As we know, the United Arab Emirates is situated on the Arabian Peninsula, on the shore of the Arabian Sea. Oman, Saudi Arabia, Iran, and Qatar are among its neighbors. The UAE has established an economy that is based on the exploitation of enormous oil and natural gas reserves since gaining independence from the British Empire in 1971 and the subsequent emirate merger. Also, the economy of the UAE is reliant on oil, which accounts for the majority of its exports. In this blog, we will discuss the market overview of the UAE and gain updated UAE trade data with EximPedia.app.
All about the UAE Trade Market:
Abu Dhabi has one of the greatest oil reserves in the world, whereas Dubai is largely a financial and commercial hub. The city is home to souks, mosques, and expansive sandy beaches, in addition to corporate buildings and shopping complexes that soar to great heights.
Tourists from all over the world visit the UAE's megacities, such as Abu Dhabi and Dubai, for their contemporary architectural marvels and the gorgeous Arabian desert scenery. As a result, tourism is the nation's second source of revenue after oil.
Over 1,500 American companies operating across the Middle East, Africa, Europe, and Asia have their worldwide headquarters in the United Arab Emirates (UAE), which has been the primary destination for American exports to the Middle East and Africa for the past 12 years.
UAE Export Market Overview:
The Organization of Petroleum Exporting Countries (OPEC) is a group of nations that includes the United Arab Emirates. Despite the UAE's economy's reliance on oil, its sovereign wealth fund is adequate to deal with fluctuations in the price of crude oil.
Based on UAE export data, the overall value of the UAE's re-exports exceeded AED 600 billion in 2022, reaching AED 614.6 billion. The country's top ten re-export markets saw a significant increase in yearly growth as they combined to rise by 13% from 2021 to 2022, while the remaining markets saw an increase of 15%
The UAE's biggest exports include crude and refined petroleum, gold, jewelry, and electrical equipment. India, Japan, Saudi Arabia, Switzerland, and China are the top export partners. In addition, the UAE is the world's biggest exporter of rolled tobacco, sulfur, and limestone.
UAE Import Market Overview:
As per the UAE Import Data, the UAE's imports in 2022 grew by 22%, for the first time beyond AED 1250 billion, to reach AED 1252.4 in 2022.
Based on UAE Import Data, the UAE imports the most cars ($6.63 billion), refined petroleum ($9.15 billion), gold ($38.4 billion), radio and television equipment ($20.4 billion), diamonds ($8.11 billion), and refined petroleum ($9.15 billion), with the majority coming from China ($41 billion), India ($18.1 billion), the United States ($14 billion), Saudi Arabia ($9.21 billion), and Germany ($7.81 billion).
The United Arab Emirates had total exports of 389,372,505.15 in thousands of US dollars and total imports of 288,397,544.15 in thousands of US dollars, resulting in a positive trade balance of 100,974,961 in thousands of US dollars.
Goods exported from the United Arab Emirates are valued in BoP (current US dollars), while services imported are valued in BoP (current US dollars). As a percentage of GDP, the United Arab Emirates exports 92.46 percent of its goods and services, compared to imports of 68.48 percent.
UAE-INDIA Trade Relations
India and the UAE have warm bilateral ties that are defined by shared diplomatic affinities and robust business connections. Additionally, roughly 40% of all UAE residents are of Indian ethnicity. The majority of India's exports are food items, precious metals, and gemstones, as per India Trade Data In 2022-23, the UAE, with $76.16 billion, was the third largest trading partner of India.
For many years, India and the UAE have had trade relations. However, after the 1990s, there was a noticeable change in the two countries' economic ties. India is the third-largest importer of crude oil and has sent several minerals, jewels, pieces of machinery, and chemicals to the United Arab Emirates.
The Indian government has stated its desire to raise India-UAE trade volume to $115 billion over the next five years. There have also been discussions on connecting Mumbai and Fujairah City through an ultra-fast underwater railroad, which would strengthen commercial links even further.
UAE An Actual Economic Leader
The UAE government has overcome major economic and social constraints to rank among the top developing Middle Eastern economies on the globe. If climate change is not monitored closely, it could demolish the nation's infrastructure. The exploitation of migrant labor is a concern in the UAE as well. In response, the administration moved quickly to address these concerns.
The UAE's working-class population will continue to expand as cities develop and larger building projects are completed. Through the UAE's trade-friendly climate, a growing number of providers of financial and commercial solutions are entering the Middle Eastern area.
Following high-frequency signs indicating potential growth in activity in Q4 2021, economic development is expected to stay robust in Q1 2022. Further OPEC quota hikes aided oil production, while increased energy prices helped hydrocarbon investment as well as fiscal and external balances.
Conclusion
UAE's economy performed well in 2022, with a projected growth rate of 6.6 percent, due to higher oil output and improvements in non-oil sectors. As a result of rising oil prices and OPEC+ quota relaxation, oil production averaged 3 mbpd in the first half of 2022. By 2030, it is expected that India and the UAE's bilateral trade will total $250 billion USD. India and the UAE are cooperating to strengthen their relationship and advance the transition to a low-carbon future as two of the most significant energy trading partners.
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