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: August 22, 2014
INTERNATIONAL. By 2040, Africa will experience faster economic growth than any other region and is expected to have the biggest labour force in the world; By 2030 Dar es Salaam and Luanda could have bigger populations than London has now.
date:Posted: August 21, 2014
INTERNATIONAL. The report found there are 15 million middle-class households in 11 of sub-Saharan Africa's top economies this year, up from 4.6 million in 2000 and 2.4 million in 1990, an increase of 230% over 14 years.
date:Posted: August 21, 2014
UAE. "The establishment of QIFs aimed at sophisticated, high-net worth investors is a welcome development which reflects the fact that a one size fits all approach to regulation is not appropriate."
SAUDI ARABIA. Saudi Arabia set out draft proposals on foreign-shareholder limits as one of the world's most restricted stock markets prepares to open its doors for the first time to investors outside the region.
dhgate