UAE exports projected to reach Dhs2tn by 2030: report

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The UAE’s focus on growing local manufacturing capabilities and expanding its trade networks through critical infrastructure will allow it to “play a pivotal role in this global trade growth, with its exports projected to reach around Dhs2tn by 2030”, according to a Standard Chartered research study.

The report, titled “Future of Trade: New opportunities in high-growth corridors”, looks at the global trade industry’s avenues for growth as well as GDP projections.

The report forecasts the global trade to reach $32.6tn, from $21tn in 2021, with a projected growth rate of five percent per anum. The UAE and Saudi Arabia will be in sync with this trend, with both countries posting a robust annual growth rate matching the trade growth rate.

Additionally, the research highlights that trade corridors anchored in Asia, Africa, and the Middle East are expected to outpace the global trade growth rate by almost four percentage points, propelling the combined trade volume in these regions to an astounding Dhs53tn, accounting for 44 per cent of global trade by 2030.

The UAE’s export forecast

The report says the UAE’s transformation from “a petroleum-driven economy to a high-tech manufacturing and innovation hub” will see its exports projected to reach around Dhs2 trillion by 2030.

Driven by the government’s push to facilitating cross-border trade, the UAE is undergoing substantial capacity expansions in critical industries. The report notes the country has achieved an export diversity which is pushing its exports into non-oil sectors through relaxing foreign ownership rules and offering attractive incentives. Metals and minerals, gold trading, and machinery and electricals will comprise the bulk of the export capabilities.

India, China, and Singapore will be the key corridors for the UAE from 2020 to 2030. While, the UAE and Hong Kong will play a role as major trade hubs for re-exports.

Rola Abu Manneh, chief executive officer, Standard Chartered UAE, said, “The UAE’s success in diversifying its exports along with the development of new trade corridors positions the country favourably for sustained growth and reinforces its economic resilience.”

She added, “These trade projections further cement the UAE’s position as the regional trade hub. The UAE continues to advance trade integration, and spearheads diversification efforts with policies supporting innovation and sustainability. We maintain a positive outlook on the UAE’s ability to capitalise on these opportunities and sustain its upward trajectory in global trade arena,” she concluded.

Saudi Arabia export corridors

Saudi Arabia will be a key driver in the global trade growth, with its exports projected to reach $418bn by 2030 with an annual growth rate of 4.8 per cent.

India, Singapore, and the UAE are among its fastest-growing export corridors, while China will remain the largest export destination for Saudi Arabia. Metals and minerals, plastics and rubbers, chemicals and pharmaceuticals is forecast to form the bulk of the kingdom’s export.

Saudi Arabia is boosting trade through increasing industrial production. The ‘Saudi Vision 2030’ provides a roadmap for the development of new economic sectors, in order to diversify its economy away from oil, and transition to one that is digital and knowledge-based.

Saudi Arabia envisions itself to become the next global logistics hub. In October 2022, the country announced plans to build 59 new logistic zones across the nation and is also aiming to improve its liner shipping connectivity by introducing new routes between Asia and Europe.