A Decade of Expansion: The UAE and Kuwait’s Trade Growth Surpasses 120%
Over the past ten years, the volume of trade between the UAE and Kuwait has surged, registering an increase of over 120%.
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Between 2013 and 2022, the trade volume between the UAE and Kuwait saw a substantial rise, culminating in an impressive $86 billion. This total, equivalent to AED317 billion, highlights the strong economic and commercial bonds shared by the two nations.
Breaking down this sum, imports constituted AED63 billion ($17.2 billion), non-oil exports amounted to AED85.5 billion ($23.3 billion), and re-exports reached AED168.5 billion ($46 billion), showcasing a flourishing and varied trade relationship.
Overview of Trade Between UAE and Kuwait
The trade exchange witnessed a remarkable 120.5% growth over the decade, culminating in AED44.1 billion ($12 billion) in 2022. This marked a significant increase from AED20 billion ($5.4 billion) in 2012, highlighting the Ministry of Economy’s data on the escalating trade volume. Specifically, in 2022, the trade value saw a 14.5% increase from the previous year, with breakdowns of AED7.5 billion ($2 billion) in imports, AED14.3 billion ($3.9 billion) in non-oil exports, and AED22.3 billion ($6.1 billion) in re-exports.
Year-on-year, the trade values varied, with 2013 seeing AED23.3 billion ($6.3 billion), including AED5.4 billion ($1.5 billion) for imports, AED5.5 billion ($1.5 billion) for non-oil exports, and AED12.4 billion ($3.4 billion) for re-exports. By 2014, the value increased to AED25.7 billion, with a further rise in each category. This trend continued through the years, with notable jumps in trade value, particularly in 2018 and 2021, showcasing the strength and growth of their economic partnership.
Tourism and Investment Dynamics
The number of Kuwaiti tourists visiting the UAE saw a significant increase, with 400,000 hotel stays in 2023, up from 250,000 in 2022. Investment flows between the two countries are robust, underlining their solid economic relations.
Kuwait’s investments in the UAE are predominantly in real estate, tourism, telecommunications, and textiles. Equally, the UAE’s investments in Kuwait are diverse, covering sectors such as coal, oil and gas, transportation and storage, real estate, telecommunications, minerals, food, hotels, and aviation, reflecting a broad and deep economic engagement.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
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