UAE-India non-oil trade surges by 15.3%

The non-oil bilateral trade between the UAE and India surged 15.3 per cent to $41.4 billion (Dh151.6 billion) in 2019, firmly positioning the third Asian economy as the second largest trading partner of the Emirates, which recorded an overall 4,4 per cent jump in its global non-oil trade to Dh1.603 trillion last year.

Non-oil exports and re-exports from the UAE to India in 2019 was $14.7 billion while imports from India were valued at $26.7 billion.

According to data provided by the UAE Ministry of Foreign Affairs & and International Cooperation, India emerged as the top global destinations for the Emirates' non-oil exports between 2014 and 2019 as it became the second top global source of imports for the second largest Arab economy. India was also the third top global destination for non-oil re-exports from the UAE in 2019.

India also has emerged as a top source of foreign direct investment in the UAE's various sectors, including oil and gas, real estate, chemicals, hotels and tourism and financial services.

The two nations had set $100 billion trade target by 2020, which is very unlikely to be achieved due to the pandemic disaster. In 2018, the total UAE-India trade, including oil, hit $57 billion during 2018, positioning India as the third largest trading partner after the US and China.

According to data released by the Federal Competitiveness and Statistics Authority (FCSA) all non-oil-related trade indexes in the UAE improved in 2019, led by the export and re-export trade indices, with the latter amounting to Dh457.4 billion against Dhs431.5 billion in 2018, accounting for 28.5 per cent of total foreign trade.

Exports comprised 14.4 per cent of the total trade volume, up from Dh206 billion to Dh231.23 billion during the reference period while imports grew from around Dh898.37 billion to Dh914.8 billion, or 58 per cent of the total foreign trade.

The Asia and Pacific Ocean region led the list of the country's non-oil trade partners. China came first with a total trade exchange volume of Dh184.15 billion in 2019, followed by India at Dh152 billion.

Saudi Arabia maintained a trade exchange of Dhs113.25 billion, followed by the US (Dh96.56 billion), Switzerland (Dh65.2 billion) and Oman (Dh55.4 billion). The trade volume with Iraq reached Dh53.75 billion, while it amounted to Dh48 billion with Japan, Dh44.7 billion with Germany and Dh38.88 billion with Kuwait.

India's trade with Dubai grew 16 per cent to Dh100 billion in 2018, placing it as the second largest trading partner of the emirate. China remained Dubai's largest trading partner, contributing Dh109 billion, a six per cent increase. India was the second biggest trading partner, contributing Dh100 billion, a growth of 16 per cent. Other top Dubai trading partners include USA with Dh57 billion and Switzerland with Dh47 billion.