UAE’s non-oil foreign trade up 27% to Dhs900bn in H1 2021

The UAE’s non-oil foreign trade grew 27 per cent year-on-year in H1 2021 and also 6 per cent compared to pre-pandemic levels in 2019.

According to preliminary data released by the Ministry of Economy, the total value of the country’s non-oil foreign trade amounted to nearly Dhs900bn in the first half of 2021.

The value of non-oil exports alone amounted to Dhs170bn during this period, an increase of 44 per cent compared to the first half of 2020 and 41 per cent compared to H1 2019.

The contribution of non-oil exports to the country’s total non-oil foreign trade in H1 2021 grew to 19 per cent from 16.6 per cent in 2020 and 14.2 per cent in 2019.

The Ministry of Economy’s data showed that the value of UAE’s gold exports exceeded Dhs70bn in H1 2021. It demonstrated a growth of 48 per cent compared to H1 2020, while the rest of the non-oil exports except gold totaled Dhs98bn with a growth of 42 per cent compared to H1 2020 and 20 per cent over H1 2019. Also, 87 per cent of the country’s non-oil exports are locally made and 13 per cent comes from free zones and customs warehouses.

Gold, ornaments and jewelry; aluminum; plastics, copper and associated articles; iron and steel articles; were the five most important non-oil exports of the country. Their total value witnessed a growth of 50 per cent in H1 2021 compared to the H1 2020, and 47.4 per cent over H1 2019.

Re-exports, which totaled Dhs238bn in the H1 2021, grew of 22 per cent compared to the first half of 2020. Furthermore, 46 per cent of the re-exports are from the local market and 54 per cent from free zones.

The total value of imports in H1 2021 exceeded Dhs482bn indicating a growth of 24 per cent compared to H1 2020 and 3 per cent compared to H1 2019. Up to 66 per cent of the imports went the local market and 34 per cent to free zones and customs warehouses.

The ministry said that of the total non-oil trade of the country, 65 per cent of it was with the local market, while free zones and customs warehouses accounted for the remaining 35 per cent. Also 46 per cent of this trade took place by air, 35 per cent by sea, and 20 per cent by land.

The country’s non-oil trade significantly grew with the five fastest growing economies in the first half of 2021. These were China, Saudi Arabia, Iraq, Turkey and Italy. Meanwhile, the country’s top five export destinations from h1 2021 to H1 2020, were India, Saudi Arabia, Hong Kong, Kuwait and China. The UAE’s top re-export partners include Saudi Arabia, Iraq and Egypt.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the country’s promising foreign trade figures coincide with the launch of the ‘Projects of 50,’ which was recently announced by the UAE government. It includes strategic initiatives such as comprehensive economic agreements with a number of targeted global markets, and the 10×10 export development programme designed to provide an additional incentive to strengthen the UAE’s comprehensive economic and trade partnerships with countries around the world.