Amidst global unrest and conflicts, including the ongoing Israel-Palestine crisis, the UAE stands out as a pillar of economic strength and stability. The country is well-positioned to maintain its momentum in global trade, serving as a crucial link between East and West, as well as North and South. Its remarkable non-oil trade figures further highlight its growing influence and resilience in a time of significant change.
The UAE’s Exceptional Growth in Non-Oil Trade Figures
In the first half of 2024, the UAE achieved record-breaking non-oil trade figures, reaching AED 1.4 trillion ($381 billion). This remarkable performance not only surpasses the annual export figures from before the COVID-19 pandemic but also puts the country on track to achieve AED 3 trillion ($817 billion) in non-oil trade by the end of the year.
- Non-Oil Exports: AED 345.1 billion ($94 billion), reflecting a significant 25% growth.
- Non-Oil Imports: AED 800 billion ($218 billion), showcasing an 11.3% increase.
- Re-Exports: AED 345.1 billion ($94 billion), with a 2.7% increase from the previous year.
The UAE Strengthening Global Trade Relations
As the global trade landscape evolves, it is increasingly shaped by structural changes in the world economy and society. Advances in technology, shifts in manufacturing centers, changing consumer preferences, demographic trends, and geopolitical developments are all driving significant transformations in how and where trade occurs.
The UAE has taken centre stage when it comes to the bilateral trade. One clear example of this is the UAE’s relationship with India. The UAE isn’t just a major trading partner for India; it’s also a vital gateway for Indian exports. This is reflected in the 10% increase in trade between the two countries.
But it doesn’t stop there. The UAE is also strengthening its trade ties with other important partners. Trade with Türkiye has grown by 15%, highlighting a solid economic partnership. Even more impressive is the 41% jump in trade with Iraq, which has now become the UAE’s top destination for exports. This showcases the transformative impact of the Comprehensive Economic Partnership Agreements (CEPA).
UAE’s non-oil trade and diversification
The UAE has long been a leading force in global trade largely due to its abundant natural oil reserves. With the sixth-largest oil reserves in the world, this strength has consistently positioned the UAE as one of the key players in international trade.
However, the UAE is now shifting gears and focusing more on non-oil trade. With the current H1 trade results, the country has set impressive new records and shown significant growth in this area. While it continues to benefit from its oil resources, the UAE is making a full-throttle push into non-oil sectors, demonstrating its ability to diversify and excel across a broader range of industries. It’s a clear sign that the UAE is not just resting on its oil-rich past but is actively shaping a broader, more dynamic future in global trade.
The emirates’ contributions to making the UAE a leading force in global trade are substantial. Abu Dhabi has broken a 10-year record for non-oil GDP in Q1 2024, driven by growth in sectors such as construction, finance, transport, manufacturing, and telecommunications with key contributions from Abu Dhabi Global Market (ADGM).
Meanwhile, Dubai continued its steady economic growth in Q1 2024, with positive performance across sectors including transportation, finance, real estate, and information and communication. The Dubai International Financial Centre (DIFC) delivered exceptional results in H1 2024, reinforcing Dubai’s role as a hub for innovation and business growth.
UAE’s trade vision: how the emirate’s aims for AED 4 trillion by 2031
As we look to the future, the UAE has set an exciting goal: reaching AED 4 trillion ($1.1 trillion) in annual foreign trade by 2031. Given the impressive progress we’ve already seen in 2024, it’s clear that this target is well within reach. The UAE is committed to expanding its trade network and building even stronger international relationships, which is driving its continued economic success. With these strategies in place, the UAE is well-positioned to achieve its ambitious goals and thrive in the years ahead.
