UAE imports from Japan hit US$8b

Abu Dhabi, Aug 13, 2008 (WAM)- Japan's exports to UAE surpassed to US$8 billion mark for the first time, in 2007. Exports rose by 33.1 per cent to 8,052.66 million in 2007, compared to US$6,050.10 million in 2006.

A remarkable increase in the demand for machinery and equipment in the UAE could be seen as a major reason for this surge in exports according to a report in 'The Gulf Today.'

Around 96 per cent of Japan's exports to the UAE are classified as
manufactured products. The remaining 4 per cent is constituted of foodstuff,
raw materials and mineral fuels.

Machinery and equipment covered nearly 75 per cent of Japan's exports to the
UAE. Export of transport equipment, the main driving force behind the
increases in Japan's exports to the UAE, surged by 44.58 per cent in 2007 to
US$3,712.6 million, compared to 2,567.9 million in 2006. Within this
category, export of passenger motorcars with gasoline engines, having
capacity between 1,500 cc and 3,000 cc surged by 71.5 per cent to 1,364.0
million. Export of higher capacity cars (above 3000 cc) increased by 67.5
per cent to 911.1 million.

Export of general machinery surged by 26.03 per cent to US$1,225.3 million
in 2007, compared to 972.3 million in 2006. Major items in this category
include shovels, bulldozers, cranes, diesel engines, self-propelled trucks,
pumps, compressors etc.

Export of electrical machinery surged by 25.18 per cent to US$1,000.8
million.

Major items included TV/Digital/Video Camera/Recorders, television sets,
transformers, automatic circuit breakers, monitors for computers, telephone
sets etc.

Export of textiles grew by 18 per cent in 2007 to US$ 184.5 million. Textile
exports from Japan to the UAE has been on a growing trend for the past
several years with an average 15 per cent growth annually. Traditionally the
United Arab Emirates has been Japan's number one export market for certain
textile materials such as woven fabrics of polyester staple fibre, of
syntactic filament yarn and of acrylic staple fibre.

Foodstuff exports, consisted mainly of prepared foodstuff and beverages,
rose by 16.5 per cent to US$ 26.3 million in 2007. As Japan is now planning
to take new steps to increase the export of food items, such as, fresh
fruits and Wagyu (Japanese beef) through various promotions, export of these
products may have a major boost in the coming years.

Mineral fuels that include crude oils and gaseous hydrocarbons dominate
Japanese imports from the UAE. In 2007, Japan imported 3.9 per cent less
volume of crude oil from the UAE, which helped to reduce the impact of the
rise in the price of crude oils during the year. Japan's total imports from
the UAE however grew by 2.24 per cent to US$32.3 billion, against 31.6
billion in 2006.

This relatively low rate of growth was against the growth rates of 24.7 per
cent, and 38.0per cent in 2006 and 2005 respectively.

Japan imported a total of 378.5 million barrels of crude oils from the UAE
during the year 2007, against 393.7 million in 2006. The average price of
crude oils imported from the UAE increased by 6.18per cent to US$69.63 per
barrel in 2007, from 65.58 per barrel in 2006.

Japan depends on imports for almost all of her crude oil requirements. In
2007, 25.3per cent of this requirement was met by the UAE, the second
largest supplier, after Saudi Arabia.

The only other major item of import from the UAE is metal products,
consisted of semi-finished aluminium. Japan imported a total of 107,227 tons
of semi-finished aluminium from the UAE in 2007, against 97,306 tons in
2006.

The value of aluminium imports from the UAE stood at US$303.2 million in
2007, in the place of 259.8 million in 2006.