Market Briefing – The United Arab Emirates

The United Arab Emirates

The United Arab Emirates (knows as the UAE) is composed of seven emirates namely Abu Dhabi, Dubai, Sharjah, Ras al-Khaimah, Ajman, Fujairah and Umm al Qaiwain. A Middle East country located at the south east end of Arabian Peninsula in South-west Asia, on the Persian Gulf in the north with a coastline of 734 kms. It borders Qatar in the north-west, Saudi Arabia in the west and north, and Oman on the east and north-east. The country covers an area of 83,600 square kilometres and has a population of 8.26 million, with Abu Dhabi as the capital.

It possess abundant resources in oil and natural gas, including 13 billion tonnes of proved oil reserves, and 6,100 billion square metres of natural gas reserves, both rank seventh in the world. The economy is mainly based on oil production and the petro-chemical industry. The priority policy
of the government is diversifying economic growth, expanding trade and increasing the proportion of non-petroleum revenue in GDP. Efforts have been made in the development of industries such as cement, aluminium metallurgy, plastic products, construction materials, garments, food
processing. The government also focuses on the development of agriculture, animal husbandry and fisheries. It aims to fully utilise the various financial resources, to develop culture and education as well as healthcare services. In recent years, the government has attached great importance to
the development of knowledge-based economy emphasising information technology, as well as the study of renewed energy.

Regarding financial development, the banking industry is well developed with 23 local banks that have 843 branches and 89 offices between them as well as 115 foreign banks and other financial institutions. Foreign exchange is not restricted and there is a free flow of currencies with stable exchange rates. Federal Government revenue comes from oil and trade income from the various emirates.

On external trade, the UAE has been a member of the World Trade Organisation since 1995. Foreign trade constitutes an important part in the country’s economy, with major exports like oil, natural gas, petro-chemical products, aluminium ingots and a few native products. Major imports include grain products, machinery and consumer goods.

Burj Al Arab Hotel

Upper Zakum Oilfield

Expo Centre Sharjah

Photos：
http://en.wikipedia.org/
http://www.offshore-technology.com
http://www.apnnews.com

Business Opportunities
Industries
Industries mainly based on oil production and petro-chemical industry, others include liquefied natural gas, aluminium metallurgy, plastic products, construction materials, garments and food processing industries.

Agriculture, Animal Husbandry and Fisheries
Agriculture is not well-developed the total arable land amounts to 320,000 hectares, with cultivated land being 27 hectares. Major agricultural products are date palm, corn, vegetables and lemons. Currently grain products are entirely imported, the supply of marine products and date palm can meet domestic demands. Due to the limited size of the animal husbandry industry, the country mainly relies on the importation of meat products. The government has been encouraging agriculture in recent years by providing free seeds, chemical fertilisers and interest-free loans to farmers, the government will purchaser all agricultural produce to safeguard farmer’s incomes and ensure the stable development of the agricultural industry.

Tourism
The tourism industry recorded favourable development. It is estimated that by the end of 2015, visitor totals will reached 16.47 million, a 7.6% increase year on year, with revenue from tourism reaching around US$20 billion, an increase of 9.3% compared to the previous year. Revenue for the hotel, food and beverage industries will reach US$10.84 billion, an increase of 16.65%. Most tourists come from Saudi Arabia, followed by the United Kingdom and India, with an estimated increase of tourists from Oman, China and Australia. The World Expo to be held in 2020 will bring about another round of rapid development for the tourism industry.

Source: CIA-The World Factbook, https://www.cia.gov/library/publ … ctbook/geos/ae.html

Foreign Trade from 2011-2014

Main Import Commodities: food, machinery and consumption goods
Source：
1.CIA-The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
2.Index Mundi-Country Fact, http://www.indexmundi.com

Main Trading Countries/Territories with UAE 2015

Source：https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

Mainland China – UAE

1.Ministry of Commerce of the People’s Republic of China,http://mds.mofcom.gov.cn/article/Nocategory/

Macao – UAE Bilateral Trade 2014

Source：The Statistics and Census Service,http://www.dsec.gov.mo/

Source：
1.The Ministry of Foreign Affairs of the People’s Republic of China http://www.fmprc.gov.cn/chn/default.htm
2.The Ministry of Commerce of the People’s Republic of China http://zhs.mofcom.gov.cn/
3.The Economic and Commercial Counselor’s Office of the Embassy of the People’s Republic of China in the United Arab Emirates http://br.mofcom.gov.cn/index.shtml
4.The Statistics and Census Service http://www.dsec.gov.mo/
5.The World Factbook http://www.cia.gov/