DUBAI, 26 June 2006 — Reinforcing its reputation as the trading hub of the Middle East, Dubai has achieved an amazing 36 percent growth in trade in 2005, with total trade through the city touching AED480 billion compared to AED351 billion in 2004, according to trade traffic statistics compiled by the Statistics Department of Dubai Ports, Customs and Free Zones (PCFC).
The compounded average growth rate between 2000 and 2005 is an astonishing 194 percent. In 2005, direct trade grew 30 percent to reach AED280 billion, free zone trade increased 47 percent to AED178 billion, and customs warehouse trade grew 49 percent to AED21 billion.
Total imports increased from AED229.8 billion in 2004 to AED308.3 billion in 2005, while exports jumped from AED64.5 billion to AED92.4 billion during the same period. Re-exports increased from AED57 billion in 2004 to AED78.8 billion in 2005.
The significant growth in trade reflects the overall growth of Dubai and the UAE, and signals the UAE’s arrival as one of the major trading nations in the region. The figures indicate that Dubai has further enhanced its reputation as a major re-export hub, with re-exports recording a 38 percent year-on-year growth. Also, the remarkable surge in exports point to increased activity in the manufacturing sector in the UAE, especially in the free zones.
Machinery, electrical and electronics equipment formed the bulk of total imports with a 23.7 percent share, followed by semi-precious and precious stones and metals and imitation jewelry at 23.6 percent. Vehicles, aircraft and transport equipment accounted for 11.4 percent of imports, with other products combining to make up the remaining 41 percent.
Base metals and products made from it comprised the majority of total exports with a 29 percent share, followed by prepared foodstuffs and mineral products at 17.4 percent and 6.5 percent respectively. Other miscellaneous products together formed the remaining 46 percent.
In re-exports, semi-precious and precious stones, metals and imitation jewelry commanded a 33.9 percent share. Machinery, electrical and electronics equipment had a 26.5 percent in total re-exports while vehicles, aircraft and transport equipment had a 9.4 percent share.
India replaced China as Dubai’s leading trading partner in 2005. Total imports from India last year were worth AED24 billion, with China coming next at AED22 billion, followed by the USA, UK and Japan. India also constituted Dubai’s largest export market with total exports of AED881 million, ahead of Pakistan which accounted for exports worth AED833 million. Kuwait, USA and Iran rounded out the list of Dubai’s top five export markets.
India also maintained its position atop the list of top re-export destinations. Total value of re-exports to India in 2005 was pegged at AED18 billion, while re-exports to Iran amounted to AED11.8 billion. Iraq, Switzerland and the Netherlands followed next with AED5.4 billion, AED3.6 billion and AED2.9 billion respectively.