Her Excellency: Index of confidence in the domestic market is high, and the UAE is interested in developing laws for trade promotion
Al Saleh: Trade sector most affected by economic recovery, and we expect it to increase by 10% this year
Al Shamsi: Federation of UAE Chambers of Commerce & Industry is a staunch supporter of trade promotion initiatives
H.E. Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister of Foreign Trade (MoFT), discussed nationwide business conditions, trade and investment promotions strategies, and proposals to enhance cooperation between MoFT and the private sector with the aim of stimulating trade in the UAE during a meeting with the Federation of UAE Chambers of Commerce and Industry and key officials from the UAE's various of chambers of commerce and industry.
The attendees also discussed the latest trade developments in the UAE as well as key factors for the next phase of business growth in the domestic market in light of the country's successful hurdling of the global financial crisis.
H.E. listened to private sector representatives who explained their respective approaches and local market trends, their vision for promoting commercial activity, and actions that can be taken by the government to strengthen the UAE's competitive business environment. The development of economic capacities and the promotion of true cooperation between the public and private sectors were also examined.
The Minister assured attendees that UAE foreign trade exhibited no worrying signs, pointing out that despite the global financial crisis, the country's foreign trade will achieve positive growth rates and contribute to the Emirates' enhanced regional and global business position.
She also emphasized that the UAE's competitive and investment-friendly environment has grown stronger and more durable amidst the downturn, noting the numerous exhibitions organized by various sectors in the country and the active participation of overseas companies. She said that this was a strong evidence of the recovery of the domestic market from the financial crisis, the increased confidence of global companies in the local market, the growth of the local economy and the UAE's ability to confront all regional and global challenges.
Sheikha Lubna Al Qasimi pointed to the Dubai Air Show as a perfect example, noting the large number of countries and companies involved and the first-ever presence of 150 companies from 20 countries. This, she said, indicates global confidence in the development of the UAE economy and its commitment to excelling in the domestic market, adding that the country offers competitive facilities and attractive incentives to create an ideal work environment.
H.E. explained that the UAE inspires great confidence and high credibility as attested to by international bodies and ratings from global institutions. She pointed out that the UAE has surpassed Singapore and Hong Kong based on confidence indicators disclosed by HSBC Bank on the growth of business activity in the country during the second and third quarters of the year.
Sheikha Lubna emphasized the government's great interest in developing enhanced commercial and economic laws to meet the evolving needs of domestic business sector, improve the business and investment climates, and support market competitiveness.
"We are one country, there is no preference for Abu Dhabi, Dubai or any other emirate. The growth and development taking place in any emirate is part of the UAE's overall success," said the Minister, emphasizing the importance of studying best practices in some critical issues and business and economic matters in the various emirates and adopting these across the UAE.
H.E. affirmed the vital role of the Federation of UAE Chambers of Commerce and Industry in promoting trade and economic activity in the country, pointing out that the private sector contributed about 40 per cent of GDP and acquired around 58 per cent of the Emirates'total investments last year.
During the meeting, MoFT Director General H.E. Abdullah Ahmed Al Saleh delivered a presentation on the UAE's commercial developments, the country's trading partners, free trade agreements signed between the GCC and other countries and blocs, and candidate signatory countries. He also introduced members of chambers of commerce and industry to the contents of the Ministry's new website and how they help meet the needs of the business and commercial sectors.
He added that foreign trade will be the most affected sector by the economic recovery from the global financial crisis.
The Director General stated that he expected the UAE's volume of non-oil trade to increase by 10 per cent this year over 2008's AED789 billion. He noted that the second half of this year has seen huge activity in foreign trade, especially in re-exports, representing a significant rise from March and leading to positive growth rates for 2009 as a whole.
H.E. highlighted the importance of opening new markets for UAE products and expanding the geographical scope of the country's foreign trade so as not to limit itself to only 10 key partner countries. He referred to Asia and Africa in particular as favorable markets.
He also revealed that the total volume of the UAE's non-oil trade for the first half of this year amounted to AED310 billion, and that non-oil exports rose 24 per cent over the first half of 2008. He added that UAE imports for the same period declined 20 per cent, consequently affecting trade balance via a 25 per cent decline in trade deficit during the first half of 2009 compared to the corresponding period last year.
The MoFT official further explained that the UAE's non-oil exports constituted 53.3 per cent of total exports, while oil exports accounted for about 46.7 per cent. He added that the non-oil sectors contributed 63.2 per cent of GDP, while the oil sector accounted for 36.8 per cent.
He also said that the Emirates' non-oil trade increased by 43 per cent to around AED 789 billion in 2008, with exports (non-oil exports and re-exports) rising 36 per cent to about AED223 billion. He noted that imports increased by 46 per cent to around AED566 billion, representing 72 per cent of the volume of non-oil trade.
