ID :
124188
Tue, 05/25/2010 - 14:40
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https://oananews.org//node/124188
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Germany is UAE's 5th largest trade partner, with non-oil trade reaching US$8.4 billion
Abu Dhabi, May 25, 2010 (WAM)- The Ministry of Foreign Trade has issued an analytical study on the nature of investment and trade relations between the United Arab Emirates and the Federal Republic of Germany. The study examined the current opportunities that are available to develop these relations in light of the advances both countries are witnessing in various sectors.
The study comes within the framework of the ministry's mission and vision which is based on the government's strategy of increasing awareness, exploring new export markets, increasing the competiveness of UAE exports and providing the suitable environment to encourage the private sector to engage in export activities.
The study, which was prepared by the Ministry's "Trade Analysis and Information Department", revealed that economic ties between the UAE and Germany have witnessed steady progress during the past few years which has been reflected in the volume of bilateral trade and investment.
The value of non-oil commercial exchange between the two countries has gone up from US$6.188 billion in 2006 to US$8.448 billion in 2009, with a 36.5% increase, while non-oil commercial exchange reached US$10.609 billion in 2008, pointing out that Germany is considered the UAE's 5th largest trade partner. Moreover, Germany's share in the UAE's total non-oil trade was 4.7% during 2009.
The study, which was prepared by Economic Specialist Mr. Ahmed Al Ananbeh, under the supervision of Dr. Mattar Ahmad, the director of the Ministry's Trade Analysis and Information Department, revealed that there are currently close to 157 German companies in the UAE, placing Germany at the 3rd place in the list of countries with the most companies in the UAE, preceded in this regard by the United Kingdom and the United States of America.
The report also revealed that during the period between 1982 - 2009, the total number of commercial agencies reached 418 and the number of registered trademarks was 4868.
Bilateral Trade - Non-oil bilateral trade between the UAE and Germany witnessed a noticeable increase during the past years. Non-oil exports were approximately US$91 billion in 2009, with a 26% increase from 2008, while the value of re-exports to Germany registered a 56.4% decline from 2008, at US$190 billion, which is considered closer to the 2007 figures.
In the mean time, imports from Germany into the UAE decreased by 19.1% reaching US$8.167 billion, also considered similar to 2007 figures.
This has led to the overall decrease of non-oil foreign trade between the two countries to US$8.4 billion, out of which US4281 million was the total value of UAE exports to Germany which is ranked fifth in the UAE's 2009 and 2008 non-oil overall foreign trade geographic structure, and in 25th place in the list of states importing from the UAE for the year 2009, advancing from the 33rd place in 2008. Germany also holds the 30th position in the list of the most important re-export destinations from the UAE during 2009, going back from the 20th position in 2008. It's also in the 4th position in the list of the most exporting states to the UAE in 2009, advancing by one spot from the previous year.
The Commodity Structure - According to government figures, the UAE's non-oil exports to Germany constituted 80% of the UAE's overall exports to Germany, with a 61.7% increase from 2008 mainly due to the increase in the export of polyether, polycarbonates, polyester and similar products by approximately 129%, reaching over US$19 million.
As for re-exports, data reveals that topping the list of the UAE's re-exports to Germany were machinery, equipment, and special metals such as gold, as well as pearls.
German Investments in the UAE According to the latest figures, German investments in the United Arab Emirates reached approximately US$165 million in 2006, with a 66% increase from 2005, constituting 0.9% of all direct investments in the state during 2006 which were approximately US$19 billion, and approximately US$34 million during 2007.
German investments in the UAE are mainly in extraction, manufacturing, power generation, infrastructure, and event organisation.
The UAE's political stability, vibrant economy, strategic geographic location as an entry point to all of the regions markets, the availability of investment opportunities in the energy sector, especially in renewable energy [IRENA's Host Country], ease of investment procedures, available modern infrastructure, and other facts all contribute towards its attractiveness as a foreign investment destination.
Recommendations - The analytical study, through a number of recommendations concerning the commercial and investment ties between the UAE and Germany, underlined the importance of working in the near future on strengthening investment cooperation between the two states and on attracting more German investments to the UAE and maximising the benefits of both country's investment climates through utilising the UAE's geographic location in advancing re-export commerce with Germany, especially that the UAE is right between South Asia, the Middle East and Africa, and owns maritime ports that are known for their highest standards and efficiency and operation, and also through utilising Germany's strategic location in Europe.
