Dubai: Dubai Exports has urged South African companies to use the emirate as a hub to transport goods to GCC countries.

Saeed Al Awadi, chief executive of Dubai Exports, said yesterday that South Africa was an important source of business for Dubai due to its role as a regional hub.

"The South African Development Community (SADC) represents a strategic growth market within Africa. Together the 15 member states in SADC have a population of over 257 million and they import food worth nearly $11 billion [Dh40.39 billion]," said Al Awadi.

"Exporters in Dubai are best placed to successfully target the developing economies in SADC, with a fast and reliable supply of processed foods. Dubai is already well connected to South Africa, which offers a gateway to the rest of Safc [region], with its efficient transport infrastructure," added Al Awadi.

Major business

Total exports and re-exports from Dubai to South Africa in 2011 were valued at Dh1.5 billion with food exports and re-exports contributing Dh105 million, while Dh50 million came from free zone companies in Dubai.

Chocolate, fruit juices, pasta, wheat flour, rice and edible oils account for the majority of food exports and re-exports to South Africa from Dubai.

The Dubai Exports research shows that SADC as a whole offers additional export opportunities for a variety of foods including meat, sugar, confectionary and beverages, as their imports have grown at a rate higher than the global average.

Al Awadi added that Dubai's proximity to Africa and competitive business environment make it well placed as a trade hub for SADC to the regional market.

The SADC states have seen exports of their chief commodities like fruit and nuts, as well as fats and oils, growing at an annual average of 25-30 per cent, exceeding $2 billion, while GCC imports of these foodstuffs reached $4 billion in 2010, growing 40 per cent annually.

Irfan Al Hassani, a UAE-based economic expert, stressed the importance of improving trade links with South Africa.

"South Africa is fast becoming an emerging market which provides diverse products and resources," he said.

Al Hassani pointed out that greater Africa has good potential for UAE companies, with over 725 million consumers.

"The rich resources and high population of the continent might create a potential market for UAE exporters and importers," he said.