1 November, 2020
UAE among Top Global Commodity Trading Hubs
According to the DMCC Future of Trade 2020 report, the UAE is placed #2 among the top global destinations for commodity trading.
Recently, the 3rd edition of the Dubai Multi-Commodities Centre (DMCC) report on the Future of Trade was released. The edition was for the year 2020 and covered 10 global trading hubs which were analyzed across 10 indicators of performance.
The indicators of performance were grouped into 3 broad headings – local and trading partner factors, commodity endowment factors, and institutional factors. UAE was ranked highest under the commodity endowment factors. The high performance of UAE was driven by the oil exports and also due to natural resource rents as a share of GDP.
Feryal Amiri, the COO of DMCC opined that the carefully executed business ecosystem in UAE is the largest reason for its favorable position in the rankings. Infrastructure investment, technology investment, and a high priority in the ease of doing business, all contribute to a positive economic vibe when it comes to commodity trading.
Earlier in the year, the Logistics Index also showcased UAE as a high performing market, making it a strategically efficient destination for trading, distribution, and logistics.
With a total score of 60%, the UAE came in at #2, slightly behind the USA, which obtained 61% and narrowly took the top spot. The other countries in the Top 5 included UK, Switzerland, and Singapore.