The importance of the non-oil foreign trade as a future growth opportunity
2 min
Dr. Thani bin Ahmed Al Zeyoudi, the Minister of State for Foreign Trade, emphasized the UAE’s strategic vision led by its leadership to broaden its trade and investment partner base. This approach has notably influenced the UAE’s non-oil foreign trade in goods and services, achieving a historic peak by the close of 2023, surpassing AED3.5 trillion.
He marked this achievement as a critical landmark for the country, underlining that the broadening of foreign trade is foundational to the UAE’s economic agenda. It serves as a vital engine for growth and diversification, and acts as a stimulant for sectors centered on innovation, knowledge, and advanced technology.
Dr. Al Zeyoudi considered these outcomes as exceptionally significant, especially as they occurred during a period where global trade shrank by 5% in the first half of 2023, and exports dropped by 8% in the third quarter.
Dr. Al Zeyoudi also pointed out the UAE’s efforts to widen its global trade network through the Comprehensive Economic Partnership Agreement (CEPA) program, which aims to build stronger connections with aligned countries, improving market access and creating new avenues for exporters, industrialists, investors, and entrepreneurs.
He highlighted the UAE’s non-oil trade with Türkiye as a prime example of the CEPA’s impact, noting a 103.7% increase in 2023, making it the fastest growth among the UAE’s top 10 trading partners and representing 5.1% of the UAE’s total foreign trade. Remarkably, in the last five months of 2023, coinciding with the CEPA’s implementation, Türkiye was the destination for 60% of the UAE’s non-export trade.
Furthermore, Dr. Al Zeyoudi stated that the total non-oil foreign trade with the UAE’s CEPA partners, including those agreements that are in place and those close to finalization, reached over AED390.5 billion, marking a 24.5% increase from 2022.
He also pointed to the global confidence in the UAE economy, highlighted by the AED2.574 trillion in non-oil goods trade, up 12.6% from 2022, and the record AED967 billion in service trade, with AED587 billion in service exports.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
