Imports of machinery and equipment are likely to help trade increase to $500 billion by 2020 as the UAE and China strengthen their trade relationship in the coming years, a recent study by the Dubai Chamber of Commerce and Industry has revealed.
According to the study, trade between the two countries in the last decade (1999 to 2009) reached $119.4 billion (AED438.4 billion). The study also says that the UAE has benefited from its strategic location, its cost and market advantages as well as from its status as an international business hub between the Western and Eastern markets, the study says.
Trade in 2009 was about $21.1 billion, according to official figures from the Chinese embassy in the UAE.
Compared with China’s total trade with the GCC, the UAE has a big share. Trade between the GCC and China stood at about $70 billion in 2009. According to some estimates, it will reach $350 billion to $500 billion by 2020.
The analysis pointed out that trade has mostly centred on base metals and related materials exported by the UAE and cheap Chinese goods coming into the UAE. But trade also comprises a large array of other goods and services.
Unsurprisingly the UAE is using China as one of its main sources for textiles, machinery, base metals and plastics and rubber products. Construction materials such as bricks and dressed stone, hardware supplies and heavy machinery, and related parts and accessories, form much of the imports, according to data by the Commercial Office of the Chinese Consulate in Dubai.
Other popular imports include tyres and other rubber products as well as machine tools. Smaller metal products such as domestic kitchenware and white goods are also on the list.