UAE trade with Belt and Road countries reach $305 billion in 2023

Gulf Today, Staff Reporter

The UAE has broad and multiple economic and trade relations with the People’s Republic of China, which is one of the country’s most important strategic partners at the global level, as well as with countries that will contribute to the Silk Road trade corridors that will connect the East with the West.

Since the launch of the Belt and Road Initiative, the UAE, with its development potential, strategic location, and pioneering economic role in the region, has been an active participant in the initiative, which is a favorable opportunity for the country’s development and investment aspirations regionally and internationally, especially since the initiative focuses on the UAE’s pivotal role in international trade and is in line with the directions of the UAE Centennial.

As well as through the economic partnership agreements that it adopted two years ago, and with the entry into force of 4 international agreements to date, along with supporting the re-export movement, which constitutes an essential pillar of the UAE’s non-oil trade, as it contributes approximately 30% of the UAE’s trade.

$560 billion

The volume of UAE trade with Asian, African and European countries during the year 2022 reached $560 billion, which accounts for 90% of the UAE’s non-oil trade in particular. China, India, Saudi Arabia, Iraq, Turkey, Japan, the Sultanate of Oman, Kuwait and Hong Kong are among the list of the 10 most important trade partners for the UAE.

The UAE’s non-oil trade with these countries during the year 2022 has achieved a growth of 20% compared to 2021.

Data for the first half of the current year 2023 indicate that the value of the UAE’s non-oil trade with the countries falling within the Belt and Road Initiative amounted to $305 billion, which contributes 90% of the UAE's non-oil trade during that period and achieved growth by more than 13% compared to the first half of 2022.

Also, 88% of the UAE’s imports are from countries participating in the Belt and Road Initiative, representing 94% of the UAE’s non-oil exports to these countries, as well as 92% of re-exports heading to these countries.

These indicators represent a basic and supportive foundation for the implementation of this initiative in partnership with all countries contributing to reviving trade between the countries of these regions, which include Asia, Africa, and Europe.

Proceedings of the eighth session

The UAE is participating in the eighth session of the “Belt and Road Initiative” summit, which is being held in Hong Kong, with the aim of enhancing joint trade and investment cooperation at the levels of the government and private sectors and building trade and development partnerships in the sectors of the new economy, technology and entrepreneurship.

The UAE has advanced logistical capabilities represented by its advanced airports and international ports, which are now classified as the largest container handlers in the Middle East region, in addition to its capabilities in transporting large quantities of goods, which can be used to integrate land routes with the shipping lanes in the Chinese Belt and Road Initiative.

In light of this competitive advantage for the UAE, the Belt and Road Initiative will contribute to enhancing the strength and position of the country as a global center for merchandise trade and logistics services, which strengthens its position as a strategic point of contact between Asia, Europe and Africa.

The UAE's participation and support for the initiative will reflect positively on increasing trade, infrastructure and transportation projects, and reducing the cost of investment, which will open the way for it to establish new economic and trade partnerships.

The UAE has an active membership and is a founding member of the Asian Infrastructure Investment Bank, which is led by China and seeks to strengthen development relations on the Asian continent and other countries.

65 countries

The 65 countries of the “One Belt - One Road” initiative represent 30% of the global gross domestic product, and expectations indicate that by 2040 these countries will represent nearly two-thirds of the global gross domestic product, making them among the most important drivers of global GDP. Influential economic growth and a crossing point for trade movement to various countries of the world.

The UAE has pumped $10 billion into a joint Chinese-Emirati investment fund to support the initiative’s projects in East Africa, and signed 13 memorandums of understanding with China in 2018, to invest in multiple fields within the Emirates. The UAE is also a founding member of the Asian Infrastructure Investment Bank (AIIB).

It is worth noting that Chinese President Xi Jinping proposed the “Silk Road Economic Belt” and “Maritime Silk Road” initiative for the 21st century during his tour in early September 2013 in the countries of Central Asia, and this idea received widespread attention locally.

Internationally, the “Silk Road Economic Belt” is based on the concept of the ancient Silk Road, and constitutes the new economic development zone in western China, and an ambitious economic vision that seeks to build a bridge linking an economic circle in Asia and the Pacific to the east and an advanced European economic circle to the west, to be the longest corridor.

75% of the world's population

The Belt and Road Initiative constitutes a bridge to strengthen economic, trade and investment relations between about 75% of the world’s population.

The initiative, launched by Jinping in 2013, celebrates ten years of joint cooperation with more than 152 countries in the world.

The initiative aims to build a trade and infrastructure network linking Asia in Europe and Africa in an effort to achieve joint development and prosperity. The name refers to the network of land and sea roads that linked China and Europe through the Middle East, with a length exceeding 10,000 km.