The growth of non-oil sector of the UAE

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The economy of the UAE is growing rapidly, offering the favorable conditions for international trade.

The state is aimed at ensuring an annual GDP growth of 5-6% over the next ten years. The government intends to achieve this goal by financing key sectors of the economy and reducing the state’s dependence on oil production and exports. Investing in such sectors as construction, logistics, trade and tourism will make it possible to increase the contribution of the non-oil sector to the economy of the country to 80% by 2021.

The volume of non-oil exports of Abu Dhabi in 2017 was 159.9 billion dirhams, with a level of 13.2 billion dirhams recorded in December. These figures are 3.4 percent higher than those in 2016.

According to a recent publication by the Statistical Center of Abu Dhabi, exports of oil mined from the interior of the emirate amounted to about 22.6 billion dirhams, while re-exports reached 21.7 billion dirhams, and imports reached 115.5 billion dirhams.

This statistics covers non-oil-related commodity turnover in the emirate by land, water and air, includes the turnover of the emirate with foreign countries, excluding the trade of Abu Dhabi with other emirates of the UAE.

Export of industrial equipment and spare parts in the emirate amounted to about 20.4 billion dirhams, which is 90 percent of the level of 2017, while exports of non-oil products for the same period reached a level of 955 billion dirhams, while exports of consumables reached the level of 826 million dirhams.

Speaking about re-export, transport equipment and spare parts take the first place here, and the total cost reaches 9.4 billion dirhams, accounting for 43.3 percent of total re-export, followed by supplies of consumables and technological equipment with figures in 4.5 and 3 billion dirhams respectively.

Meanwhile, imports of industrial equipment in the UAE reached 43.7 billion dirhams, imports of vehicles amounted to 33.9 billion dirhams, spare parts – 22.4 billion dirhams, consumables -7 billion dirhams, food products – 6.23 billion dirhams.

It should be noted that the volume of foreign trade in the non-oil sector of Dubai grew by 70% for the last 7 years.

China has maintained its position as the leading trading partner of Dubai with bilateral trade. India, the United States, Saudi Arabia, Germany, etc. are also in the lead.
The government noted that the strategies for diversifying the economy of Dubai and the UAE achieve their goals, emphasizing the country’s economic stability and its ability to adapt to fluctuations in international markets.

There should be mentioned the growth in the trade of mobile phones and communication devices as well as gold, diamonds, jewelry and cars.

The ambitious goals of UAE Vision 2021, Dubai Plan 2021 and the approach of Expo 2020 prompt the UAE government to continue to enhance Dubai’s global competitiveness by introducing innovative solutions to meet growing demand.