UAE becomes largest Gulf export market for US

Dubai: US exports to the UAE touched $11.64 billion (Dh42.72 billion) in 2010, making the UAE the largest export market for US products in the Gulf Cooperation Council (GCC), a study by the Dubai Chamber of Commerce and Industry has revealed.

The UAE surpassed Saudi Arabia as the largest GCC market for US exports.

The study showed that US exports to Saudi Arabia last year were $11.59 billion, Qatar $3.2 billion, Kuwait $2.8 billion, Bahrain $1.2 billion and Oman $1.1 billion.

The study revealed that US trade with the GCC countries increased 21 per cent in 2010 as US demand for oil rose with the economic recovery. US trade with the GCC grew 40 per cent in 2008 before falling 42 per cent the following year.

Meanwhile, US trade with the rest of the world in 2010 grew 22 per cent to $3.2 trillion.

A resurgence of imports of crude oil contributed significantly to the increase in US trade with the GCC in 2010, with these products accounting for 92 per cent of US imports from the region.

Saudi Arabia supplied 79 per cent of the $41.2 billion in US imports of crude oil from the GCC.

Kuwait was second, supplying 14 per cent worth $5.6 billion, followed by the UAE with 3 per cent worth $1.2 billion.

Combined imports from the other GCC countries accounted for about 4 per cent, according to the study.

Food exports

The UAE was the largest market for US food exports.

According to the study, exports of food and live animals to the GCC amounted to $1.7 billion, or 2 per cent of US exports of these products.

The largest market in the GCC was the UAE, with 47 per cent of the value of goods exported to the region, followed by Saudi Arabia with 39 per cent, while Kuwait received 8 per cent.

Exports to the other GCC countries comprised about 2 per cent each.

The UAE was also the largest GCC market for US exports of manufactured goods, classified chiefly by materials.

Exports to the UAE amounted to 47 per cent of exports to the GCC and were worth $1.8 billion. Saudi Arabia followed with 31 per cent, Kuwait 10 per cent, Qatar 7 per cent, Oman 3 per cent and Bahrain 1 per cent.

Included in the group were metal and nonmetal manufactured products.

Machinery and equipment and other products destined for use in projects here made the UAE the largest market in the region for other commodities and transactions not classified.

They accounted for 43 per cent of the exports worth $1.1 billion. Saudi Arabia had a 27 per cent share, and Bahrain had 13 per cent.

The study said that the US presence in the Gulf is expected to remain substantial, exporting not only goods to the region, but services as well.

Irfan Al Hassani, Dubai-based economist, told Gulf News: "The US has been a strategic partner for the UAE for decades. Though the volume of trade between the two countries has been growing rapidly, the most important point is that the trade structure between the two countries is extending in a way that would meet the economic development requirements in the UAE."