic goals, aiming for Dhs4tn in foreign trade by 2031 – a goal that was seen as highly challenging at the time. Today, the figures for the first half of 2024 show that our exports in just six months have equalled what we used to export in an entire year before the Covid-19 pandemic in 2019,” Sheikh Mohammed said.

“Our foreign trade is nearing Dhs1.4bn in these six months, with a 25 per cent growth in non-oil exports,” Sheikh Mohammed added, noting that the UAE aims to reach Dhs3tn in non-oil trade by the end of this year.

The UAE’s non-oil exports to its top 10 trade partners rose by 28.7 per cent, while trade with all other nations increased by 12.6 per cent.

قبل عدة سنوات أعلنا أهدافنا الاقتصادية الوطنية .. وأعلنا بأن مستهدف تجارتنا الخارجية للعام 2031 هو 4 تريليون درهم سنوياً… هدف كان يمثل تحدياً كبيراً في وقتها …
واليوم وردتنا أرقام النصف الأول من 2024 … حيث بلغت صادراتنا في 6 أشهر فقط ما كنا نصدره خلال عام كامل قبل كورونا في…

— HH Sheikh Mohammed (@HHShkMohd) August 25, 2024

Gold, jewellery, cigarettes, oils, aluminium, copper wires, printed materials, silver, iron industries, and perfumes topped the list of the country’s most important exports in the first half of the year, collectively growing by 36.8 per cent compared to the same period in 2023.

“Our economic relations with various countries have strengthened, with trade increasing by 10 per cent with India, 15 per cent with Türkiye, and 41 per cent with Iraq, making Iraq the top destination for UAE exports, followed by India, Türkiye, and others,” said Sheikh Mohammed.

The UAE’s non-oil imports approached Dhs800bn in the first half of 2024, growing by 11.3 per cent compared to the same period in 2023 and increasing by 34.6 per cent compared to the same period in 2022.

UAE bolsters trade ties

Meanwhile, the UAE has initiated a raft of bilateral trade, investment, and cooperation deals – called Comprehensive Economic Partnership Agreements (CEPAs) since 2021 – to bolster efforts to diversify income sources and economic sectors.

“The UAE has placed foreign trade at the centre of its economic agenda, recognising its pivotal role in driving industrial output, enhancing the global competitiveness of its products and services, as well as catalysing innovation,” said Dr Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade.

Dr Zeyoudi said the UAE’s CEPA programme is playing a central role in boosting the country’s non-oil trade while noting that the bilateral trade with India and Türkiye grew 15 and 9.8 per cent, respectively. Together, the two countries account for 11.7 per cent of the UAE’s total foreign trade.

CEPAs are designed to enhance economic competitiveness and attract $150bn of direct foreign investments over the next nine years across sectors, including digital economy, entrepreneurship, advanced skills, space, and advanced technology.

The UAE has ratified five CEPAs with India, Israel, Indonesia, Türkiye, Cambodia, and Georgia so far. It is also in negotiations with more markets of strategic importance at the regional and global levels, including Congo-Brazzaville, Malaysia and New Zealand.

Read: Saudi Arabia’s non-oil exports rise 10.5% in Q2 2024