Dubai defies global economic downturn

UK exports contribute to strong Dubai trade growth

Dubai is defying the global economic downturn currently experienced by many destinations, and is demonstrating impressive trade growth. In the first half of 2008 alone, the value of exports/re-exports has increased by 50 per cent to £15 billion, from £10 billion in 1H2007.

In the current climate of economic uncertainty, the outlook is still very positive for Dubai's trade sector, according to a report just released by the Dubai Chamber of Commerce and Industry (DCCI). In addition to overall growth, exports alone have also increased by 36 per cent to £4.9 billion, compared to 1H07.

The UK remains as one of the largest suppliers of exports to Dubai and trade continues to be buoyant. According to these latest figures, UK exports to the emirate total around £3 billion, based on figures at the end 2007, illustrating a double-digit percentage rise on the previous year, and,2008 is likely to be another strong year.

Dubai's international trade jumped by 30 per cent between 2006 and 2007 (£69.7 billion to £90.7 billion), with India and China dominating the market with a combined share of nearly a quarter (23 per cent) of Dubai's total trade in 2007.

The other eight largest trading partners - USA, Japan, Iran, Germany, UK, Switzerland, Saudi Arabia and South Korea – represent a combined share of 31 per cent.

The DCCI’s membership has also expanded by 13.4%, from 101,899 in January 2008 to 115,595 by the end of June this year, reflecting both the booming domestic business sector and the strategic growth and diversification of Dubai’s economy in line with Sheikh Mohammed bin Rashid Al Maktoum’s 2015 Strategic Plan, which sets out the future economic growth of the emirate.

Ian Scott, director of the UK and Ireland representative office for the Dubai Department of Tourism and Commerce Marketing, comments on the recent report: “Dubai’s flourishing economy and rapid growth in trade highlights the emirate’s increasingly important position on the world economic map.

"Dubai’s diversification beyond oil revenues and expansion into other major sectors has been instrumental in its strong financial performance. And it is this success in other industries, such as international trade and tourism, which will reduce the contribution of oil to Dubai’s economy to less than 1 per cent of the GDP by the year 2010."