Trade as a Growth Engine
The UAE’s geographic position at the crossroads of Europe, Asia, and Africa, combined with world-class logistics infrastructure, has established trade as a foundational pillar of economic activity. Non-oil foreign trade exceeded AED 2.8 trillion in 2024, reinforcing the country’s status as the Middle East’s preeminent trading hub. The government’s target of AED 4 trillion in non-oil trade by 2031 demands sustained expansion of bilateral corridors and deepening integration into global value chains.
Top Non-Oil Trading Partners
| Partner | Non-Oil Trade (AED bn, 2024) | Share (%) | YoY Growth (%) |
|---|---|---|---|
| China | 312.4 | 11.2 | 8.6 |
| India | 284.7 | 10.2 | 12.4 |
| United States | 178.3 | 6.4 | 5.1 |
| Saudi Arabia | 156.8 | 5.6 | 7.3 |
| Japan | 112.6 | 4.0 | 3.8 |
| Germany | 98.4 | 3.5 | 4.2 |
| United Kingdom | 94.1 | 3.4 | 6.7 |
| South Korea | 87.3 | 3.1 | 5.4 |
| Turkey | 82.6 | 3.0 | 9.1 |
| Switzerland | 78.2 | 2.8 | 2.3 |
India and China together account for over 21% of UAE non-oil trade, with India emerging as the fastest-growing major corridor. The Comprehensive Economic Partnership Agreement (CEPA) with India, operational since May 2022, has demonstrably accelerated bilateral flows, particularly in gems, jewellery, textiles, and agricultural products.
CEPA Strategy and Progress
The UAE has pursued an aggressive bilateral trade agreement strategy through its CEPA programme, targeting rapid deal closure with strategic partners.
| CEPA Partner | Status | Effective Date | Priority Sectors |
|---|---|---|---|
| India | Operational | May 2022 | Gems, textiles, agriculture |
| Israel | Operational | April 2023 | Technology, agriculture, defence |
| Turkey | Operational | September 2023 | Manufacturing, food, logistics |
| Indonesia | Operational | March 2024 | Palm oil, manufacturing, digital |
| Cambodia | Signed | 2024 | Agriculture, garments |
| Georgia | Signed | 2024 | Agriculture, tourism |
| South Korea | Under negotiation | Pending | Technology, automotive, energy |
| Colombia | Under negotiation | Pending | Agriculture, mining, services |
The CEPA framework prioritises tariff reduction on identified product lines, mutual recognition of standards, and facilitation of services trade. Early evidence from the India CEPA suggests bilateral trade uplift of 15-20% within the first two years of implementation.
Re-Export Dynamics
The UAE’s role as a re-export hub constitutes a distinctive feature of its trade model. Approximately 30-35% of non-oil imports are subsequently re-exported, primarily to markets in the GCC, East Africa, South Asia, and the CIS region. This intermediation function is supported by free zone infrastructure, efficient customs processing, and extensive maritime and air connectivity.
Jebel Ali Port, the largest in the Middle East, handles approximately 15 million TEUs annually, while Dubai’s Al Maktoum International Airport is positioned for expansion as a cargo gateway. Abu Dhabi’s Khalifa Port and the northern emirates’ port facilities provide complementary capacity for specific commodity flows.
Trade Composition
| Category | Export Share (%) | Import Share (%) |
|---|---|---|
| Gold & Precious Metals | 18.4 | 14.2 |
| Machinery & Electronics | 12.7 | 16.8 |
| Mineral Fuels (non-crude) | 11.3 | 4.1 |
| Vehicles & Transport | 8.6 | 9.4 |
| Gems & Jewellery | 7.8 | 8.1 |
| Food & Agriculture | 3.2 | 7.6 |
| Chemicals & Plastics | 6.4 | 6.3 |
| Metals & Metal Products | 5.9 | 5.8 |
Strategic Assessment
The UAE’s trade architecture is well-positioned for continued expansion. The CEPA programme is creating preferential access to high-growth markets, while infrastructure investment is expanding physical throughput capacity. The principal challenge lies in moving up the value chain: increasing the share of domestically manufactured goods in exports, rather than relying predominantly on re-export intermediation. Operation 300bn’s industrial targets directly address this structural objective, aiming to raise manufactured exports as a proportion of total non-oil trade.