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UAE among top five countries in global re-export operations

The re-export sector is an essential sector for the country’s economy, says the minister.

UAE among top five countries in global re-export operations
[Source photo: Anvita Gupta/Fast Company Middle East]

The UAE’s economic growth is exceeding expectations — its economy expanded at 7.6% last year, which was among the highest anywhere in the world, including a 6.6% expansion in the non-oil sector.

Even its re-export sector is adding to the economy.

According to the Global Trade Outlook and Statistics report, UAE is among the top five countries in global re-export operations, with 2.4% of the total sea container trade passing through the country’s ports.

The country’s container ports exchanged over 19.18 million TEUs in 2021.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stated that the country benefits from the forward-looking vision of its leadership.

In March of this year, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, unveiled the national agenda for re-export development 2030, which includes 24 initiatives and programs. It aims to double the added value of the UAE economy through re-exports by 2030.

In 2022, the UAE’s foreign trade totaled $607 billion, an increase of 17% from 2021. Re-exports totaled $167 billion (27.5% of the total value), indicating its significance to the country’s economy.

According to World Investment Report 2023 data, the UAE attracted a record $23 billion in foreign direct investment last year. Considered the country’s largest inflow of foreign investment, it indicates UAE’s growing economy.

With 997 new product investments, it ranks fourth globally, behind the USA, the UK, and India. It recorded an 80% increase in new projects compared to the previous year.

Talking about the main products that the UAE re-exports, Al Zeyoudi said that mobile phones and their accessories were the largest single sector for re-exports in 2022, with a rate of 18.3%. Diamonds, mass transit vehicles, and jewelry follow this.

“The UAE is the world’s largest re-exporter of rice, the third largest re-exporter of diamonds, the fifth largest re-exporter of coffee, and the fifth largest re-exporter of tea,” Dr. Thani said.

The latest studies show that re-export contributes 6.6% of the UAE’s GDP, said the minister. The sector generated around 1.3 million jobs in logistics and trade services, banking, finance, insurance, communications, hospitality, transportation, healthcare, and entertainment.

The total direct and indirect economic impact is estimated at $13 billion.

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