Perspective: The boost in UAE's non-oil trade value
Source: Frost & Sullivan , Author: Virein Kumar Yadlapalli
Posted: Thu July 5, 2012 5:14 pm

UAE. According to Frost & Sullivan, the boost in the trade value is a healthy sign of recovery for the United Arab Emirates (UAE) economy and a strong announcement to the global economies about the country's rebound from the lows of financial crisis.

Also, the fact that the imports have witnessed a growth by over 20 per cent showcases the retrieval of erstwhile demand patterns (pre-recession) and increased consumption. It also shows clear signs of growing per capita spend and revitalising economy. Furthermore, the UAE's investment and government’s  initiatives to establish itself as an exporter on the global landscape are auguring well for the country’s economy.

India tops the list of bullion trade partners of the UAE, a significant part of the non-oil trade, followed by Switzerland, Iraq and Belgium. Given the volatile global economy and the consideration for gold (major part of the bullion trading) as a safer investment, the bullion business is expected to sustain its position in the UAE trade.

In addition, China and the USA continue to be the largest source for electrical and electronics machinery imports. While the UAE’s thrust towards being a well diversified industrialised nation is expected to fuel more opportunities, the growing preference for Korean Engineering, Procurement and Construction (EPC)/ Consultants in the industrial projects is also expected to facilitate increased trade value with Korea.

While the trade embargo on Iran, Euro zone crisis and economic uncertainty in India and China, can be expected to influence the trade positions. UAE’s investment in improving trade relations with other global economies is anticipated to bode well in the longer run.

Note: Perspective by Virein Kumar Yadlapalli, Program Manager, Automation and Electronics Practice, Middle East and North Africa, Frost & Sullivan.

Frost & Sullivan, a Growth Partnership Company, enables clients to accelerate growth and achieve bestin- class positions in growth, innovation, and leadership.

For more information, please visit www.frost.com.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 23, 2014
UAE. Deflationary reading of data endangers risky assets; Global cues drive GCC markets; Growth scare unsettles investors; Extreme bearishness on oil may be overdone.
date:Posted: October 23, 2014
SAUDI ARABIA. The 2014 study - which outlines the top priorities that concern young Saudis - is key to helping policymakers and business leaders design initiatives targeted at improving the lives of the Kingdom's current and future generations.
date:Posted: October 22, 2014
UAE. 47% of Middle Eastern respondents indicated that they are considering a proactive shareholder engagement policy which can open and sustain a productive dialogue with investors.
dhgate