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Strong Trading in Dubai – the UAE Market is Heading for Recovery

UAE : 04 January 2011

Boost in receipts for non-oil trade and a 39 percent rise in exports seen in 2010

The trade in Dubai stays strong and displays consistent improvements through 2010 according to recent data released by authorities in the emirate.

When compared to the opening nine months of 2009, non-oil trade in UAE rose 11 percent, reaching Dh 540 billion by September 2010.  Exports also rose 39 percent and re-exports jumped 19 percent over that time period.  Imports increased by 5 percent as stated in the recent release by the FCA (Federal Customs Authority).

These results indicate that the export sector of Dubai is gaining in spite of worldwide economic challenges.

The FCA noted that these encouraging developments served as proof that the business climate in the UAE was still going strong and that Dubai was a wise and profitable investment location.

Trade growth was due to rising demand and steady food and basic consumer item supplies that have been unaffected by the global crisis.

The Dubai Chamber of Commerce and Industry’s Director-General Hamad Bu Amim stated to the Gulf News that these rising numbers for both exports and re-exports during the opening nine month period of 2010 is a strong indication that Dubai is refocusing on the basic exports sector, a major driving force in the recovery of the emirate’s economy.

The Director-General also noted that those figures are significantly above last year’s, which indicates Dubai’s economy is approaching the levels seen before the crisis. That trend bodes well for economic growth in the future and rising trends are likely to boost investor confidence and stabilize Dubai as a viable location for wise investments.

Dr Mohammad Al Asoomi, an economic advisor, also spoke to Gulf News and stated that although the worldwide crisis was felt in the UAE, the trade sector did not see any large or lasting effects.

Al Asoomi noted that this trade sector data for 2010 indicates clearly that the market in the UAE is heading straight for recovery and away from the crisis.

He felt that increase in trade was due to rising local demand in the market.

This trade growth is dependent on demand as well as the food product supplies and basic consumer item supplies, both of which have not seen the effect of the worldwide economic crisis, according to Al Asoomi.

He also noted that Emal (Emirates Aluminum) has a vital role to play in the rising exports for the UAE.

The UAE business climate is stabilizing and normal again giving rise to export growth, according to Al Asoomi.  He noted that in 2011 businesses will experience an incredible surge in both re-exports and exports as the region’s economic climate picks up along with rising oil prices.

He also added that the UAE is established as the region’s main hub for business and the airport and port capacities will leave no viable alternative.

The Dubai Chamber of Commerce and Industry has also stated that the emirate is a magnet for a rising number of investors.

The total number of registered companies at the Chamber climbed to 118,000, an increase of 9 percent for 2010.  In 2011 that number is expected to reach 124,000, according to the Chamber.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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