Abu Dhabi’s first-half non-oil trade jumps 12% to $34bn

Abu Dhabi recorded a 12 per cent rise in non-oil foreign trade to Dh124 billion ($33.7bn) in the first half of 2022, as the UAE’s economy continues to recover from the coronavirus pandemic.

Total exports in the six months to the end of June climbed 26 per cent to Dh49.5bn, while imports and re-exports increased 4 per cent and 6 per cent to Dh51.5bn and Dh23bn, respectively, Abu Dhabi Media Office tweeted on Friday, citing data from the emirate's customs department.

Trading of precious metals and gemstones during the period rose 40 per cent to Dh17.2bn, while broadcasting equipment trading increased 23 per cent to Dh17.9bn.

Normal metals trading, meanwhile, grew 22 per cent to Dh24.5bn, the data indicated.

Saudi Arabia was Abu Dhabi's biggest trading partner in the first half, with total trade values reaching Dh28.6bn, up 3 per cent compared with the same period last year, state-news agency Wam reported.

It was followed by Switzerland at Dh9.5bn (up 260 per cent), the US at Dh9.3bn (up 21 per cent) and China, the world's second-largest economy at Dh5.95bn (up 9 per cent). The total trade with Kuwait jumped 13 per cent annually to Dh5.8bn.

Abu Dhabi Customs has developed an effective customs work system through the land, sea and air ports to facilitate inspections and complete transactions “in a expedited and proper manner", said Rashed Al Mansoori, director general of general administration of customs at Abu Dhabi Customs.

“This has led to a positive effect on co-operation with strategic partners concerning the increase of the value of commercial exchanges and their growth during the first half of this year compared to the same period in 2021."

Digital transformation and new technology such as artificial intelligence have also enhanced the efficiency of the customs sector, which will further boost Abu Dhabi’s stature as a global capital of trade, Mr Al Mansoori said.

The latest data comes as the UAE’s economy rebounds strongly from the pandemic-induced slowdown on the back of government measures and higher oil prices.

The Arab world’s second largest economy, which expanded by 3.8 per cent in 2021, is forecast to grow by 5.4 per cent and 4.2 per cent in 2022 and 2023, respectively, the latest projections from the country’s central bank showed. The UAE economy grew by 8.2 per cent in the first three months of this year.

Abu Dhabi's non-oil economy grew an annual 4.1 per cent last year, driven by several stimulus initiatives for business and household sectors, figures compiled by Statistics Centre — Abu Dhabi (SCAD) showed.

The emirate's non-oil foreign trade also jumped an annual 15 per cent to more than Dh61.5bn in the first quarter of 2022.

Abu Dhabi is diversifying its economy with a focus on the non-oil sector and recently unveiled a new industrial strategy which aims to more than double the size of the emirate’s manufacturing sector to Dh172bn by 2031.

The new strategy will also focus on boosting Abu Dhabi’s trade with international markets, with the aim of increasing the emirate's non-oil exports by 143 per cent to Dh178.8bn by 2031, the Abu Dhabi Government Media Office said at the time.

The UAE is also signing new trade deals to support the economy and boost investments.

It signed Comprehensive Economic Partnership Agreements with India, Israel and Indonesia this year and is negotiating with other countries on similar deals.

Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

A Cat, A Man, and Two Women
Junichiro Tamizaki
Translated by Paul McCarthy
Daunt Books

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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UAE currency: the story behind the money in your pockets

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”