Dubai reinforces the diversity of its foreign trade in H1 2014

Business

Dubai reinforces the diversity of its foreign trade in H1 2014

Dubai has cemented its position as a regional and global trading hub, as the worlds trust in the emirates potentials is leveraged in view of the highly developed infrastructure and efficient logistics and customs facilitations placed at the service of world trade flow.

Figures released by Dubai Customs have shown that the emirate has reinforced the diversity of its foreign trade in the first half of 2014, reflecting a key change in the commodity composition of trade to cope with the UAEs fast shift to a knowledge economy, which is based on smart technologies.
In keeping with the drive to implement the smart government and becoming the worlds smartest city, phones and PCs scored a 17% share of the total value of Dubais foreign trade in H1 2014. Trading in phones recorded an 11% growth compared to the first half of 2013, amounting to AED 85 billion compared to AED 76 billion. Phones topped other commodities in Dubais foreign trade, with China being the leading source for phone imports to Dubai, amounting to AED 27 billion, while KSA was the main destination for phone re-exports with a value of AED 8.5 billion. On the other hand, computers recorded a 9% growth at AED 27 billion compared to AED 24.6 billion. Trading in computers is faced with an increasing demand on smart IT hardware.
H.E. Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation, said: The commodities and markets diversity currently seen in Dubais foreign trade is attributed to the strategic initiatives launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President, Prime Minister and Ruler of Dubai, to shift to a smart economy that puts Dubai on the fast track towards becoming the worlds smartest city. These initiatives are accompanied by a rise in the trade of smart technologies to reflect the evolvement of the emirates economy to the knowledge economy, keeping pace with the latest trends in world economy.

The diversity of Dubais foreign trade is being accompanied by noticeable expansion in the tourist sector. Over the first six months of 2014, the number of tourists who visited Dubai went up to 5.8 million.
With more tourists flocking into Dubais jewellery souks, the emirates jewellery trade increased 12% in H1 2014 to AED 29.5 billion compared to AED 26.4 in the same period last year.

Dubais automotive foreign trade also climbed 31% from AED 24.3 billion to AED 32 billion, reflecting Dubais leading position as a regional and global automobiles trading hub backed by the industrys fast growth in the local markets.

Petroleum oils trade grew by 31% to AED 20.5 billion against AED 15.6 billion. The trade in helicopters and lightweight aircrafts saw a rise of 14% to reach AED 9.4 billion against AED 8.3 billion. Lightweight ships and floating equipments trade grew more than twice (125%) to score AED 3 billion compared to AED 1.35 in the first half of 2013.
The upturn of real estate sector resonated in the growth of air conditionings business by 53% to AED 3.6 billion against AED 2.4 billion in the first half of 2013.

The diversity of goods being traded across Dubai further positions the emirate on the global trade landscape. Dubais foreign trade in H1 2014 totalled AED 654 billion, with imports having the biggest share at AED 408 billion, exports at AED 59 billion and re-exports AED 187 billion.

H.E. Ahmed Mahboob Musabih, Director of Dubai Customs, commented on these figures saying: Dubai has invested a lot in foreign trade through many logistical development projects geared at serving the sector, particularly airports, seaports, free zones, roads, bridges and border facilities. At Dubai Customs, we strive to keep up with such infrastructure expansion by providing notch Customs services to traders and investors to save the time and effort needed to clear their consignments. The Dubai Customs Mirsal 2 system supported by the introduction of the new Risk Engine allowed the 24/7 electronic assessment and release of 84% of non-risky consignments within 2 minutes only without human intervention. Additionally, the smart services we have offered to customers since last year also minimized their transaction time using the facility of submitting service requests through mobiles and smart watches.

He also added, We are pursuing the development of our customs services towards boosting Dubais competitiveness, saving no effort to cater new services in support of our clients performance. For which, we have initiated the Virtual Corridor services, which are designated to facilitate consignments transfer amongst Dubai ports and airports. We are maintaining our relentless efforts in developing our inspection operations, pertained in the Advanced Container Scanning System, which is the worlds latest integrated system for mobile containers and trucks scanning and inspection; capable of scanning through 150 containers per hour. We have also introduced a new inspection reservation system geared toward aiding clients with better time efficiency to request for inspection.

Dubais foreign trade markets extend to reach partners from the five continents, spearheaded by China with a trade value for H1 2014 of AED 80.5 billion, followed by India with AED 53 billion, then USA with AED 41 billion, and AED 27 billion trade volume with the KSA.
The vividness of these markets plays a major role in anchoring the emirates international trade position, which is more of an added value towards hosting EXPO 2020.

Ahmed Mahboob, further elaborated, Dubai Customs is setting its plans towards providing better facilitation for exhibitors, traders and visitors for EXPO 2020. Seeking to eliminate any hurdles that may face the incoming consignments and/or passengers alike. Further measures shall be taken towards actuating this approach by utilizing further collaboration and coordination with all government and private sector agencies, seeking to attain the highest levels of success for this para-global event. On the Customs part, we are further adapting our procedures and protocols via benchmarking and reflecting upon best practices. It shall also include the provision of a channel for clearance, designated for the clearance and concluding all transactions of the imported goods and consignments to the EXPO. In addition, exhibitors can benefit from the pre-clearance feature prior the actual arrival of goods. Moreover, a special 24/7 contact center shall be established to meet the needs of the EXPO . Provision of on ground Customs offices and man force, for the purpose of catering the necessary services. As well, Dubai Customs shall introduce the temporary admission system, which is a Customs procedure allowing the permitted entry of goods for un utmost of one year, free from customs fees. Until the end of the purpose of admission after providing a guarantee from the source country in accordance with Istanbul Agreement foe Temporary Admission. Besides, numerous facilitations that shall be at the hands of participants at the EXPO.