The UAE’s non-oil foreign trade recorded a 27 percent growth in the first half of 2021 compared to the corresponding period in 2020, indicating a rapid recovery in the country’s non-oil foreign trade and its return to a growth trajectory.
This also indicates a 6 percent growth in the country’s non-oil foreign trade compared to the pre-pandemic level in 2019.
According to preliminary data released by the Ministry of Economy, the total value of the country’s non-oil foreign trade amounted to nearly AED900 billion in H1 2021. The value of non-oil exports alone amounted to AED170 billion during this period, posting a growth of 44 percent compared to H1 2020 and 41 percent to that of the same period in 2019.
The contribution of non-oil exports to the country’s total non-oil foreign trade during H1 2021 grew to 19 percent from 16.6 percent in 2020 and 14.2 percent in 2019.
Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the non-oil foreign trade data for H1 2021 reveals significant growth in the total volume of trade over the past two years, despite the impact of the pandemic.
Furthermore, significant growth in non-oil exports is a clear indication of the rapid recovery in the country’s foreign trade movement in general and in promoting national non-oil exports in particular.
Al Zeyoudi said that the UAE’s promising foreign trade figures coincide with the launch of the ‘Projects of 50,’ which was recently announced by the UAE government to contribute to enhancing country’s trade performance. This includes qualitative and strategic initiatives such as comprehensive economic agreements with a number of targeted global markets, and the 10×10 export development program designed to provide an additional incentive to strengthen the UAE’s comprehensive economic and trade partnerships with countries around the world.
“In light of these integrated and pioneering efforts, we expect the country’s non-oil foreign trade to continue its positive performance during the remaining months of the year,” he said.
An analytical study by the Ministry of Economy on the preliminary data of non-oil foreign trade activities revealed that the value of UAE’s gold exports exceeded AED70 billion in H1 2021. It shows a growth of 48 percent compared to H1 2020, while the rest of the non-oil exports except gold totaled AED98 billion with a growth of 42 percent compared to H1 2020 and 20 percent compared to H1 2019. It also revealed that 87 percent of the country’s non-oil exports are locally made and that 13 percent come from free zones and customs warehouses.
Gold, ornaments and jewelry; aluminum; plastics, copper and articles thereof; iron and steel and articles thereof; are the five most important non-oil exports of the country. Their total value witnessed a growth of 50 percent in the first half of 2021 compared to the first half of 2020, and 47.4 percent compared to the same period in 2019.
Re-exports, which totaled AED 238 billion in the H1 2021, witnessed a growth of 22 percent compared to the same period in 2020. Furthermore, 46 percent of the re-exports are from the local market and 54 percent from free zones.
The total value of imports during the same period exceeded AED482 billion indicating a growth of 24 percent compared to H1 2020 and 3 percent compared to H1 2019. Up to 66 percent of the imports go to the local market and 34 percent to free zones and customs warehouses.
The study conducted by the Ministry further indicated that with regard to the total non-oil trade of the country, 65 percent of it is with the local market, while free zones and customs warehouses account for the remaining 35 percent. The study also showed that 46 percent of this trade takes place by air, 35 percent by sea, and 20 percent by land.
The UAE’s non-oil trade significantly grew with the five fastest growing economies in the first half of 2021 compared to the same period in 2020. These are China, Saudi Arabia, Iraq, Turkey and Italy. Meanwhile, the country’s top five export destinations during the same comparison period include India, Saudi Arabia, Hong Kong, Kuwait and China. The UAE’s top re-export partners include Saudi Arabia, Iraq and Egypt.