The importance of the non-oil foreign trade as a future growth opportunity | Kanebridge News
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The importance of the non-oil foreign trade as a future growth opportunity

Mon, Feb 19, 2024 3:37pmGrey Clock 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.



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Bank of Sharjah Reports AED 171 Million Profit for H1 2024, Marking a 233% Year-Over-Year Increase

Highlighting a significant recovery and robust growth across all key performance metrics.

Fri, Jul 26, 2024 3 min

Bank of Sharjah has released its results for the period ending 30 June 2024, showcasing robust performance and strong momentum since the beginning of the year. The Bank reported a net profit of AED 171 million, a significant turnaround from the AED 144 million loss in the same period last year.

This remarkable improvement is attributed to a substantial increase in net interest income, stringent credit underwriting, and reduced operating costs, marking a 233% increase over the previous year when excluding the one-time impairment charge from de-linking its Lebanese subsidiary.

The Bank’s exceptional financial results highlight the effectiveness of its strategic focus on sustainable growth, with notable improvements across all major performance metrics. Funded and unfunded income both saw increases, with net interest income rising by 108% and operating income growing by 34%.

Additionally, the cost-to-income ratio improved significantly to 40.1% due to cost discipline measures. The balance sheet remains strong with a loans-to-deposits ratio of 86.63%, indicating comfortable liquidity. The Bank also maintains strong capitalization, with a regulatory capital adequacy ratio exceeding 15% and Tier 1 and CET1 capital ratios around 14%. These positive results underscore the Bank’s underlying strength, operational efficiency, prudent risk management, and ongoing enhancement of shareholder value.

Commenting on the Bank’s results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, stated: “We are pleased with our outstanding performance in the first half of 2024, which reflects our commitment to adding value to our customers, supporting our communities, and rewarding our shareholders. Despite the challenging geopolitical situation in the region, the UAE economy has remained resilient and continues to register healthy growth following various economic diversification initiatives that provide consistent impetus for trade, investment, and wealth creation. Bank of Sharjah has entered a new chapter with a new leadership team, focused on building new business streams, expanding our reach across the UAE and the region, and delivering exceptional service to our customers.”

He added: “Our performance in the first half of the year demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come.”

The CEO, Mr. Mohamed Khadiri, commented “2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. I am delighted with our stellar performance as we continue to strengthen the bank’s fundamentals. Our outstanding results reaffirm that our new business strategy is on track to deliver sustainable revenue growth, driven by business expansion, operational efficiency, prudent risk management, and talent development. This achievement is also a testament to the Bank’s success in providing high-quality financial services that meet the aspirations and growing needs of our customers.”

He further added: “Bank of Sharjah is a strong and respected brand within the local community. We are leveraging our core strengths to build a platform that will operate at its full potential across the UAE and the region. The Bank remains focused on executing our strategy and is well-positioned to maintain strong performance throughout 2024 and beyond.”

 

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