Dubai Foreign Trade
Dubai foreign trade and global economic policies
Despite the economic troubles that hit global economies in late 2008, Dubai realized a record amount of non-oil exports that year, up 38% from 2007.
India remained Dubai’s largest bilateral trade partner, which includes imports and exports (including those through free zones) and re-exports.
From 2001 to 2005, the government of Dubai invested nearly AED 11 billion in developmental projects. These investments had a considerable positive effect on the Emirate’s foreign trade. Specifically, the total foreign trade of Dubai rose from AED 112 to 280 billion between 2001 and 2005, for an increas of nearly 150%. In that same period, foreign trade relative to Dubai’s GDP increased from 170% to 200%.
The fact that Dubai is both a Middle Eastern trade hub and a free port makes it ideal for foreign trade. Its world-class, large airport, and massive sea port facilitate the majority of the imports and exports. Although the quality of the Emirate’s transportation infrastructure is excellent, the local government is making many improvements in these areas with the expectation that foreign trade will continue to improve and increase.
The majority of cargo coming in and out of Dubai is by sea. In 2005 this segment represented 54% of foreign trade at AED 152 billion. Air transport claimed 43% of imports and export then, leaving only 3% of international trade by land.
Dubai Exports
Economically, Dubai is most famous for its oil and gas production, which only makes up less than 6% of the state’s economy, and only 2% of the UAE’s economy. Dubai contributes 82.2% of the UAE’s non-oil exports.
The non-oil exports that come from Dubai are mainly traditional products and commodities and manufactured items. The traditional producs include things such as dried and frozen fish, dates, hides, and scrap metals. Most of these exports go to other Gulf States, India, Pakistan, and Sri Lanka. This sector is minor compared to the manufacturing exports.
The manufactured products that Dubai exports include liquefied gase, clothing, cement, electric cables and aluminum ingots. The majority of the importers of these goods are Japan, India, China, Taiwan, and the United States.
Since the early 1980s, Dubai has seen a tremendous rise in exports and overall trade, much due to its strategic placement on the Arabian Gulf, solid and modern infrastructure, and a diverse industrial and economic foundation.
This is exlempified by the Jebel Ali Free Zone with its focus on heavy industry. Its diverse industrial framework is also seen in medium and small manufacturing industries which produce so much that the local needs are surpassed and exports become vialble.
Iran is the Emirate’s largest export destination through free-zone trade. Saudia Arabia and India are second and third.
Dubai Imports
Dubai imports a tremendous amount of goods – more than two-thirds of all UAE needs, as well as items which are re-exported. In 1999, Dubai’s percentage of imports among the Emirates was 73.8. These goods include all types of capital, consumable, and intermediate products.
China is Dubai’s top partner in imports and second overall trade partner. In 1999, Dubai had 171 importing partners. The United States, China, Japan, the United Kingdom, Germany, Italy, Taiwan, India, South Korea and France comprised 71% of the state’s imports in 1999.
The amount of imports are a good barometer of how the commercial activity in both Dubai and the entire UAE is faring.
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