Dubai is Saudi Arabia's bread-basket
Saudi Arabia largest export and re-export market for Dubai Chamber members in first half of 2012 with a total value of Dh36.3 billion, a recent study developed by Dubai chamber of commerce and Industry said.
While the study highlighted that the Value of exports and re-exports of 9,194 members during the first half of 2012 grew by 13 per cent at Dh136.2 billion in the same period of 2012.
Dubai Chamber members exports and re-exports to Saudi Arabia during the first six months of 2012 reached a total value of Dh36.3 billion, representing 27 per cent of overall exports, making the kingdom the largest export market while Iraq was second at Dh19.4 billion.
The study further highlighted that proximity and ease of movement of goods within the region had made the GCC countries the busiest export and re-export destinations for Dubai Chamber members.
During the six-month period, 109,315 certificates of origin (COs) had been issued to export shipments destined to Saudi Arabia, accounting 30 per cent of all COs issued during the half yearly period.
The other large markets for the Chamber's member were Qatar at a value of Dh10.4 billion, followed by Kuwait Dh8.8 billion, Oman Dh5.1 billion and India Dh2.8 billion.
While trade between UAE's local companies and Dubai's free zones and duty free shops placed the UAE as a large export and re-export market, at the value of Dh6.9 billion.
Hamad Buamim, Director General, Dubai Chamber, said that the study indicates the pivotal role played by the trading sector led by the exports and re-exports of Dubai Chamber members which have shown an impressive growth in the first half of the year by making a record in the Chamber's history of operations. This excellent performance is the result of the traders determination to explore new and emerging destinations to market their goods and expand their global outreach, he said.
Iraq is fastest growing market
The exports and re-exports valued to Iraq has witnessed a rapid growth in the first half of 2012 by 376 per cent form Dh4.1 billion in 2011 to Dh19.4 billion for the same period in 2012.
Moreover, the study released that exports and re-exports to Saudi Arabia grew by Dh6.6 billion, making the country the second largest gainers. The third largest gaining market was Qatar, growing by 31 per cent at Dh2.4 billion.
Other GCC member countries that gained significantly were Kuwait and Oman, exports to each country increasing by Dh1.2 billion. Irfan Al Hasani, UAE based economist, said: Dubai's market recovery form the impact of the global crisis has been reflected in the trade optimistic result.
In addition to the increasing demand, the location of Dubai as a main business hub in the GCC as well as the government's friendly policies and regulations for trading across borders all together have led to this energetic trade flow. However, he remarked that the government should go on with its policies and procedures that are supportive of the trade sector, he added.
According to the Chamber's report, the reconstruction of Libya led to a surge in demand in the country. Exports and re-exports of Dubai Chamber members to Libya grew by Dh1.7 billion or by 260 per cent on an annual basis. The short-lived political turmoil in Egypt in the early part of 2011 led to lower exports to the country during the period. Thus, the export value of Dh2.7 billion in the 1st half of 2012 translated to an increase of 40 per cent to a value of Dh769 million.
Other destinations that grew significantly were Jordan by 43 per cent at a value of Dh759 million, Turkey by 131 per cent at Dh663 million and Pakistan by 53 per cent at Dh661 million.
- Saudi Arabia is grazing on Sudan's agriculture, new investments announced
- Dubai’s exports to Saudi Arabia bring in the big bucks with $2.5 billion in March
- Panic over? Saudi, Dubai stock markets in the lead after tumble
- HP Announces Key Investment in Saudi Arabia with Acquisition of Compaq Services Saudi Arabia