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.
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