There is huge potential for the UAE to double its exports to African countries. Plastics, rubber and sugar have been identified as offering the most untapped export potential, at an estimated $867.9 million, $457.9 million and $291.7 million, respectively.

The UAE's exports to African countries have recorded strong growth over the past decade thanks to key trends, such as expanding UAE-Africa trade links, Dubai’s ongoing efforts to enhance its position as a gateway to African markets and improving economic conditions across the continent.

According to the findings published by Dubai Chambers, based on data from the International Trade Center (ITC), the UAE’s exports of certain products, such as electrical devices, machinery, and vehicles, have exceeded their export potential to the African continent, which is an indicator of the development of trade links between UAE exporters and African markets.

>

High-potential markets

The top African markets offering the most untapped potential to import plastics and rubber products from the UAE include: Kenya (estimated untapped potential of $88.2 million), Egypt ($81.3 million), Nigeria ($73.3 million), Tanzania ($ 63.6 million) and Ethiopia ($35.5 million), the report said.

Somalia ($91.8 million), Sudan ($66.7 million), Libya ($49.8 million), Djibouti ($35.7 million) and Egypt ($29.3 million) were identified as high-potential African markets where the UAE can boost its exports of sugar.

In the category of metal products, the analysis suggested that UAE exports to Egypt could potentially be increased to $34 million, followed by Ethiopia ($26.6 million), Libya ($24.5 million), Angola ($23.6 million) and Senegal ($10.9 million).

Top UAE exports to African markets in 2017 by value were plastics and rubber ($925.3 million) metal products ($407.7 million), other metal products ($267.8 million), sugar ($190.2 million), beauty products and perfumes ($165.7 million), and jewelry and precious metal articles ($161.7 million).

The ITC analysis relied on an economic model using supply and demand data, along with ease of trade indicators to determine the untapped export potential for a selected exporting country in the chosen target market.

Suggestions for boosting UAE exports

The analysis outlined many recommendations for UAE traders to boost their exports to high-potential African markets.

Suggestions include leveraging and utilizing existing platforms and resources that can help them explore new business opportunities emerging across the continent such as the Global Business Forum Africa in Dubai, Dubai Chamber’s network of representative offices in Africa, and th Chamber’s Africa Gateway smart platform.

(Writing by Seban Scaria seban.scaria@refinitiv.com, editing by Daniel Luiz)

© ZAWYA 2019