Tuesday, Aug 02, 2016

Dubai:

The UAE is becoming increasingly competitive in Saudi Arabia’s import market, as the kingdom constitutes the 2nd largest destination for UAE-made products after India, Dubai Chamber of Commerce and Industry said.

The movement of goods between the two countries has been facilitated by the GCC customs unification procedures and efficient transportation system. According to the UAE Federal Customs Authority data the UAE recorded a Dh40 million trade surplus with Saudi Arabia in 2014, as it gears up to release its 2015 data.

“The UAE is keen on maintaining the best trade relationships with Saudi Arabia,” said Hamad Bu Amim, President and CEO of Dubai Chamber in a statement.

“Strong exchange between GCC countries serves to boost the economic performance of the Council as a whole and, consequently, of the entire Arab region. We need to cooperate amongst ourselves to implement all measures necessary to ensure an unobstructed flow of goods and services across borders, to the benefit of all parties,” Bu Amim said.

While Saudi imports from its neighbour are diverse, items such as pearls, precious stones, metals, and coins dominated the list in 2015, making up 22 per cent of the UAE’s total exports of these products, and 32 per cent of the kingdom’s net global imports of the product group, worth $3.7 billion. Moreover, 27 per cent of Saudi Arabia’s imports of copper and copper articles worth $672 million and 11 per cent of its imports of articles of iron and steel worth $626 million, on the one hand, and raw iron and steel worth $507 million, on the other, came from the UAE, constituting 8 per cent, 7 per cent, and 6 per cent of the latter’s total exports to the kingdom, respectively.

Meanwhile, Saudi Arabia’s export of ships, boats and floating structures to the UAE — consisting mainly of tugs and pusher craft — dominated the list of Saudi exports to the UAE. The export value of $1.9 billion accounted for 28 per cent of total exports to the UAE and 77 per cent of Saudi Arabia’s world exports of the product group.

In addition to that, 5 per cent of the kingdom’s exports of plastic and plastic articles worth $798 million, on the one hand, and organic chemicals worth $465 million, on the other, went to the UAE, constituting 12 per cent and 7 per cent of the former’s total exports to the UAE, respectively.

Also on the list of UAE imports from Saudi Arabia were $388 million worth of electrical and electronic equipment, making up 6 per cent of the kingdom’s exports to the UAE, yet more than two-thirds 36 per cent of its global exports of that product group.

Staff Report

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