Export opportunities in UAE
Economic diversification in the United Arab Emirates will create new trade opportunities for exporters, says trade credit insurer Atradius (www.atradius.co.uk).
In its latest Country Report, Atradius reveals demand in the UAE for high-tech goods is increasing, leading to new potential trade opportunities for UK businesses looking to export overseas. Meanwhile, import demand in the UAE for pharmaceuticals, telecommunication equipment, electrical machineries and food also remains strong, creating even more prospects for exporters.
“Increasing demand in the UAE market is good news for UK exporters looking for new trade opportunities. Furthermore, the UAE has an added appeal to exporters as it is a major trading hub with the re-export of a wide range of goods accounting for almost 50% of its total merchandise exports,” says Tanya Giles, Head of SME business at Atradius UK.
“The coronavirus pandemic has disrupted consumption habits, business operations and trade patterns across the globe. As the global economy rebounds from recession, now is the time for businesses to reassess their trading strategies and seek new opportunities for growth. However, risk is an inherent part of global trade and uncertainty over the future path of the pandemic makes the risk even more acute. With this backdrop, comprehensive and real-time information on the market you want to do trade with is essential along with a robust risk management strategy, in-depth knowledge of the local business culture and protection against non-payment.”
The Atradius report into the country reveals that while oil production capacity is increasing from four million to five million barrels a day, the UAE is still one of the most diversified Gulf States with non-oil sectors now accounting for 74% of the UAE’s total GDP. Atradius highlights continued efforts to diversify the economy away from oil in a drive to boost private-sector growth and establish a knowledge-driven economy in the long term.
Overall, the Atradius UAE Country Report states the economy is on its path to recovery after a deep 7% GDP contraction in 2020, forecast to increase about 1% this year, with UAE imports expecting to grow more than 10% this year after falling by around 7.5% in 2020.
Despite the ongoing rebound, the performance outlook for several industries remains strained, especially in Dubai, namely construction, services and manufacturing, and Atradius warns the recovery of the property market, which is still struggling with overcapacity, remains uncertain.