UAE’s Robust Trade Performance in 2023
Dubai, UAE, July 7, 2024 — The UAE’s merchandise and services trade reached an impressive $1.258 trillion (Dh4.61 trillion) in 2023, maintaining a similar level to the previous year, driven predominantly by the services sector, according to the World Trade Organization (WTO).
Merchandise Trade: Exports and Imports Analysis
Key highlights include:
- Merchandise Exports: Dropped 5% to $488 billion, ranking 14th globally.
- Merchandise Imports: Increased by 7% to $449 billion, positioning the UAE as the 16th largest importer worldwide.
- Global Share: The UAE’s exports and imports accounted for 2.1% and 1.9% of the global market share, respectively.
The report highlighted that merchandise imports in many economies fell due to declining prices for commodities like oil and natural gas, which dropped an average of 63% in 2023. However, the UAE, along with other major energy exporters like Russia (up 10%) and Saudi Arabia (up 11%), saw an increase in imports.
The UAE’s strategic economic initiatives, including the Comprehensive Economic Partnership Agreement (CEPA) with countries such as India, Georgia, South Korea, and Israel, have significantly bolstered trade and commercial services sectors.
In the realm of commercial services:
- Exports: Rose by 8% to $165 billion, ranking the UAE 13th globally.
- Imports: Increased by 13% to $108 billion, making the UAE the 18th largest importer in the sector.
- Digitally Delivered Services: Reached $48 billion, placing the UAE 20th globally.
The UAE’s government has been proactive in transitioning to a services-based economy by attracting global talent through initiatives like the Golden Visa and Silver Visa programs, aimed at professionals, scientists, and outstanding students.
Globally, the WTO report noted a 5% decrease in the value of world merchandise trade in 2023, down to $24.01 trillion, with this decline largely offset by a 9% rise in commercial services trade, which reached $7.54 trillion. Looking forward, the WTO projects world merchandise trade volume to grow by 2.6% in 2024 and 3.3% in 2025 as demand rebounds following a contraction in 2023.
