Non-oil trade is up by 17% over H2 2021 as the government works to sign international agreements and partnerships.
The UAE’s non-oil trade has grown by 17% in H1 2022, compared to H2 2021, according to His Highness Sheikh Mohammed bin Rashid Al Maktoum, hitting approximately USD 272.26 billion.
His Highness Sheikh Mohammed said, “For the first time, the UAE non-oil foreign trade exceeds AED 1 trillion [approx. USD 272.26 billion] in just half a year. We reached one trillion and 53 billion dirhams, recording an increase of 17% over the previous half year. Our economic growth is progressive, our trade environment and infrastructure are the best and our economic approach is stable, fair and open to everyone. The growth of our economy will continue its strong pace in the coming year.”
Non-oil trade increase highlights economic recovery
The newly announced figures represent an increase of 25% and 35% over the same period in 2020 and 2019 respectively. The increased rate of foreign trade is an indicator that the UAE is proving successful in overcoming the impact of the pandemic and in widening their international trade agreements. The government is also working to improve its infrastructure and legislative framework, according to Abdullah bin Touq Al Marri, Minister of Economy.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said, “The unprecedented performance demonstrated by the non-oil foreign trade can be attributed to the forward-looking vision of the wise leadership, which aims to expand the UAE’s trade with the world and position it as a major contributor to the doubling of the national economy by 2030.” According to Al Zeyoudi, during the first half of 2022, the UAE’s non-oil exports grew by 8% compared to the same period in 2021. In re-exports, the UAE saw an increase of 20% compared to the same period in 2021. The UAE’s imports grew by 19% compared to the same period in 2021. The contribution of non-oil imports decreased to 55%, while the share of non-oil exports became 17%.
The country continues to strengthen its international partnerships with strategic markets around the world, and Al Zeyoudi pointed to the rise in trade with India following the signing of a Closer Economic Partnership Arrangement (CEPA) between the two countries before mentioning cooperation with African countries. Al Zeyoudi said that he expected a significant surge in trade as CEPAs were signed with Indonesia and Israel in 2022. Emirati products will reach a large market of nearly 1.7 billion people, including 1.4 billion people in India, which will nearly double the size of the national economy by 2030, he said.
Earlier in the month, Abu Dhabi’s non-oil trade was reported to have hit USD 33 billion in H1 2022.