Kavan Choksi- Trade Between the UAE and Saudi Arabia Exceeded $17.8bn In The First Half of 20222 min read
Official sources report that trade between Saudi Arabia and the UAE has totaled 17.8Bn or AED65.7 billion in the first six months of 2022, with the region being ranked as one of the top three trading partners with the United Arab Emirates. Both regions are the two largest economies in the world and have potent economic and trade relations.
Kavan Choksi on the trading ties between the UAE and Saudi Arabia
Business and finance expert Kavan Choksi states that in the period between the years 2012 to 2021. Saudi Arabia was the fourth-largest trading partner with the UAE, amounting to a total trading value of 904.3 billion dirhams or 5.6% of the total international trade in the region. The Federal Competitiveness and Statistics Center or FCSC issued this data.
Foreign trade in the non-oil sectors between these two nations increased by 92.5% in the past ten years to 124.69 billion dirhams in 2021, compared to 64.79 billion dirhams in 2012.
The value of exports from the non-oil sectors from the United Arab Emirates to Saudi Arabia in the last ten years was approximately 205.5 billion dirhams, while the number of re-export was placed at the value of 471. Billion dirhams and imports are set at 227 billion dirhams, as per reports issued by the FCSC.
The rank of Saudi Arabia in the re-export destinations
Saudi Arabia bagged the top rank in the list of destinations for re-exports for The United Arab Emirates in the last decade, accumulating revenue estimated at approximately 423 billion dirhams. The kingdom was placed second when it came to the list of nations receiving exports in the Emirati non-oil sector, with its revenue valued at 206 billion dirhams constituting 9.5% of the total exports from the non-oil sectors in the UAE.
In context with the above, the volume of bilateral trade has increased as both of these economies are growing at an accelerated pace after the economic slowdown caused by the COVID-19 pandemic.
According to business, economic analysts, and the International Monetary Fund, it is anticipated that the economy of Saudi Arabia is all set to grow at the quickest speed in the next ten years and will emerge as one of the globe’s fastest-growing economies in 2022. It is projected to increase by 7.6% in 2022 after a 3.2% growth in 2021, as per reports released by the IMF.
Rapid economic growth in the region
Data from Gastat early this month revealed that the economy of the kingdom increased by 12.2% in the second quarter of this year, exceeding estimates initially made by economic analysts and by registering the fastest growth in over a decade due to higher costs.
Business and finance expert Kavan Choksi states that the economy of the UAE grew by 8.4% in the first three months exceeding the initial estimate of 8.2% made by the Central Bank of the UAE. This growth was triggered by higher prices of oil and the effective coronavirus mitigation measures generating a rapid yearly increase since 2011.