Dubai’s non-oil trade with Latin America reached AED17 billion in value in 2015, according to a recent study conducted by the Dubai Chamber of Commerce and Industry (DCCI) in the run-up to the Global Business Forum (GBF) on Latin America taking place on November 9-10 at Atlantis, The Palm, in Dubai.
The sum shows growth by 26% when compared with the AED13.5 billion traded in 2010. The report goes on to project continued growth in trade until 2018, buoyed by growing demand in Dubai and the UAE, on the one hand, and Latin America, on the other.
Moreover, the study indicates that Brazil tops the list of Dubai’s trade partners in Latin America, seeing as non-oil trade between the two parties constituted 67% of the emirate’s total exports and imports from the region, and included food products and major commodities. Dubai’s cane sugar imports from Brazil, for instance, reached AED1.9 billion in value, followed by gold – including plated with platinum, raw, semi-manufactured, or powder forms – at AED1 billion.
Meanwhile, Mexico ranked as Dubai’s second-largest non-oil trade partner in Latin America, with the emirate’s mobile device imports alone reaching approximately AED1.3 billion in value, while the total value of imports of Mexican gold – also including plated with platinum, raw, semi-manufactured, or powder forms – reached AED381 million.
According to the study, Dubai’s re-exports to Mexico of parts for use with lifting and moving machinery reached AED53 million in value, while re-exports of electric generating sets and rotary converters to Brazil, were valued at AED 50 million.
Chile ranked as Dubai’s second-largest export market in Latin America – after Brazil – with a 13% share of trade volume; nonetheless, the country was not a major exporter to the emirate. Suriname, as a major exporter of raw and semi-manufactured gold to Dubai, was the emirate’s third-largest trading partner, while Argentina came in fourth, with a share of 10% of total exports and 3% of total imports.
His Excellency Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry, said: “Despite the instability unfolding in the global economy – accompanied with dwindling demand – Dubai has succeeded in attracting global capital, which stands to develop the economy, and cement Dubai’s position as a secure business destination, offering an ideal environment for business and entrepreneurship.”
H.E. added: “Dubai has come to be known internationally for its favourable business environment due to our visionary leaders who encourage future-focused planning, and formulating innovative strategies that reflect positively on the competitiveness of Dubai’s imports in the global markets. This leads to increased global demand for the emirate’s imports and, subsequently, to a more developed trade network.”
What is more, the study reveals the high competitiveness of Dubai’s exports to Latin America by examining their Revealed Comparative Advantage (RCA) – an index used in international economics for calculating the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows. Dubai’s exports of crude Aluminium to Brazil amounted to AED44 million in value and had an RCA exceeding 1,000%. Crude Aluminium exports to Mexico, meanwhile, totalled AED53 million in value and scored an RCA of nearly 10,000%. The emirate’s exports of Polymers of ethylene (in primary forms) were, likewise, competitive in the two Latin America countries, as indicated by an RCA well above 100%.
The study was conducted while the Dubai Chamber is in the process of organising the Global Business Forum on Latin America 2016, which will bear the theme “Shifting Synergies”. The Forum is part of a series of business events the Chamber has been organising since 2012 to explore new business opportunities in key emerging markets around the world, including in Africa, the Commonwealth of Independent States, and Latin America.