Business | Economy
Japanese exports to UAE surge on rising demand for machinery
Fuelled by rising demand for transport equipment and electrical machinery, Japan's exports to the UAE climbed by 33.1 per cent to $8 billion (Dh29.4 billion) in 2007, compared to $6 billion in 2006.
- By Cleofe Maceda, Staff Reporter
- Published: 23:32 November 5, 2008
Dubai: Fuelled by rising demand for transport equipment and electrical machinery, Japan's exports to the UAE climbed by 33.1 per cent to $8 billion (Dh29.4 billion) in 2007, compared to $6 billion in 2006.
Overall, commerce between the two countries surged by 7.2 per cent, from $37.6 billion in 2006 to $40.3 billion in 2007, according to statistics released by the Japan External Trade Organisation (Jetro) in Dubai.
The UAE was Japan's largest market for export products among the Gulf Co-operation Council (GCC) countries, accounting for 37.5 per cent of the export pie. Exports of transport equipment to the UAE alone rose by 44.6 per cent to $3.71 billion in 2007.
On the other hand, Japan's imports from the UAE increased by 2.2 per cent to $32.3 billion, compared to $31.6 billion in 2006. The UAE also emerged as the second-largest crude oil supplier, as it supplied 25.4 per cent of Japan's oil requirements last year.
Combined trade figures between Japan and the GCC states also showed a 7.6 per cent growth in trade activities, with the value of exports and imports reaching $120 billion in 2007.
Exports to the GCC rose significantly by 37.5 per cent to $21.5 billion, thanks to the infrastructure developments, as well as the growing population numbers, in the region.
Japan's imports from the GCC, however, showed a lower growth rate of 2.7 per cent, reaching $98.5 billion in 2007 compared to $95.9 billion in 2006, due to falling crude oil purchases.
"The high rate of growth in exports was attributed to a surge in exports of machinery and equipment, including transport equipment. The fast and unprecedented infrastructure developments taking place across the GCC countries, supported by high oil income, have boosted the demand for civil engineering and construction machinery," Jetro said in its report.
"The resultant population growth in these countries has also contributed to an increase in exports of consumer goods, such as electric and electronic appliances and textiles."
The flow of export goods from Japan to other GCC states like Oman, Saudi Arabia and Kuwait also registered more robust growth rates, surging past 40 per cent, higher than the growth of exports to the UAE.
The increase was attributed to the "expansion in the demand for general machinery, electrical machinery and transport equipment."
Exports to Qatar and Bahrain experienced slower growth of just above 25 per cent.
Exports to these countries were also driven by high demand for transport equipment and electrical machinery.
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