Rising exports show private sector has put downturn behind

Dubai: Exports by Dubai's private sector rose 10.2 per cent to Dh167.6 billion from January to November this year over the same period of 2007, the Dubai Chamber of Commerce and Industry said in a statement yesterday.

However, when compared to exports for the same period in 2008, this is 18.7 per cent lower than the Dh206.2 billion recorded in the 2008 period.

According to the Certificates of Origin (COs), issued by the Dubai Chamber to its members for exports in November, the total was Dh15.4 billion, only three per cent lower than the October figure of Dh15.9 billion due to the long Eid Al Adha holiday.

"Monthly export statistics for the last 11 months showed that following the decline caused by the global economic crisis in the region, exports had begun to pick up in the second quarter and had remained stable, except during the summer when the combined depressing effects of holidays and short working hours during the month of Ramadan had temporarily halted the momentum," the Dubai Chamber's report shows.

Following a relatively strong performance in October, exports in November remained nearly comparative, signalling a relative stability of exports, despite a reduction of five per cent in the number of Certificates of Origin to 48,000.

Increased exports

The number of markets increased to 163, and the number of exporters increased to 4,474.

Hamad Bu Amim, the Chamber's director general, maintained that Dubai's export market outperformed its own record in 2007, sending a clear signal to investors that the emirate is still a viable investment destination and retains its position as a thriving hub in the region.

Bu Amim also emphasised that the rise in export destinations from the October figure of 161 to 163 in November is also an indication that the emirate is leaving the global financial crisis behind and looking forward to better performances by its various economic sectors in the coming days.

Highly concentrated

November exports remained highly concentrated on niche markets, with exports to the top 20 destinations (major destinations) accounting for 93 per cent.

The GCC remained the largest export market of Dubai Chamber members, despite a four per cent month-on-month decline of Dh6.9 billion.

Nonetheless, exports to the region continued to account for 45 per cent of the total.

Saudi Arabia remained the largest single market in the region, maintaining an export level of Dh3.3 billion, or 22 per cent of the total.

This was the situation despite the decline in the number of exporters to 1,282 and in the number of COs to 10,833.

On the other hand, despite the increase in the number of exporters to Qatar by eight to 1,369, total export value to the country declined to Dh1.2 billion in October to Dh1.0 billion during November.

Traders between the UAE's customs territory and the free zones and duty free shops declined from 467 in October to 454 in November.

Correspondingly, total value of trade went down from Dh1.3 billion to Dh1.1 billion.

With the Customs Union facilitating the movement of goods within the GCC, it is not surprising to note that the number of COs issued for goods destined within the region accounted for 63 per cent of the total number issued during November.

Exports to major markets outside the GCC experienced a month-on-month decline.