Foreign trade in the United Arab Emirates surges to an astonishing AED 5.23 trillion in the year 2024.
The United Arab Emirates (UAE) has once again proven its resilience in the face of global challenges, as its foreign trade growth in 2024 stands out as a testament to its robust economic strategy. According to Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, the UAE's trade performance is a testament to its resilience in the face of rising tariffs and global uncertainties.
The UAE's remarkable growth in foreign trade, which increased by 49% from AED 3.5 trillion in 2021 to AED 5.23 trillion (US$ 1.424 trillion) in 2024, can be attributed to several key factors.
Firstly, the UAE has been actively diversifying its economy, moving away from oil dependency by focusing on non-oil sectors. This strategic shift has contributed to a robust growth in various sectors, including trade. The growth in non-oil foreign trade, which increased by 13.8% in 2024, reflects the success of this diversification strategy.
Secondly, the UAE's strong tourism and inbound investment have been significant drivers for trade. The country's reputation as a business-friendly hub attracts investments, further enhancing its trade capabilities. The UAE's strategic location also makes it an attractive partner for global trade.
Thirdly, the UAE boasts world-class infrastructure, including major ports and logistics facilities, making it an ideal location for international trade. This infrastructure supports both traditional and digital services by facilitating efficient transportation and communication networks.
Fourthly, the UAE's push for innovation and digital transformation likely played a role in its trade growth. The country has been investing heavily in digital infrastructure and promoting e-commerce, which could contribute to the growth in digital services trade, although specific details on digital services are not explicitly mentioned.
The UAE's trade growth is also a result of favourable global economic conditions. The global economic recovery post-pandemic has been favourable for trade, with the UAE positioning itself as a key player in international trade flows.
The UAE's trade growth was noteworthy as it occurred during a year of modest global trade growth. In 2024, global trade grew at a modest 2.9% for merchandise and 6.8% for services. Despite a forecasted decline in global merchandise trade for 2025, the UAE's trade growth is expected to help it maintain its position at the forefront of global trade.
The UAE's strategic economic vision, innovative leadership, and strong international partnerships are underscored by its remarkable foreign trade growth. The nation's commitment to openness and connectivity, as emphasised by His Highness Sheikh Mohammed bin Rashid Al Maktoum, positions the UAE as a crucial link between East and West.
Services exports in the UAE reached AED 646.6 billion in 2024, with digital services accounting for 30%. The UAE's trade surplus stood at AED 492.3 billion in 2024, reflecting a stable and robust trade balance.
The UAE is highlighted as a leading trade hub in the Middle East and Africa in the World Trade Organization's "World Trade Outlook and Statistics" report. The country has held the position of a top 20 global trade center since 2014. The UAE's trade growth is attributed to innovative leadership and strong international partnerships, which Dr. Thani bin Ahmed Al Zeyoudi emphasised as crucial in maintaining the UAE's position in global trade.
The UAE's remarkable growth in foreign trade can be attributed to its strategic economic vision, innovative leadership, and strong international partnerships. These elements, as emphasized by Dr. Thani bin Ahmed Al Zeyoudi, play a significant role in maintaining the UAE's position as a key player in global trade, especially in the provision of digital services, which account for 30% of services exports in the UAE.
