The UAE has achieved a significant milestone in its ongoing efforts to diversify its economy beyond oil. Non-oil trade reached an unprecedented AED 1.395 trillion ($379.81 billion) in the first half of 2024.
This is an 11.2% increase compared to the same period in 2023. If anything, this highlights the success of the UAE’s strategic push towards economic diversification.
Record Growth in Non-Oil Exports
Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, attributed this success to the country’s strong commitment to improving its global competitiveness. Key sectors contributing to this surge include:
- gold,
- silver,
- jewelry,
- oils,
- perfumes,
- aluminum,
- copper wires, and
- iron products.
“Our non-oil foreign trade continues to set new milestones, reflecting the UAE’s forward-thinking vision and our leadership’s commitment to global collaboration,” said Dr. Al Zeyoudi. He emphasized that the UAE’s performance is particularly noteworthy given the global context, where trade growth has been sluggish, averaging just 1.5% in the same period.
UAE’s Strategic Role as a Global Trade Hub
The increase in re-export operations has further solidified the UAE’s role as a global trade hub. This growth demonstrates the international community’s confidence in the UAE as a reliable trade partner and facilitator.
Dr. Al Zeyoudi pointed out that this development shows the resilience of the UAE economy. This is all thanks to government efforts to build strong public-private partnerships and further help the growth of various sectors.
The UAE’s Comprehensive Economic Partnership Agreements (CEPAs) had the main role in this trade expansion. Bilateral trade with key CEPA partners, including India and Türkiye, has grown by 15% and 9.8%, respectively. Together, these countries now account for 11.7% of the UAE’s total foreign trade.
Dr. Al Zeyoudi expressed optimism that as the UAE continues to finalize more CEPA deals, the country is well on its way to achieving its ambitious target of AED 4 trillion in non-oil foreign trade by 2031.
What’s the Future?
The UAE’s leadership will continue to leverage trade as a driving force for sustainable economic growth. As Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, highlighted, the country is on track to meet its ambitious goals.
This growth will drive other industries as well, including real estate. There were 6,600 new residential properties in Dubai in the first half of 2024, with an additional 20,000 units expected to be delivered in the second half. Therefore, now is the right time to join this market. For more information, contact Glidai Properties today!