The UAE's non-oil trade jumped by nearly 46 per cent in 2008 to reflect vibrant domestic demand and minimal impact of the global financial distress, semi official statistics showed yesterday.
Imports, which mirror local demand and business level, also leaped by at least 45 per cent to maintain the UAE's position as a major commercial hub and the largest market in the Arab world, the Emirates Industrial Bank (EIB) said.
From Dh450.6 billion in 2007, the UAE's total non-oil trade soared by about 46 per cent to Dh657.9bn in 2008, its highest ever level, the government-controlled EIB said in its monthly economic bulletin for April.
"These figures constitute a response to campaigns that doubted the UAE's ability to overcome the global crisis. These campaigns have been launched by foreign media which have not based its reports on statistics and data issued by the official competent establishments in the UAE," EIB said. "Although the global crisis has affected countries around the globe, the UAE economy has been among the least affected. These trade figures present clearcut evidence that the UAE economy is strong and diverse."
The report showed imports peaked at about Dh607bn in 2008 compared to Dh418bn in 2007, an increase of nearly 45 per cent.
Non-oil exports surged by about 57 per cent to Dh50.1bn from Dh31.9bn while non-oil exports grew by 28 per cent to Dh170.7bn from Dh133.5bn.
"The large increase in imports shows that domestic demand continued to grow through 2008 despite the global crisis. This sustained rise in domestic demand was a result of continued growth in most non-oil sectors during that period and high growth in the UAE population," the report added.
Although Saudi Arabia has remained in control of the largest trade system in the Arab world given its high oil exports, it has been overtaken by the UAE in imports mainly because of a surge in Dubai's commercial activity. In 2008, the UAE's total trade of goods and services hit a record high of about Dh1.3 trillion, accounting for nearly 140 per cent of the country's gross domestic product, one of the highest ratios in the world. Non-oil trade was also as high as 70 per cent of GDP while gross capital formation exceeded 28 per cent.
According to EIB, China was the largest trading partner of the UAE in 2008 after overtaking Japan and other major industrial countries. It said other key partners included India, Japan, the United States and the European Union.
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