Volume of tea traded via DTTC rises to 5.2m kilos

Dubai: The volume of tea traded through the Dubai Tea Trade Centre (DTTC) expanded to 5.2 million kilos in 2007, up from 4.3 million in 2006, according to Ahmad Bin Sulayem, executive chairman of Dubai Multi Commodities Centre (DMCC).

Speaking at the 2nd Global Dubai Tea Forum on Tuesday, Bin Sulayem said Dubai has always been a catalyst for the global tea industry, as teas from major producers like India and Sri Lanka are most commonly transacted in the city.

However, Bin Sulayem said that due to a decline in tea production from the two countries in 2007, the volume of imports into Dubai dipped slightly.

"In 2007, tea production was affected in both these countries as a result of adverse weather conditions. Imports into Dubai also recorded a slight drop in volumes with total trade of 96.6 million kilos as compared to 105 million kilos the previous year," he said.

Discussions

Tea industry experts converged in Dubai yesterday where they discussed consumer trends, as well as the growth outlook.

Bin Sulayem also highlighted the significant contribution of DTTC to the establishment of Dubai as a gateway for the global tea trade. Established in early 2005, DTTC is an initiative of DMCC that seeks to provide tea producers, exporters, importers and merchants with the facilities, expertise and regulations needed to help their business grow.

In 2006, DTTC facilitated the transaction of 4.3 million kilos of multi-origin teas, almost double the figures for the previous 10 months.

Kaison Chang, senior economist of the Commodities, Food and Agriculture Organization of the United Nations, said world tea production reached about 3.6 million tons in 2006, with markets such as Kenya, India and Sri Lanka driving the robust growth.

"We expect tea production to maintain healthy growth levels over the next four years," he said.

Based on the figures presented by Kaison, global demand for tea has increased significantly, with India and China alone capturing almost half or 42 per cent of the market share in tea consumption worldwide.

Achievements: An ideal hub

Dubai has the "economic feats" that make it an ideal hub for the growing tea trade in the region, a senior official of Dubai World said on Tuesday.

At the opening of the 2nd Global Dubai Tea Forum, Dubai World Secretary General Fareed Mohammad Ahmad highlighted Dubai's achievements, which include massive investments in the real estate sector that currently stand at an estimated $200 billion.

He said the city's gross domestic product (GDP) growth is estimated to hit $108 billion by 2015, with per capita income reaching $44,000.

"Dubai has become the world's third largest re-export hub - trade through the emirate represented 80 per cent of the UAE's $233 billion foreign trade recorded in 2006," Ahmad said.

He said the city's media and technology free zones have attracted talent from across the globe, while over 150 Fortune 500 companies have invested in Dubai.