Saudi Arabia largest export, re-export market for Dubai |
Saudi Gazette - 16 August, 2012
Dubai Chamber of Commerce and Industry (DCCI) members’ exports and re-exports to Saudi Arabia during the first six months of the year reached a total value of AED36.3 billion, or 27 percent of the overall total, making the Kingdom the largest export market for the members, while Iraq was second, with exports and re-exports valued at AED19.4 billion, a recently-released study by the chamber revealed.
The other large markets for members’ exports and re-exports during the period were Qatar, destination of goods valued at AED10.4 billion; Kuwait, AED 8.8 billion; Oman, AED5.1 billion and India, AED2.8 billion while trade between UAE’s local companies and Dubai’s free zones and duty free shops placed the UAE as a large export and re-export market, registering an export value of AED6.9 billion.
Proximity and ease of movement of goods within the region had made the GCC countries the busiest export and re-export destinations for Dubai Chamber members. During the six-month period, 109,315 certificates of origin (COs) had been issued to export shipments destined to Saudi Arabia, equivalent to 30 percent of all COs issued during the half yearly period, the study further said.
Still, COs covering export shipments of members to Qatar reached a total of 60,810 or 16 percent of the total number; to Kuwait, 35,146 COs or 9 percent; to Oman, 22,910 COs or 6 percent; to Bahrain, 17,629 COs or 5 percent; and to the UAE, 17,000 COs or 5 percent of the total certificates of origin issued during the six-month period.
Meanwhile, in terms of number of members exporting to a particular country, Qatar was ahead of Saudi Arabia. During the six-month period, 3,540 members exported to Qatar, or 38 percent of the 9,194 exporters during the period. The number of exporters to Saudi Arabia was 130 less at 3,410 or 37 percent.
The other GCC member countries made up the top six busiest destinations, with exporters to Kuwait numbering 2,344 or 25 percent; to Bahrain, 1,439 exporters or 16 percent; to Oman, 1,375 exporters or 15 percent; and to the UAE, 1,119 exporters or 12 percent. Non-GCC member countries with high number of exporters were Iraq, with 997 members exporting to the country; Jordan, with 992 exporters; and Egypt, with 963 exporters.
Hamad Buamim, Director General, DCCI, said the study indicates the pivotal role played by the trading sector led by the exports and re-exports of Dubai Chamber members which have shown an impressive growth in the first half of the year by making a record in the chamber’s history of operations. The excellent performance is the result of the traders’ determination to explore new and emerging destinations to market their goods and expand their global outreach, he added.
Comparative figures on export values to the various destinations for the first six months of the last two years singled out the rapid expansion of Iraq, with exports and re-exports to the country increasing from only AED4.1 billion from January to June of 2011 to a high of AED19.4 billion for the same period in 2012. The difference in value of AED15.3 billion was equivalent to a year-on-year growth of 376 percent.
Exports and re-exports to Saudi Arabia grew by AED6.6 billion, making the country the 2nd largest gainers.
However, in terms of growth, the rate was comparatively much lower at 22 percent. The 3rd largest gainer was Qatar, growing by AED2.4 billion or 31 percent. Other GCC member countries that gained significantly were Kuwait and Oman, exports to each country increasing by AED1.2 billion.
The reconstruction of Libya led to a surge in demand in the country. Exports and re-exports of Dubai Chamber members to Libya grew by AED1.7 billion or by 260 percent on an annual basis. The short-lived political turmoil in Egypt in the early part of 2011 led to lower exports to the country during the period. Thus, the export value of AED2.7 billion in the 1st half of 2012 translated to an increase of 40 percent to a value of AED769 million.
Other destinations that grew significantly were Jordan, by AED759 million or 43 percent; Turkey, by AED663 million or 131 percent; and Pakistan, by AED661 million or 53 percent.
Value of exports/re-exports of 9,194 members during the first half of 2012, based on declared value of shipments in certificates of origin issued during the period, reached a record high of AED136.2 billion, registering a year-on-year growth of 13 percent. The value is the highest recorded for the first six months of the year, surpassing by 30 percent the highest pre-crisis export level of AED104.4 billion recorded for the same period in 2008.
Nonetheless, the rate of growth following the dip in 2009 had been relatively modest compared to the pre-crisis period when the highest growth of 38 percent was reached in 2008.
By month, highest export value was recorded in May, at AED28 billion, while lowest value was in the month of February, with AED19.7 billion. June’s AED22.7 billion was third highest, following the AED23 billion export value noted for March.
In terms of level of activity, as indicated by the frequency of exports, or number of certificates of origin issued during the first six months of the year, the number registered in 2012 was highest at 372,955 COs while the highest monthly record was registered in May at 69,460 COs. This was followed by the 63,181 certificates issued in June.
The recovery of exports of Dubai Chamber members from the impact of the global crisis in 2009 had been the product of the members’ ability to adjust to shifts in market demands and changes in the global conditions and of the government’s friendly policies and regulations for trading across borders, the study noted. However, it forecast sluggish demand as growth prospects for the global economy remains low, demands are expected to be sluggish.
Under this scenario, the government and the financial sector must continue to implement policies and procedures that are supportive of the export sector, the study said.