An expert attributed the decline to increased cost of productionTruth Consultancy
«Statistics Abu Dhabi»: 61.4% decline in exports and the increase in re-exports 55%
Abeer Abdul Halim – Abu Dhabi
Reda Musallam: The value of re-exports is still small, for the great potential of the emirate.
Abu Dhabi’s non-oil exports declined to AED 3.8 billion in January and February, down 61.4% from the same period last year, while re-exports rose by 55%, according to the Abu Dhabi Statistics Center.
The Center pointed out in a report yesterday that the value of foreign trade through the emirate’s ports increased during January and February to 32 billion dirhams, compared to 30.9 billion dirhams during the same period last year, up 3.7%, due to the increase in the value of re-exports by 55.2%, and imports by 30.3%.
An economic expert pointed out that the decline in non-oil exports is due to the high cost of production, for many commodities in Abu Dhabi, especially after the liberalization of the price of fuel and the high rental values of real estate.
According to the Abu Dhabi Statistics Center, the value of foreign trade through the emirate’s ports increased in January and February to 32 billion dirhams, compared to 30.9 billion dirhams in the same period last year, an increase of 3.7%.
In a report released yesterday, the Center said that the increase in the value of re-exports to AED 4.8 billion in January and February compared to AED 3.1 billion in January and February From 2016, an increase of 55.2%. The value of imports increased to AED 23.4 billion, compared to AED 17.9 billion, a 30.3% increase during the comparison period.
Non-oil exports dropped to AED 3.8 billion in January and February, compared to AED 9.8 billion, down 61.4 percent over the same period last year.
China topped the list of non-oil exports, followed by Saudi Arabia and the United States, while the Abu Dhabi Free Zone was the region’s leading export re-exporter, followed by China and Saudi Arabia. While the United States topped the list of imports of the emirate, followed by Brazil and South Korea, respectively. “The decline in non-oil exports is due to the high cost of production for many commodities in Abu Dhabi, especially after the liberalization of the price of fuel, water and electricity prices, Rental values of real estate ».
He called for reconsidering some aspects of production, in order to increase industrial production and exports and reduce imports, pointing out that there are many challenges and obstacles to production, such as increased cost, and rents in industrial areas, for example, very high, compared to some Neighboring countries, which requires a reduction to make them more competitive. He also called for the restructuring and regulation of imports and a detailed map to identify the main and indispensable imports, such as imports of raw materials for industry and recreational imports that can be dispensed with, in order to further balance the trade balance of the emirate.
He pointed to the need to work to maintain the traditional markets for exports of the emirate, and the entry of new markets. He pointed out that the value of re-exports by more than 55%, while stressing that the value of re-export is still small for the great potential of the emirate, as a re-export center, which can be doubled during the coming period.