UAE continues to hold position as world's top tea re-exporter

Dubai: Figures released by the Dubai Tea Trading Centre (DTTC) show that the UAE will retain its position as the world's top tea re-exporter, accounting for 72 per cent of the global total in 2008.

Dubai's global re-exports are valued at $112 million (Dh411.2 million). In second place is the US at 9 per cent, Hong Kong third with 8 per cent, and Kenya and Canada sharing fourth place with 3 per cent.

"The Dubai Tea Trading Centre announced trading of a record 7.5 million kilogrammes of tea in 2009, despite adverse weather conditions that reduced global production.

"Today, the Middle East accounts for approximately 25 per cent of global tea imports and Dubai has played a key role in boosting the trade," Sultan Bin Saeed Al Mansouri, Minister of Economy, said at the third Global Dubai Tea Forum yesterday.

Delayed rainfall

Despite delayed rainfall and unfavourable weather conditions in tea growing countries during 2008 and 2009, tea trading volumes continued to grow by 26.5 per cent in 2009.

"The drought resulted in a global black tea crop deficit of approximately 56.6 million kilogrammes, equating to a decline of 3.2 per cent compared to 2008," DTTC said in a previous statement.

The DTTC currently imports tea from 35 Asian and African countries and has the storage capability for 13 tea-producing countries: Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran.

As well as being the world's top re-export destination, a position it has retained since 2004, Dubai is also the second largest export destination for both Indian and Sri Lankan tea.

"Because of Dubai's position as the second largest export destination for both Indian and Sri Lankan tea, it continues to play a pivotal role in the supply chain," Al Mansouri said at the forum's opening.

Storage services

The UAE's strategic geographical position and comprehensive logistic and storage services provided through the DTTC in Jebel Ali Freezone have been one reason why the city has retained its position.

"Dubai's location serving some 1.5 billion people across the Middle East, North Africa, CIS Countries and the Indian Subcontinent has helped it to become a natural tea trading hub," said Al Mansouri.

The DTTC maintains a central facility for storing, mixing and packaging tea.

market figures

pivotal place

n 112.3 million kg of tea traded through Dubai in 2009

n 26.5% growth witnessed in DTTC's volume in 2009

n 35 — the number of countries DTTC imports tea from

n 13— the number of countries DTTC stores tea for

n $112 million — the total value of the UAE's tea re-export market in 2008

n $452 — the total value of the UAE's imports in 2008

— A.Y.