UAE non-oil foreign trade hits record Dh3 trillion on Cepa boost

Country's trade grew 14.6 per cent last year as it focused on diversifying its economy

The UAE's Cepas added Dh135 billion to its non-oil trade with partner nations last year. Photo: DP World

The UAE's non-oil foreign trade hit a record Dh3 trillion ($816.7 billion) last year − up 14.6 per cent year-on-year − as the country continues to diversify its economy and forges closer trade ties with countries around the world.

The Comprehensive Economic Partnership Agreements (Cepas) that the UAE has signed with various nations, from Colombia to Australia, have contributed Dh135 billion to its non-oil trade with partner nations, an increase of 42 per cent compared to the previous year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on Wednesday on X.

“While global trade grew by just 2 per cent in 2024, the UAE’s foreign trade expanded at seven times that rate, achieving an impressive 14.6 per cent growth,” he said.

“In 2021, we set a goal of reaching Dh4 trillion in annual foreign trade by 2031. By the end of 2024, we have already achieved 75 per cent of that target. At this pace, we will reach it years ahead of schedule.”

The UAE, which has set the target of achieving Dh4 trillion in foreign trade by 2031 as part of its national economic goals, is developing non-oil sectors and deepening ties with strategic trading partners to bolster long-term growth prospects. The UAE, the Arab world's second largest economy and the region's tourism and finance hub, has also invested heavily in trade and logistics infrastructure including modern marine ports and airport infrastructure to attract foreign investors.

Since 2021, the country has signed a series of Cepa deals with fast-growing economies in Asia, the Middle East and Africa, helping to boost the volume of non-oil foreign trade. These countries include India, Indonesia, Turkey, Israel, Cambodia and Georgia. This month, the UAE signed Cepa deals with New Zealand and Malaysia to deepen trade ties and improve market access, reduce or eliminate tariffs and ease customs procedures.

“The UAE is shaping its own economic future, focusing on progress over politics. Our priority is to strengthen economic partnerships with nations around the world – because prosperity is built on stability,” Sheikh Mohammed said.

“The UAE has a clear vision and bold ambitions. In this world, success belongs to those who know exactly where they are headed.”

Top trade partners

The UAE's non-oil trade with India grew by 20.5 per cent year-on-year to Dh240.3 billion and with Turkey by 11.5 per cent on an annual basis to Dh148.9 billion last year, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a post on X on Wednesday.

“The positive impact of the UAE's Cepa programme is evident, with non-oil exports to partner nations reaching Dh135 billion in 2024, a 42.3 per cent increase over 2023 and accounting for 24 per cent of our total exports,” Dr Al Zeyoudi said.

“With our foreign trade growth outpacing global trends, and having achieved 75 per cent of our Vision 2031 target of Dh4 trillion, the UAE remains committed to greater trade and investment openness – and to solidifying our position as a gateway to opportunity.”

The UAE's non-oil trade with its top 10 global partners grew by 10 per cent, while trade with other countries expanded by 19.2 per cent year-on-year last year, according to Wam, the country's state news agency.

The rise was mainly driven by a surge in non-oil goods trade, which increased by 27.6 per cent to Dh561.2 billion last year, it said.

The share of exports in the UAE's non-oil foreign trade rose to 18.7 per cent last year, up from 16.8 per cent in 2023.

Among the UAE's top exports last year were gold, jewellery, cigarettes, petroleum-based oils, aluminium, copper wires, printed materials, perfumes and iron-based products, which together recorded a 40.8 per cent growth compared to 2023.

The value of re-exports rose 7.3 per cent year-on-year to more than Dh734 billion last year, it said in a report on Wednesday.

UAE imports amounted to Dh1.7 trillion last year, an increase of 14.2 per cent on the year before.

Imports from the UAE's top 10 trade partners rose by 6.7 per cent, while imports from other nations grew by 22.3 per cent.

Key imported goods included gold, mobile phones, petroleum oils, cars, jewellery, diamonds, and computers.

The UAE 's trade growth comes despite geopolitical headwinds. In November, the World Trade Organisation said that the volume of global goods trade is now expected to grow by 2.7 per cent in 2024 and 3 per cent in 2025, accompanied by world GDP growth at market exchange rates of 2.7 per cent in both years.

“Against a backdrop of geopolitical tensions and more frequent and serious climate change related crises, there is increasing evidence of inward-looking and unilateral trade policy decisions creating uncertainty for the world economy,” it said.

On the global stage, investors are now concerned that a trade war between the US and China may impact economic growth and global consumption.