Dubai - Mubasher: The UAE is becoming increasingly competitive in Saudi Arabia’s import market, as the Kingdom constitutes the 2nd largest destination for UAE-made products after India, according to a recent report compiled by Dubai Chamber of Commerce and Industry .
The movement of goods between the two countries has been facilitated by the GCC customs unification procedures and efficient transportation system. According to the UAE Federal Customs Authority data, the UAErecorded an AED 40 million trade surplus with Saudi Arabia in 2014, as it gears up to release its 2015 data.
The numbers show a clear improvement in the UAE’s competitiveness as a source market for Saudi Arabian imports.
The UAE's share in Saudi Arabia’s import market increased from 4% in 2012 to 5% in 2015. Similarly, the spectrum of imported products expanded as well; in 2012, Saudi Arabia imported 401 types of products from the UAE – 38% of all types of imported products during that year – while in 2015, the number rose to 586 types, or 52% of the 1,123 types of products KSA imported during that year.
Moreover, the numbers show, trade between the region’s two largest economies has borne the brunt of falling oil prices in the global market. With crude prices on the rise in recent months, demand for imported goods in both countries is poised to maintain its high levels, painting an optimistic image of the near economic future of the region, the report added.
KSA imports from its neighbour diversified to include items such as pearls, precious stones, metals, and coins,which dominated the list in 2015, making up 22% of the UAE’s total exports of these products, and 32% of the Kingdom’s net global imports of the product group, worth $3.7 billion.