H.E. noted that 10 countries accounted for 59 per cent of the country's total foreign trade volume, with the rest distributed among approximately 180 countries around the world. The top partner countries accounted for 71 per cent of non-oil exports.
H.E. Al Saleh identified India as the UAE's top trading partner, accounting for around AED118 billion of the total foreign trade volume in 2008. Its contribution to the structure of foreign trade amounted to 15 per cent, followed by China at 8.6 per cent (AED68 billion); the United States at 6.2 per cent (AED49 billion); Japan (AED48.3 billion); Germany (AED39 billion); Switzerland (AED31 billion); the United Kingdom (AED30 billion); Turkey, which was able to enter the list at 3.7 per cent (AED29.4 billion); Iran (AED28.2 billion); and Italy (AED 24.3 billion).
He said that around 80 per cent of the country's volume of foreign trade from 2005 to 2008 revolved around three groups of countries, namely, non-Arab Asian countries which ranked first at 44 per cent, European countries which ranked second at 26 per cent, and finally, American States who placed third at 10 per cent.
Concerning the free trade agreements that the UAE is negotiating with various countries and economic and trade blocs as part of the GCC, the Director General explained that GCC countries have signed initial agreements with Singapore, the ASEAN Free Trade Area and New Zealand, and that candidate signatory countries includes South Korea and the European Union, which has two only concerns left to address before an agreement is finally reached.
H.E. noted that the next Ministerial Conference of the World Trade Organization in Geneva in late November 2009 will be consultative at the ministerial level, and will not include free trade deals.
Regarding the MoFT's website, the Director General stated that the portal offers a wide range of interactive services for investors, local and foreign commerce, and investment activities inside and outside the state. External data cover trade between the UAE and the rest of the world for the past 10 years (1999-2008) and provide details on trade values, goods, exports, re-export and imports. These, he said, are of great value for researchers and provide investors and organizers of business events with useful information on global markets and the foundations for strengthening foreign trade ties and promoting domestic investments.
For his part, H.E. Salah Bin Omair Al Shamsi, Chairman of the Federation of UAE Chambers of Commerce and Industry and the President of the Abu Dhabi Chamber of Commerce and Industry, extended his group's gratitude and appreciation to H.E. Sheikha Lubna Al Qasimi for her eagerness to communicate with the private sector and listen to their concerns and suggestions in enhancing the country's trade and economic activities.
He noted that the Federation of UAE Chambers of Commerce and Industry is a key supporter in stimulating trade within the domestic market, and fully supports the steps taken by government agencies in this regard.
Other members presented proposals related to foreign investment, the movement of foreign capital into the UAE, ways to promote the transformation of private companies to public companies, and the protection of small- to medium-sized businesses, among other topics.
At the end of the meeting, H.E. Sheikha Lubna Al Qasimi commended the chairman and members of Federation of UAE Chambers of Commerce and Industry for their productive cooperation with the MoFT in developing the national economy and enhancing international trade and investment.
The meeting was attended by H.E. Abdullah Ahmed Al Saleh, Director General of the Ministry of Foreign Trade; H.E. Salah Bin Omair Al Shamsi, Chairman of the Federation of UAE Chambers of Commerce and Industry and President Abu Dhabi Chamber; H.E. Saeed Ali Khammas, Vice President of the Federation of UAE Chambers of Commerce & Industry and President of the Chamber of Fujairah; H.E. Abdullah Sultan, Secretary General of the Federation of UAE Chambers of Commerce and Industry; H.E. Abdul Rahman Al Ghurair, Board Member of the Federation of UAE Chambers of Commerce and Industry and President of the Dubai Chamber of Commerce and Industry; H.E. Ahmed Mohamed Al Madfaa, Board Member of the Federation of UAE Chambers of Commerce and Industry and President of the Sharjah Chamber of Commerce and industry; H.E. Obaid Bin Ali Al Muhairi, Board Member of the Federation of UAE Chambers of Commerce and Industry and President of the Ajman Chamber of Commerce and Industry; H.E. Abdullah Kharji Rashid, Board Member of the Federation of UAE Chambers of Commerce and Industry and President of the Umm Al Quwain Chamber of Commerce and Industry; Yousef Obaid Bin Issa Al Nuaimi, Board Member of the Federation of UAE Chambers of Commerce and Industry and President of the Ras Al Khaimah Chamber of Commerce and Industry; H.E. Rashid Mohammed Al Mazrouai, Board Member of the Federation of UAE Chambers of Commerce and Industry and Board Member of the Dubai Chamber of Commerce and Industry; and other directors of chambers of commerce and industry across the UAE.
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© Press Release 2009
