Dubai: Dubai recorded a non-oil foreign trade of Dh676 billion in the first half of 2019, an increase of 5 per cent year-on-year from Dh644 billion in the corresponding half last year. The first-half figures, which represent a staggering growth of 87per cent from 2009, reflect the ability of the emirate’s trade sector to raise its strength and competitiveness despite a challenging global trade environment.
Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, posted a series of tweets about the achievement. He posted: "Dubai continues to surge towards achieving impactful growth rates."
Exports registered the highest rise at 17 per cent to reach Dh76 billion while re-exports were up 3 per cent at Dh210 billion and imports grew 4per cent at Dh390 billion.
Dubai’s non-oil foreign trade volumes surged 31per cent year-on-year in the first half of 2019. Data released by Dubai Customs showed that the total volume of the emirate’s foreign trade reached 56 million tonnes; a record jump from 43 million tonnes registered in H1 last year. Exports rose by 46 per cent to 10 million tonnes, re-exports were up 39per cent to 9 million tonnes and imports increased 26per cent to reach 38 million tonnes.
Commenting on the non-oil foreign trade growth, Sheikh Hamdan added: “The strong performance of Dubai’s foreign trade reflects the robust fundamentals of our economy and our ability to generate fresh growth opportunities even in an adverse global environment.
"Dubai’s ability to maintain high levels of trade growth is a tribute to the vision and planning of its leaders who sought to drive economic diversification at an early stage and create a hard and soft infrastructure that empowers growth. Dubai has constantly worked to introduce innovative policies and services that facilitate global trade through Dubai, in the process, transforming itself into one of the world’s foremost trading hubs. Dubai’s flexibility, ability to adapt to change and its responsiveness to the needs of businesses and investors have made it a model for sustainable growth.”
“The diversified profile of Dubai’s foreign trade reflects not only its strengths in traditional sectors but also its emergence as a hub and major market for technological innovation. The latest results also point to Dubai’s rapidly growing trading links with the world’s fastest growing economies. As the Dubai Silk Road project begins to take shape, the outlook for the emirate’s foreign trade is set to get even better,” Sheikh Hamdan added.
The emirate’s foreign trade out of free zones was the biggest contributor to the increase in total trade in H1 2019 accounting for Dh287 billion (+12per cent YoY). Direct trade continued to be the largest contributor to total trade at Dh386 billion (+1per cent YoY). Customs warehouses trade accounted for Dh4 billion.
All transfer modes witnessed increases in value in H1 2019. Air and sea trade accounted for 83per cent of total trade. Trade by land saw the highest increase at Dh114 billion (+8per cent YoY), while air accounted for Dh311 billion (+3per cent YoY), and sea trade recorded Dh252 billion (+6per cent YoY).
Sultan Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs and Free Zone Corporation (PCFC) said: “Undoubtedly these are challenging times with the global trade war and regional geopolitical tensions causing uncertainty and despite this backdrop, Dubai has delivered non-oil trade growth of 5per cent in the H1 2019 to Dh676 billion. With the continued upward trend of the foreign trade sector, we have reasons to be positive about the future of our national economy.
“The strong growth delivered by non-oil foreign trade is a healthy sign of how resilient and appealing the Dubai economy is which further reinforces Dubai’s profile as a key regional and international trading hub.”
Bin Sulayem further pointed out that the PCFC and Dubai Customs are constantly innovating and developing customs processes with the use of smart, automated technology-based systems to enable traders to do business more efficiently while saving them time and cost, which will boost growth further and add more value to trading across Dubai.
Trade with India up 20 per cent
While China remained the largest trading partner, there was a 20per cent growth year-on-year in trade with India. The top three trading countries by value remained the same as H1 2018 with the biggest trading partners being China, followed by India and the USA. These contributed Dh71 billion (+4per cent YoY), Dh67 billion (+20per cent YoY) and Dh39 billion (-1per cent YoY) respectively to the total value traded in H1 2019.
Saudi Arabia maintained its position as Dubai’s largest Arab and GCC trade partner and fourth globally with Dh27.7 billion. Switzerland came fifth at Dh26.5 billion worth of trade.
Trade in precious metals and stones up 3 per cent
The total value of gold, diamonds and jewellery traded through Dubai in H1 2019 totalled Dh180 billion, an increase of 3per cent YoY. The telecom market (Dh79 billion) was the second highest contributor and trade in petroleum oils more than doubled from last year at Dh48 billion. Motors accounted for Dh33 billion.