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UAE's bilateral trade with Sudan growing over 30%
The UAE is the second-largest investor in Sudan after China with investments of about $7 billion and trade, which is growing at over 30 per cent per year, the Dubai Chamber of Commerce and Industry said yesterday.
- By Natasha Marrian, Staff Reporter
- Published: 23:44 August 28, 2008
Dubai: The UAE is the second-largest investor in Sudan after China with investments of about $7 billion and trade, which is growing at over 30 per cent per year, the Dubai Chamber of Commerce and Industry said yesterday.
Sudan's GDP has grown more than ten per cent annually since 2006, with its economy booming on the back of an increase in oil production, high oil prices and large inflows of foreign investment.
In 2007, Sudan real GDP grew by 12.8 per cent.
According to the country ranking list published by the International Monitory Fund (IMF), the UAE ranks 37th with a nominal GDP of about $192 billion, while Sudan is ranked 65th.
Despite the UAE's economy - with a growth rate of 8.5 per cent - being larger than Sudan's, the latter's GDP growth rate is faster than that of the UAE at 12.8 per cent.
Major drivers
The UAE's per capita GDP of $49,800 far exceeds Sudan's estimated $2,500. The industrial and services sectors are the major drivers of the economy of both countries.
Both sectors occupy the leading share of their respective GDPs.
However, agriculture has an equivalent share of the economy of Sudan with 31.5 per cent while agriculture accounted for only two per cent of the UAE's GDP.
Raju Menon, managing partner at Morison Menon Chartered Accountants, said the UAE's large investment in Sudan was largely due to the country's oil resources.
"I believe it is because of the oil resources... to a large extent the political situation in the Sudan is stabilising," he said.
Countries in the GCC also relied on imports for food, so acquiring farms in the Sudan would provide an "extended arm" to assist with food security much like Saudi Arabia was doing with their farms in Thailand, he said.
The agricultural sector is one of Sudan's strongest, an opportunity the UAE could explore to ensure the availability of food stocks and food security.
The Sudanese government has introduced a medium-term development programme for 2004 to 2009 with a goal of injecting $400 billion to improve infrastructure.
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