China-bound exports of Dubai Chamber members reach record level in May
Dubai Chamber of Commerce and Industry member companies exports to China in May 2020 rose 18% month-on-month (m-o-m) and 26% year-over-year (y-o-y) as the Chamber published a record 256 Certificates of Origin (COOs) targeting the country meriting over AED 283 million.
The value of COOs for May, the third-highest on record, recorded growth speeds of 14% m-o-m 2and 7% y-o-y. Unlike the early stalks in published values, the higher trajectory pointing to the month of May was mostly inspired by solid increase inactivity, which suggests a revival in supported future growth.
Export growth drivers
Vegetable oil (i.e. rapeseed oil/colza oil) controlled the value of member exports with a share of 53%. Plastics (i.e. ethylene-alpha-olefin copolymers, polyethers, polymethylene) added another 25% to the total, accompanied by food processing waste/residue, which provided 12% of the total. The remaining 10% of the total reported value of COOs came from paper products (i.e. fluting paper of recycled linerboard), chemicals, sugar, man-made filaments, wood, and vehicles.
With Dubai extending its rapeseed oil extraction and processing capacity in last few years, traders in the emirate have moved up to fill gaps in the Chinese business generated by continuing trade tensions, which in turn gave a great boost to Dubais total exports.
The data also indicated to increase trade ties between Dubai and China. During the January-May 2020 period, the total amount of COOs issued for China-bound freight reached 1,100 certificates, which is almost multiplying the number issued during the same period six years ago. This higher course is assumed to continue in the coming years, as the current level of shipping activity has not yet relinquished its potential.
Also, the ongoing diversification of Dubais exports and expansion of manufacturing industries in the emirate were highlighted as other principal factors driving China-bound shipping of member companies.
Newmarket opportunities
Dubai Chamber has recognised the huge potential for heightening shipping to China. The Chambers representational offices in Shanghai and Shenzhen are analysing new business possibilities arising in the Chinese market, which companies in Dubai can benefit from.
Dubai based exporters, re-exporters and manufacturers, especially those engaged in food processing, plastics, chemicals, packaging, base metals and building materials can explore such prospects by taking account of the various settings offered by the Chamber and its global offices to increase their influence in China.
