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Dubai's external food trade reaches Dhs52 billion by 2020

Princess Tarfa

According to Dubai Customs, the UAE performed admirably in ensuring food security during the COVID-19 pandemic, with Dubai's external food trade touching Dhs52 billion in 2020.

“Food safety is becoming important in light of current situations and the threats faced by the pandemic that has ravaged the globe,” said Nassim Al Mehairi, Manager of Statistics Section at Dubai Customs. “Following the orders of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, the UAE demonstrated an excellent success in securing food mostly during the pandemic. Dubai's external food exchange is projected to reach Dhs52 billion in 2020. (Imports Dhs34.7 billion, exports Dhs10 billion, and re-exports Dhs7.3 billion). This exchange measured 17 million tonnes (imports 12.5 million tonnes, exports 3.1 million tonnes, and re-exports 1.3 million tonnes), he said.

The Holy Month of Ramadan sees an uptick in the intake of various foods. Dubai Customs ensures that the food trade runs smoothly throughout the Holy Month and everyone can access to a high-quality food product. Following a fast recovery from the effects of COVID-19, Dubai is focusing on the post-COVID-19 period through the execution of key national strategies, one of which includes food safety.

Different customs facilities at Dubai Customs expedite the approval of food shipments to ensure that they reach market on time. The Zadi (or my rice) network is because of near collaboration between Dubai Customs, DP World, and Dubai Municipality to promote food exchange Zadi is a single food import portal that aims to encourage the import and re-export of food shipments. The Middle East's first-of-its-kind forum lines up with the UAE's post-COVID-19 approach, which will ensure the country's comprehensive recovery and growth. Dubai's non-oil international trade recovered strongly from the threats faced by COVID-19's global economic ramifications and the interruption of commercial investment by countries around the world in the first half of last year to mark robust growth in 2020.

Dubai's international trade will reach Dhs1.182 trillion in 2020, thanks to its resistance to global turbulence, and its steady economic rebound and rejuvenated expansion in the second half of the year. Total trade volume in 2020 hit 100 million tonnes, owing to a 6% year-on-year increase in volume in the second half of the year. In 2020, the overall export value increased by 8% to Dhs167 billion, while imports totaled Dhs686 billion and re-exports comprised of Dhs329 billion.

“Dubai's foreign trade market exquisitely conquered the effect of a global trade slump in 2020,” said Sultan Bin Sulayem, Chairman & CEO of DP World Group and Chairman of Ports, Customs and Free Zone Corporation. Dubai's trade volumes began to rebound and expand rapidly in the second half of 2020, because of opening of borders. In the third quarter, Dubai's trade increased by 34% compared to the second quarter, and in the fourth quarter, trade increased by 7% to Dhs326 billion compared to the third quarter. Trade volumes increased by 6% in the second half of 2020 relative to the same timeframe in 2019.

In total, 100 million tonnes of products were exchanged in 2020, illustrating the sector's steady recovery. This recovery is now driving increased demand in 2021. The continuation of trade with Qatar, the beginning of trade interaction with Israel, the promising spin-offs from hosting EXPO 2020, and the unveiling of the Dubai 2040 Urban Master Plan would all add to the emirate's development momentum.”

Bin Sulayem continued, "The Dubai Chamber has been restructured by developing three new chambers of commerce to expand the foreign trade market and play a bigger role in upholding Dubai's leadership position in global trade. The new chambers will strengthen aid for the economic sector by developing new options for the requirements of consumers and businesses to expand the emirate's international trade in line with Dubai's leadership vision in the next 50 years.”

The DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation said both government agencies and institutions will work in unison to accomplish their aim of improving Dubai’s foreign trade and helping the emirate maintain its pivotal role in promoting global trade and tourism. Dubai Customs has released its five-year plan for the period 2021-2026, outlining nine priorities and four key targets for improving customs functions.

Dubai Customs secured the American Business Agility Institute's (BAI) Agile Organization Certification, making it the world's first agile government institution. Dubai Customs signed a Memorandum of understanding with Etihad Export Credit Insurance Company (ECI) to promote stronger export success in the emirate by improving collaboration with export financing agencies. In the meantime, in May, the Department will conduct the 5th WCO Global AEO Conference in Dubai in collaboration with the Federal Customs Authority and the World Customs Organization.

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