The study also recommended utilising the benefits of the Greater Arab Free Trade Area to attract more German companies to invest and set up joint industrial projects with the UAE. It also underlined the importance of paying more attention towards jointly investing in the renewable energy sector, because this sector is considered one of the most prominent new sectors that plays an important role in the UAE's efforts towards economic diversification, especially that the UAE owns globally renowned renewable energy projects even though it is one of the world's primary oil producers. – Emirates News Agency, WAM
The study comes within the framework of the ministry's mission and vision which is based on the government's strategy of increasing awareness, exploring new export markets, increasing the competiveness of UAE exports and providing the suitable environment to encourage the private sector to engage in export activities.
The study, which was prepared by the Ministry's "Trade Analysis and Information Department", revealed that economic ties between the UAE and Germany have witnessed steady progress during the past few years which has been reflected in the volume of bilateral trade and investment.
The value of non-oil commercial exchange between the two countries has gone up from US$6.188 billion in 2006 to US$8.448 billion in 2009, with a 36.5% increase, while non-oil commercial exchange reached US$10.609 billion in 2008, pointing out that Germany is considered the UAE's 5th largest trade partner. Moreover, Germany's share in the UAE's total non-oil trade was 4.7% during 2009.
The study, which was prepared by Economic Specialist Mr. Ahmed Al Ananbeh, under the supervision of Dr. Mattar Ahmad, the director of the Ministry's Trade Analysis and Information Department, revealed that there are currently close to 157 German companies in the UAE, placing Germany at the 3rd place in the list of countries with the most companies in the UAE, preceded in this regard by the United Kingdom and the United States of America.
The report also revealed that during the period between 1982 - 2009, the total number of commercial agencies reached 418 and the number of registered trademarks was 4868.
Bilateral Trade - Non-oil bilateral trade between the UAE and Germany witnessed a noticeable increase during the past years. Non-oil exports were approximately US$91 billion in 2009, with a 26% increase from 2008, while the value of re-exports to Germany registered a 56.4% decline from 2008, at US$190 billion, which is considered closer to the 2007 figures.
In the mean time, imports from Germany into the UAE decreased by 19.1% reaching US$8.167 billion, also considered similar to 2007 figures.
This has led to the overall decrease of non-oil foreign trade between the two countries to US$8.4 billion, out of which US4281 million was the total value of UAE exports to Germany which is ranked fifth in the UAE's 2009 and 2008 non-oil overall foreign trade geographic structure, and in 25th place in the list of states importing from the UAE for the year 2009, advancing from the 33rd place in 2008. Germany also holds the 30th position in the list of the most important re-export destinations from the UAE during 2009, going back from the 20th position in 2008. It's also in the 4th position in the list of the most exporting states to the UAE in 2009, advancing by one spot from the previous year.
The Commodity Structure - According to government figures, the UAE's non-oil exports to Germany constituted 80% of the UAE's overall exports to Germany, with a 61.7% increase from 2008 mainly due to the increase in the export of polyether, polycarbonates, polyester and similar products by approximately 129%, reaching over US$19 million.
As for re-exports, data reveals that topping the list of the UAE's re-exports to Germany were machinery, equipment, and special metals such as gold, as well as pearls.
German Investments in the UAE According to the latest figures, German investments in the United Arab Emirates reached approximately US$165 million in 2006, with a 66% increase from 2005, constituting 0.9% of all direct investments in the state during 2006 which were approximately US$19 billion, and approximately US$34 million during 2007.
German investments in the UAE are mainly in extraction, manufacturing, power generation, infrastructure, and event organisation.
The UAE's political stability, vibrant economy, strategic geographic location as an entry point to all of the regions markets, the availability of investment opportunities in the energy sector, especially in renewable energy [IRENA's Host Country], ease of investment procedures, available modern infrastructure, and other facts all contribute towards its attractiveness as a foreign investment destination.
Recommendations - The analytical study, through a number of recommendations concerning the commercial and investment ties between the UAE and Germany, underlined the importance of working in the near future on strengthening investment cooperation between the two states and on attracting more German investments to the UAE and maximising the benefits of both country's investment climates through utilising the UAE's geographic location in advancing re-export commerce with Germany, especially that the UAE is right between South Asia, the Middle East and Africa, and owns maritime ports that are known for their highest standards and efficiency and operation, and also through utilising Germany's strategic location in Europe.
The study also recommended utilising the benefits of the Greater Arab Free Trade Area to attract more German companies to invest and set up joint industrial projects with the UAE. It also underlined the importance of paying more attention towards jointly investing in the renewable energy sector, because this sector is considered one of the most prominent new sectors that plays an important role in the UAE's efforts towards economic diversification, especially that the UAE owns globally renowned renewable energy projects even though it is one of the world's primary oil producers. – Emirates News Agency, WAM
