Region outperforms world in commerce

Dubai: Oil-exporting regions such as the Middle East witnessed a smaller drop in export revenues last year compared to the rest of the world, data released by the World Trade Organisation showed yesterday.

The region saw exports drop by 4.9 per cent over the 2008 level, compared to a global average drop of 12.2 per cent, the World Trade Report 2010 showed.

The global collapse in trade in 2009, triggered by an economic crisis that saw world output shrink by 2.3 per cent, is "unprecedented," the WTO said.

However, WTO Director General Pascal Lamy sees 2010 trade increasing by about 10 per cent. "Unless there are unanticipated negative economic impacts in the second half of 2010, this estimate [of 10 per cent] may even turn out to be too low," he added.

The UAE ended 2009 as the 19th largest exporter globally, selling goods and services worth $175 billion, a drop of 27 per cent over 2008's numbers. The UAE was ranked just after Saudi Arabia, with $189 billion of exports but a contraction of 40 per cent compared to 2008.

Exports from the UAE constituted 1.4 per cent of world merchandise trade, compared to Saudi Arabia's 1.5 per cent. These are the only Middle Eastern nations on the WTO's list of the world's top 20 exporters.

The list is led by China, Germany, the United States, Japan and the Netherlands, which together constitute 35.8 per cent of global exports.

On the import front, the Middle East witnessed a contraction of 10.6 per cent in 2009, close to the global average of 12.9 per cent. The UAE saw imports shrink by 21 per cent to $140 billion, making it the world's 24th largest importer.

Trade and output growth resumed in the second half of 2009 following record declines earlier in the year. The recovery through the first quarter of 2010 was, however, insufficient to attain pre-crisis levels.