Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, emphasized that the UAE is capitalizing on its visionary leadership’s perspective on expanding its network of trading partners. Various measures have accompanied this expansion to bolster the foreign trade sector.
On March 28th, His Highness Sheik Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, announced the approval of the UAE Cabinet for the national agenda for re-export development 2030. This agenda comprises 24 initiatives and programs to achieve a 50 percent increase in the added value of the UAE economy through re-exports by 2030.
Al Zeyoudi informed the Emirates News Agency (WAM) that the re-export sector holds significant importance for the country’s economy, as the UAE is one of the world’s largest re-export hubs.
In 2022, the UAE’s foreign trade reached an unprecedented value of AED2.23 trillion, marking a 17 percent increase compared to 2021. Re-exports accounted for AED614. Billion, equivalent to 27. percent of the total value. This further emphasizes the sector’s significance to the UAE’s economy and its role as a facilitator of global trade.
According to the Global Trade Outlook and Statistics report issued by the World Trade Organisation, the UAE ranked among the top five countries globally for re-export operations. Its modern, world-class ports handle 2.4 percent of the total sea container trade. In 2021, the UAE’s container ports facilitated the exchange of over 19.18 million TEUs.
Mobile phones and accessories dominate the UAE’s re-export sector, accounting for 18.3 percent in 2022. 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.
The minister stated that recent studies indicate that re-export significantly influences the UAE economy, contributing 6.6 percent to the country’s GDP. Furthermore, the re-export sector has generated approximately 1.3 million jobs at a national level, encompassing logistics services, related trade services, and various sectors such as banking, finance, insurance, communications, hospitality, transportation, health care, and entertainment.
The minister also mentioned that the total economic impact, including direct and indirect effects, is estimated to be AED 48 billion.