Dubai's trade to grow 11% this year

Dubai: Dubai's trade with key markets overseas will be spared from the effects of the financial crisis, as the value of goods going out of the emirate is expected to grow by 11 per cent this year over 2008, a top official of the Dubai Export Development Corporation (DEDC) said.

Dubai's imports grew more than 50 per cent to Dh120.4 billion in the third quarter last year, from Dh79.9 billion in the same period of 2007.

Also during the same period, the value of exports jumped significantly by a whopping 79 per cent, from Dh6.8 billion to Dh12.2 billion.

The value of re-exports expanded by 22 per cent, from Dh25.3 billion to Dh31.1 billion.

"During the first three quarters of 2008, Dubai exported more than the entire 2007 level. The reason for Dubai's success is that investors and businesses continue to have confidence in Dubai's economy and potential for high-growth business," DEDC chief executive officer Saeed Al Awadi told Gulf News.

Last year's top export goods were gold and jewellery, petroleum oils, sugar, unwrought aluminium, polyacetals, glazed ceramic flags, chocolate and other food preparations containing cocoa, among others.

Although the current global economic crisis has impacted most countries, many of Dubai's major export markets are still growing, so the city's exports should continue to increase in 2009.

"In 2009, we expect the list of top exporting sectors of goods to remain broadly the same as 2008 and our exports are expected to meet our target of minimum 11 per cent annual increase in line with the Dubai Strategic Plan 2015," said Al Awadi.

"We believe that many of Dubai's key export markets will continue to experience a positive economic growth. So the growth of these countries along with new markets should ensure that exports continue to increase in 2009."

"In fact, we believe that Dubai will benefit from cheaper imported input, hence reducing the cost of production and making our exports more competitive in global markets, " Al Awadi added.

Al Awadi also noted that the good infrastructure and logistics benefit will make Dubai an ideal location from which to export to the region.

"We feel that these advantages will encourage more firms to locate in mainland Dubai or its free zone clusters and hence will help to increase its exports. This is supported by the fact that between 1991 and 2007, exports increased nine-fold and re-exports twelve-fold," said Al Awadi.

The Doing Business 2009 report of the World Bank recently named UAE as the easiest country to trade with in the Arab world. After doing improvements in the infrastructure of Jebel Ali port in 2005, the UAE managed to reduce the time for export and import significantly.