The UAE Government’s National Agenda for Re-Export Development 2030
The United Arab Emirates (UAE) is making bold moves to double its re-exports, a plan expected to significantly boost the industry’s contribution to the country’s gross domestic product (GDP). The government’s National Agenda for Re-Export Development 2030 includes 24 initiatives and programs aimed at doubling re-exports from the UAE over the next seven years. The plan is set to enhance the national logistics infrastructure, promote activity within free zones, boost the inflows of foreign direct investment, strengthen global supply chains, and support the creation of new jobs.
Re-Exports: A Critical Part of International Trade
Re-exports are a critical part of international trade, accounting for around a quarter of total exports. The UAE is tapping into the significant potential of re-exports by developing specialized areas in cooperation with local governments, establishing the International Trade Links Center, launching supportive programs, and increasing foreign investments in the service sector. The top commodities for re-export from the UAE include smartphones, diamonds, automotive parts, jewelry, and gemstones.
Cepas: Boosting the Role of Trade in the UAE’s Economy
The UAE has also forged Comprehensive Economic Partnership Agreements (Cepas) with several countries, including India, Israel, Indonesia, and Turkey. The benefits of Cepas include enhanced market access, lower or eliminated tariff rules, simpler customs procedures, clear and transparent rules, and rule-based competition. The UAE intends to sign 26 agreements this year, with negotiations ongoing with Cambodia, Georgia, Kenya, the Philippines, South Korea, Ukraine, and Vietnam.
Record Non-Oil Foreign Trade and Increasing Global Trade Partnerships
The UAE’s non-oil foreign trade reached a record Dh2.23 trillion ($607.1 billion) last year, as the Arab world’s second-largest economy intensified efforts to reduce its dependence on hydrocarbons and boost global economic partnerships. The country’s goods trade with the rest of the world hit $1.02 trillion in 2022, with exports and imports increasing due to higher crude oil prices. Overall, the Emirates accounted for 2.4% of the world’s goods exports last year, according to the World Trade Organization’s Global Trade Outlook and Statistics report.
Conclusion:
The UAE’s plan to double its re-exports is expected to boost the country’s economy and strengthen its position as a global trade hub. The government’s ambitious agenda for re-export development is focused on enhancing the national logistics infrastructure, promoting activity within free zones, boosting foreign direct investment inflows, strengthening global supply chains, and supporting job creation. As the UAE intensifies efforts to reduce dependence on hydrocarbons and boost global economic partnerships, the plan is set to enhance the country’s non-oil foreign trade and increase its share of the world’s goods exports.