Dubai’s Non-Oil External Trade Touches $150 Billion in H1 2020
Dubai recorded $150 billion worth of non-oil external trade in the first half of 2020. The emirate’s ability to minimise the impact of the pandemic-induced global economic slowdown on its trading sector reflects its exceptional logistics infrastructure, which enabled it to maintain uninterrupted trade flows and a streamlined supply chain.
Imports accounted for $87 billion, exports $21 billion, and re-exports $42 billion. A total volume of 44 million tonnes of goods were traded through Dubai including 30 million tonnes of imports, 8 million tonnes of exports and 6 million tonnes of re-exports.
Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation, said the emirate’s external trade sector is capable of overcoming the strong headwinds facing global trade thanks to the depth, resilience, diversity and flexibility of the Dubai economy.
Bin Sulayem said: “External trade is one of the key pillars of our economy. We are today reaping the fruits of the vision of our country’s founding leaders and our strong strategic planning, backed by decades of hard work in creating a robust trading and logistics infrastructure.
"Dubai’s external trade sector has shown a high level of preparedness in dealing with the crisis. It has provided exceptional trading facilities and services to help businesses around the world overcome the challenges of the current period.
“During the pandemic, Dubai launched several stimulus packages under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to support the emirate’s business sector and reduce the impact of prevailing global economic conditions.
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"The economy has efficiently navigated the turbulence in international markets by forging partnerships with markets less affected by the economic crisis.
"We are optimistic about the future and we will seek to constantly develop our trade business, especially by using new technologies to ensure optimum performance and provide quality trade services.”
Ahmed Mahboob Musabih, Director General of Dubai Customs said: “Despite the crisis, customs transactions processed by Dubai Customs surged 41% in H1 2020 to reach 7.2 million transactions. Dubai Customs continued to develop and launch new initiatives.
"These included Siyaj (Fence), the first integrated 24/7 control system in the world created to manage Dubai’s different ports, especially Creek Port and Hamriya Port.
"Dubai Customs also launched the Cross Border e-Commerce Platform to encourage e-commerce companies to set up their businesses in Dubai.
"Furthermore, Dubai launched the Food Security dashboard that uses artificial intelligence and data analytics to measure the five important indicators of food security: the supply index, stock availability, local production, consumption levels, and the cost of vital commodities in the emirate.”
The latest external trade figures for H1 2020 show strong integration between different modes of shipping: land, sea and air.
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Airborne trade accounted for $68 billion, accounting for 45% of total trade. Sea trade reached $58 billion (39%), while land trade touched $24 billion (16%).
Direct trade totalled $87 billion, representing 58% of Dubai’s external trade, while trade through free zones reached $62 billion (41%), and customs warehouse trade weighed in at $1 billion (1%).
China maintained its position as Dubai’s largest trading partner in H1 2020 with India coming in second followed by the USA and Switzerland. Saudi Arabia continued to be Dubai’s largest Gulf and Arab trade partner and its fifth largest global trade partner.
Gold, diamonds and jewellery topped the list of commodities in Dubai's H1 2020 external trade followed by telecoms and motors in the third place.
The pandemic has further accelerated the shift to online shopping that has been gathering pace for many years. Dubai dispatched 4.3 million e-commerce parcels in H1 2020, with transactions up 150% compared to the same period last year.
This growth in parcels deliveries was made possible by Dubai’s digital investment and infrastructure that has enabled trade in this sector to flourish with minimal disruption.
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