UAE, Japan non-oil trade rises to Dhs54.1 billion mark in 2022

The non-oil trade between the UAE and Japan grew by 36 percent over the past two years from 2020 to 2022, rising from Dhs39.9 billion to Dhs54.1 billion in 2022, according to data from the Federal Competitiveness and Statistics Centre (FCSC).

This significant rise in non-oil trade reflects the strong partnership and economic cooperation between the two countries, driving their sustainable development towards further economic prosperity and growth sustainability.

Over the past ten years, from 2013 to 2022, the non-oil trade between the two countries increased from Dhs53.9 billion to Dhs54.1 billion, reaching a total of Dhs524.4 over a decade.

In terms of foreign trade distribution between the two countries last year, re-exports totalled Dhs3.4 billion, non-oil exports amounted to Dhs6.5 billion, and imports reached Dhs44.1 billion.

Cars topped the list of top five commodities re-exported to Japan in 2022, with a value of Dhs1.3 billion, followed by car devices and supplies valued at Dhs417 million, then pneumatic tyres valued at Dhs274 million. Jewellery and ornaments amounted to Dhs150 million, followed by precious metal scraps at Dhs105 million.

In terms of exports, raw aluminium ranked first among the top five commodities exported to Japan, with a value of Dhs3.9 billion, followed by mineral oils valued at Dhs991 million, centrifugal filter devices at Dhs613 million, copper valued at Dhs404 million, and polypropylene polymers at Dhs143 million.

Regarding the top five commodities imported from Japan in 2022, cars topped the list with a value of Dhs20.08 billion, followed by car parts and accessories valued at Dhs4.3 billion, iron at Dhs1.3 billion, communication devices and equipment at Dhs1.1 billion, and printing equipment at Dhs1.07 billion.

Meanwhile, Humaid Mohammed Bin Salem, Secretary-General of the Federation of UAE Chambers of Commerce and Industry, on Monday announced the signing of a Memorandum of Understanding (MoU) to establish the “UAE-Japan Business Council”, under the framework of the official visit of Fumio Kishida, Prime Minister of Japan, to the UAE.

In his statement to the Emirates News Agency (WAM), Humaid bin Salem said that the council’s members will be selected in the coming months, and it will hold its first meeting before the end of 2023.

The council’s goal is to build and advance the relations between the two countries’ private sectors, which will involve sharing visits and information, finding trade and investment opportunities, and promoting cooperation in economic, technological, healthcare, educational and investment areas between the two countries’ public and private sectors, as well as increase Japan’s presence in the UAE and encourage collaborations between small and medium-sized enterprises (SME), he added.

He then noted that 45 percent of Japanese companies operating in the Middle East are in the UAE, where over 400 Japanese companies are based.

Humaid Bin Salem highlighted a growth of over 65 percent in private sector interactions between the UAE and Japan since Expo 2020 Dubai, which include partnerships, conferences, seminars, presentations, missions and exhibitions.

Japan and the UAE have a strong trading relationship, especially in the re-exporting of Japanese products such as vehicles, parts and industrial goods to other regions, such as the Middle East and Africa, he said in conclusion.

Trade, tourism connections:  Japan and the UAE have strong trade, tourism and business relations, which are supported by the frequent flights of national airlines Etihad Airways and Emirates.

Both carriers offer over 20 weekly flights to Japan. Etihad offers seven weekly flights to Tokyo, while Emirates offer daily services to Tokyo-Narita, Tokyo-Haneda and Osaka.

To meet the high demand for travel between the two countries, the two carriers plan to expand their operations.

The General Civil Aviation Authority (GCAA) noted that the UAE and Japan have a long-standing history of bilateral relations. They signed an Air Services Agreement in 1998, which gave their airlines the right to fly regular and non-regular passenger flights, as well as air cargo flights, between the two countries. The UAE’s national carriers serve Narita and Osaka with 21 flights per week, the GCAA added.

In the first half of this year, Emirati airports saw 46,776 passengers leaving to and 45,804 passengers arriving from Japan, the GCAA said, adding 357,214 passengers transited through the country’s airports.

The civil aviation authorities of both countries are working together to increase air traffic by adding more scheduled flights, and plan to hold an air transport meeting before the end of the year to further increase air traffic, the GCAA added.

Etihad, which launched its first flight to Japan in March 2010 and has been flying to Tokyo seven times a week ever since, plans to increase its flights to Japan in October, bringing its total number of weekly flights to 12.

It also plans to expand its service to Japan by adding flights to Osaka starting from October this year. Etihad Airways uses Boeing 787-9 aircraft for its Japan routes.