UAE-UK trade valued at $6.2bn in H1

Trade between the UAE and the United Kingdom rose to more than $6.2 billion in the first half of the year with exports to the UAE reaching $2.8bn. Total UAE exports, including non-oil exports and re-exports, to the UK in the same period outperformed the whole of 2009, a new study by the Ministry of Foreign Trade (MoFT) revealed.

UAE's non-oil exports to the UK reached $116 million and re-exports totaled $316m in the first half of 2009, according to the study conducted by researchers at the MoFT's Analysis and Trade Information Department ahead of the forthcoming state visit to UAE by Her Majesty Queen Elizabeth II and Prince Philip, Duke of Edinburgh.

The new study stressed that non-oil trade exchange between the UAE and the UK has significantly advanced over the past years as both countries show keen interest in furthering cooperation and ties in various spheres.

Total non-oil trade between the UAE and the UK for the same period reached $5.5 billion with UAE exports, which also include re-exports, to the UK accounting for more than $422m.

The study shows that despite declining by 58.3 per cent (compared to 2008) to just $102m, UAE non-oil exports to the UK during 2009 remained higher than they were in 2007.

In 2008, UAE's re-exports to the UK maintained an upward trend to grow by 24 per cent while UAE's imports from the UK declined by 33 per cent and, despite remaining higher than they were in 2007, they led to a decrease in UAE's non-oil exports to the UK.

Trade with the UK accounted for 3.1 per cent of the total UAE's non-oil foreign trade in 2009 as the UK ranks ninth on the list of the UAE's largest trading partner, UAE's 24th largest importer, 22nd largest market for UAE's re-exports as well as the 6th largest exporter to the UAE.

Close trade ties between the two countries are also evinced by regional and international trade figures as the UAE alone receives 31.5 per cent of the UK's exports to all Arab countries making it UK's largest Arab export market which accounts for 1.6 per cent of UK's total exports to the world.

The contribution of the highest ten sections is 84.8 per cent of the UAE's total exports to the UK in 2009.

UAE exported to the UK goods of Chapter 71, namely pearls, natural or cultured, precious or semi precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry and coins worth $21.7m. UAE's total exports of good of this chapter in 2008 amounted to $160m while UK imports of the same reached $15bn in 2009.

UAE's exports of goods of chapter 39, ie plastics (polymers) and products thereof, to the UK in 2009 increased by 5.2 per cent, compared to the year 2008, to reach $20.9m. UK's total imports of goods of this chapter in 2009 amounted to $13.7bn. The value of UAE's exports of goods of chapter 69, ie bricks, blocks, tiles and other ceramic goods of siliceous fossil meals, went slightly down to $12m in 2009 from $12m in 2008. UK's total imports of chapter 69 products reached $ 1.6bn in 2009.

In 2009, the UAE's exports of iron and steel products to the UK grew by 242 per cent to reach $ 9.6m. UK's total imports of these products reached $ 6.6bn in 2009.

UK had the biggest share of foreign investments in the UAE in 2007 as it accounted for 17 per cent, or $6.1bn, of the UAE's total foreign direct investment (FDI) inflow, posting a growth by 32 per cent over the previous year 2006, according to a survey by the UAE National Statistics Centre.

Foreign direct investments (FDI) in the UAE reached Dh71bn in 2006 and increased by 76 per cent to reach around Dh125bn in 2007.

The UK investment focus is on mining, conversion industries, water and electricity, construction, wholesale and retailing, financial intermediation.

The UAE's biggest investments in the UK include the London Gateway project, to be executed by the Dubai World's flagship company, DP World, which will include a world-class port capable of handling the largest deep-sea container ships, as well as the UK's largest business park.

According to data by the Ministry of Economy, among the UK businesses operating in the UAE there are 305 companies, 779 commercial agencies (between 1982-2009) and 4,762 trade marks.

The governments of the UAE and the UK work toward boosting relations between their business communities.

To further expand bilateral relations in various spheres including trade and investment, the UAE and the UK signed a number of agreements and memoranda of understanding.

These include Agreement of Protection and Promotion Of Investments (1993), UAE-UK Joint Economic Committee (JEC) (London on 19-20 October 2009), Memorandum of Understanding (MoU) concerning cooperation in peaceful uses of nuclear energy (2008), MoU between the Emirates Securities and Commodities Authority (SCA) and the UK's International Centre for Financial Regulation (ICFR) of the United Kingdom to lay a solid foundation for joint cooperation between the two sides (June 2010), MoU between SCA and UK Financial Services Authority (FSA) (October 2007), MoU between SCA and UK's Chartered Institute for Securities and Investment in the are a of professional training for brokers operating on the UAE securities market (February 2007), and Cass Business School (October 2007).

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