The UAE has boosted its commercial links with neighbouring Saudi Arabia over the past years to become the Gulf Kingdom’s second largest market, according to the country’s largest bank.

Citing official data, National Commercial Bank (NCB) said total exports by the largest Arab economy surged by nearly 34 per cent Y/Y while imports decreased by a mere three per cent Y/Y in the third quarter of last year.

It said the figures illustrated the upward trend in exports since the third quarter of 2010, which “is justifiable based on the rapid ascent in oil prices that underpinned petrochemical prices.”

Exports related to petrochemicals increased their share from 30 per cent in 3Q2010 to 36 per cent in 3Q2011 while plastics' share fell from 33 per cent to 32 per cent.

The major trading partners on the export side included China (13 per cent), UAE (10 per cent), and Singapore (7 per cent), reflecting the increased importance of Asian and GCC trade relations, NCB said in its weekly report sent to 'Emirates24|7'.

“Interestingly, the US was not able to regain its third rank as a destination for the kingdom's exports, being surpassed by Singapore and India since late 2008,” the report said.

On the import side, the main partners included China (16 per cent), US (11 per cent), and Germany (7 per cent), it showed.

“It is important to note that the medium term outlook for non-oil exports will depend on the stability of oil prices as well as the extent of a probable global slowdown that can be driven by a cooling Chinese economy.”