Source Credit: AGBI
The United Arab Emirates (UAE) has achieved a historic milestone in foreign trade, reaching a record-breaking $817 billion (AED 3 trillion) in 2024, significantly outpacing global trade growth. The country’s foreign trade expanded at seven times the global trade growth rate of 2 percent, according to UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, who announced the figures through the state-run WAM news agency on Wednesday.
This achievement is a result of the UAE’s aggressive economic expansion strategies, including Comprehensive Economic Partnership Agreements (CEPAs) with multiple nations, diversification of trade markets, and significant investment in non-oil industries.
Non-Oil Trade Growth and Economic Targets
The UAE’s non-oil trade witnessed an impressive 42% year-on-year growth, adding AED 135 billion to its total trade volume. This robust expansion reflects the success of government-led initiatives to diversify the economy beyond oil revenues.
“In 2021, we set a goal of reaching AED 4 trillion in annual foreign trade by 2031,” Sheikh Mohammed bin Rashid said.
“By the end of 2024, we have already achieved 75% of that target. At this pace, we will reach it years ahead of schedule.”
Non-oil trade with the UAE’s top 10 global partners surged by 10% year-on-year, while trade with other nations expanded by an even stronger 19% annually in 2024.
Boom in UAE’s Non-Oil Exports
The UAE’s non-oil goods exports jumped to AED 561 billion in 2024, marking a 27.6% increase compared to 2023. This growth has resulted in non-oil exports making up 19% of total foreign trade, up from 17% in 2023.
The top export commodities included:
- Gold
- Jewelry
- Cigarettes
- Petroleum-based oils
- Aluminum
- Copper wires
- Printed materials
- Perfumes
- Iron-based products
These exports experienced a remarkable 41% growth year-on-year, reinforcing the UAE’s status as a key global exporter of high-value commodities.
The UAE’s exports to its top 10 trade partners saw an increase of 37%, while exports to other nations rose by 13% year-on-year.
Strong Performance in Re-Exports and Imports
The re-export sector remained a crucial driver of the UAE’s trade growth, reaching AED 734 billion in 2024, a 7% increase from the previous year. The UAE’s strategic location and advanced logistics infrastructure continue to position it as a global hub for re-exports.
Meanwhile, the country’s non-oil imports surged to AED 1.7 trillion, reflecting a 14% increase compared to 2023.
- Imports from the UAE’s top 10 trade partners rose by 6.7%
- Imports from other nations grew by 22%, demonstrating expanding trade relations beyond traditional markets
Among the top imported goods were:
- Gold
- Mobile phones
- Petroleum oils
- Automobiles
- Jewelry and diamonds
- Computers
CEPAs and the Future of UAE Trade Growth
The Comprehensive Economic Partnership Agreements (CEPAs) have played a major role in expanding the UAE’s foreign trade. These agreements, aimed at boosting bilateral trade, have already contributed 24% of the country’s total non-oil exports.
Several key CEPA agreements are set to further accelerate trade growth:
- UAE-New Zealand CEPA aims to triple trade between the two nations
- UAE-Malaysia CEPA is expected to increase bilateral trade by 60%
With multiple new trade partnerships on the horizon, the UAE is well on its way to surpassing its ambitious AED 4 trillion foreign trade target much earlier than anticipated.
Conclusion: UAE’s Trade Leadership in the Global Market
The UAE’s impressive trade growth in 2024 highlights its strategic economic vision, diversified trade policies, and commitment to strengthening global partnerships. By outperforming global trade growth rates and achieving remarkable non-oil export expansion, the country has positioned itself as a major international trade hub.
As Sheikh Mohammed bin Rashid emphasized, the UAE’s trade ambitions are far from over. With continued economic reforms, new CEPAs, and a strong focus on technology and sustainability, the UAE is set to redefine the global trade landscape in the coming years.
