Dubai’s trade has hit Dh1 trillion in nine months as more shipments of gold, mobile phones and cars surged through the emirate’s ports.
The value of trade soared by almost 10 per cent in the nine months to September as rising consumer confidence filled shopping malls.
Tourism arrivals rose by the same measure in that period as the city welcomed 7.9 million visitors, adding further demand for imported goods.
India and China accounted for about 20 per cent of the exchange of goods, excluding oil shipments, according to data released yesterday by the Dubai Media Office.
“Trade is one of the key pillars in the overall structure of our local economy and a main driver for its growth,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of the Dubai Executive Council.
“With the UAE voted the host nation to host nation of the World Expo 2020 in Dubai, the trade sector will undoubtedly witness tremendous growth over the coming few years up to the beginning of the next decade.”
Imports accounted for the largest chunk, reaching Dh610 billion in the first nine months of 2013, up by 11.7 per cent from the same period of last year, the data showed.
But the pace of expansion in exports and re-exports cooled. They rose by 7.3 per cent to reach Dh399bn.
Economists attributed the slower growth to weakness in prices of gold – Dubai’s top non-oil export – as well as the drag from sanctions against Iran, once one of the emirate’s major trading partners.
But the data underlines the depth of recovery in the emirate’s economy since the debt problems of 2009.
Recent figures from HSBC showed activity last month in the UAE’s private sector accelerated at a faster pace than Saudi Arabia and the Brics nations of Brazil, Russia, India, China and South Africa.
“There has been a pick up in consumption and investment activity in 2013, contributing to a broad-based recovery in the economy and import demand,” said Monica Malik, the chief economist of investment bank EFG-Hermes.
Ms Malik said she expected Dubai to be one of the “main beneficiaries” from any easing of sanctions against Iran, promised as part of an interim nuclear deal agreed to between the country and six world powers last month.
Gold, raw aluminium, petroleum oils, jewellery and tobacco were the emirate’s main exports during the period. Mobile and wired telephones, diamonds, cars and jewellery were the top imports.
India held its position as leading destination for Dubai exports. It accounted for 21 per cent of exports, followed by Turkey, which took 13 per cent of goods. Seven per cent of Dubai goods were shipped to Switzerland.
China, the US and India were the biggest exporters to Dubai for the nine months.
Ahmed Butti Ahmed, director general of Dubai Customs, said Dubai was focused on further cementing ties with Asian markets to “expand their reach through Dubai and strengthen their existence in a wide region that extends from Asia to Europe and Africa”.
tarnold@thenational.ae
