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19 March 2024

Dubai Chamber trade outflow at Dh25bn in March

Published
By Staff

Monthly exports of Dubai Chamber members continued the increasing pattern with total exports in March 2014 reaching Dh25.5 billion, higher by 7 per cent than Dh23.9 billion recorded in the month of February with a year-on-year increase of 5 per cent compared to March 2013, according to a latest study released by the Chamber.

The GCC was the largest export destination of members, with total export to the region reaching Dh15.8 billion, with Saudi Arabia taking 57 per cent of the total GCC export carried out by 37 per cent of the total number of exporters during the month amounting to 5,683.

Meanwhile, the year-on-year comparison of member’s exports in the month or March 2014 with the same month in 2013 showed a growth pattern of 5 per cent, to Dh24.3 billion in 2013 and to Dh25.5 billion in 2014 while an increasing growth pattern was noted in the number of COs, increasing from 69,000 to 78,000 during the same period.

The GCC is the largest export market

The study showed that the GCC is the largest export market of Dubai Chamber members, with export to the region accounting for more than half of the total monthly export. In March 2014, the total export of Dh15.8 billion to the region was equivalent to 62 per cent of the total export during the month. M-o-m growth was also high at 15 per cent, in comparison to the year-on-year growth of 14 per cent, totalling Dh13.9 billion.

The impressive growth of total export to GCC during the month could be attributed mainly on the month-on-month surge of 33 per cent in export to Saudi Arabia, as the total export to the country reached Dh9 billion during the month clocking 35 per cent of the overall global exports, while year-on-year growth was also highly positive at 16 per cent compared to March 2013, which stood at Dh7.8 billion 

Kuwait was second to Saudi Arabia, with export to the country of Dh1.8 billion representing growth of 23 per cent, month-on-month; and 10 per cent, year-on-year. Meanwhile, export to Qatar declined to Dh1.8 for a significant month-on-month drop of 37 per cent from previous month’s Dh2.9 billion. Y-o-y growth was also down at -6 per cent, from year ago value of Dh1.9 billion.

Although at lower values of Dh1.1 billion and Dh721 million, respectively, exports of members to Oman and Bahrain posted corresponding significant month-on-month growths of 33 per cent and 32 per cent, and year-on-year growths of 11 per cent and 64 per cent.

Trading activities between companies in the UAE’s free zones and duty free shops and those in the domestic economy showed significant improvements. The value of Dh1.4 billion represented month-on-month growth of 13 per cent from previous month’s Dh1.2 billion, and year-on-year growth of 28 per cent from year ago value of Dh1.1 billion.

Export to non-GCC major destinations

Export to non-GCC major destinations totaled to Dh7.0 billion, or 27 per cent of the overall total for the month.  Although month-on-month growth was positive at 5 per cent, from previous month’s Dh6.6 billion; year-on-year decline of 4 per cent was recorded, from year ago value of Dh7.2 billion. 

The study added that the exports of members to Iraq in March was Dh1.6 billion representing a month-on-month drop of 8 per cent and a year-on-year decline of 37 per cent. On the other hand, largest increase was registered for Algeria, with the Dh462 million export to the country posting a month-on-month growth of 98 per cent.

Export to Egypt rose by a month-on-month growth of 28 per cent to Dh879 million while exports and re-exports of members to Yemen declined by 11 per cent with the export value of Dh498 million representing a month-on-month.

Also in the GCC region, more than half (57 per cent) of exports of members were destined to Saudi Arabia, while 12 per cent were shipped to Kuwait; and 11 per cent, to Qatar. Trade between the domestic economy of Dubai and the free zones and duty free shops contributed 9 per cent to total exports to GCC, while contributions of exports to Oman and Bahrain accounted for 7 per cent and 4 per cent, respectively.

The study concluded that the distribution of exports to non-GCC major destinations was less concentrated on a single country, with exports to Iraq accounting for 23 per cent; and Egypt, 13 per cent.  The remaining 36 per cent were distributed to the other destinations as follows: Libya, 8 per cent, Yemen and Algeria, 7 per cent each; India, 6 per cent; Jordan, 5 per cent and Ethiopia, 3 per cent.